Technology and business always go hand-in-hand, and the blockchain is no stranger to it. The use cases of blockchain technology are enormous, and in several ways, it bridges hundreds of other sectors like politics, transportation, entertainment, and business.
Since the emergence of cryptocurrencies, they have provided various opportunities for sectors to profit and benefit. Initially, individuals were the primary beneficiaries of cryptocurrencies before businesses and organizations joined the scene.
With the way cryptocurrencies are diverse and varied, it creates different benefits ranging from being a store of value, a hedge against inflation, and a means of getting loans. With all these benefits, small, medium, and large businesses can also enjoy the benefits of cryptocurrency in business.
However, not many people or business executives are aware of the opportunities that reside in using crypto. So we have created a detailed guide showing you how to utilize cryptocurrencies to benefit your business. Let's dive in!
1. Accepting Crypto Payments
Accepting cryptocurrency as a form of payment is a significant advantage for businesses, given its enhanced security and speed compared to other payment methods. As with any business decision, weighing the benefits and drawbacks of utilizing cryptocurrencies as a payment option is important.
One of the first things to note is that with cryptocurrencies, you will pay less transaction fees compared to other payment methods like credit cards. Using credit cards as a payment method costs a business 2 to 4 percent, while cryptocurrencies are guaranteed to cost you less than 1% in transaction fees!
Also note that crypto transactions are simple and effective, with no involvement from outside parties. The agreement for the transaction is made solely between you and the individual paying for your services, and that's exactly what is paid. Furthermore, using cryptocurrencies for payments means you don't have to worry about credit card companies reversing transactions.
Ultimately, blockchain technology's security leaves no room for scams when receiving it and making a verified payment with cryptocurrencies. There are also many options when using cryptocurrencies, as you won't be limited to using only Visa, Mastercard, or American Express.
2. Storing Cash Reserves
Especially if you are living in a country whose currency is embattled with inflation, cryptocurrencies are one of the best methods of hedging your funds and preventing inflation from affecting them. In the crypto market, the first tokens that come to mind are stablecoins, as they act as the USD of the crypto market.
Stablecoins are cryptocurrencies pegged to prominent fiats, such as the Euro and the US dollar. What it means is that in the case of the US dollar, the stablecoin will always strive to maintain the current value of the dollar in the market. So, if you live in an underdeveloped country and want to hedge your profits from inflation, investing in stablecoins is an excellent option.
Nevertheless, stablecoins aren't the only cryptocurrency that can hedge funds assuming there's inflation. The apex cryptocurrency, Bitcoin, is another option if you want your business funds protected from inflation.
Have you ever heard of business people investing in gold to store their money? With cryptocurrency, there is a similar opportunity with Bitcoin serving as its own "gold." It could be wise for businesses to purchase significant amounts of Bitcoin, but it's crucial to have a solid understanding of the market before doing so. You can always check on the price of Bitcoin and other favorite cryptocurrencies before investing.
3. Protect Your Customer Privacy
Customers greatly appreciate businesses that prioritize their privacy and take every measure to ensure it is not compromised. Using crypto industry methods may be the optimal choice to provide the utmost protection for your customers' privacy.
Some channels of conventional payments are not secured, and customers' funds and data can be stolen while making payments. On the other hand, introducing cryptocurrencies like Bitcoin and stablecoins to make payments on your platform should be encouraged.
Bitcoin and other cryptocurrencies are built in the blockchain, and one of its inherent characteristics is that it protects the identity and privacy of a person. When making payments with cryptocurrencies, you would realize that the only thing that is needed is the wallet address and transaction ID to know the payment details. The customer's name or location is not revealed, protecting them from cyber attackers.