Business

A Guide for Surviving the Cryptocurrency Business

Cryptocurrency Business

Cryptocurrencies like Bitcoin and Ethereum enable people to fundraise for startups through crowdfunding. Crowdfunding allows people to contribute towards a product or a company on the internet. That way, a startup can launch a service or product at a low cost.

On the other hand, Initial Coin Offerings are crowdfunding alternatives. While they transact in a revolutionary way, ICOs have a similar goal of raising money for a startup. And their popularity has risen over the last years, especially for crypto firms on blockchain technology. That’s because they allow startups to raise funds without legal issues that accompany traditional methods.

ICOs Explained

ICOs use digital currency as the exchange medium. Ethereum and Bitcoin are the most popular virtual currencies for ICOs. That’s because they are easy to acquire online. For instance, you can purchase Ethereum at BitIQ . Such a platform allows you to register, fund your account with fiat money, and buy this digital currency.

Essentially, Initial Coin Offerings allow you to exchange your tokens or coupons of your cryptocurrency for the current digital currencies. For instance, if a startup wants to raise funds, it would sell a coupon for its future in exchange for virtual money like Bitcoin or Ethereum. If the startup succeeds, its coins add value, making investors happy since their return on investment will increase.

However, not every startup succeeds in getting funding through ICO. To get the financing it needs, your startup should follow these tips.

Present a Credible Project

Investors must trust your startup project to invest in it. Therefore, define your project and its purpose. That way, you can show potential investors that you’re transparent and know what you intend to do. Also, tell investors about your business plan and location. If you have a team, tell investors about it. Make research easier for potential investors to enhance your startup’s reputation.

Establish the Right Team

As hinted, potential investors may want to know the team that will help with your project. Therefore, develop a credible team to prove to potential investors that your startup stands a higher chance of succeeding. Ideally, know the background of every team member and ensure that they can deliver on your project’s goals and ambitions. That way, potential investors will trust your team, and you’ll have an easier time explaining every detail of your project.

Present a Roadmap

A roadmap is a white paper that informs potential investors about your project. This roadmap should outline your project goals comprehensively. It should also explain complex issues in your business ideas and the techniques you’ll use to solve them and ensure the seamless running of the project. Also, include details that tell potential investors what makes your project feasible. That means including factual data, quantitative studies, and information to back up your business plan.

Discuss Your Crypto Tokens

Your crypto tokens will be the primary motivation for potential investors. Therefore, be specific and clear when talking about them with investors.

Provide details like:

  • Reasons for releasing your startup’s tokens and not established currencies like Bitcoin
  • How you’ll use the funds
  • Your tokens’ value
  • Your tokens’ trading volume
  • The number of coins you intend to keep
  • Release dates for your tokens
  • Dates when investors can trade your tokens on crypto exchanges

Logically sound and complete information about your startup tokens will draw more potential investors. Therefore, focus on providing details that will make you stand out.

Protect Your Company

Cryptocurrencies present a relatively new technology. And this has also attracted hackers that may want to take advantage of your ICO. Therefore, take all precautionary measures to protect your company. Also, research ICO before getting started.

In addition to these tips, get cyber liability insurance cover. That way, you can protect your business against liability for personal data breaches, including credit card numbers and social security numbers.

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