5 Steps to Starting a Crypto Trading Business

A few basic points on where to begin

Starting a crypto trading business isn’t that different from most others. However, there are some unique challenges and concerns when it comes to digital assets. From registering your business to ensuring you have the necessary licenses and permits, here are some beginner suggestions.

Have a Reliable Team in Place

Like all businesses, having a reliable, talented, and experienced team is necessary for a crypto business. The very nature of cryptocurrency and digital assets such as NFTs is complex and requires unique skills and vast knowledge. Not least for the security of assets. Recruitment agencies can help you find a good team. And once you have employees, workforce scheduling software will help you manage their roles and activities once your business is up and running.

Make Sure to Register the Business

Pretty much all businesses must be registered, no matter what country you are in. This is for various complex legal reasons, not least for paying taxes. How you register your business depends on certain key elements and varies from country to country. But you must state the business type, such as an LLC or sole trading company, and register with your country’s departments, such as Companies House in the UK. There are services that can do this for you.

Open Accounts for the Crypto Trading Business

You will need bank and merchant accounts to handle the income and expenditure of your crypto venture. And when it comes to crypto, this isn’t as easy as other business types. This is because trading, buying, and lending crypto are regarded as high risk. Therefore, it can be hard to find a bank and payment processor willing to handle your accounts. Fortunately, there are specific services that will. Some of the best include CoinBase Commerce, BitPay, and Circle.

Look into Necessary Permits

Like all other types of trading, you will need a specific license for trading crypto. This is known as a crypto broker license and is legally required for using crypto exchanges as a broker. The good news is that you can use this internationally, so you only need a license from one country to trade crypto in another. However, there are some other permits you need to be aware of, such as industry-standard Anti-Money Laundering compliance and Know Your Customer regulations.

Take Crypto Asset Storage Seriously

If you don’t want to lose your assets, then you need to take storage very seriously. Despite the extremely secure nature of the blockchain, it isn’t unhackable, and you can lose assets with a relaxed attitude to cybersecurity. A survey by Chainanysis found that in 2022 alone, over $20 billion worth of crypto assets were stolen from users of blockchain platforms. Protection such as multifactor authentication will help. But you must always store crypto in an offline cold wallet.

Summary

A reliable, experienced, and knowledgeable team will help you start a successful crypto trading business. You must also find account services willing to accept your business, and prioritise security - Always consider storing your assets in cold wallets to prevent them from being stolen.