Cryptocurrency Business Ideas and Revenue Models 2020
2019 was a great year for Bitcoin as their market capitalization grew and at the same time Bitcoin analyst says BTC could reach $25,000 by the end of 2019. If you’re in the process of planning to create a new crypto coin or starting a cryptocurrency based business model, you might be wondering what the best way to make revenue is.
This is especially true if you’re planning to start a lifestyle cryptocurrency business on this crypto peak time.
Cryptocurrency Revenue model is an online crypto business term that just means “how a crypto business makes a profit.” When it comes to cryptocurrency business revenue models, there are lots of different choices. If you’re planning to create a new crypto coin like Bitcoin, you should understand the differences between potential revenue models and make sure the way you’re planning to make profits will be a good fit for your crypto business and life goals.
For example, some cryptocurrency revenue models will require a big investment of time or money before you start to earn an income. Some might allow you to keep your daily work while starting the business. Others might be better adapted to running while moving.
Cryptocurrency Revenue models can also be adapted and mixed to meet your business needs. In this guide, I am going to share with you an overview of the cryptocurrency business revenue model 2020. I will talk about step-by-step and also their revenue history.
So, by the end of this guide, you will not only know the cryptocurrency revenue business model 2020 but also the reasons behind their profits & success.
Table of the content:
- What is Cryptocurrency?
- 10 Eye-Opening Facts About Cryptocurrency
- Who Controls Cryptocurrencies?
- Cryptocurrency Regulations Around The World
- Best Cryptocurrency 2019
- Best Cryptocurrency to Invest in 2020
- Life Leadership Cryptocurrency
- Who’s gonna benefit from Utilize Cryptocurrencies?
- How can you spend cryptocurrency in real life?
- Top Companies That Accept Cryptocurrencies
- Is Cryptocurrency Right for Your Business?
- How your cryptocurrency will be profiting your business?
- Top 5 Cryptocurrency based business revenue model 2020
- What are the Primary factors before you create your cryptocurrency?
- How to Create a Cryptocurrency?
- Final Thoughts
What is Cryptocurrency?
Cryptocurrency is a decentralized digital coin that uses encryption to make money and to verify transactions. In simpler terms, it’s an alternative to traditional currencies like USD, EUR, DZD and more, which are backed by a centralized government like the US Dollar (USD).
A Common Description of Cryptocurrency
- Every cryptocurrency has a unique public ledger that includes the past and present ownership or data of each coin.
- If you want to make the fast transaction, you simply send to the cryptocurrency’s network that you’re transferring ownership of some cryptocurrency of yours to someone else.
- The network then spends computational power on both validating your transaction and adding it to the public ledger.
- In the process, this computational time and effort to develop new cryptocurrency as a reward to the community peoples who helped make the transaction more possible.
There are many specific cryptocurrencies currently becoming popular and broadly-used as currencies, commodities, and electronic payment systems. The most generally-used cryptocurrency is, by far, Bitcoin, Ripple, Ethereum, Litecoin, and more. These Crypto coins are growing in both public recognition and value.
10 Eye-Opening Facts About Cryptocurrency
- A cryptocurrency is a virtual or digital asset which takes the form of tokens or coins.
- Cryptocurrencies have become adequately popular in the market since they were first introduced in the early 2000s.
- Every cryptocurrency has a blockchain that contains the entire data of each coin.
- There are more than 1,500 cryptocurrencies (but bitcoin is king)
- Bitcoin continues to lead the pack of cryptocurrencies, in terms of market capital, user base, and popularity.
- Bitcoin and other cryptocurrencies have appeared as a new digital asset class that has seen outstanding returns over the past decade.
- After reaching nearly $20,000 in early 2018, Bitcoin (BTC) price analyst thinks it will hit $25,000 around the end of 2019 as the rest of the crypto market also high.
- Digital currencies like Ethereum and ripple, which are being used more for enterprise solutions, are becoming more popular.
- Some altcoins are being backed for superior or advanced features is equal to bitcoins.
- Businessperson looking to launch a new cryptocurrency can do it through an initial coin offering (ICO), a turn on an initial public offering (IPO).
Who Controls Cryptocurrencies?
