The crypto market has come a long way since its humble beginnings in 2009. Now, 21% of American adults have owned a cryptocurrency. If you’re an entrepreneur, starting a venture in the crypto industry is great business sense.
There are several ways to enter the crypto market with a viable business venture, but successful crypto businesses require a significant investment in security, compliance, and technology. For many entrepreneurs looking to build a business from scratch, these costs become prohibitive.
White-label platforms can cut costs and get your crypto business to market faster. In this guide, we’ll explain how to use white-label options.
Crypto businesses typically operate in the financial technology (FinTech) sector, and they usually allow investors and traders to buy and sell crypto, though they may also focus on a particular type of transaction, currency, or service.
The most well-known crypto businesses are crypto exchanges. Crypto exchanges, like Binance and Coinbase, make it possible for crypto investors to buy and sell a wide range of cryptocurrencies like Bitcoin and Ethereum across blockchain technology.
The diverse crypto market gives entrepreneurs several options for building a viable crypto startup. The most common crypto businesses are:
A crypto exchange is a platform that facilitates crypto transactions. If you own cryptocurrency, you can sign up for a crypto exchange account to buy, sell, and manage your crypto transactions. Cryptocurrency exchanges deal with dozens of different coins on the market in order to appeal to worldwide audiences, and this mass appeal is why crypto exchanges are the most common startup option.
Successful crypto exchanges have the following qualities:
Crypto wallets allow users to store, send, and receive digital assets. A crypto wallet uses cold or hot storage to keep crypto assets securely in place. Since crypto wallets deal directly with people’s money, they need air-tight security.
Everyone buying or selling crypto needs a wallet, so this business model has a large addressable market. Wallets can also be built alongside crypto exchanges to create a more robust product offering.
Cryptocurrency payment processors enable small businesses to accept digital currencies as payment. While cryptocurrency isn’t widely accepted as fiat money, it’s being adopted as a payment method for online and physical purchases.
Fast conversion rates and transaction speeds set cryptocurrency payment processors apart. The faster you can process crypto payments, the better your business will perform in the market.
Crypto lending platforms aim to lend money to individuals and businesses via cryptocurrency. These companies work similarly to traditional lenders, giving money to applicants based on their credit profiles.
DeFi platforms use peer-to-peer transactions instead of a centralized authority managing transactions, adding security at the cost of speed. Users sign up for these platforms to buy and sell crypto without any intermediaries involved. Crypto investors can use DeFi platforms for lending, borrowing, and yield farming.
Whether you intend to build a business that specializes in one of the use cases outlined above or a more robust solution combining several crypto services, building from scratch is costly. Using a white-label partner will reduce your technical investment and allow you to focus on branding, user experience, and growth.
Here are some more reasons to consider investing in a white-label partner:
Choosing a crypto venture is only half the battle of starting a successful business. To get started, below are eight steps to building your crypto venture.
The first step in creating a crypto business is developing a business model. Your business model should include a customer value proposition, a profit formula, key resources, and key processes.
Some white-label partners offer support for strategizing and positioning to help refine your business model, but the biggest advantage of white-label platforms is that they allow you to focus on your business model rather than on app development, regulatory compliance, or security factors.
The best platforms will give your business room to scale by offering a large ecosystem of support services.
After creating a business model, you should develop a deep understanding of the costs necessary to run your business. Since most crypto-businesses operate over the Internet, you will have to cover overhead expenses, such as:
Overhead costs are essential to your business operation. Thus, covering these expenses is non-negotiable.
The crypto industry has stringent regulations in countries across the world. Before launching your business, you’ll need to consult with an attorney to ensure compliance with local and international crypto regulations.
Software you use to help build your business, including white-label platforms, will also need to be compliant with local laws. The best partners will include support for updating your business to match changing regulations.
Access to state-of-the-art technology is essential to running a successful crypto business. The technology you need will depend on your business model and the venture you’re pursuing. For example, you may need tighter security for developing a crypto wallet than a crypto lending platform.
Technology and security requirements will grow rapidly as your business scales, which will add development costs if you’re building from scratch.
Understanding market trends in the cryptocurrency industry is vital to figuring out your target audience. There are several ways you can conduct market research:
Each of these areas will help you discover critical insights about your target audience.
Having a high-quality user interface (UI) makes it possible for people to navigate your platform and get things done. A complicated UI causes churn and customer frustration.
That said, you should invest heavily in creating a user-friendly experience for your audience. White-label solutions shine here, allowing you to customize your UI, brand, and customer experience.
Providing around-the-clock support for your customers is key to keeping them satisfied and informed about your products and services. If you serve a global audience, you should invest heavily in creating a 24/7 customer support team.
As people visit your platform and create accounts, it becomes important to provide educational materials and resources to keep them engaged.
For example, if you’re running a crypto exchange, providing access to educational resources explaining exchange functions will help users take advantage of your platform’s full capabilities. Doing so will go a long way toward building a loyal community.
You can also expand your reputation into thought leadership with the creation of helpful resources that are popular online and on social media.
Overall, starting a crypto business is a great way to increase your earning potential, make a difference, and take advantage of a rapidly expanding market.
With AlphaPoint, you don’t have to create your infrastructure solutions from scratch. Instead, you can use our white-label solutions to bring your business to market faster and focus on running your business.
AlphaPoint has built a stellar reputation for delivering exceptional white-label crypto services. Ready to get started? Request a demo today to speak with our team!
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