What Small Businesses Should Consider Before Using Cryptocurrency
Bitcoin, Litecoin, Ethereum—you’ve probably heard of at least one of these popular cryptocurrencies.
Cryptocurrencies (or digital currencies) have existed since 2009, but it is only within the last few years that they’ve started catching the interest of the general public. Even industry giants, such as Microsoft and AT&T, are starting to accept cryptocurrencies as a form of payment.
You may also hear of smaller companies and local businesses starting to accept cryptocurrency payment. And you might start to wonder—should my small business start using cryptocurrency?
There is no right answer, but using cryptocurrency is something you should at least consider. Understanding cryptocurrency can be complex. Here are some basics to help you get started.
Transaction fees are lower
As a small business, you might find yourself having to require a minimum payment or you might have to charge a convenience fee to help cover credit card processing fees. This can be inconvenient for customers but it is a necessary part of keeping your company financially secure.
Many businesses that allow cryptocurrency payments find that the transaction fees are lower. Cryptocurrency wallets have minimum transaction fees, which is allowing businesses to drop those convenience fees.
Anyone that owns a cryptocurrency wallet can make a transaction. You can also see a record of transactions through the wallet, which allows your business to monitor your balance like you would an online bank account.
Younger generations are using cryptocurrency
Knowing your audience can help you determine whether or not accepting cryptocurrency payments would benefit your business. Millennials and Gen Z are among the largest demographics using cryptocurrency. If your primary target audience is that age bracken, it could be worthwhile to start offering cryptocurrency payments.
That isn’t to say that older generations aren’t using cryptocurrencies—some are starting to adopt the practice—but you’ll find that Millennials and Gen Z are among those who are most invested.
If you’re trying to meet younger consumers where they’re at, allowing cryptocurrency exchanges could help you to do so. At the same time, however, debit cards, credit cards, and cash remain popular payment methods for all generations.
Investing now helps in the future
If you’re not ready to start accepting cryptocurrency exchanges from customers, another option to consider is using cryptocurrency as an investment to cover eventually business needs.
As cryptocurrency continues to rise in value, some investors are having luck storing cryptocurrency until it can be sold for a higher price. Just like the stock market, there are risks associated with investing in cryptocurrency, but there are gains to be had if done correctly.
Online cryptocurrency trading software, such as Bitcoin Revolution, allows for automatic trading to help investors make the most from their cryptocurrencies. If you’re interested in learning how trading software helps with cryptocurrency investments, read more here: https://cryptoevent.io/review/bitcoin-revolution/.
Secure, but not completely safe
While there is no denying that cryptocurrency transactions are extremely secure because of cryptography, it is also important to know that cryptocurrency isn’t completely secure.
Hackers use several techniques, including software attacks, to get into servers and steal cryptocurrency. While the potential of getting hacked might seem like a reason not to use cryptocurrency, keep in mind that you’re also taking risks when you use a debit card.
Just like you take preventative measures to secure your debit card information, you need to protect your cryptocurrency wallet. Keeping an eye on your transactions, securing your data using a VPN, and not allowing your software to auto-update can help prevent hackers from stealing cryptocurrency.
Cryptocurrencies are volatile
While there are plenty of positive aspects to cryptocurrency, it is also important to consider the drawbacks. One potential concern is that cryptocurrencies have a volatile value.
The value of some cryptocurrencies changes daily. For example, Bitcoin can fluctuate up to 10x in either direction depending on the day. Without a fixed amount, some worry that using cryptocurrencies could cost them money.
While the value of cryptocurrencies generally seems to be increasing, it is important to keep in mind that fluctuations happen. Keeping an eye on the trading marketing and purchasing online trading software can help ensure that you’re trading your cryptocurrencies at a good time.
Don’t jump into using cryptocurrency just because other small businesses are starting to use it! Some small businesses may benefit from using cryptocurrency, while others may not.
As a small business owner, taking the time to learn about cryptocurrency and understanding both the pros and cons can help you make an informed decision of whether or not it is right for your business.