Investing in cryptocurrencies increases a company’s assets. However, the use of cryptocurrency is not yet as common as that of fiat currencies. Before investing, one must know all the details of this new currency.
Why invest in cryptocurrency with your business?
Fiat currencies are managed by the European Central Bank. This body defines the value of the currencies and controls their evolution. However, bank investments are not always advantageous. Indeed, in the short and medium term, their remuneration can be perplexing. For startups, the banking sector may not meet their funding needs. As a result, cryptocurrencies have seen their popularity grow over the years.
The advantages of cryptocurrencies
Cryptocurrency is a dematerialized currency, therefore not physical. It is a currency like any other, but different on several points.
Cryptocurrencies have certain advantages, the first being that you can (technically) buy everything with it.
Before investing in a cryptocurrency, you need to know its value and follow its evolution. This way it is easier to:
- Choosing the right cryptocurrency for your investment;
- Make sure to make a profit.
The values of cryptocurrencies are constantly changing
The value of a cryptocurrency is constantly changing. Several factors can cause it to vary over time. It may depend on the NVT (Network Value Transactions) ratio. This is the virtual currency equivalent of the equity valuation method. A high ratio therefore means a better rise in the cryptocurrency. The popularity of the latter also influences its value. It is calculated based on the ratio between the number of people who use it and the number of transactions involving it. Its value grows along with the number of its users.
The scarcity of virtual currency also affects its value. The latter increases if the volume of production of money decreases. Some cryptocurrencies even proceed to their voluntary reduction making them even rarer.
As you will have understood, the value of cryptocurrencies is quite volatile. However, we see that the evolutionary curve of cryptocurrencies is growing over time. Thanks to this dynamic, it is possible to achieve high gains. To make a profit, you have to choose the right virtual currency. A study of the evolution of the different cryptocurrencies is therefore necessary.
Ways to invest in cryptocurrencies
Investing in cryptocurrencies with a business can be done in two different ways. The first is investing part of your capital and not touching it. Let the currency movement in the market do the work. After a few years, you will have made a profit because the value of your cryptocurrency will have increased. The second is to invest by increasing the transaction flow of the cryptocurrency in question. If there is more currency movement, you will see your profits increase.
It is possible to buy everything with cryptocurrency. This ranges from automobiles and real estate to insurance and luxury items.
The decentralization of virtual currency is a considerable advantage. Indeed, international payments are instantaneous and the costs are minimal, or even sometimes zero. In addition, cryptocurrency allows you to make payments without intermediaries and is visible to all.
Virtual currency does not depend on any higher authority (bank or state). It is completely free, open, and decentralized. All actions concerning cryptocurrency can take place thanks to Blockchain technology. It plays an important role in storing and transmitting information transparently and securely. Among other things, it is a database where all virtual transactions are listed.
Cryptocurrency is used using tokens, called “tokens”. These are stored inside an electronic wallet, or “wallet” that can only be opened with a single key. This guarantees the security of exchanges during transactions.
Can you buy cryptocurrency with your business?
It is perfectly possible to buy cryptocurrency through your company. However, several steps need to be taken. You must inform your banker of your investments. Some transactions are likely blocked by your bank. This is due to suspicions about some platforms carrying out tax evasion or accused of money laundering. Notifying your bank also clears you of the possible possibility of using your crypto assets to buy goods that are prohibited from sale.
When your bank is made aware, you can do your market research to find the right cryptocurrency for your needs. The purchase of virtual currency is carried out on various platforms on the Internet. You don’t have to buy cryptocurrency to get it. It is possible to receive them as payment for various services performed.
To get cryptocurrency, you can also mine. This practice involves verifying transactions with your computers. In return, you receive cryptocurrency. Thus, you obtain dematerialized currency while contributing to the work of the Blockchain.
It is important to mention that most companies do not use cryptocurrency. Additionally, several states around the world do not consider virtual currency to be “real” currency. This may restrict the size of the market in which you want to expand your business portfolio.
As cryptocurrencies do not answer to any institution, no real legal status is attributed to them. In addition, it is possible to steal cryptoassets in 46 different ways. Wallets are highly prone to hacking. If your assets are stolen, your chances of recovering them are very low. In 2023, the amount of virtual currencies stolen from their legitimate holders is estimated at 1.1 billion dollars. According to civil law, bitcoin is akin to valuable intangible movable property.
