The Definition, Benefits, and How to Run a Crypto Business

 

In the era of technological advances, the crypto business is becoming increasingly popular and in demand by many people. Despite being overshadowed by high risks, businesses in the cryptocurrency world have relatively greater profit potential than conventional instruments.

As a business object, crypto has a high price increase from time to time. For example, Bitcoin at the beginning of its release in 2009 was US$0, then it became $57.000 more in 2021. Even though it misses the point in 2022, it does not eliminate the fact that crypto is the object of investment with the most significant increase even without physical form.

 

What is crypto business? If business is defined as a certain effort made to earn a profit, then the crypto business or cryptocurrency business is an attempt to buy and sell crypto money to make a profit. This is actually not only related to buying and selling, but also includes mining and asset storage.

Actually, some crypto coins can already be used for trading transactions. However, in the end, crypto money will be exchanged for fiat money, which is more commonly used in everyday life. Because its value has increased significantly, crypto money has become an object of investment instead of a means of payment in the digital world.

Even so, crypto money can still be used as a digital payment tool. Buying and selling goods and paying for services can be done using cryptocurrencies as long as the two transacting parties agree. Is it legal? Since crypto money is not tied to the legal authority of any country, it does not require legal recognition from any legal institution.

Why Do People Buy Crypto? Basically, business people will look for an object that has a steadily increasing price. This is done in the hope of getting a profit margin when resold in the future. This reason also applies to the high interest in trading various types of crypto assets.

Crypto currency has an ever-increasing price. If you have one Bitcoin coin in 2020 and sell it in August 2022, then you will make a profit of around US $16.000. Some experts estimate that if the Bitcoin coin is sold in 2030, the profit will be around US $521.

The increase in the price of crypto coins over time is what makes many people willing to buy crypto. Generally, people who buy crypto have the goal of reselling it in the future as its proven price keeps increasing. It is still quite rare for people to use crypto currency for routine trading transactions.

In fact, if you think about it, there is no physical form or commodity that supports crypto money. Yes, crypto money is an asset that does not depend on anything in the real world. The only thing that makes it valuable is the mutual agreement by the community that the digital coin has a price.

Public trust in crypto coins is influenced by several factors. First, crypto coins are so highly secure that they are difficult or nearly impossible to duplicate. Second, more and more large companies are accepting payments using cryptocurrencies, so the value is becoming a benchmark.

Crypto money is different from digital money. Crypto money is not bound by any country's regulations, so its value cannot be dictated by any authority. However, certain policies by influential figures in the global economy have an impact. For example, when Elon Musk announced that he would not accept payments using Bitcoin some time ago, the price of the most popular crypto coin plummeted.

How to Run a Crypto Business? Crypto businesses are run in the same way as commodity businesses or stock investments. In essence, the owner of the asset will sell the asset when the price is high. To repeat the profits, investors will buy other crypto assets that also have potential. The challenge of the crypto business lies in acquiring assets.

Before starting a crypto business, the first thing to do is acquire assets. There are three ways to get crypto assets, namely: mining or crypto mining; buying assets; and airdrops. All three have their respective advantages and disadvantages.

Crypto Mining Buying Cryptoassets Take advantage of airdrops.

1. Crypto Mining

If you decide to acquire crypto coins using mining methods, then you must have the appropriate equipment. You have to set up a computer with strong GPU power and high daily electricity costs because the machine runs 24 hours a day. Some people use smartphones, but it is clearly less effective.

Later, you'll get blocks containing some coins without having to buy them. For example, when mining Bitcoin, adequate equipment will generate a block of Bitcoin within ten minutes. One such block will contain 6.25 Bitcoin coins. Can it continue? Of course not. The number of new coins will stop once Bitcoin reaches 21 million worldwide.

2.Buying Crypto Assets

If you decide to acquire crypto assets by buying them, then you will have to prepare some funds. For example, if you want to buy one BTC coin in August 2022, you should have $22.500 USD ready.

However, you can buy satoshi assets or BTC crypto shards at a more suitable price.

You don't need to buy a full coin on a crypto coin, you can buy just a piece at a price that suits your ability. This crypto business method is often done by young people with minimal capital. Even so, you still need sufficient fiat money capital to get the appropriate profit.

Of course, to get enough capital, you have to set aside some of your income. According to experts, the ideal income allocation for investment is about 20% of the total monthly salary. Save the money until it is enough to buy satoshi or other types of ethereum coins. However, of course it is good to do it after the emergency fund is met.

You can save 20% of your salary into a fund management platform to be more effective in capital preparation.For example, you can include it as a funding program in People's Capital.

The funds you put into People's Capital will be channeled to many MSMEs in Indonesia. From the profits obtained by these MSMEs, you will get a profit share of 18% per year from the amount of capital with a guaranteed safety of funds of 95%. That way, the capital to buy crypto assets will grow in addition to what you add to it every month from the salary allowance.

3. Make the most of airdrops

Every month or every certain period, a new crypto coin will be introduced.Like Bitcoin in 2009, the introduction of new crypto coins is usually done by giving them away to random people. This is known as an "airdrop" or "sharing of free crypto coins."

Some people deliberately choose this opportunity to run a crypto business. The advantage obtained is, of course, because you do not have to prepare any capital. As long as the information for downloading the new coin is available, the coins will be entered into the e-wallet. Next, wait for the coin to have a high price and sell it at the right time.

Unfortunately, the price of new crypto coins is always less volatile, similar to how Bitcoin started in 2009. Because it is unstable, not all types of cryptocurrencies can survive and keep their prices from rising or even collapsing after successfully rising. That's what makes a crypto coin unsold and abandoned by the community even though the security system is the same as other coins that are more salable.