Startup cost
$500–$5k
TRUiC Business Ideas
How to Start a Cryptocurrency Business
Decision Snapshot
Cryptocurrency
Idea Score
48
Profit margin
4%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Low
Time commitment
Flexible
Part 1 - How to start a Cryptocurrency business - Background
Blockchain technology has given rise to a new digital currency: cryptocurrency. The most well-known cryptocurrency is Bitcoin, but there are hundreds of other “altcoin” cryptocurrencies. All of these cryptocurrencies are developed by cryptocurrency businesses.
Cryptocurrency marketing is young, yet it has a promising future. It’s been forecasted to reach as much as $1.75 billion by 2027.
Our guide is in 3 parts:
- Part 1 - How to start a Cryptocurrency business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a cryptocurrency business?
Programmers who are competent in C++ can create a new cryptocurrency without any financial layout, for the open-source core code that’s needed is readily available for free on Github.
Instead, the primary startup cost is time rather than money.
A competent programmer can create a new cryptocurrency in as little as 30 minutes because the core code is already written. A half-hour cryptocurrency is unlikely to be successful, though.
Successful cryptocurrency businesses usually have unique cryptocurrencies that have adjusted hashes, and changing the hash can take months. The businesses also typically invest a lot of time marketing their new cryptocurrency, for success ultimately depends on whether people adopt and start using the cryptocurrency.
At the time of writing, businesses didn’t have to register with the Securities and Exchange Commission when issuing an ICO. Businesses may choose to work with an attorney who’s familiar with ICOs and Securities issues, however. Doing so would increase startup costs but may have significant long-term benefits.
What are the ongoing expenses for a cryptocurrency business?
The ongoing expenses for a cryptocurrency business are minimal. It takes a great deal of energy to run the computer programs that cryptocurrencies rely on, but miners pay for this energy. The creating business rewards miners in cryptocurrency, which is built into the equations the business is created on.
Who is the target market?
Focusing on a community also provides businesses with a set group to market to. A targeted community can be almost any group, so long as it’s defined and has use for a peer-to-peer currency.
How does a cryptocurrency business make money?
Cryptocurrencies currently make most of their money through initial coin offerings (ICOs), which are akin to initial public offerings (IPOs) of stocks. An ICO can bring in a one-time influx of cash through the sale of coins. Afterward, any coins that a business itself has will hopefully gain value as the cryptocurrency becomes more popular and increases in value itself.
In the future, some cryptocurrency businesses will start to see more of their revenue come from transaction fees.
How much can you charge customers?
Many coins cost 10 cents each at the time of their ICOs, but cryptocurrency businesses are free to choose any amount they like. Some choose an incremental price structure to entice early adopters. After an ICO, the price of a cryptocurrency is determined by the open market.
How much profit can a cryptocurrency business make?
The profit potential for a cryptocurrency business is extremely high. For example, one business has raised $133 million in capital for a new cryptocurrency before an ICO.
How can you make your business more profitable?
Cryptocurrency businesses owners may start up mining operations to create additional revenue, but this could be perceived as a conflict of interest. Most businesses primarily focus on increasing their cryptocurrency’s value through marketing and providing ongoing technical support.
Day-to-Day and Growth
What happens during a typical day at a cryptocurrency business?
The activity at a cryptocurrency can be separated into pre- and post-launch. Before an initial coin offering, business owners spend time coding the coin and marketing it. Afterward, they focus on marketing it.
What are some skills and experiences that will help you build a successful cryptocurrency business?
Creating a cryptocurrency requires only basic coding knowledge. Programmers who are familiar with C++ can amend the open-source code used for Bitcoin or Litecoin (which itself altered Bitcoin’s code). Those who don’t know C++ can learn by taking a course online from Udemy or Coursera, or at their local college or community college.
While not absolutely necessary, it’s very helpful to have a knowledge of how blockchains work. The fundamentals are detailed in Bitcoin: A Peer-to-Peer Electronic Cash System, which was the seminal paper written by the founder of Bitcoin.
Alternatively, business owners who aren’t interested in the technical aspects of cryptocurrencies can hire a company like Blockchain App Factory or CryptoNoteStarter to create one. Before using one of these companies, however, business owners should carefully consider how their coin will be unique and add value. If a coin only duplicates the technical aspects of other coins that a company makes, it will be difficult to attain long-term success.
What is the growth potential for a cryptocurrency business?
Cryptocurrency businesses can grow to an immense size. Bitcoin has thus far been the most successful, once having a market capitalization of $835.69 billion. The cryptocurrencies value has been volatile and it no longer is as high, but this shows the potential that exists. Additionally, this was the value of all Bitcoins produced and not the value of the company that created Bitcoin.
What are some insider tips for jump starting a cryptocurrency business?
Before focusing on the technical aspects of creating a cryptocurrency, businesses should first identify a community that could use a new cryptocurrency. By focusing on a community rather than technical issues, business owners can better understand what features matter to the community. The features can then be built into the new cryptocurrency when it comes time to focus on technical aspects.
How and when to build a team
While it’s technically possible to create a cryptocurrency on one’s own in 30 minutes, attaining critical mass for a cryptocurrency takes a lot of time and labor. Therefore, business owners should bring marketers, ambassadors, miners and merchants onboard from the outset.
Rewarding these people with some coins in the cryptocurrency being created costs a business nothing and makes everyone invested in the cryptocurrency’s success.
Part 2 - Is a Cryptocurrency business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Cryptocurrency business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Cryptocurrency Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Cryptocurrency business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.