Cryptocurrency is an internet-based medium of exchange platform which uses cryptographical functions to handling financial transactions. Cryptocurrencies leverage blockchain technology to increase decentralization, transparency, and immutability.
The primary key feature of a cryptocurrency is that it is not controlled by any third party or central authority: the decentralized of the immutable blockchain develops Cryptocurrencies probably immune to the traditional ways of government control and interference.
Cryptocurrencies can be sent directly between two users through the use of private and public keys. These transfers can be done with low processing fees, enabling users to avoid the high fees charged by traditional financial organizations.
Cryptocurrency Regulation Around the World
In the crypto world, peoples are used cryptocurrencies and it becomes spread rapidly across the globe, so it’s depending on where are you located and what actions you plan on taking. Some top most countries are keen to open the doors to the new financial freedom that crypto promises, while others remain neutral. Regulation action is still under development as well as the proper tax scheme. If you live in the US, UK, Singapore, Malta, you don’t have to worry about buying or trading bitcoins and alternatives, and if you’re a businessperson who accepts crypto payments or an exchange, you should always step into legally, pay taxes, and keep an eye on your KYC procedures and AML policy.
Cryptocurrency Regulation India
Let’s be honest, India has never supported cryptocurrencies naturally. The country has a mixed expanding economy and corruption is widespread. On top of that, India suffers from the underground financial problem, which might cause these major doubts that the state has developed towards cryptocurrencies.
Cryptocurrency Regulation Japan
The economy of Japan is highly expanded and market-oriented. In fact, it is the world’s second-largest developed economy. On top of that, Japan is the 18th least corrupt nation. It’s interesting that cryptocurrency exchanges are closely regulated businesses in the country, as the government strives to do both: support the crypto industry and at the same time protect its citizens.
Cryptocurrency Regulation China
China’s socialist market economy is a tricky one. Being the world’s biggest trading nation, the country has to stay open-minded and extensible. One more thing, the country’s struggling with corruption and the china government always remains highly controlling, especially when it comes to financial matters and trying to keep the money from flowing overseas. This deeply explains why the Chinese force has always been rather approachable towards blockchain technology, but not so friendly to cryptocurrencies in common. Currently, Chinese folks are allowed to own crypto but not allowed to trade it.
Cryptocurrency Regulation US
The US is absolutely one of the cryptocurrency-friendly countries. The country with the world’s largest highly developed mixed economy is also a latest-technology innovator. The USA is also the 22nd least corrupt nation. Undoubtedly, the combo of these factors creates an interesting atmosphere for the development of the cryptocurrency and blockchain industries.
Cryptocurrency Regulation UK
The United Kingdom, with its highly developed and market-oriented economy, still consider the legal status of Cryptocurrencies. However, because the fact that London is the world’s largest financial midpoint center, most likely it’s not going to be long until the country declares its official position towards cryptocurrencies. Right now, the British government is taking steps towards regulation primarily leading crypto exchanges and developing proper due intensity that will cover AML, KYC, and CTF policies.
Cryptocurrency Regulation of South Africa
The vast superiority of African countries stays crypto neutral. The governments tend to warn their peoples about the risks of trading crypto and feasible financial losses and urge them to be particularly cautious when dealing with virtual currencies.
South Africa’s economy is the second-largest in Africa, however, the corruption level is much high over there. At the starting of 2019, the government allowed a special working group to research the entire crypto industry and propose a regulation policy. Right now, South African crypto legislation still stays in limbo with only one modification: the government covers normal income tax rules to digital or crypto assets.
Cryptocurrency Regulation Canada
Canada allows the use of digital or cryptocurrencies. However, Cryptocurrencies are not treated legal tender in Canada. Canada’s tax laws and rules, including the Income Tax Act, also cover to cryptocurrency transactions. The Canada Revenue Agency has outlined cryptocurrency as a commodity and stated that the use of cryptocurrency to pay for goods or services should be treated as an exchange transaction.
Cryptocurrency Regulation Singapore
In Singapore, cryptocurrency exchanges and cryptocurrency trading are legal, and the state has taken a favorable position on the issue than regional neighbors. Although Cryptocurrencies are not considered a legal tender, Singapore’s tax authority treats Bitcoins as ‘goods’ and so covers Goods and Services Tax.
