Anyone who follows the latest news in the financial industry knows that companies investing in cryptocurrency are a growing trend in 2021. Enterprises are increasingly eager to integrate crypto into their business. That’s because numerous business processes can benefit from blockchain technology. For example, an online gaming website like Overdrive could simplify the payouts for international clients. There wouldn’t be a need to convert the winnings into different currencies. Plus, using Bitcoin and other cryptocurrencies upgrades the security of transactions. Every move gets recorded in the encrypted ledger that’s virtually impossible to hack. But businesses can also invest in various digital tokens as a way to grow their capital. Is it a worthwhile venture? Let’s take a closer look.
Investing in Cryptocurrency Protects Against Inflation
Regardless of what country you’re from, inflations are bound to impact your company’s money if you let it sit idle. So it’s a good idea to invest the profits into something that promises a good return in the upcoming decades.
Another way how cryptocurrencies guard you against inflation is that they have a so-called global value. That means they’re untouched by the changing inflation rates in a specific country. For example, if someone pays you in Chinese Renminbi, and the currency loses its value in the upcoming months, you’ll lose money because of that. But if you would accept cryptocurrency payments, your assets wouldn’t lose their value because of inflation.
Handling Cryptocurrencies Makes Your Business More Attractive
Can investing in cryptocurrency help a business acquire more clients? Absolutely. Many people possess cryptocurrencies and would love to spend some of them. So if your company handles the digital money and is willing to accept crypto payments, it opens a door for a whole new audience. Some of them will enjoy the ease of making payments. And others are attracted by lower transaction fees. You see, when it comes to the pros and cons of investing in cryptocurrency, one of the benefits is that it helps to get rid of banks as intermediaries. The financial institutions take a hefty fee for transactions between different currencies and impose several taxes for the involved parties. With the digital tokens, there’s none of that.
Crypto Makes Transactions More Transparent and Secure
As we mentioned before, beginning investing in cryptocurrency creates a new level of security for your transactions. That’s because the log of transactions will be public and unchangeable. So anyone trying to manipulate it would get discovered immediately. And the best part is that even when a hacker would succeed in accessing a decentralized exchange, most online platforms are willing to reimburse the losses.
Investing in Cryptocurrencies as a Company – How to Do It
So how to start investing in cryptocurrency as a company? If you’ve never done it before, you probably have questions about where to buy the crypto assets, how to store them, etc. It’s a pretty straightforward process. Let’s start by looking at how to acquire Bitcoin from a cryptocurrency exchange:
- The first step is to make an account. Then you can deposit money via a bank transfer and purchase some digital coins. Be aware that some banks won’t let you transfer money to crypto exchanges. So make sure to check with your financial institution before depositing any money.
- Choose a reputable exchange that offers dedicated accounts for business. Some good crypto exchanges with excellent customer support and high funding limits are River, Coinbase, Kraken, and Gemini.
- Next in the steps to investing in cryptocurrency is buying digital money as a company. For that, you need to place either a market or limit order. The first one lets you buy tokens at market price and the second at a specific desired price.
Market and Limit Order – Which One Is Better?
The good thing about buying at market price is that it’s super simple. The exchange calculates the price for you, and all you have to do is click the “buy” button. However, if you’re looking to buy higher amounts of cryptocurrencies, it might get expensive to make the purchases at market price.
The limit orders get filled once they correspond with the price you set. The downside, however, is that the price may never get as low as your bid. In that case, your order will never get filled.
There exists a third way to purchase cryptocurrencies. It’s turning to a so-called over-the-counter (OTC) desk where you can place an order with any price you set. And get this: the trade will not go through the order book, as usual. Instead, it’s all done in private. You email or call the seller directly via OTC and negotiate the trading price.
The risks of investing in cryptocurrency are still present in 2021. However, that doesn’t mean you should disregard the digital tokens. Putting some of your profits into crypto money like Bitcoin protects you against inflation. It also gives you the possibility to get in on the rapid rise in the token’s value. You wouldn’t want to miss Bitcoin’s price hitting new heights again. And investing in cryptocurrencies would also entail making your company “crypto-friendly.” It means providing the possibility to make payments to your business via digital money. These types of advancements would make you attractive for a whole new global audience who wish to spend their crypto assets without the hefty fees involved with fiat currency transactions. So, in any case, start slow with crypto investments, but the most important thing is that you would do it. Digital money is the currency of the future, and the sooner you get in on its benefits, the better.
Do you currently possess any of the digital tokens? Share your favorite tips for investing in cryptocurrency in the comments.
Guest article written by: Edward is enthusiastic about assisting businesses, especially local firms, in developing a more personal online relationship with their consumers and prospects. While trading and market research is his strong USP, his expertise in finance works like an added charm to his credentials! In professional circles he is called “mister bet” for his accurate financial predictions. He is a finance genius!