Cryptocurrency will become more popular and more accepted as more mainstream businesses support it. Without that ongoing recognition and perceived legitimacy, cryptocurrencies may continue to exist in an isolated niche.
But how can your startup support cryptocurrency? And how can it benefit you as an entrepreneur?
The Benefits of Supporting Cryptocurrency
These are some of the strongest benefits of supporting cryptocurrency in your business:
A currency is only as strong as the number of individuals and businesses using it. Even the simple act of accepting cryptocurrency as payment is a small step in the direction of more widespread adoption. You probably won’t be able to boost the value of a cryptocurrency on your own, but you’ll still be a part of the overall momentum that reshapes our financial world.
Investments and Appreciation
Any Bitcoin price watch can tell you about the historical dynamics of this relatively mainstream coin. Yes, the price fluctuations can be volatile, but anyone who’s held Bitcoin for a long enough time would have seen a massive profit. That’s obviously not proof that Bitcoin will continue to appreciate, but it (and other coins) certainly could. If you trade in crypto and it appreciates, your business will have more capital to work with.
More Payment Options
Customers appreciate having multiple forms of payment available to them. Not all your customers will want to pay with crypto, but they’ll at least enjoy seeing the option available.
Potentially Lower Fees
In some situations, processing and transaction fees associated with cryptocurrency are lower than similar processing and transaction fees associated with more traditional forms of payment. This isn’t a guarantee, so do your homework and crunch the numbers to determine whether it makes financial sense for your business.
Decentralization and Independence
Many businesses appreciate using cryptocurrency as a way to take advantage of decentralization and achieve more independence. While you may need to rely on a wallet or a gateway to process crypto payments, you can functionally separate from your banking institutions to a degree.
Perception of Innovation
New coins are constantly emerging, offering new dynamics and innovations for crypto enthusiasts and investors to enjoy. If your business accepts crypto and promotes innovations in the crypto world, your entire brand will start to be perceived as innovative, conferring reputational benefits.
New Target Demographics
Accepting crypto payments and promoting these digital coins could be a way to attract a new target demographic to your business. Your products and services may suddenly become more attractive to the crypto enthusiast cohort.
Bitcoin and other mainstream cryptocurrencies are freely traded around the globe (with a few exceptions). Adopting this as a payment method could broaden your geographic reach without you needing to understand other international currencies.
Privacy for Customers
Many people love crypto because it gives them more privacy. Some of your customers may benefit from having their transactions somewhat veiled (though most mainstream coins aren’t perfectly anonymous).
Are your competitors and rivals supporting cryptocurrency? If not, this could be a critical way to differentiate your business.
An Inflation Hedge
Economic inflation is harmful for startups, but crypto offers a reasonable hedge against inflation. Because it’s generally finite in volume and decentralized, it’s not subject to the same inflationary pressure that mainstream fiat currencies are.
Less Chargeback Fraud Risk
Finally, because crypto functions via an immutable ledger, it reduces the risk of chargeback fraud significantly, potentially saving your business a lot of time, money, and headaches.
How Your Startup Can Support Cryptocurrency
These are some of the best ways that your startup can support cryptocurrency:
Accept crypto payments.
Customers like having options when it comes to payment, and you probably already accept many different types of payment. This is simply one more addition to expand that range of options. The most common options for accepting crypto payments are through a crypto wallet directly or through a crypto gateway.
Invest in crypto and hold it on your balance sheet.
You can go a step further by investing in crypto and holding it on your balance sheet. As with any investment, it’s important to do your own due diligence and be aware of the risks associated with each strategic move. However, many businesses have benefited from holding a portion of their capital in Bitcoin and other cryptocurrencies.
Consider alternative and new coins.
Crypto technology is always advancing, so consider alternative and new coins as well as established, mainstream coins like Bitcoin. Not only is it appealing to cutting edge crypto enthusiasts, but it could also be a way to get in on the ground floor of something capable of changing the financial world. Just make sure you properly understand the dynamics of each new coin, reading the documentation carefully, before you choose to accept it.
Advertise your activities.
Don’t just list your acceptance of cryptocurrency on a payment screen or at the cash register. Go out of your way to market and advertise your activities. Include cryptocurrency in your marketing materials, and make it known that you’re an avid supporter. In addition to generating more business from crypto enthusiasts, this is a way to improve the reputation of your brand as an innovative leader and a way to further differentiate yourself.
Teach others about cryptocurrencies.
If you’re a proud believer in the future of cryptocurrency, evangelize those beliefs and spread knowledge about cryptocurrency by teaching others how to use it and educating them on why this financial product is so advantageous.
Host groups and workshops.
Similarly, if you have a physical business, you can host groups and workshops in which you introduce people to cryptocurrency or exchange ideas about how to integrate crypto into the mainstream.
Get involved in forums and online discussions.
Even if you don’t have a physical business, you can get involved in forums and online discussions. Popular crypto forums are a great place to learn new things, establish your authority in this space, and potentially get some incidental exposure for your business.
There are risks associated with cryptocurrencies. While Bitcoin and other mainstream coins are generally regarded as safe, secure, and resistant to most types of attacks, there are still some vulnerabilities to keep in mind, like the possibility of a 51 percent attack. Cryptocurrencies are notoriously volatile, and transactional costs can actually be higher in some cases.
The landscape of cryptocurrency changes rapidly and often without warning. The emergence of new coins, new regulations, and new technological breakthroughs can change not only the price of cryptocurrency, but also how people use it. If a central bank digital currency is released, it could introduce even more challenges and considerations for your business.
Crypto doesn’t appeal to everyone, nor is it accessible for everyone. There’s nothing wrong with accepting crypto payments and advertising your support of cryptocurrency, but making crypto your exclusive payment method is usually a bad idea. It’s still important to accept other, or mainstream forms of payment.
With these strategies and considerations in mind, your business can successfully support cryptocurrency – and strongly benefit from that support. Whether you’re a diehard enthusiast or a casual hobbyist, there are multiple ways to take advantage of these impressive digital currencies.