The crypto and blockchain industry has transformed from a little-known sector in its early days to a powerful global force. The decentralized nature of blockchain technology, possible applications of cryptocurrency assets, and the transparent nature of the average blockchain network are some factors significantly contributing to the sector’s growth.
Today, several types of businesses integrate crypto and blockchain to increase efficiency. Anyone with some interest in the crypto sector can search through platforms like cryptonews.com, for stories and updates about breaking news and events in the industry, many of them connected to crypto-focused businesses and startups. The crypto space has birthed several new ideas entrepreneurs can use to make profits in 2024. The following are a few examples.
Decentralized Finance (DeFi) Platform
A DeFi platform provides financial services to users by leveraging blockchain technology. These platforms are decentralized and well sought-after because they allow full ownership of assets. In addition to traditional finance services, DeFi platforms offer several other features that help customers earn passive income.
A decentralized finance platform can generate revenue from transaction fees when customers lend or borrow against their crypto holdings. Customers who do this also earn interest depending on the specific asset and length of time. Furthermore, entrepreneurs can earn fees from providing staking and yield farming services. In general, the DeFi market is attractive to users and businesses as the sector’s total value locked (TVL) hit $52 billion in 2023, a 36.8% increase from the $38 billion recorded earlier in the year.
Crypto Gambling Platform
Cryptocurrencies have improved the online gambling sector in many different ways. Through crypto gambling, online casino operators can keep more revenue as profits because crypto transactions are cheap. In addition, integrating cryptocurrencies with gambling expands the platform’s game library by leveraging blockchain technology. Users get to enjoy provably fair games, which use cryptographic algorithms that allow players to independently verify the fairness of a game’s outcome. Furthermore, crypto gambling broadens a casino’s audience so that customers can register and play regardless of geographical location.
Crypto Exchange
A cryptocurrency exchange is a platform where users buy, sell, or trade digital assets. The exchange generates revenue via several methods, including listing fees for new assets, transaction charges, and premium services available to experienced traders.
Most people in the crypto sector use exchanges to keep their tokens and perform crypto transactions. Arguably, a crypto exchange is the most well-known type of business in the crypto space.
Entrepreneurs should note that it might be challenging to start a crypto exchange because of the technical knowledge required and software complexity. However, several fintechs offer entrepreneurs the software required to launch, only needing to make a few adjustments.
Cryptocurrency Mining
Mining is another profitable cryptocurrency business. It is the process of using computers to solve complex mathematical problems that keep blockchains running by validating transactions and adding them to the blockchain. Proof-of-Work (PoW) networks like Bitcoin (BTC) pay miners crypto as rewards, which is how assets enter circulation. Essentially, crypto miners contribute to a network’s security and earn directly for their participation.
However, cryptocurrency mining is an expensive endeavor for two major reasons. First, the computers used to solve these mathematical problems are very costly. Second, the machines are very energy-intensive and can cost a fortune in electricity bills.
Crypto ATM Operations
A crypto automated teller machine (ATM) lets users buy and sell cryptocurrencies at a kiosk, much like a fiat ATM. Depending on the location, an operator can earn handsomely, especially when transaction volume is high. Some studies suggest that crypto ATMs in choice locations can break even within a year.
These machines are easy to run and do not take up much space, so rent costs are affordable. This helps to increase profit margins, especially in high-traffic areas. Current CoinATMRadar data reveals 38,532 cryptocurrency ATMs in 70 countries, with 434 operators. This suggests that there is still plenty of opportunity in the crypto ATM business.
NFT Marketplace
Entrepreneurs can build a business around a marketplace for non-fungible tokens (NFTs). Although NFT popularity has waned in recent times, there is still a vibrant community of NFT lovers, including issuers and buyers. In addition, NFTs are an integral part of several crypto and blockchain games as they help to represent in-game assets on a blockchain, allowing for public trading.
Developers can create user-friendly interfaces that simplify the process of trading and minting these tokens on several blockchains. Business owners can charge varying fees for listings and take a percentage of concluded transactions. In 2023, NFT trading volume across the top 10 chains hit $11.8 billion.
Crypto Education
There is an increasing demand for training programs geared toward helping individuals and businesses understand and properly navigate the crypto space as digital asset adoption increases. Businesses can focus on creating comprehensive courses with in-depth explanations of the crypto and blockchain sector. The courses can also include input from renowned industry stakeholders who offer deep practical insights into the sector.
Entrepreneurs teaching crypto as a business can earn from subscription plans and course fees. They can also take advantage of partnerships with similar companies and leverage relationships with institutions to teach their students.
Crypto Accounting and Tax
Crypto-focused tax and accounting services are essential to help individuals and businesses keep proper books and file taxes appropriately. This business requires specialized financial knowledge and up-to-date information about tax requirements and related regulations. Qualified companies can help with financial reporting, including details of crypto holdings, transactions, and payable taxes. An accounting and tax business may also advise individuals and businesses on the best way to keep taxes minimal. This type of business can earn from subscription plans for services or software tools, service charges, and consultation fees.
Crypto Payment Gateway
A crypto payment gateway is an essential tool that contributes significantly to the adoption of digital assets. These gateways help businesses to receive payments in cryptocurrencies and automatically convert the assets to fiat. Businesses willing to accept crypto payments need payment gateways that can support multiple cryptocurrencies to attract a broad range of customers. Crypto payment gateways may earn from subscription plans and collect fees for advanced features. In addition, the gateway may charge a small fee for each transaction or collect payment for integration. According to a forecast from Future Market Insights, the global crypto payments market is expected to grow from $1.294 billion in 2023 to $4.853 billion in 2033.
Launching a Token
Developers can launch their own tokens specifically designed for various purposes. For instance, a developer can launch a business that tokenizes real-world assets (RWAs) on behalf of merchant organizations. This helps businesses dealing in these assets to reach a broader range of customers and allows buyers to invest remotely. Tokenization can also help with fractional ownership, allowing a group of buyers to own a percentage of an expensive luxury item. Businesses can charge a fee for developing the token, as well as providing related services like engineering or coding upgrades.
Conclusion
From creating safe and user-friendly DeFi or exchange platforms, to developing new tokens or mining assets, the crypto and blockchain industry offers several opportunities to interested entrepreneurs. Anyone can create a new crypto-focused business or integrate digital assets with an existing traditional idea to earn handsomely by leveraging the power of blockchain. Either way, the potential for financial rewards and technological benefits is immense and available to all interested individuals and entities.
