Cryptocurrency has grown in unimaginable ways in the last decade. What once used to seem as far from achievable is now one of the most significant sources of revenue. It’s safe to say that cryptocurrency is altering the financial landscape and providing entrepreneurs with an additional, more efficient way to grow their businesses.
Today, more than 18,000 cryptocurrencies are available, with more than 10,000 active ones. Bitcoin (BTC) is the largest cryptocurrency currently, with a market cap of $557 billion and a price of $29,155. Occupying the next spots are Ethereum and Tether, with a market cap of $250 billion and $72 billion, respectively. What’s more interesting is that these cryptocurrencies began with nothing. For instance, when first introduced, bitcoin commenced trading at $0.0008. These stats portray significant growth and show the tremendous potential cryptocurrencies carry.
Cryptocurrencies provide businesses with unique opportunities to tap into different markets, attract more customers, and grow their business tremendously. By utilizing cryptocurrency in your business processes, you can enjoy increased reach, low transaction charges, more accessible payment methods, and utmost customer safety.
However, many companies struggle to identify ways to utilize cryptocurrency in their business. To help you out, we’ve outlined a few essential tips.
Accepting crypto as payment for goods and services
If you want to utilize crypto within your business processes, you must begin by accepting it as a form of payment. However, it is vital to understand crypto’s concept entirely before doing so. Since cryptocurrencies are still relatively new, many people don’t understand how they work. Perhaps taking a crypto online course might help grasp the concepts and ideology behind the technology.
Crypto can add a lot of value as your business’s payment method. It offers considerably low transaction fees of around less than 1%. Besides, unlike credit cards, crypto payments are irreversible. Crypto payments are especially beneficial for overseas customers since they don’t have to pay hefty charges for transactions by getting third parties involved.
Moreover, cryptos are much more helpful than fiat currencies because of instant transactions that usually take an hour to process, irrespective of where and who you are. Crypto payments are also entirely transparent and displayed on the blockchain. They are highly secure, offer more control, and are easy to access. Finally, given the present-day economic situation, we can see the value of bitcoin increasing excessively.
Invest part of your revenues in crypto
Given the current global economic crisis, many people realize the value of investing in cryptocurrencies. Several businesses, both small and big, are investing a chunk of their revenue into different cryptocurrencies to protect the value of their money over time. Many organizations are also mining cryptocurrencies and offering the masses additional investment opportunities.
Several big names, including Tesla, PayPal, Square, MicroStrategy, and others, are investing in crypto because of its many advantages. A study confirms that many of these companies invest billions in cryptocurrencies and significantly increase their value. Crypto doesn’t only act as a shield against currency inflation. It also increases a firm’s ability to hold value for the long term. It helps diversify a company’s portfolio, tribalizes financial initiatives, and leverages more security.
Taking out a crypto loan is also one of the significant ways of utilizing cryptocurrency in your business. Insufficient and inadequate financing is one of the biggest reasons behind restrictive business growth and success. A crypto loan can be an excellent alternative to traditional lending. However, to take a crypto loan, you must purchase some of it and maintain it at an LTV ratio.
Crypto lending is more accessible and offers a considerably low-interest rate, below 10%. Furthermore, crypto lending is faster and safer with more flexible and favorable lending terms. However, we must also state that crypto loans aren’t entirely risk-free. Several potential risks include a sudden drop in collateral dips requiring immediate payoff. Therefore, you must do adequate research before considering taking a crypto loan. Try finding a reputable lender and beware of scams.
Pay salaries using crypto
Introduce your employees to the world of digital currencies by paying their salaries in crypto. Several benefits of paying your employees in crypto include fast speed and no boundaries. Bitcoin and Ether transactions are 95% faster than traditional wire transfers. Also, with the increased availability of technology, we see an increase in the number of remote jobs. With crypto, you can transfer salaries to your employees to and from anywhere.
If you consider paying salaries in crypto, it would be best to simultaneously decide a date on which the conversion to fiat cash will occur. Moreover, since crypto is still new, it makes sense that employees might not be comfortable with it. In that case, you can consider splitting salaries between crypto and fiat cash. Discuss how much they’d like to receive in cash and how much in crypto. Remember, keeping your employees in the loop and letting them have a say in their salary distribution is crucial. Every individual’s financial needs differ, so it would be best to let them decide how they’d like to receive their pay.
Start mining cryptocurrencies
Finally, one last way to utilize cryptocurrencies in your business is by building your own. Mining cryptocurrency can prove an excellent form of revenue, providing your organization with a competitive edge.
Building cryptocurrencies is a safe bet due to high security, inability to counterfeit, meager fees, and no involvement of third parties. A brand-new cryptocurrency can help you support a viral product. Interestingly, creating new cryptocurrencies has become relatively more straightforward with advanced technology. If you use an existing currency’s base, you can create a new cryptocurrency within a few weeks. Otherwise, it can take somewhere in-between one to six months.
Creating a new cryptocurrency can help solve several industrial problems and identify practical solutions. However, learning to adapt is imperative. Do your homework before taking any steps.
There are already several businesses that can attest to crypto’s reliability and effectiveness as a payment method. Cryptocurrencies are usually less complex and contribute significantly to boosting your business processes. Some cryptocurrencies are more secure than others. Hence, you must carefully select one that can help you combat inflation and protect your assets from unforeseen circumstances. Moreover, security is a top priority in the crypto world. All your transactions are entirely safe with zero errors by eliminating a mediator.