Cryptocurrency has affected the business and finance worlds. Aside from challenging conventional thinking, it has provided business owners and entrepreneurs new avenues to start and grow their businesses in these difficult times. Many have already turned to crypto to raise capital or to use it for ongoing operational costs.
If you’re looking for effective ways to grow your business capital through crypto, there are some ways to go about it. One vital thing when getting involved with crypto is to do your research to know the best way to achieve your business goals.
Determine the ideal cryptocurrency for your business
When choosing which cryptocurrency is suitable for your business, you have several options. There are more than 1,000 unique cryptocurrencies for transactions at the moment.
Bitcoin, since inception, has become the leading cryptocurrency reaching record highs in market capitalistion of $1 trillion in recent months. There’s Ethereum, whose once $83 billion market capitalisation has exceeded expectations and has since reached a market capitalisation of well over $250 billion. The top 10 cryptocurrencies individually have no less than $20 billion in market capitalisation.
Cryptocurrency has grown increasingly in recent times with high market caps indicative of high investor activity. They are also extremely liquid and can be sold easily at the market price.
Each crypto varies and may have specific features that others don’t. Some things to consider when choosing a cryptoasset for your business are:
- transaction speed
- block times
- market cap
- blockchain, in which the cryptocurrency is built.
After identifying the important factors, you can narrow your options down and choose the cryptos suited for your business.
Buying and Trading Crypto
Once you’re done with research, determined your cryptocurrency of choice, and learned about the industry, you can now assess if you’re ready to move forward to buying and trading digital currencies.
Make sure to prioritise security and safety regardless if you’re frequently trading or you’re buying for the long term. Look for a reputable online cryptocurrency trading platform, one that can help with buying and trading crypto and also help protect your investments.
You can also invest in different coins at the same time. This may help you avoid the risk of putting all your eggs in one basket.
Get a crypto-backed business loan
If you need cash but you’re not willing to lose all your crypto, consider a crypto-backed business loan. Secured by cryptocurrency, this type of loan allows you to get cash without having to sell your cryptoassets.
The amount of crypto you’ll be required to have as collateral is based on some factors, including your loan amount, loan duration, and loan-to-value ratio (LTV). If this option is appealing to you, a FiFit loan might be just what you’re looking for.
FiFit accepts Bitcoin as collateral, and looks to offer other cryptocurrency options that can be used to secure your loan. FiFit has flexible duration loan terms which is dependent on your loan-to-value ratio and your loan amount. FiFit also offer a once off charge on the loan at a competitive rate.
Consider accepting cryptocurrency payments
Another way for your business to generate more capital is to accept cryptocurrency payments. Businesses can lower the transaction fees involved during transactions as high number of peer-to-peer processing networks accept crypto as payment.
Compared to check payments, wire transfers, and other traditional methods, cryptocurrency can be more efficient and a lot faster. Furthermore, cryptocurrency transactions can be done directly between the business and the customer on the blockchain, avoiding third-party scams and external payment disputes.
Accepting cryptocurrency payments in your business can simultaneously grow your capital and streamline payment processes.
There are risks in cryptocurrency investments, but by being diligent and doing your research, it can help you grow your business capital and fund new developments.
Explore various payment options and look into specific cryptocurrencies to help you become more knowledgeable when you start or operate your business.
If you liked our “Grow Your Business Capital Using Cryptocurrency” and found some valuable information, check this space regularly to get more updates on crypto-backed loans and cryptocurrency.