As they are not subject to total regulation by any central banking authority, cryptocurrencies not only offer businesses a higher level of security, but also lower transaction costs. Apart from their intended use as payment methods, cryptocurrencies can also be used as investment vehicles to help businesses grow. Additionally, these technologies can be used to attract and retain particular target markets. For example, businesses that use crypto will be better able to attract tech-savvy, transnational, or entrepreneurially-minded individuals as customers or partners.
How Can Your Business Get Started with Using Cryptocurrencies?
If you’re new to cryptocurrencies, trading small amounts of tried and tested ones (such as Bitcoin, Ethereum, and Monero) can help you get better acquainted with blockchain technologies and their potential for your enterprise. Doing this on a smaller scale reduces your risks as you try things out. It also gives you more time to decide whether it’s really worth it to incorporate cryptocurrencies into your business model.
To start, all you need to do is buy a small amount of the cryptocurrencies you’re interested in and obtain the right crypto wallet for each one. For example, if you’d like to become more familiar with using Monero, you’ll want to get a Monero wallet and a few Monero coins to begin investing and learning the ropes of this specific type of crypto.
How Can Your Business Make Use of Cryptocurrencies?
Once you’ve gotten a hang of using cryptocurrencies, you may be wondering how to start incorporating them into your existing business model. To make the most of these technologies, it’s helpful to think about them beyond their utility as a payment method.
Indeed, businesses have found a variety of unique and forward-thinking ways to incorporate cryptocurrencies into their operations over the years. Here are just some ideas that you can try with your own business:
Accept Cryptocurrency Payments
A recent CNBC survey found that 1 in 10 people hold cryptocurrencies, and many use them for regular transactions. Because more people are likely to use cryptocurrencies as regular payment methods in the near future, businesses that start accepting cryptocurrencies early on will have a distinct advantage over those that don’t.
Pay Employees with Crypto
In startup and finance circles, paying employees in cryptocurrencies is starting to become more commonplace. While this application is not necessarily relevant for all businesses, it may become worth considering with the rising global adoption of cryptocurrency payment methods.
Use Crypto as an Employee Incentive
While more people are becoming aware of the potential of blockchain technologies, many are not quite ready to completely commit to cryptocurrencies. So, for businesses outside of the tech and finance industries, it may be more feasible to use cryptocurrencies as an added incentive rather than as payment for employees. By offering crypto coins as bonuses or incentives, you may be able to attract a wider array of forward-thinking individuals to work for your business.
Create a Crypto Rewards Credit Card
Coming off the previous point, you may already have customers who are interested in crypto but are not yet ready to invest in it. For such customers, offering a crypto rewards credit card or similar incentive may attract their attention.
Crypto rewards credit cards are similar to conventional credit cards in that they allow customers to earn points (in this case, coins) simply for making purchases. Offering this kind of credit card reward system in conjunction with your own crypto payment portal has the potential to increase customer conversion rates for your business.
Cash Reserve Diversification
Some businesses require a reserve of different currencies, particularly if they work with international customers or have offices and employees all over the world. Preferred payment methods can vary from party to party, so it can be handy to have some popular coins in reserve to facilitate smoother transactions with more customers, partners, and suppliers.
Use Cryptocurrency for Inflation Protection
Some of the more mainstream currencies like Bitcoin and Ethereum are posting good long-term performance despite the short-term volatility of cryptocurrency markets. This makes these kinds of coins a potential option for protecting your business from inflation.
However, to use cryptocurrencies in this way, it may help to have some prior experience when it comes to investing in blockchain markets and technologies. This will enable you to have a better idea of what to expect and how to handle the ups and downs of the cryptocurrency market.
Use Cryptocurrency to Facilitate Transnational Payments
Cryptocurrencies are already a popular way to facilitate remittances, and their importance in this area will only increase with time. If you need to send cash abroad on a daily basis, then it may be time to integrate cryptocurrencies into your business’s current finance systems.
Integrating cryptocurrencies as a payment method or as a way to facilitate other fund transfers can open up untapped markets and give you access to unique investments, partnerships, and talents. Thus, by being smart about how you integrate crypto into your existing business model, you can maximize the odds of hitting the next level of growth for your enterprise.
