When used as a means of payment, cryptocurrency is basically a valuable tool, asset or currency that can be exchanged online for services or goods. The underlying technology of cryptocurrencies is blockchain, a decentralised technology that handles and registers transaction records across a network of computers.
As a result of the digital revolution, payment systems have advanced significantly. Platforms provide a superior cryptocurrency payment experience, giving merchants a competitive advantage over other retailers. Accepting cryptocurrency for your business has two benefits: lower overhead costs and fraud prevention.
If you’re a business owner, plan on a start-up or simply look for ways to expand and reach out to a larger audience, and maybe go internationally, it’s time you acknowledged Bitcoin payments.
How and why to take use of Bitcoin in the company
Business owners who are yet to implement Bitcoin payments do so because it takes time and effort to understand the bureaucratic part of this type of payment. Plus, doing businesses while trading BTC to make quick fortunes simply takes profound market knowledge and deep implication. Speculation is the basis on which crypto is built, which consequently impacts the value of the assets, turning volatility and price fluctuations into both advantages and drawbacks of cryptocurrency.
However, there seems to be many more disadvantages to traditional centralised payments, compared to DeFi, because those leave room for corruption, intractability etc., and require you to pay taxes and other common issues businesses and ordinary people face and pay for.
You’re here to see how Bitcoin can benefit your business, so let’s find out which aspects of BTC payments can improve the activity of your company.
Traditional payment providers, such as credit card processors, charge merchants a tariff for each transaction. However, using cryptocurrency payments completely eliminates these fees, because crypto has few to none, and some Bitcoin exchanges even charge less than 1%.
Similarly, cryptocurrencies can help you avoid international currency payment fees if your company serves customers from other countries. This is a consequence of the lack of governmental or bank involvement in payment transactions. As a result, businesses do not wait for payments to clear through a foreign bank or pay the associated costs.
Check the Bitcoin price
Have you ever asked yourself, “what do business owners do with their Bitcoin?” The answer is simple. They use it just like any other investor or trader. For example, they convert crypto to fiat currency to receive or make payments without touching it, meaning they take a “hands-off” approach meant to keep Bitcoin off the books.
Another way to make real use of it can be to adopt a trading strategy, like the long-term one. To put it simply, you hold your digital assets and check the Bitcoin price on a daily basis to figure out when it’s time to sell or, why not, buy Bitcoins.
If the chart shows the current Bitcoin price is red, then you might wait for the price to rise before selling, like several other investors do. Similarly, when you see the number near USD in green, you can think of another move, like buying or any different strategy that suits you.
These charts are accurate and show the live price of other currencies, too, helping you decide whether you should invest or get rid of the Bitcoins customers have paid you.
Either way, holding BTC can be a success, considering you have the knowledge or reach out to successful crypto investors to help you with eventual dilemmas. Plus, you can use the gained digital coins to purchase things offline or online. Many stores are willing to offer you their products against your Bitcoins, like home improvement chains, restaurant chains, e-commerce platforms, electronic retail giants, and so on.
Because each transaction requires a network of intermediaries composed of financial institutions and banks, traditional borderless payments are time-consuming. Each intermediary is given a specific identifier utilised throughout the payment transaction. Before you receive your money from a customer, all intermediaries must authorise the transaction, which is why it takes one or more days for traditional borderless payments to complete. High fees incur as every intermediary involved in the payment process has to have some monetary benefits out of the transactions.
P2P crypto exchanges work oppositely and eliminate the need for intermediaries’ involvement in the payment process, allowing users to exchange Bitcoins directly with one another. Yours and the recipient’s geographical distance is absolutely meaningless and irrelevant, thanks to the blockchain technology behind crypto.
Borderless transactions can consequently benefit your business by allowing for fewer restrictions since the approval of transactions is no longer needed. BTC also offers the chance for one single unique currency: you can receive money in the form of Bitcoin from the US or China instead of the dollar or yuan.
Use Bitcoin as a marketing tool
Show people you’re a proud supporter of technology and innovation and that you don’t want them to squeeze money out of themselves to buy your products. People are so connected to social media, which can benefit your business in unimagined ways.
Crypto marketing has become a standard practice in the cryptocurrency and blockchain industries. If you want to get good results, you must choose the proper channels to promote your project. These are several effective crypto marketing channels to use in your project’s promotion:
– Social media
– Blogs and websites
– Content marketing
– Ad networks
– Advertisement banners
– Blockchain conferences
– Crypto marketing agencies
Last but not least, consider how you’ll store your Bitcoin
After getting hold of Bitcoin, business owners must decide how to store it safely. Your private keys are secured by Bitcoin wallets and are required to access your funds on the blockchain. There are web, paper, desktop and hardware wallets. The hot wallets are always connected to the internet, whereas the cold wallets are primarily offline. To choose which one to use, consider how secure and user-friendly you want the exchange and wallet used to be.
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