Cryptocurrency is a new technology wave that is causing a revolution. Many business owners are not aware of how the cryptocurrency concept works. Big companies are already adapting it because cryptocurrency is legally going into the mainstream very soon.
Overview of cryptocurrency
Cryptocurrency is an encrypted digital asset based on blockchain technology. Transactions are recorded in blocks before getting added to the chain. You need a wallet to send, receive, and store cryptocurrencies. Cryptocurrencies cannot be purchased from a bank or some investing firm. You need to open an account on the crypto trading platform for buying digital assets with fiat currencies.
For example, Suissebase is a popular payment gateway Bitcoin in EU Fees for high net worth businesses. B2B clients can install their apps and open an account for free. Digital assets made available after strict assessment have potential and are promising.
How businesses will benefit from using cryptocurrency?
- Unlike a traditional bank, crypto transactions are quick. The waiting time to receive funds is less. Businesses can grasp this opportunity to do more international trading because cryptocurrency has no geo-location restraints associated with money transfers.
- Transaction charges are significantly lower than banks.
- The transactions are irreversible, so the issues like cheque bounce and credit card chargeback issues are eliminated.
- Cryptocurrency is decentralized, so no concerns about malicious or fraudulent activities. No need for 3rd party [banks] because nothing is conveyed back and fro.
- No caps on how much to withdraw or send at one time.
- Access to a wide audience because many people prefer cryptos as a payment method.
Suissebase exchange is recommended because it follows security principles similar to the pharmaceutical and bank sectors.
What are the challenges of cryptocurrency use in business?
- Cryptocurrencies cannot be quickly adapted to your business. There is a need for technical know-how to set it as a payment mode. You can hire professionals to make arrangements like integrating it with your website, wallet connection, etc.
- As cryptocurrency is not regulated there are no guidelines associated with the tax. If a person pays using BTC earned from the mining means they don’t pay taxes, so this is an issue!
- Volatility is high in the crypto landscape, so it is hard to budget as value changes often.
How to use crypto in your business?
When you consider using crypto as the payment method in company operations, you need to answer two questions.
- Do you want to hold crypto on-balance-sheet?
- Do you want to adopt crypto-enabled payment?
Adding crypto to your business operations, balance sheet, and treasury functions is a complex process. It will need a change across the entire organization and even mindsets.
Some businesses choose to adopt crypto-enabled payment. It is a quick way to adapt to digital asset use in your business. You will need a few adjustments but can serve in achieving quick goals like growing sales transactions and reaching new demographics interested in crypto.
Adapting to crypto-enabled payment means you will depend on a cryptocurrency exchange, where payments are received and made in crypto via conversion in and out of fiat currencies. For example, you can enable crypto payments like BTC via Suissebase Exchange without adding it to the company’s balance sheet. The crypto exchange platform is compliant and uses best practices. With this approach, there will be few disruptions to the internal functions of your business as crypto is kept off the balance sheet.