Many businessmen doubt if cryptocurrencies are useful in their business. According to a study in America, about 59 million American adults have already invested in cryptocurrencies. About 32% of business executives and small business owners have confirmed that they accept crypto payments.
Cryptocurrencies are earning huge popularity recently. Therefore, business owners must consider how to use it to improve their business performance and achieve their goals. Here are the top ways to make use of cryptocurrencies in your business.
- Accepting Cryptocurrencies
You can enjoy many benefits if you accept cryptocurrencies from your customers. Lower fees are one of the benefits of this system. Businesses have to pay a transaction cost of about 2%-4% for conventional credit card payments, whereas crypto payments charge fees below 1%.
Unlike conventional credit card payments, crypto payments cannot be reversed or charged back from the merchants. No third parties are involved in crypto transactions therefore, the payment will be final, offering more protection for your business.
Cryptocurrencies have already become mainstream in different countries and therefore, you can grow your business internationally by accepting cryptocurrencies. When your products become more safe or convenient for a different market, your business expands and rises in revenue.
You may use a digital wallet to accept cryptocurrencies manually or rely on a crypto payment service like Coinbase Commerce or a payment gateway such as PayPal. Even though you have to pay a particular charge for both a service or gateway, it allows you to immediately convert your cryptocurrency into USD.
- Taking A Crypto Loan
Crypto loans are considered to be an ideal financing choice that can replace traditional money lending. You need to have some amount as well as some loan-to-value or LTV ratio to receive a crypto loan. Rather than selling the digital assets you own, you may utilize them as a guarantee to get a stablecoin or cash.
The crypto collateral you decide to put forth determines your loan amount. However, there are many risks associated with new crypto and financial services. If your collateral’s value drops due to market volatility, you have to increase it or be ready to pay down your loan. When you fail to meet the requirements of the lender, a part of your crypto collateral might get liquidated, which depends on your lender. Therefore, make sure you find a reliable lender with good reviews and reputation.
- Using A Retirement Account To Invest In Cryptocurrencies
The best way to sell and buy cryptocurrencies that do not prompt capital gains is by retaining them in a retirement account which is tax-advantaged. These retirement accounts can be Individual Retirement Accounts (IRA or Simplified Employee Pensions (SEP-IRA) for self-employed people.
If you have a crypto conventional IRA, all your contributions will be tax-deductible and you just pay a common income tax on the money you withdraw in your retirement. The contributions you make to your crypto Roth IRA will be taxable. But, your withdrawals in retirement will be completely tax-free.