29 December 2020
While Bitcoin and other cryptocurrencies may seem as though they are sophisticated, daunting, and large-scale, they are actually designed to be used by anyone with an internet connection. That’s right, even small business owners can benefit from accepting cryptocurrency – so long as you have access to the internet! Here are a few ways small businesses can get into cryptocurrency and why they should!
It is important to remember that there are many cryptocurrencies around, many of which small businesses can leverage for growth and profit. For a beginners guide on cryptocurrency and digital cash, check out What is Cryptocurrency? Beginner’s Guide To Digital Cash.
Contrary to popular belief, cryptocurrency is not just for trading and investment, it is valuable for businesses and individuals alike. Here are just a few ways a small business can start using cryptocurrency.
1. Start accepting payments in cryptocurrency.
It may sound overly simplified, but this is pretty much the ultimate way a small business can start building its cryptocurrency portfolio. If you sell a product or service, you can set up a point of sale (much like a credit card machine) that accepts cryptocurrencies and converts the payments automatically into traditional currencies. You can then begin accepting crypto payments for in-store sales or online ones. This also effectively expands your client base and puts you at the forefront of an emerging method of payment. You can begin accepting payments in cryptocurrencies by getting a digital wallet.
2. Acquire a digital wallets
If you want to start getting paid in crypto and keeping your dollars digital (meaning, you don’t convert them to Euro or USD), then you have to get an e-wallet or cryptocurrency wallet to store and receive cryptocurrencies. You can also learn all about these types of wallets. After that, it is as simple as training staff (or yourself) to say “cash, credit, or crypto” and watching your crypto wallet get fatter.
Why use cryptocurrencies?
1. They are cost effective and easy to use
Unlike having to visit a bank to transfer money, with using the digital wallet, you can transfer easily using your computer or an app on your device. There are even complex puzzles you can complete to “mine” bitcoins which are growing in popularity. On average, every 10 minutes, one block is produced on the Bitcoin network.
As mentioned above, bitcoin is a peer-to-peer network, which means that any transactions aren’t processed through banks. It allows payments to be processed much quicker and in one currency. It means for your business that you can raise capital quicker and cheaper and it cuts out the drawn-out process of visiting banks for loans.
2. They have built-in fraud protection and are instant
As a small business owner, you are probably particularly weary of things like bounced checks and fake cash. With cryptocurrency, that worry is pretty much eliminated due to the verification process that takes place with each transaction. You also don’t need to wait for payments as they are virtually instant, so you can forget about 3 business days and waiting until after bank holidays.
3. They provide global access
As it is one centralized currency, cryptocurrencies means you don’t have to worry about exchange rates when you are trading and buying. They also feature no credit card fees, and they aren’t tied to any current regulations.
4. They attract a new customer base
What better than to expand your customer base effortlessly? By simply accepting new forms of payment, you open your business up to an entire segment of customers that would have otherwise been untapped.