Cryptocurrency is simply a digital currency that relies on encrypted technology to transfer money via the internet. Cryptocurrency is growing in popularity from the original Bitcoin to up-and-coming coins like Floki.
Crypto isn’t generally backed by hard assets like stocks but allows you to send money to another person or use smart contracts that end when certain conditions are met. They’re usually stored on a blockchain and are steered by sentiment rather than assets and cash flow like stocks. Purchasing crypto currency isn’t difficult either. For example, if you’re wondering how to buy Floki, their website provides useful tutorials to make the process effortless.
There has been some controversy around cryptocurrencies and using it in your business, however there are so many profitable benefits of using it that stand apart from your usual merchants from being a faster way to exchange to avoiding inflation. Here are the top for reasons why your business should be using cryptocurrency.
- It’s Secure & Fast
Cryptocurrency uses encryption to verify transactions meaning advanced coding is involved in the transmission of the data and transaction process. Transactions are made on the blockchain which tracks each coin and wallet. The end goal of this is to enhance the safety and security during transactions and it’s also a much quicker way to pay compared to normal money. When transacting through traditional banks, it could take hours or even days to complete the process. However, when it comes to Bitcoin, it can be done instantly. If you accept Bitcoin, you can make more profit by increasing efficiency.
- Low Transaction Fees
A lot of payment merchants place extra charges on transactions like PayPal who can charge up to 4% per transaction or even more. Cryptocurrencies are decentralised so they don’t require a bank to verify each transaction. This means that your business can avoid the fees that you would get by going through your usual merchants and you’ll save 2-5% on every transaction. Bitcoin transactions can be sent and received at a very low cost or even none at all!
- Avoids Inflation
Bitcoin and other cryptocurrencies are more resistant to inflation than fiat currencies. Inflation is where currencies lose value over time causing prices of consumer goods to increase. Bitcoin, for example, has increased in value a lot faster than the US dollar has lost value. Due to the scarcity of only 21 million tokens, Bitcoin is a viable inflationary hedge that can be bought or sold in fractions for small businesses that might need quick access to liquidity.
- The Currency Works Worldwide
If your business exports services and goods or purchases materials from other countries around the world, then a cryptocurrency will serve you many benefits. Using cryptocurrency helps you avoid the expensive foreign exchange rates and transaction fees helping you to save money.
Cryptocurrency is a great way to limit loss of profits in your business by reducing transaction fees, avoiding exchange rates and allowing you to move money quickly. As the popularity of cryptocurrencies increase, now is a perfect time to look into using cryptocurrency for your business.
Editor’s Note: Any financial information or opinions contained in this article are the author’s own and do not represent endorsement or support of any products or services by SmallBizClub.com.