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How to Start a Potentially Successful Bitcoin Business

How to Start a Potentially Successful Bitcoin Business - You want to start your own Bitcoin business, but don't know where to start? This article intends to confirm some important things before you start your own Bitcoin/cryptocurrency business.

How to Start a Bitcoin Business

Starting a Bitcoin business involves six basic steps:

  1. Define operational area
  2. Evaluation of country requirements and compliance requirements
  3. Partnering with a Bank or Payment Processor
  4. Create transaction history and liquidity on the exchange
  5. Good Security System
  6. Offer Friendly Customer Service

Now, let's explore each one in more depth.

1. Determine the operational area

Whether you want to work globally or control yourself in a particular region or country, you will be required to obtain the necessary licenses and agreements so that your company can be opened within the scope of your operations.

Laws vary widely from place to place, so check with legal experts regarding licensing and compliance with the laws and regulations of the place you are planning to open.

2. Evaluate country requirements and compliance requirements

Most governments require substances participating in currency transition efforts to comply with Know Your Consumer (KYC) ethics.

KYC is a process in which an attempt to confirm the identity of its loyal customers through an ID card or passport issued by the government. KYC in is necessary to curb the rate of money laundering.

Make sure your bitcoin business complies with KYC ethics. If you don't, you'll likely wonder one day why the police suddenly stood at your doorstep.

3. Payment Processor

Payment provider to process payments in fiat currency. Choose the most trusted bank and also provide various online facilities.

This is more relevant in developing countries, where a large number of banks do not have the means to conduct instant banking business transactions online.

Business transactions may take up to 2 days to process transactions. Partnering with a bank that has fast clearing and settlement of funds will provide relief for your customers.

Deposits and withdrawals of fiat funds can be carried out automatically through a payment gateway or can even be done manually.

4. Create transaction history and liquidity on the exchange

Every exchange needs liquidity to operate successfully. Customers hesitate to place orders or even deposit funds unless they view the complete order book and trading activity. New exchanges naturally face liquidity problems.

There are three steps to kickstart your liquidity:

  • You can simulate your trading routine on your own exchange by buying and selling between two created accounts on your own exchange.
  • You can apply an API interface that connects your bitcoin business to other exchanges.
  • You can join all cryptocurrency exchange networks such as Trust-Deposit which will tie up the liquidity of all exchanges in the network.

5. Good Security System

Any business needs the best security to ensure smooth transactions. This also applies to your loyal customers' personal data which includes their KYC and bank account info.

There have been incidents of security breaches in several exchanges such as Mt. The Gox breach where security breaches went unrecognized throughout the year that caused nearly 1% of all bitcoins in circulation at that time to be stolen.