If you are the victim of a cryptocurrency scam, you still have legal protection. The perpetrators of the scam risk 10 years in prison and a fine of €1,000,000, according to article 313-2 of the Penal Code. However, you will only get an answer 3 months later. It is therefore imperative to take all the necessary security measures before investing.
However, these are risks worth taking. Unlike other types of investment, cryptocurrencies require special attention. It is imperative to ensure all its transactions while remaining completely transparent.
Where to buy cryptocurrency with your business?
The purchase of cryptocurrency can be done on crypto platforms. They are numerous across the web, but some stand out from the crowd:
- Binance;
- Kraken Business;
- Coinbase Pro;
- Coinhouse;
- Gemini.
Binance
Binance is one of the largest crypto exchanges in the world. To access its services, all you have to do is open an account. The collection of information complies with European GDPR laws regarding privacy, guaranteeing its security.
On Binance, it is possible to manage and exchange more than 150 cryptocurrencies (Bitcoin, BNB, Ethereum, etc.). This platform is accessible, even to those who are new to the subject.
Binance offers some of the lowest transaction fees on the market. Moreover, it is an international platform. This then allows you to participate in various conversations in Binance communities around the world.
Kraken Business
Kraken Business is a perfect crypto platform for beginners. Its mobile application is easy to use and makes it easier to integrate. On Kraken Business, it is possible to buy more than 50 different cryptocurrencies, and, in just a few minutes. Investing in virtual currencies becomes accessible to everyone, even with a small starting budget. Competitive prices and moderation of transaction costs are among its strengths.
Kraken Business also makes it a point of honor to ensure the safety of traders, thanks to the market exchange.
Coinbase Pro
The Coinbase Pro crypto platform is one of the most reliable on the market. In addition to allowing exchanges, it provides investors with a portfolio for their currencies. The purchase of dematerialized currency is therefore quite possible.
100 countries benefit from the presence of Coinbase Pro. In 2023, its community has 43 million traders, for a trading volume of around $455 billion. This platform is suitable for all investors (beginners or professionals).
Coinhouse
All actions relating to cryptocurrencies are possible on Coinhouse. From international payments to cash investments, several services are offered by the platform. On Coinhouse, buy, sell, and manage more than 30 cryptocurrencies.
Coinhouse provides traders with a specialized offer for businesses. The platform guarantees the security of investors’ assets, thanks to Custody Solutions. Also, enjoy reduced fees for any transaction through Coinhouse. In addition, each client is personally accompanied. The follow-up of the trader is carried out by a business client advisor.
Gemini
Do you want to make your cryptocurrency purchases instantly? Gemini is the ideal crypto platform. It is the ideal partner to build your wallet, easy to use, and secure, with an elegant interface.
Several tools are available to traders. So buying, selling, and storing cryptocurrency is made a whole lot easier.
Gemini is SOC 1 Type 2 and SOC 2 Type 2 compliant. It is the first crypto platform with these certifications.
What are the advantages of hiring a broker to invest in cryptocurrencies?
Now that you have the answer to the question of why invest in cryptocurrencies, let’s move on to the benefits. Find some of these below. Attention, this list is of course not exhaustive and you could find others by using it.
Advice and expertise from a specialist
If you are new to investing in cryptocurrencies, a broker can offer valuable advice and expertise. He can help you choose the right opportunities to invest in and advise you on when to buy and sell.
A great time saver
Researching the right cryptos to invest in as well as exactly when to buy and sell them can be time-consuming. A broker can do all of this research for you, so you can focus on other things.
A broker can give you access to exclusive offers
Brokers often have access to exclusive offers on investments that are not available to the general public. This means that you can get a better entry price on your investment, and potentially make more profit.
Diversify your investments
Cryptocurrencies are a volatile market, and it’s important to diversify your investments. A broker can help you spread your money across different cryptos, so you are less at risk of losing money.
Availability of the broker to answer your questions
If you have any questions or issues with your investment, a broker can provide support and assistance. This peace of mind can be invaluable, especially if you are new to investing in the world of cryptocurrencies. In addition, you will learn many things by his side so that you will not make any more mistakes later.