Cryptocurrency Regulation Malaysia
In Southeast Asia, the Malaysian economy is the third largest and actually, the country itself is pretty competitive. Kuala Lumpur is famous for its financial sector, and Malaysia is also a center of Islamic Finance.
When it comes to crypto, the country is completely and utterly cautious, but still relatively open-minded, mainly focusing on transparency and the security of its citizens. In Malaysia, cryptocurrencies are classified as securities. The government understands the possible benefits the crypto industry might bring, thus requiring exchanges to register with the Securities Commission. If approved, the exchanges then have to make sure they fit the required standards. The commission is also actively figuring out ways to manage ICO activities.
Cryptocurrency Regulation in South Korea
In South Korea, cryptocurrencies are not treated legal tender and exchanges, while legal, are part of a closely-watched regulatory system. Crypto taxation in Korea is a grey area: since they are treated neither currency nor financial assets, crypto transactions are currently tax-free, but the Ministry of rules and Finance department declares taxation in 2018, with taxation expected to be enforced at the end of 2019.
Cryptocurrency Regulation in Switzerland, The EU countries, Malta cryptocurrencies, and exchanges are legal, and the country has adopted a remarkably progressive stance towards cryptocurrency regulations.
What are the Primary Reasons to Invest Into Cryptocurrencies?
Before we name the most trusted investment opportunities, we need to mention a few basics. Expert writers explain about cryptocurrencies as digital assets developed with a plan to complement fiat currency and assure the safety of financial transactions in the online platform.
One of the basic questions is why would you buy bitcoin & other crypto coins at all. As it turns out, there are many reasons to do it:
Accessibility: crypto coins are universally accessible and you can trade them wherever and whenever you want.
Security: Investing in crypto coin, you don’t have to fear identity thefts or frauds.
Lower fees: The costs of cryptocurrency transactions are much lower than fiat exchanges.
Portfolio change: You can use crypto coins to change the portfolio of investments and broaden the scope of work.
Faster transactions: Cryptocurrency operations are handled almost instantly, so you don’t have to waste any time at all.
Best Cryptocurrencies in 2019
Here we list out the most popularized Cryptocurrencies in 2019:
- Bitcoin (BTC)
- Ethereum (Ether)
- Ripple (XRP)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Litecoin (LTC)
- Stellar (XLM)
Best Cryptocurrency to Invest in 2020
Now it’s time to find out what the cryptocurrency market cap 2020 will be like, and which coins are worth considering. Let’s review the top 10 coins.
Most cryptocurrency experts are sure that Bitcoin will still rein the market of top crypto coins in 2020. A lot of institutions buy BTC hoping to make an investment that can pay off in the future– this is a piece of the pie which everyone should have. As for Bitcoin price, it’s predicted to grow by 200 percent over two years, which means it can be around $13,000-14,000 by the end of 2020.
Ethereum is still one of the major dApp development platforms, things can change if these networks won’t be capable of managing the transaction load. Blockchain 3.0 and 4.0 projects are snapping at Ethereum heels and experts need to improve scalability or jump to EOS to assure optimal performance. According to experts report, there will be about ~100 mln ETH moving in 2020, and the Ethereum market share will be about 1,137,500, 000,000
It’s not a secret that XRP can become the king of banking foundation, so Ripple forecast 2020 is quite optimistic. As for the price, Ripple predictions 2020 differ. According to WalletInvestor, its price may rise by 380 percent and reach $0.6-0.7 in a couple of years.
EOS is expected to become the number one system for business applications. If we ever witness shifting of Twitter, Uber, and Facebook to decentralized platforms, they’ll surely be built on EOS. It’s highly scalable, and most Ethereum projects can be shifted to the EOS network, which makes it a potential killer of ETH.
2020 can become the golden age for EOS: it may reach $95 in the middle of the year and drop down to $55 by December 2020. Other forecasts mention such numbers as $60 (Facebook) and $23 (Google).
Stellar Lumens price prediction 2020 is around $0.64-$0.7. However, some websites give way for more optimistic forecasts.
