Cryptocurrencies are sweeping the business world, and it’s time for you to get on board. What’s a cryptocurrency? It’s a digital currency that uses blockchain technology, or a public transaction ledger. Here’s what you need to know about crypto for business:
The Most Common Cryptocurrencies
There are thousands of cryptocurrencies out there, but the majority of the market is taken up by a few key players. They include:
- Bitcoin, developed in 2009, total worth $180 billion in 2017
- Ethereum, developed in 2015, total worth $18 billion in 2017
- Litecoin, developed in 2011, total worth $5 billion in 2017
While smaller cryptos, or “altcoins”, have their own personal use cases, it makes sense for businesses to go with one of the biggest cryptos that more customers are likely to use.
Businesses Accepting Crypto
If you choose to accept cryptocurrencies, you’re in great company! Major businesses accepting crypto include:
- Dish Network
Thinking about joining their ranks? Let’s take a look at the benefits and risks:
Business Benefits of Accepting Crypto
The benefits of accepting cryptocurrencies are huge, and include:
- No international exchange rate
- No transaction fees
- Processes in just minutes
- Puts you ahead of the competition!
Business Risks of Accepting Crypto
Of course, no analysis is complete without checking out the risks. The risks of accepting crypto include:
- Unstable value
- Difficult to analyze cryptocurrency as an asset
- No government support
- Not ideal for microtransactions
Still, the benefits are undeniable, and businesses have found ways to get around the risks. For instance, some businesses get around the value instability by having customers buy gift cards for the value of their transaction, rather than paying outright with the crypto.
Are you convinced? Getting set up to accept crypto doesn’t have to be difficult. Your next steps should include:
- Set up a digital wallet. A “digital wallet” is an online platform used to hold, spend, and transfer cryptocurrencies. You’ll get a QR code and a payment app, which you can use to accept payments and transfer funds.
- Post a sign! Let customers know that you’re accepting crypto. This draws in new customers who are excited to pay with Bitcoin, and informs your existing customer base as well.
- Figure out pricing. The market value of every digital currency tends to fluctuate, much like the foreign exchange (FOREX) market, not just by the day, but by the hour. Figure out a pricing range that’s fair in value, both to yourself and the customers.
Accepting crypto takes capital to get set up for the first time. Call Mulligan Funding at 855-326-3564 to discuss your financing options today!