Despite the fact that the cryptocurrency market is struggling to find support, the interest among business owners wanting to use cryptocurrencies is increasing. There are obviously several great benefits of using cryptocurrencies in a small business, but there are also a few risks.
Therefore, we thought we’d clear things up and asked the cryptocurrency expert at BullMarketz.com to share his views on the matter.
1. Cryptocurrencies are highly volatile
The first thing you have to consider is that cryptocurrencies are the most volatile assets out there and they can have a huge impact on your business. Compared to regular currencies that rarely fluctuate more than a few pips at a time, a cryptocurrency can move 30 percent over the course of a few days.
Not only does this make it hard to price products and charge customers in cryptocurrencies, but it also puts your capital at risk.
That being said, using cryptocurrencies in businesses has never been more popular or easy, and hundreds of entrepreneurs decide to take a leap of faith every day.
2. Are your customers prepared for It?
This point is very important because even though you might want to use cryptocurrencies, your customers might not. In fact, your customers might not even own cryptocurrencies. And there is no point setting up a payment system for a cryptocurrency if it’s never going to be used.
Because of this, I encourage you to reach out to your customers and ask them what they think first. Furthermore, you can check with your suppliers and see what they think. Even though your customers might not like the idea of using cryptocurrencies, your suppliers might.
3. Which cryptocurrencies will you use?
Bitcoin is by far the biggest and most popular cryptocurrency, but that doesn’t mean it’s the best to use in a business or the best for your particular business. Ethereum, Litecoin, XRP, Bitcoin Cash, and Dash are all popular alternatives that are frequently used.
Make sure you know which one is the best for your business before you continue.
4. Are there better ways to use cryptocurrencies?
I’m going to assume that you have an interest in cryptocurrencies and that is why you want to implement them in your business. But is that really the best solution for you?
Have you considered trading cryptocurrencies on an exchange or with a CFD broker? Did you know that there are several cryptocurrency futures that you can invest in?
Also, if you’re a developer, there are opportunities for you to create your own apps and even cryptocurrencies on several of the established blockchains. Maybe you can find a brand new business opportunity.
Look into all of your options before you start using cryptocurrencies in your business. There might be a better way for you to feed your interest than using digital assets in your business.
5. Is there a blockchain solution for your business?
Now, this is a big one and it should be considered regardless of whether you will use cryptocurrencies professionally or not.
Blockchains are the cornerstones of the cryptocurrency industry, and they fill a range of different purposes that can be highly beneficial for your business.
For example, VeChain has been developed to track products through every stage of production all the way until they’re sold to a customer. The purpose is transparency and quality control for both you and your customers.
XRP and Ripple are working to develop new international payment options which will make it easier, smoother, and, more importantly, cheaper for businesses to send money.
There are also blockchains that can be used to store user information, to keep databases of business-related information, support account registration, and so much more.
I’m not going to encourage or discourage you from using a cryptocurrency in your business. However, I want you to really consider every aspect of implementing digital currencies before you make your final decision.
Do the benefits outweigh the potential risks? Then go for it. If not, you might want to wait for a while or try to use cryptocurrencies in other ways.