The NEO ecosystem has the potential to become a major public infrastructure, and the Chinese government is interested in it. NEO is one of worthiest coins to invest in due to cheerful forecasts: thanks to investment from the Chinese government and other organizations, its price can grow to $200 and $300 per token.
The launching of the Goguen Project and KEVM testnet can generate the growth of Cardano. When Goguen Project is finished, we may witness Cardano price soaring. What also contributes to its growth is implementation in the Eastern Pacific, especially Japan. Cardano price in 2020 can rise from $0.29 to $0.5.
One of the major crypto coins to invest in, Litecoin, QASH, tZERO will continue conquering the market thanks to its technological superiority over Bitcoin. According to realistic predictions, Litecoin, QASH, tZERO price can double in 2020.
Image Ref - best-bitcoin-exchange.io
How can you spend cryptocurrency in real life?
When everybody is trying to buy Bitcoins we are trying to understand whether Bitcoins can play a big role in our life? We mean, how can we use them in real life and why we buy them.
Why Bitcoin is going to play a big role in our lives?
As Bitcoin has no central bank its supply is decentralized. Simply put, It is not like dollars, pounds or even gold, you can’t touch them. Then why do we eagerly want to buy them and how can we spend them?
First of all, this kind of digital currency transaction is private and secure. It is ensured by the fact that no third party can take part in the transaction. This can provide cryptocurrency with a bright future.
You may say “How can I spend bitcoins?”. Don’t worry, bitcoin can already be accepted in numerous shops, websites and companies all over the world.
The number of companies accepting bitcoin payments has increased over the last few years. For example, Microsoft and travel website Expedia both accept bitcoin as a means of payment.
Top Companies That Accept Cryptocurrencies
In the past few years, Bitcoin and other crypto coins have been gaining popularity with investors and retailers alike. The original cryptocurrency might be a great store of value, but it can also be used in a large group of peoples to purchase goods and services. The primary use case of Bitcoin is to be able to transfer money in a totally transparent and censorship-resistant way. And startups to big companies that accept Bitcoin know this.
So, in order to discover what you can buy with your Bitcoins, we have compiled this list of businesses, big and small, that accept it as payment.
25 Major companies that accept Bitcoin
Here are some of the most popular companies that accept Bitcoin for their services and/or products.
11. Express VPN
23. More Stamps Global
Source From - Top 150 Major Companies Accept Bitcoin
Is Cryptocurrency Right for Your Business?
The growth rate of cryptocurrency and the endorsement of immutable blockchain technology by businesses may be the final stage in the paper transactions. Most businesses and banks are already inspiring toward digital only, and as accessibility and popularity for cryptocurrency grow, it is likely to be the future.
Here’s get some factors about why cryptocurrency could be the right for your business:
1. Cost-Effective Business Transactions
2. Real-Time Digital Currency Exchange
3. More Secured Transactions with No Chargebacks
4. Enter the Global Marketplace
5. Increased Conversion Rates
How to structure your Cryptocurrency Business revenue model?
There are various scenarios that you need to take into account when choosing which cryptocurrency revenue model you should incorporate. These scenarios are directly related to your business model.
- If you are planning to create your own cryptocurrency then you should know how to utilize your own crypto coin into your business?
- If you are acting as Crypto exchange intermediary connecting crypto buyers as well as sellers, then would you charge a commission fee on the exchange?
- Will you charge for access to the products or services online in the form of a crypto smart contract?
- Will you provide most of the crypto services for charge advertisers and marketers who want to target the investors?
- Will you provide your services and products to be used in the crypto exchange of a commission fee?
- Will you use a combination of these cryptocurrency business revenue models?
What are the Simple ways to use your own cryptocurrency in your business to get profits?
Cryptocurrency platform was developed to improve and facilitate the introduction of a business, one of the plans to create a cryptocurrency is to facilitate the transaction with money, bypassing the essential institutions. But today, the state has changed its way to cryptocurrency and has offered a soft and comfortable policy in the relations of businessperson who are engaged in cryptocurrency, which has become even more interesting for investors.
Cooperation of business with cryptocurrency will surely depend on the business model. And the simplest way to execute cryptocurrency in your business is to receive payment using cryptocurrency.
