Can a Business Invest in Cryptocurrency?
This article will examine the benefits of including cryptocurrency payments in your business model. We'll cover how you can leverage high-risk assets to boost revenue and customer loyalty. We also answer the main question: can a business invest in cryptocurrency?
Today, entrepreneurs have begun to consider cryptocurrency business opportunities carefully. But due to many technical points, some need help understanding exactly how it is possible to integrate digital money into their business. In addition, it may seem that companies invested in crypto are exposed to unnecessary risks.
We have prepared this article to help those who want to start accepting payments in digital assets, but need help knowing where to start. We explain why do people invest in cryptocurrency, how digital money can improve business efficiency and reduce costs, and how to start investing in crypto today.
How does cryptocurrency affect business?
In 2009, the first cryptocurrency, Bitcoin, appeared. Less than two years later, a programmer from the USA named Laszlo Hanich paid for two pizzas with BTC 10,000. Back then, cryptocurrency was a novel form of digital money that many believed would revolutionize the way we think about finance. That's exactly what happened. Today, investments in cryptocurrency are an integral part of the business world. And you can buy two pizzas for one-thousandth of a Bitcoin. Such massive price growth explains why do people invest in cryptocurrency.
The growing popularity of digital assets among consumers and investors certainly promotes using cryptocurrencies in business. Companies like Stylus, CACTUS, and OKwine have already started accepting cryptocurrency, attracting new customers. However, before investing in digital assets, it is necessary to consider certain functioning features. It will help to address the question: can a small business invest in Bitcoin?
Features of crypto investments
Cryptocurrencies make transactions possible without involving banks or governments. This is a key feature of digital assets, which are decentralized by nature. Cryptocurrencies use peer-to-peer networks and encryption techniques that allow users to confirm transactions without relying on central authorities. That is why using cryptocurrencies is associated with lower fees than traditional money transfers.
The next feature of digital assets you need to pay attention to is their volatility. Cryptocurrencies tend to fluctuate wildly, making them a risky investment. However, this factor can increase the company's profit. For example, Tesla once purchased $1.5 billion worth of bitcoins.
Not all cryptocurrencies are prone to sudden changes in the rate, which also has certain advantages, which we will discuss further.
Advantages of investing in cryptocurrency
To decide whether you and your business need digital assets, consider the advantages and disadvantages of investing in cryptocurrency. Let's start with the good news.
Accessibility. To create a cryptocurrency wallet, all you need is a laptop or smartphone and access to the Internet. That is why, digital money has become an alternative payment method for customers who do not have access to traditional banking services (this includes people living in developing countries or those who simply do not want to use a credit card).
Diversification of risks. Those who had invested in crypto preserved capital against the threat of inflation — for example, they converted profits into stablecoins such as Tether (USDT). This coin is a non-volatile cryptocurrency, the price of which is tied to the US dollar exchange rate. In addition, there is an opportunity to increase the company's income by accepting payment in actively growing cryptocurrencies.
Expansion of the client base. Over 320 million people worldwide own digital assets. So, integrating the latest payment acceptance technology into the business can attract new customers who do not want to spend time converting their crypto into national currency.
It is increasing brand awareness. Accepting cryptocurrencies is a great marketing move that can make a company more popular. Digital money can also be used as a loyalty program, offering discounts on future purchases.
No extra fees. As we mentioned above, cryptocurrencies allow users to avoid bank card fees. It saves the company money and increases profits.
It simplifies the company's entry into the international market. Cryptocurrencies allow companies to easily accept international payments from buyers. That is, business owners can no longer worry about the exchange rates of national currencies.
Decentralization. Cryptocurrencies provide a decentralized payment method, which makes them secure and transparent due to the blockchain. It is a distributed, decentralized data ledger that cannot be hacked, changed, or deleted.
Disadvantages of investing in cryptocurrency
The advantages of investing in cryptocurrency are convincing. But to form a final opinion, it is necessary to consider the cons.
Volatility. The exchange rate of such digital assets as Bitcoin or Ethereum is constantly changing. Crypto investments are risky, and it's hard to predict their future value. However, this does not apply to stablecoins such as USDT or USDC.
Cryptocurrency has yet to gain widespread acceptance. Therefore, entrepreneurs will have to make efforts to popularize cryptocurrency payments.
Law. The legal status of cryptocurrencies varies from country to country. Thus, international business owners should do additional research on digital money laws before investing in crypto.
Can a business invest in cryptocurrency today?
After getting acquainted with digital assets' main advantages and disadvantages, let's talk about how to invest in cryptocurrency.
To make the process of involving modern technologies as simple, we created the cryptoprocessing service Whitepay. With it help, business owners and charities can receive cryptocurrency payments offline using a PoS terminal. And also accept payments on the website.
Before investing in crypto, business owners need to decide how to process transactions. It is possible to convert digital assets into national currency or store it in a digital wallet. Merchants can independently customize online and offline payments. Our team will support you every step of the way as we help you learn how to invest in cryptocurrency. In addition to the companies mentioned above, the Whitepay service is already used by MebelOk, TekhnoYizhak, ONECARD, eStore, and MD Fashion.
All it takes to make your business crypto and take full advantage of digital assets is to become a Whitepay partner. Leave your contact details, and we will contact you as soon as possible.