During the past few years, the Internet has become indispensable to people around the world as the global economy entered a new era: A digital one. An important part of this new economy is the use of digital money – cryptocurrency.

Tracing back its origins, the first cryptocurrency, Bitcoin, was created in 2009 and, ever since, it has gone through ups and downs, being now one of the riskiest investment options, but potentially a very rewarding one at the same time. This is one of the reasons why young entrepreneurs all over the world are creating companies centered around cryptocurrency. Some of them prefer to mine tokens, while others create programs such as cryptocurrency payment apps and even creating their own cryptocurrencies.

Understanding the cryptocurrency world

The principle under which cryptocurrency works is not very simple. The simplest way to put it is this: cryptocurrency literally means a currency made up of bits. A digital coin is basically a file or a register that contains the name and the digital balance of those purchasing or trading for tokens. According to its creator, Bitcoin is based on a peer-to-peer platform through which virtual money is generated.

Cryptocurrency is not centralized by authorities, which means that no financial institution supervises transactions made using digital tokens. This is where the volatility of cryptocurrencies comes from. But, all the participants will have access to a copy of the transaction and will know how the cryptocurrency was used, adding to the security and viability of the system.

Though there is no authority to oversee cryptocurrency transactions, more and more governments have amended existing laws to acknowledge digital coin transactions, which is why it has become very profitable – and popular – to start businesses in this sector.

Most Asian and European countries have started shifting to digital economies, one of the best examples in Europe being Estonia. Those who want to open a company in Estonia can rely on a special system which allows them to register their businesses remotely using an e-residency card, which Estonia was the first to announce.

Registering a cryptocurrency business

Those who think that they need special authorizations or must meet certain requisites should know this is not the case. Starting a cryptocurrency business will be subject to local legislation, making understanding local laws crucial. What enterprisers should really pay attention to is the amount of money they will need to launch their businesses.

The trend now is for most cryptocurrency companies to create new digital money, requiring powerful computers. For companies creating apps for cryptocurrency transactions, the investment will be lower. For example, one can form a company in this sector in Singapore, one of the countries that offers some of the lowest business setup and maintenance costs; it also has one of the best Internet infrastructures in the world.

Cryptocurrency has not reached its full potential yet and investing in this emerging industry can be risky, due to fluctuations of token values. However, with more and more countries accepting cryptocurrency payments, the future looks bright for those betting on it.