Here are the most famous ways to use cryptocurrency in your business and become part of a global system:
- Accept Payment.
- Marketing and PR
- Sign Contracts.
- Selling Tickets.
- Loans and microcredits.
So if you are creating your own cryptocurrency then it helps to spread your brand around the world and make huge revenue on your business as per regular basis.
The Top-most popular Cryptocurrency based business revenue models 2020
The top-most cryptocurrency revenue models for online businesses are:
- Cryptocurrency Exchange /Trading Startups
- Bitcoin Wallet Service Startups
- Bitcoin Mining Startups
- Ethereum/ Digital Asset exchange Startups
- Decentralized Exchange with Atomic Swaps
- ICO - Initial Coin Offering
- STO - Security Token Offerings
- Private Blockchain Implementation For Business
- Token Development & Exchange ( Ethereum)
When to choose Cryptocurrency Exchange / Cryptocurrency Trading revenue model:
If you want to run the crypto exchange business, every transaction can bring you profit. When you enter into the exchange business, the money will efficiently come. The primary thing is to start and to gain trust from the traders. Once your crypto exchange website gets huge traders, then your profit gets higher.
When to choose cryptocurrency Mining revenue model:
This is an acutely popular activity when we talk about Bitcoins. Biggest exchange companies are opening mining pools and work on advanced solutions.
When to choose a cryptocurrency wallet revenue model:
Crypto Wallets purpose is to store crypto coins like Bitcoin, Ethereum, Ripple in one place. But, transparent wallet services already exist. Startups to large Companies are now developing it into a technology perfections.
When to choose Blockchain revenue model:
Blockchain technology has become more popular due to its successful endorsement for cryptocurrencies like Bitcoin. This blockchain has many advantages as it can keep the records of all data or money transaction made between any two parties in a secure, immutable, and transparent manner. This public ledger technology has the full potential to roll out 20+ industries, in which Banking, SCM, Real estate, Health care, Telecom, Fashion, Food, Music industries, etc
When to choose Token Development and Exchange revenue model:
As of today, the number of crypto tokens is familiarized to overtake the count of live cryptocurrencies. The reason behind this scene is ICO’s and STO’s. So the users have tokens in their wallet have no way to exchange it with other assets or cryptos. So to favor those people, many popular exchanges have started to integrate the Token Exchange model.
Top 10 Primary key factors before you create your cryptocurrency
- Having a Good Product knowledge
- Know what you want to accomplish with the crypto coin launch
- Studying the Entire Market
- Assure you have the right funds
- Getting the team of crypto coin developers
- Know the legalizations and also regulations
- Cryptocurrencies can cut down operational costs
- Instant Transactions
Hope you have got simple points on the basic aspects on how to create a new Crypto coin like Bitcoin with secure Manner.
How to Create a Cryptocurrency with Developcoins?
So do you want to know how new crypto coins are developed, right? Okay, to create your own cryptocurrency, you should initially have a blockchain network.
There are different ways through which you can create a new cryptocurrency:
- By Crypto Coin
- By Crypto Token
Crypto Coin Creation
If you are looking for the best cryptocurrency development company for your crypto coin development project then you go with Developcoins!
The process of crypto coin creation takes a few minutes. However, you should be an excellent person with first-rate coding skills. Combined, you should also be good with blockchain technology for this. The next thing is to handle, support and promote the coin. If you hire the right cryptocurrency developers for your crypto coin creation, you can save more time & money without loss!
Crypto Token Creation
If you have an existing blockchain, crypto token creation can be done very easily with unique standards!
How Developcoins can help you with creating your own cryptocurrency/Token?
As a leading Altcoin development company, Developcoins can help you to create your own cryptocurrency & Token with 100% hassle-free using highly secured and robust blockchain technology. We are experts at developing blockchain over new consensus algorithm especially to achieve scalability and reliability in-network with multiple nodes.
We Developcoins, have a dedicated team, who are well experienced in creating cryptocurrencies and rendering custom cryptocurrency development services which include coin creation, cryptocurrency application development, cryptocurrency exchange software development, cryptocurrency wallet development, smart contract development, white-paper creation and so on.
If you need a free consultation or free demo on your cryptocurrency-based project, then you can contact us here!