Why and How You Should Use Cryptocurrencies in Your Business
Cryptocurrencies are here to stay, and whether you like it or not, you will have to adapt to them. You see, besides being used for investments and trading, cryptocurrencies will change the way we handle payments and experience money in the future.
As a consumer, there isn’t much adoption besides a little “getting used to it”, but as a business owner, your opportunities are endless. Therefore, we thought we’d take a look at some of the best ways one can use cryptocurrencies in business, why you should get started right now, and some of the risks associated with implementing crypto payments.
Note that we will only focus on cryptocurrencies in this article and not the underlying blockchains since they provide a multitude of other opportunities.
Why You Need Cryptocurrencies in Your Business
When we talk about cryptocurrencies with business owners, the most commonly asked question is always why. And it’s understandable, cryptocurrencies are a rather new phenomenon that has gotten a bit of a bad reputation.
That being said, cryptocurrencies have gotten a bad reputation for being an unpredictable investment opportunity, but not necessarily for being a bad payment option.
Some of the main benefits that cryptocurrencies offer in the world of business are:
● Increased Safety – Cryptocurrencies are notoriously safe, especially compared to cash. They can’t be copied, all transactions are registered and archived with easy access for everyone, and since it’s all digital, you don’t run the risk of getting robbed. Some cryptocurrencies are even 100% anonymous.
● Speedy Transactions – Transferring cryptocurrencies is fast, even for international transactions. In fact, there have been several cases where Bitcoin worth millions of dollars have been transferred across borders in a matter of seconds.
● Low costs – Anyone that runs a business knows how expensive it can be to handle bank accounts, transactions, and payments, but not with cryptocurrencies. All cryptocurrencies are kept at minimum cost, and you can transfer huge amounts between countries for very little, sometimes it’s even free.
How To Use Cryptocurrencies in Your Business
With a better idea of why cryptocurrencies are beneficial to business owners, we’ll take a quick glance at how you can start using them.
The most common way for a business to use cryptocurrencies is for C2B payments. Both physical and online stores can offer payments in cryptocurrencies, and it’s very practical for both parties. All you need is a secure wallet to store the cryptocurrencies on after receiving them.
In addition, businesses that do a lot of import and export or are dealing with international companies can substantially cut costs, transaction times, and the need for paperwork by using cryptocurrencies instead of traditional bank transfers. It’s really just a smoother and more effective way of handling international trade.
Lastly, cryptocurrencies can serve as an easy and almost passive revenue stream since they can easily be traded. Many of the biggest cryptocurrency brokers even provide special Business Accounts to help you make the most out of your assets.
Risks You Should Know About and Avoid
As mentioned, using cryptocurrencies is not completely without risk, and we advise any business owner that’s interested in using cryptocurrencies to study them first.
The main issue with the cryptocurrency market is that most of the assets are complete garbage and not reliable at all. That’s why you need to stick with the established ones such as Bitcoin, Ethereum, XRP, and even Litecoin.
Moreover – and you probably already know this – cryptocurrencies are extremely volatile and there is always a risk of being caught in a market crash or an extensive correction.
With all that said, cryptocurrencies are generally safer than all other available payment methods, and they are constantly being improved, making them a superior solution for most businesses.
Cryptocurrencies are quickly being normalized in society, and companies that are scared of betting on the bandwagon now might lose out further down the road.
Now, in no means are we trying to convince you to do a complete switch to cryptocurrencies overnight. Instead, we suggest you start implementing them on a small scale; maybe at one store at a time or with one client at a time. Just remember that there are risks involved and you should really put the effort into learning the fundamentals of the market before you get started.