10 convenient ways cryptocurrencies can help businesses
Cryptocurrency such as bitcoin are rapidly gaining popularity as an alternative form of currency in recent days due to its compatibility with technology. Many people use it because of its convenience that the regular currency, money, lacks. However, there are risks associated with cryptocurrency such as its volatility that one must beware. Nonetheless, integrating cryptocurrency in business has many benefits. In this article we will look at 10 convenient ways cryptocurrency can help businesses with expenses.
One does not have to cue for long hours to make a transaction when using cryptocurrency. You can buy cryptocurrencies from anywhere at any time, all you need is an internet connection and capable gadget. Additionally, there are many cryptocurrency platforms on which you can buy bitcoin instantly, making it a more accessible mode of payment. Individuals who lack access to traditional banking can use cryptocurrency hence it has the latency to attract numerous users.
Easier international transactions
Cryptocurrency is the only form of currency that is acceptable globally. Different countries’ currencies differ in value, making international transactions potentially expensive due to the exchange rates involved. Cryptocurrency however retains a common value globally since they are not controlled by any governments, making it fast and convenient. A study points out that using cryptocurrency can help your business expand its international network and boost its growth.
Eliminates transactional paperwork
Cryptocurrency utilizes blockchain technology, an online platform that serves as a transaction database. Disbursements are transferred from one wallet to another online, hence no need for paperwork. This makes transactions efficient, swift and straightforward.
Banking transactions that involve large amounts can take long to be processed. Sometimes you might have to wait in line for several hours just to complete a transaction. On the contrary, cryptocurrency transactions are processed immediately they are approved. This is due to the elimination of middlemen in blockchain technology as well as user autonomy. This efficiency can help businesses grow s sellers are able to serve relatively more people and buyers can save their time for other important tasks.
Lesser transaction fees
The nature of cryptocurrency transactions is peer-to-peer, meaning that it does not involve middlemen. It is also free of any control by authorities hence no tax deductions have to be made. Thus, the transaction costs are relatively low as compared to other currencies. Cryptocurrency also eliminates several banking fees such as minimum balance fees, overdraft charges and account maintenance fees, making it a cheaper option.
There are no brokers in cryptocurrency who will require to be compensated for their engagement. This plays a role in making cryptocurrency straightforward and cheaper to use. It eliminates agent commissions, brokerage fees and paperwork. With stronger security measures in place, it is impossible to reverse transactions hence there is a lesser risk of being scammed. This peer-to-peer nature also enhances clarity among involved parties, hence establishing accountability and audit trail.
Unlike traditional modes of payment, cryptocurrency uphold privacy and does not reveal any personal details. It also does not expose user’s financial history during transactions unless the user willingly does so, as is the case among most banking institutions. Every single transaction in the blockchain has a distinct, anonymous bitcoin address that cannot be easily traced back to the user. However, these transactions are not entirely anonymous neither are they entirely untraceable, but the complexity helps reduce the risk of identity theft.
Traditional banking involves entrusting a third party to safeguard your funds, and your account might be accessed without your knowledge. Cryptocurrency on the other hand gives the user full authority over their money unless they delegate the role to a third party themselves. According to Investopedia, cryptocurrency users do not need the intervention of a bank or government in their transactions.
Using cryptocurrency reduces the risk of falling victim of the rampant cybercrime. Fraudsters have the propensity of reversing transactions upon receipt of goods or services. It prevents such inconveniences since it does not allow one to reverse a transaction once authorized. Additionally, strong encryption of the blockchain safeguards it from cybercrime.
Cryptocurrency can be converted to cash and vice versa. This makes cryptocurrencies a flexible currency, as it is adaptive to other modes of exchange. For this attribute, some people use crypto for storage of wealth as one can buy cryptocurrencies when their value is lower and sell them when it appreciates.