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7 Ways Your Small Business Can Benefit from Cryptocurrency

  • Written by Brigitte Evans

It seems that every other day there is a headline about cryptocurrency. Whether it is about the rise and fall of Bitcoin value or an idea of how to use blockchain in a new way, it’s as if crypto is always in the news. As a small business owner, you should always be on the lookout to improve your business in a smart and inexpensive way. Lucky for you, cryptocurrency can offer you various ways to do that.

First, think about offering your customers the possibility to pay in crypto. It can bring several benefits to your business:

  • Expand the customer base – you will attract new customers, particularly young people from all over the world. Around 48% of people aged 18–34 believe that most people will be using bitcoin in the next ten years. If your business is focused on this category, do not hesitate about it.

  • Influences your brand perception and visibility – you don’t hesitate to add improvements and innovation to your business. Also, with the crypto community consisting of dedicated people, you may count on them to support your business.

  • Respect the customers – cryptocurrencies offer several improvements over regular transactions: better security, improved transparency, anonymity, and fast resolution of the transaction, to name a few. By implementing paying in crypto, you show that you value your customer's time and security as well.

It is also important to keep in mind some of the risks that may appear:

  • More dynamic than the standard market – the floating rate of cryptocurrencies with big spikes in rising and fall of value needs to be taken into consideration. To be fair, major crypto like Bitcoin or Ethereum have become more stable in terms of value and liquidity. Still, think about using merchant service to protect your business.

  • Not fully tested – technology-wise, cryptocurrency, and wallets are still new kids on the block. They are still being tested, and we have yet to see their limits. Potential problems for small businesses may arise that are not known now.

With all this in mind, let us explore some ideas of how it can benefit your business:

  1. Cheaper and faster transfer

The decentralized nature of cryptocurrencies means that the fee for transactions is lower than using regular transfer of money. Also, with the way blockchain works, the transfer is faster (sometimes immediate).

  1. Build or expand customer loyalty program

If you are running a business, the chance is you have already established a customer loyalty program (if not, start it ASAP – it is more cost-effective to retain a happy customer than acquire a new one). Whatever you have it or you plan to build, it, think of using crypto tokens instead of points. As tokens can be traded for money at a later date, it offers added value to the customers.

  1. Set your mining operation

You do not need to build crypto mining farms to profit from cryptocurrency. A small rig with specialized bitcoin mining hardware can be beneficial as well. By selling mined tokens, you can acquire additional funds for your own business or projects you plan to do. Instead of borrowing money or taking a loan from the bank, mine your own support. You can also use it to pay for services that you need that accept crypto.

  1. Pay bonuses or salaries in crypto

If you have young workers who are eager to adopt new ways, try to offer them crypto as part of compensation. After all, it is nothing new – a lot of employees in startups related to blockchains receive their salaries in cryptocurrencies. With Bitcoin becoming more and more stable and its liquidity rising in the market, it is something to consider.

  1. Improving safety in the transaction

The way blockchain works, it is not possible to have debt or loan. Every transaction, when verified, is final and non-reversible. The client cannot spend what is not theirs. This can help a lot with potential fraud and chargebacks, as it makes transactions simpler and much clearer both to you and the customer.

  1. You can always invest…

If you read crypto articles, you may get the impression it is only good for investing. There is some truth to that. Looking for the right opportunities like Initial Coin offering (ICO) can yield great results. It may also serve as backup funding in case of an emergency. As with any type of investing, pay attention to the crypto market and its fluctuation, and be ready to act accordingly.

  1. …and join the revolution

If all these ideas seem interesting, then you may be ready for the next big step – invest in Crypto-related projects. It can be done either by trying to solve a particular problem related to your business through blockchain or developing a real-world application. You can even think about creating your coin! Lastly, you may think about joining a consortium that works with blockchain projects and expand your business.

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