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July 12, 2022Introduction
Cryptocurrency and blockchain technologies have been around for more than a decade. However, it looks like we are only scraping the surface of the long-term possibilities of cryptocurrency. If you’re an entrepreneur looking to start a cryptocurrency startup, you can still be a first mover, or if you just want to buy some, CEX.IO platform for buying and selling crypto got you covered.
With the NFT surge and new token launches, last year was a watershed moment for the cryptocurrency sector. Investment in crypto and non-fungible token (NFT) firms increased by more than 700%. Approximately $28 billion has been invested in worldwide crypto and blockchain firms, with $3 billion allocated to NFT companies alone.
Nowadays, almost everyone wants a piece of the cryptocurrency action — through investing in some existing coins or building something of their own. In fact, various people are even leaving their big tech company jobs to join a crypto company.
For instance, the New York Times reported that Sandy Carter left her job as the Vice President of Amazon’s cloud computing unit to join a crypto tech company, Unstoppable Domains. She declared, “The momentum we’re seeing in this space is just incredible.”
Many have taken notice of crypto’s immense growth potential and are not about to let the opportunity slip by.
What exactly is a cryptocurrency startup?
Companies established on a blockchain, which is a decentralized and immutable record that enables peer-to-peer crypto transactions and networking, are referred to be crypto or (more broadly) blockchain startups. Because it is founded on consensus procedures, it has no single leader and can raise funding from all over the world through techniques such as initial coin offerings (ICOs), initial DEX offerings (IDOs), and more.
Crypto companies are gaining traction thanks to increased demand for digital currency and the thrill of establishing a blockchain-based future. The venture capital investment boom, which has grown from a few million dollars in 2015 to over $6 billion in 2021, demonstrates this.
New York currently has the most well-funded crypto businesses in the United States, with over half of all investments going to startups in the city last year. The major investor is Coinbase Ventures. Furthermore, according to CB Insights’ State of Blockchain 2021 report, one out of every four dollars is allocated to blockchain projects around the world.
How can you launch a crypto startup?
Starting your own coin or blockchain project is similar to launching your own cryptocurrency. Here’s what you need to do to get started:
Understand the Basics Of Blockchain
In 2008, the world was introduced to a new concept that many believe will change society as a whole. That year saw the birth of Bitcoin, the first blockchain platform. Later, I’ll tell you more about it. Now is the time to define the term.
The term “blockchain” has several definitions. The following are the most common. Blockchain represents a peer-to-peer distributed ledger that is cryptographically secure, append-only, immutable (very difficult to modify), and only updateable by peer consensus.
Simply put, it’s organized into data chunks called blocks that use a hashing technique to refer to and identify prior blocks, producing an unbroken chain, hence the name. Because no one controls this database, tampering with it by fabricating papers, transactions, and other data is practically difficult.
The fact that all transactions are signed with an electronic digital signature provides cryptographic security, and the data placed into blockchain cannot be modified while it is running – you won’t have the computer power.
Decide on a project you want to create
There are several opportunities for aspiring entrepreneurs in the blockchain market. For example, you could create a cryptocurrency exchange like Gemini, an NFT art collectibles marketplace like OpenSea, or a gaming platform like The Sandbox. Do some research and decide what you want to make.
Understand the functionality you need and the associated costs
What purpose will your project serve? Do you want to record patient details on a decentralized, immutable ledger? Do you want to collate property listings and prices for your real estate company? Do you want to track your supply chain process—from documentation to payment? Figure out the ultimate goal of your startup and understand the cost breakdown, including the investment required to build it, the potential revenue, and the maintenance costs.
Build a good smart contract
Place your startup’s decentralized logic on a smart contract, which is a self-executing agreement between two parties. The smart contract will perform the befitting tasks when a user utilizes your project. You can choose to build your own contract or opt for one on an existing blockchain, like Ethereum. This way, you can build your project directly on that blockchain.
Create an efficient front and backend
Focusing on building an efficient user interface and a centralized backend can ensure that users have a seamless experience on your project’s site. Though the concept of blockchain may seem complex, your users shouldn’t have a hard time navigating it. It should be like any other mobile app.
Test and seek feedback
It’s time to put your crypto startup to the test now that it’s ready to launch. This way, you’ll be able to see if there are any flaws or areas for improvement. Furthermore, feedback is critical in determining the viability of your product. “There is no knowing where the market surge will go from its height,” Brendan Mannion, the founder of data management blockchain platform ClinTex, says. Will Bitcoin reach new highs, or will altcoins and tokens follow suit? Make sure your idea is ready for a bull market as well as a return to a bearish area.”
Promote Your Startup
Promoting your cryptocurrency business is critical to its success. As a result, leverage influencer marketing and community development to spread the word and advance your idea.
Employees can benefit from crypto startups as well. Indeed, many of them are willing to take a pay reduction to join these firms because they recognize the potential for growth.
Plus, there’s more. “It’s not always the case that you have to go take one-third of your Big Tech salary anymore, since a lot of these startups are so well capitalized,” says Evan Cheng, co-Founder and CEO of blockchain startup Mysten Labs.
Overall, entering the crypto company ecosystem benefits entrepreneurs, workers, and even investors.
Conclusion
Blockchain technology is intriguing in many ways, as it has the potential to improve a wide range of areas. There’s a lot we don’t know about it. But it’s still incredible! It’s now only a matter of putting it into action by developing good blockchain applications.
Overall, entering the crypto company ecosystem benefits entrepreneurs, workers, and even investors. So, what are you waiting for? Get started right away!
