Cryptocurrencies have changed how we live our lives, primarily affecting our business growth. By using cryptocurrencies, you can now enter new markets that might benefit you both in the short term and long term.
Cryptocurrencies are digital currencies so they might differ from traditional payment methods. Additionally, they are excellent payment methods but have traditional payment forms.
There are plenty of ways cryptocurrencies can help you grow your business. Therefore, in this article, we will discuss the 11 ways they do so.
First, What is Cryptocurrency?
Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s peer-to-peer, meaning anyone anywhere can send or receive payments with this type of money being purely electronic in nature rather than physical like fiat currency (i.e., dollar bills).
Instead what you’ll find are codes representing each transaction stored publicly out there for all sorts safely viewable by others so they know how much value was transferred from wallet A into B’s account.
Cryptocurrency is stored in digital wallets. Crypto uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and public ledgers to provide security and safety.
11 Ways Cryptocurrencies Help Your Business Explode with Growth
Better Payment Processing
Cryptocurrencies have improved payment processing which helps businesses grow. They don’t rely on banks to make payments since it’s P2P, meaning that no third party is involved when payments are made and the whole idea behind this is that there aren’t any transaction fees available.
Let’s keep in mind one thing and that is the fact that cryptocurrencies aren’t as old as we think. They have been around for only 12 years and are still evolving.
However, new payment methods can sometimes be more beneficial for you because they may become a bigger trend in the long term.
Paypal, Visa, and Mastercard Support Cryptocurrencies
The biggest platforms in the world support cryptocurrencies. All three have shown that they endorse Bitcoin and other major cryptocurrencies. As of now, Visa is promoting transactions with stablecoins on Ethereum’s blockchain. Mastercard supports cryptocurrencies on major platforms such as Crypto.com, etc.
On the other hand, we have Paypal, which started making transactions with cryptocurrencies only a few years ago. A long-discussed issue was when Paypal didn’t allow users to transfer their coins to a private wallet, but some months ago, this changed as Paypal is now allowing this to happen.
Reduction of Traditional Complications While Making Payments
Your business grows much faster when you reduce complications that may happen during payments. As we mentioned before, cryptocurrencies are much less complicated compared to traditional payments.
You don’t have to deal with currency conversions and let’s not forget that cryptocurrencies are decentralized.
Especially during the time of this recession, using cryptocurrencies might be a huge advantage against inflation and many other economic issues.
You Can Pay Employees In Crypto
It doesn’t sound like a bad idea now, does it? Cryptocurrencies can do great even if inflation is high and there’s an economic crisis, so what better way to solve this than to start paying in crypto? You can just imagine if you have an international company and have to pay in so many different currencies, it can really give you a hard time in the long term.
For instance, if you pay your employees with Shiba (SHIB), you can buy them from some major platform and transfer the funds on the same platform. You can buy SHIB with MoonPay and process payments to your employees through any platform you and your employees agree to operate on.
Comparatively, when we think about traditional payment methods, we know that making cross-border payments is a mess because of the need to change currencies. But on the other hand, we have cryptocurrencies, which process transactions instantly and with almost no fees.
Furthermore, crypto transactions are public and allow both parties to view all transaction details, cutting out unnecessary transaction fees from banks, so it’s a huge advantage for both sides.
Cryptocurrencies Are An Effective Way To Pay Online
Using cryptocurrencies is an effective way of paying for products for your customers. Bitcoin, Ethereum, and many other popular cryptocurrencies offer low-cost transactions at a fast rate. Additionally, cryptocurrencies are immune to inflation, so their value will keep increasing as more people use them.
This gives you an excellent opportunity for more businesses to expand and use cryptocurrencies from their customers and grow.
Other than that, let’s not forget that cryptocurrencies offer customers a higher level of privacy than traditional payments.
Reduction In Errors
In an era where technology is becoming widespread, cryptocurrency is known to be a reliable payment source. During its payment methods, its reduction in errors and promotion of safe and secure business transactions are what give it an advantage for growing your business.
