Top 5 Cryptocurrency Side Project Ideas
In this article, we explain to you five cryptocurrency project ideas which can turn into lucrative businesses in the cryptocurrency world.
1. Cryptocurrency Exchange
To trade cryptocurrency, you need a cryptocurrency exchange, which is an online platform that allows you to trade cryptocurrencies for other digital currencies or fiat currencies like US dollars or Euro. Crypto exchanges users that look to trade, must have access to fancy trading tools. And for that, few crypto exchanges ask users to verify their ID in order to open an account.
Types of exchanges
- Direct Trading – As the name itself suggests, these platforms allow a direct person to person trading, where users from various countries can exchange cryptocurrency.
- Trading Platforms – These exchanges act as middlemen between buyers and sellers. In return, they collect a processing fee from each transaction made by buyers.
- Brokers – Crypto brokers are similar to foreign exchange dealers; these exchanges allow anyone to buy cryptocurrencies at a value set by the broker.
If you want to create your own cryptocurrency exchange, you need to consider the following:
- You need to analyze the type of cryptocurrency you want to build – Centralized Crypto Exchange or Decentralized Crypto Exchange.
- Regulations of the country in which you are considering to start a cryptocurrency exchange.
- Type of cryptos you intend to offer in your crypto exchange platform.
- The hiring of the best technical team.
- Possible Costs.
Few of the best cryptocurrency exchanges are Binance, Coinbase, Kraken, Shapeshift, etc.
2. Crypto Peer to Peer (P2P) Lending Portal
The blockchain application has revolutionized the banking industry, providing a better solution for financial organizations. Lending is one such industry that is revolutionized by blockchain technology.
Peer to peer cryptocurrency Lending
Peer to peer (P2P) lending has transformed the way people invest, borrow and save money. Investors who are involved in P2P crypto lending can now benefit from enhanced transparency.
Cryptocurrency is remodeling the direct lending industry with peer to peer lending of the digital asset. It offers higher efficiency, scalability, transparency, and accessibility. The significant benefit that crypto provide lenders is loan tokenization.
Blockchain makes loan tokenization potential and enables new investors to trade their loan with other associates. P2P lending is forming new partnerships, services, and products in the fintech industry.
Peer to peer lending reduces the high-interest rates that poor people in developing countries pay compared to their counterparts in developed countries. Moreover, cryptocurrency lending provides a unique advantage to P2P investors due to its global influence.
Utilizing blockchain technology in peer to peer lending could help eliminate mediators from the current system. Let’s know how P2P lending platform on blockchain could help make the lending process more efficient.
- Cost: Blockchain could decrease the costs by enabling borrowers to deal with lenders directly.
- Time: Blockchain could make the whole process faster by adding regulations in the smart contracts.
- The rate of interest: The smart contracts could automatically generate the fixed rate of interests based on the profile of a borrower.
Blockchain technology could connect lenders and borrowers from all over the world through a decentralized platform. The whole P2P lending process could become seamless and reliable.
Some of the cryptocurrency P2P lending firms are EthLend, Celsius, SALT (Secured Automated Lending Technology).
3. Crypto-Powered Penny Auction Portal
In penny auction portal, the final price is decided solely by the bidder (buyer), not by the seller – that means that there are no hidden costs. Let us introduce you to a new idea of penny auctions and find out how much fun and entertainment shopping can be.
By utilizing blockchain technology, we can develop a crypto-powered penny auction portal, where we can bid cryptocurrency for real.
Crypto-penny auction is a lowest-unique bid auction, so in order to win, you must be the bidder who has placed the lowest and unmatched bid. To win a cryptocurrency in a lowest-unique auction, you have to be the only bidder to imagine the lowest-unmatched prize in each auction and maintain the spot until the auction ends.
You can develop your own crypto-powered penny auction portal and invest in this lucrative business.
4. Crypto-based Poker Games
By utilizing Blockchain Technology, we can develop the next generation poker game and network. The traditional online poker games have many issues and with blockchain, we can address those issues and build a platform for pokers.
Blockchain technology’s unique features will be able to address P2P networking to provide a more secure and reliable environment for players to play online poker.
Players can now pay with the cryptocurrency to play the game and also earn cryptocurrencies. A decentralized gaming platform can be launched to provide a safe and secure platform for poker gamers. The payments are delivered instantly to players’ cryptocurrency wallets.
Decentralized platform for online poker games
A blockchain-based decentralized poker platform puts players in command in a structure they can trust. The decentralized gaming platform provides:
- Tamper Proof Gaming – It is a tamper-proof game where all gameplay is played using off-chain.
- Security of Player Funds – Players can fund their personal digital wallets and enter games with these wallets.
- Instant Payouts – All payments are transacted in less than 60 seconds and are automatically sent back to a player’s crypto wallet when they finish the game.
The gaming industry is huge and profitable if you think to invest in this sector. South Korea is the prominent country for the gaming industry as the country is obsessed with both cryptocurrency and online gaming.
5. Crypto-based Crowd Funding Platform
Crypto-based crowdfunding is comparatively a new way to gather money through cryptocurrencies for businesses, causes and to people. Many companies have utilized crowdfunding platforms for their successful venture.
Blockchain-based fundraising company endeavors innovators with financial support. The financial backing helps startups to launch their own successful digital currency through cryptocurrency fundraising.
The crowdfunding can be simplified by building a community. A new project on various crowdfunding sites will take weeks before they are concluded.
Some of the crowdfunding cryptocurrency platforms that provide funding for cryptocurrency and blockchain platforms are Wefunder, Coinstarter, KickICO, CRYPSTART, etc.
We have explained in this article, on how to utilize cryptocurrency for various businesses and projects. The above list of project ideas proves that there are new and different ways to invest in the cryptocurrency industry and generate profit from these ideas.