The business benefit of using cryptocurrency

The increasing demand for cryptocurrencies in business transactions is spreading to many developed countries. In addition to serving business activities and transactions, cryptocurrencies also serve many other investment purposes, including lending interest on crypto assets. Of course, every coin has two sides, and so do cryptocurrencies. In the article below, we will provide a few reviews and assessments to help you decide whether your business should consider opening a Crypto Business Account today and how to optimize profits from your digital assets.

Why consider using crypto?

According to Tradingview data, the world has released more than 800 cryptocurrencies such as Bitcoin, Ethereum, Rippo, Bitcoin Cash, Litecoin, etc., with a total market capitalization of nearly 360 billion USD. Bitcoin is leading, accounting for 62.09% of the cryptocurrency market capitalization.

Cryptocurrencies are increasingly becoming an important financial trend, despite differing views. Many billionaire investors think again about cryptocurrencies differently than they did in the past. They realized that it was impossible to miss the profit potential that cryptocurrencies offered.

The use of cryptocurrencies to conduct business presents many opportunities and challenges. There are both unknown risks and attractive profit dynamics as with any investment. That is why companies that venture into using crypto in their business should clearly understand why they decided to use it and the challenges the industry needs to face in the future.

What can crypto do for your company?

Some of the benefits that cryptocurrencies bring to your business are:

  • The ability to reach new customers: People who use cryptocurrencies are often a group of advanced, technology-loving customers, mostly young. In particular, this customer group values ​​transparency in transactions with your business. According to Deloitte’s statistics, customers paying with cryptocurrencies are willing to pay twice as much for goods and services like credit card users.
  • Modern corporate brand positioning, catching up with the general development trend of the world: Customers will recognize your business more prominently than other traditional businesses. If central banks issue digital currencies, your business will have the advantage of experience, staffing, and operations management. Since then, businesses can reduce other costs of training and do not take much time to get used to the new model.
  • Cryptocurrencies allow your business access to new capital sources and liquidity through tokenized traditional investments as new asset classes.
  • Cryptocurrencies have superior features over conventional currencies such as real-time revenue sharing, safe and fast transactions in seconds or minutes, guaranteed transparency.
  • Cryptocurrencies can act as an effective alternative or balance to cash in the business. The capital of a company can depreciate over time due to inflation.

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  • Cryptocurrency is an investable asset. For example, bitcoin has grown exceptionally well over the past five years. Of course, businesses need to handle the risks of fluctuations in the value of cryptocurrencies. The option for your business is to prioritize the establishment of a department specializing in forecasting and risk management for financial resources from cryptocurrencies.

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Two primary paths for using crypto

For those who start to consider using cryptocurrencies, you need to consider the benefits, potentials, disadvantages, costs, risks, assess information technology system requirements, etc. From there, you can determine if crypto-enabled payments should be introduced into your business.

  • Enabling payments: “Hands-off”
    • Some companies provide cryptocurrency payment services to customers. Customers pay in crypto then the business converts crypto to fiat to get it back to their account. For this method, the firm does not own the assets in crypto. In other words, the company is taking a “hands-off” approach that keeps crypto off the books.
    • Allowing payments for cryptocurrencies like Bitcoin without being included in a company’s balance sheet is an easy, quick solution for any business. You only need to tweak a few small tasks of the company’s departments to reach new customers and increase the volume of each sale.
    • You can also hire a third-party service provider that supports payments in cryptocurrency. A third-party vendor, acting as an agent for the company, accepts or makes payments in cryptocurrency through conversion into and out of fiat currency. This method is the simplest option for your business, with minor changes to other internal company processes. A third-party provider, who will charge a fee for this service, handles most technical questions and manages some of the company’s risk, compliance, and control issues. However, that does not mean that the company is necessarily exempt from all responsibility for risk, compliance, and internal control. 
  • Enabling payments: “Hands-on”

If you are ready to go even further in the crypto market and expand crypto adoption in your corporate operations, then you are on the “hands-on” route. The business benefits will increase significantly, directly proportional to the technical problems you need to solve.

Ask detailed questions and answer them yourself:

  • – What goal does the company want to achieve by using cryptocurrency?
  • – What work has been done by the finance department to receive, monitor, and administer a crypto payment?
  • – Does the finance department think the company should maintain custody of cryptocurrencies or outsource it to a third party?
  • – What measures are in place to make it possible to invest in cryptocurrencies as a new asset class?
  • – What internal adjustments does the finance department anticipate if central banks issue digital currencies?

There are two paths a company can follow when embarking on a “hands-on” adoption of crypto:

  • – Use third-party vendors or custodians to maintain custody of cryptocurrencies on the blockchain; Provide wallet management services to facilitate the tracking and valuation of crypto assets. Using third-party custodians, most companies are currently using cryptocurrencies in a “hands-on” fashion.
  • – Integrate cryptocurrencies into the company’s system and manage its private keys. You should consult a legal advisor to determine if any license is required to allow the possession and use of cryptocurrencies. The self-managing approach presents more complex and requires more profound experience. If the company goes this route, it will likely be more accountable, handling more work than simply supporting cryptocurrency payment transactions.

The conclusion

Some consider cryptocurrencies to be an essential part of the development of finance. When your company chooses to interact with cryptocurrency, it triggers organizational changes and shifts in mindset. As with any technology change or upgrade, a business needs to develop an implementation plan.

It can be a complicated plan and requires a lot of research. That is why, before the official launch, several companies have chosen to test the use of cryptocurrencies like they would test new technology for business. Your company could start with purchasing some cryptocurrency. Then, the Treasury uses it for some offsite payments and goes on-chain as the cryptocurrency is paid, received, and revalued.

We hope that the above article has provided some basic information for businesses to consider business models that apply cryptocurrencies. Good luck.