Errors during payments are some of the most common issues people go through when running a business. In other words, businesses using cryptocurrencies can gain a significant advantage over their competition.
You Can Use Crypto For Business Equity
A trending topic in the crypto world is giving out employee shares that are part of the company’s profits. Cryptocurrencies have grown immensely since the beginning of their existence. Also, let’s not forget how much equity shares are now becoming a trend.
Therefore, it’s in your favor to promote this idea and continue monitoring what crypto’s future holds. However, continuously monitor the situation and ensure that this will either be an innovation for your business. Or it becomes a disaster for investors if crypto plunges in growth.
Offer Both Short-term and Long-term Gains
Depending on the cryptocurrency you are investing in, there are more than 12,000 cryptocurrencies worldwide. The major ones, such as Shiba, Bitcoin, and Ethereum, can contribute to your long-term investments. Usually, cryptocurrencies with higher market caps and value will be a better choice for the long term.
On the other hand, we need to consider that coins with less value can be beneficial too in the short term. However, keep in mind that these types of coins are more volatile and might result in excessive losses if you aren’t careful. That’s why you should take your time and carefully monitor the market.
At the end of the day, we recommend you still focus on long-term gains over short-term ones. This is because short-term gains are highly unpredictable and might shock you unexpectedly. Therefore, it’s best not to risk it at all times unless you see a sudden spike in a currency’s value.
Higher Transparency For Raising Capital
Fundraising is an excellent way of raising money online. Additionally, it opens up opportunities for people who need money to borrow and ask for money publicly. This is an effective way of allowing external people to also rely on your business for future use.
Raising capital, in other words, is called crowdfunding, which allows you to create a blockchain wallet and keep it open for future donations. At the same time, it will enable fundraisers to avoid fees from third-party platforms without sacrificing trust.
Additionally, crypto wallets grant you access to the total amount of donations made.
Competitive Advantage of Cryptocurrencies
According to statistics, around 15,000 businesses in the world accept cryptocurrencies. That’s a relatively small number and not so big considering the huge population the world holds. In this case, when you are the one business that does use cryptocurrencies, it doesn’t only make you different but also grants you some type of authority from the rest.
Traditional payment methods are great, but they have their own limitations in the time required to process. This is because a financial institution needs to approve and review the transaction made, meaning there’s always a third party involved.
Alternatively, we have cryptocurrencies that allow you to complete payments and manage funds without any third party involved, meaning that most transactions don’t need to go through credit clearances either.
The real question is, what kind of advantage do you have? The fact that your payments are processed faster, and you are so resistant to inflation and transactional fees that you deal with when making payments within a bank.
Easy To Store and Backup Crypto
A crypto wallet is easy to access and allows you to store your funds within a wallet that is securely protected from any external threats. In addition, the crypto wallet can store funds it collects from customers.
Furthermore, since crypto transactions are internet based, each platform has a way of backing up data so it doesn’t get lost or hacked. You can easily create a backup within a crypto wallet, reducing the risk of losing transactional data and funds.
Wrapping it up
That’s about it for this article. These are the 11 ways in which crypto can help your business grow much faster. Cryptocurrencies have only been around for less than 15 years, but the fact that they managed to outgrow many other markets is shocking.
The main advantage you have is the profits you can make by using them and how only a small number of businesses use cryptocurrencies. Remember, it’s always an advantage when you are different from the competition.
Have you used cryptocurrencies to pay or collect payments? I’d love to hear about your experience with it in the comments below.
Do you have a crypto-type website? If so check out this recent article on how to build links to them.
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Crypto currencies have really changed the business. I personally haven’t invested in crypto currencies as it is still a volatile segment. However, I have seen that many people and businesses started using crypto currencies. Thanks for sharing this helpful post.
Hi Vishwajeet, yes it can change many businesses. I have dabbled with them to learn more. You are most welcome and glad you came by for this post – have a great weekend!