Trading cryptocurrency has become very popular. While it can have many benefits for individuals, there could also be benefits for businesses. Below are just some of the ways your company may be able to benefit from getting in on the crypto craze.
What is cryptocurrency?
Cryptocurrencies are digital currencies including the likes of Bitcoin, Ethereum and Chainlink. They are decentralised, which means that they are not governed by any country or controlled by banks. They were invented as a neutral currency in order to help people from other countries trade with one another without having to pay currency transfer fees.
Over the years, cryptocurrency has become a popular instrument to invest in due to the rising value of currencies like Bitcoin (if you bought $100 of Bitcoin in 2010, you’d be a multi-millionaire now). While there’s the potential to earn big by investing in crypto, there’s also the potential to lose a lot of money if a cryptocurrency loses all its value. This makes it a fairly risky form of investment.
How can my business benefit from it?
A growing number of businesses are starting to accept cryptocurrency as a form of payment. Other businesses are investing their companies savings into cryptocurrency to make a return. Below are just some of the ways in which your business may be able to benefit from cryptocurrency.
Access more customers
If you run an online business and are looking to make more sales, accepting cryptocurrency as a form of payment could be a solution. It could be a way of accessing an international market without having to accept hundreds of different national currencies.
Ensure customer privacy
When you pay with real currency, you leave a digital trail. This isn’t so much the case with cryptocurrency – which allows you to more easily keep customers’ data private. For customers that care about the privacy of their data, cryptocurrency can be a good payment option. It could be a means of gaining customer trust.
Make a return on your savings
Investing your business savings into crypto could be a way to make a bigger return than investing it in the bank or stocks. When investing, always do your research. For instance, if you plant to buy some Chainlink, look up the Chainlink price and decide whether the value is likely to rise. Never invest more than you’re willing to lose.
Should I get involved?
There are risks involved when trading cryptocurrency. However, it could be a means of growing your customer base and making a greater return. Cryptocurrency is likely to become more popular in the future. That said, it’s largely online businesses with international customer bases that are likely to benefit from accepting it as a form of payment. It could however still be a good way of building your savings.