Cryptocurrency is on its way toward becoming a mainstream form of payment. In fact, some of the world’s largest companies are increasingly rallying around the use of Bitcoin — which remains the most popular cryptocurrency around — including Microsoft, Etsy, and AT&T.
While crypto may remain a controversial topic among investors, accepting it may lead to a profitable future for businesses across industries. Companies that are proactive about financing their business with Bitcoin (or other cryptocurrencies) can reap the benefits of becoming early adopters of an incredibly popular coin.
In this article, we’ll examine the variety of ways that companies can implement cryptocurrency payments and successfully fund their operations. We’ll also explore some of the pros and cons of using cryptocurrency for business financing, so you can decide if you want to make the switch.
Why Fund Your Operations With Crypto?
Using a cryptocurrency like Bitcoin to fund your business may not be a traditional choice, but it’s a modern option that offers perks that other methods of payment don’t. For example, when you start accepting crypto payments from clients, you can eliminate the hefty fees associated with credit card processing and get your money faster. Plus, crypto lenders often offer lower interest rates and are less likely to require business credit checks.
Cryptocurrency is also one of many ways you can incorporate workflow automation into your business operations. Digitizing your currency allows you to better connect and automate all the financial aspects of your business, ranging from accounting to sales and payroll. This gives you and your team more time to focus on doing work that must be completed by a human.
Getting started with funding your operations with crypto can be as simple as signing up for a crypto payment gateway, such as Coinbase or BitPay. These services allow you to instantly turn your crypto earnings into fiat currency (like the U.S. dollar), so you don’t have to deal with the complexities of investing, converting, or spending your cryptocurrency as a business.
Enhance the Customer Experience
Consumers of all sorts are investing in crypto nowadays. When you start accepting Bitcoin, Ethereum, or other popular cryptocurrencies at your point of sale, you can improve the customer experience by giving shoppers one more unique and convenient way to pay.
Several positive results can come from your enhanced customer experience. Since cryptocurrencies aren’t widely accepted by businesses, you can earn customer loyalty from consumers who are looking to spend their coins. It gives you a competitive edge over other brands selling similar goods or services. This can even attract crypto enthusiasts who otherwise wouldn’t choose your brand.
Cryptocurrency payments can also help you avoid chargebacks from unhappy buyers, which are all too common when you’re accepting credit card payments. As a result, you can work with disgruntled customers to provide satisfactory solutions, which can help you keep more of your earnings and increase customer retention.
Risk Management Is Essential for Crypto-Based Businesses
While cryptocurrency can help businesses in numerous ways, it’s also important to address the risks that funding your business with it can present. By bringing your financing online, you increase your susceptibility to cyberattacks, including botnet attacks that enable bad actors to take over your accounts.
If you plan to hold onto the cryptocurrency you earn, rather than instantly turning it into fiat currency with a payment gateway, consider choosing a hardware wallet to store your funds. Hardware wallets are offline, which reduces potential entry points for cybercriminals.
Businesses using crypto should also be aware that crypto can be volatile. However, even small-cap cryptocurrency stocks shouldn’t be completely unreliable. To avoid pump and dump schemes, in which investors artificially inflate currency prices to sell it for more, stick to accepting trusted cryptocurrencies like Bitcoin.
Open up New Investment Opportunities
If you’ve ever considered going public in the stock market, your use of cryptocurrencies can make your company compelling to investors. While not everyone wants to invest in potentially volatile cryptocurrencies, investing in crypto stocks like Tesla and PayPal Holdings (companies that are supportive of cryptocurrencies) is a popular way for traditional investors to dip their feet into the crypto world.
Investing in crypto stocks yourself can also lead to significant financial returns.
Consider Cryptocurrency to Support Your Business Goals
While many traditional companies are still operating on cash, credit, checks, and traditional payment methods, you can bring your company into the future by utilizing cryptocurrency for business financing instead. It can be an incredibly effective form of funding, whether you want to instantly turn your earnings into fiat money, cover operational costs with cryptocurrency, or hold onto your crypto assets as an investment.
Although crypto can involve some risks (which can be prevented), its benefits can outweigh the drawbacks. Crypto can help you evade high processing fees and long processing times, so you can earn more money, faster. Plus, it allows your business to stand out from competitors, so you win more business and brand loyalty from crypto enthusiasts.
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