Cryptocurrency is rapidly becoming one of the most sought-after commodities in our digital age, and unsurprisingly so, as mining and trading cryptocurrencies have quickly become a lucrative prospect for consumers as well as forward-looking brands around the world.
As the demand for companies to start accepting cryptocurrencies as a legitimate payment method continues to rise, business leaders are realizing that they can quickly capitalize on an emerging trend in numerous ways.
Not only does cryptocurrency bring financial efficiency for your business, but it also opens numerous lucrative opportunities you can exploit to grow your customer base, and expand your business. That said, crypto is a volatile market, so you need to prepare well in advance before integrating digital currencies into your operation. Let’s take a look at the five ways cryptocurrencies can help your small business, and how to capitalize on the trend.
Streamline all financial transactions
The first and most obvious benefit of integrating cryptocurrencies into your payment system, is that you will be effectively eliminating all transaction fees. This is due to the unregulated nature of the cryptocurrency market (more on that in a bit), which means that there is no banking or government institution to seize a percentage of the transaction. What this means for small businesses and startups especially, is that you can rule out these extraneous expenses from your financial strategy and reallocate resources towards other goals.
Because there is no intermediary to control every transaction, you will not only be able to avoid costly fees, but you will also receive payments almost immediately. Rather than waiting hours or days for a transaction to get processed, you will have access to the funds in a matter of minutes, even seconds. In turn, all of this will improve customer experience and help you save money in the long run.
All transactions will be final
Another way you can benefit from integrating cryptocurrencies into your operation is through automatic transaction finalization, meaning that when a customer pays for your goods or services using cryptocurrencies, there is no way to revoke the purchase or dispute your charges. The fact that all cryptocurrency transactions are final presents a great opportunity for small businesses to ensure a positive cash flow without fear of having to refund any payments and potentially lose money in the process.
Needless to say, this is one of the best ways to stay in control of your revenue streams, as it eliminates the risk of chargebacks (a common problem in the modern business world), and also allows you to optimize your return policy to benefit your brand. What’s more, the fact that all transactions are final means that online scammers will have a more difficult time disputing valid transactions with fake credit cards.
Expand your customer base
One of the most important benefits that cryptocurrencies bring to growth-oriented businesses is that they allow you to quickly expand your customer base, and capitalize on a whole new demographic. Capitalizing on customers who are using crypto mining hardware as well as those who trade cryptocurrencies on a daily basis is a great way to open up a new revenue stream, provide payment flexibility to your customers, and attract an emerging demographic to your business while the crypto revolution is still in its infancy.
This will provide you with a much-needed competitive advantage, and allow you to grow faster because there aren’t as many businesses doing the same thing. Consider it as a valuable addition to your USP (unique selling point) and a way to branch out with minimal risk and a high ROI potential.
Capitalize on market volatility
Speaking of risk vs reward, it’s always important to remember that the crypto industry is inherently volatile, which means that it can put your business at risk but also allow you to make money if you know how to use this volatility to your advantage. When cryptocurrencies are on the rise, you can easily capitalize on an influx of crypto payments, but that doesn’t mean that you should just let them sit in your digital wallet.
It’s important that you convert cryptocurrencies into cash when the time is right, in order to maximize your ROI potential. The only reason why you would let your coins sit in your digital wallet would be to wait on the price of cryptos to rise once again, so that you can convert them for traditional currency. Learn to monitor the conversion rate, and be quick to convert your coins when the time is right.
Offer more payment options
And last but not least, modern customers and clients love having the ability to pay for goods and services on their own terms. It’s important to keep in mind that more and more businesses are trading in cryptocurrencies with each passing year, meaning that they might want to pay for your goods by trading cryptos with your company. Don’t deny them or yourself this opportunity, rather, implement cryptocurrencies into your system to ensure payment flexibility and convenience to your partners, clients, and customers.
Since its humble beginnings, cryptocurrency has risen to become one of the most lucrative digital commodities on the planet, and growth-oriented brands are taking notice. With these insights in mind, you can implement cryptocurrency into your payment system and capitalize on a growing trend that will help your business flourish.
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