Last Updated on May 20, 2022 by Guest
Business startups are now taking a new direction of using crypto in many advantageous ways. As noted by CoinSutra, brands like Shopify, Tesla, PayPal, Starbucks, AXA, Amazon, Visa, Air Baltic, Coca Cola, Expedia, OverStock, Subway, and many others have started accepting Bitcoin and other cryptocurrencies as payment methods. The high demand for digital assets has fueled the change in the business world.
But let’s talk about blockchain technology a bit. This is an integrated real-time technology that collects and holds information in blocks. The information is shared across multiple users who can make changes that are visible to others. Many businesses such as banks, insurance companies, and many others have adopted this technology where entered data is visible to all authorized users.
Crowdfunding
As mentioned, crypto investments are used to give loans to businesses. Startups also benefit largely from this, but they have to prove that they can repay. This strategy is called crowdfunding, which can help your business to take off. However, it is recommended that business beginners should have their own money. This will go a long way to fill the gaps that the allocated money will miss.
Your angel investor, venture capital providers, and many crowdfunding platforms are most likely using cryptocurrencies to fund because this is the direction that many funders are taking.
Any entrepreneur should know something about crowdfunding. Cryptocurrency investors are involved in this concept where their small investments are used to fund businesses. The entrepreneurs then pay back with interest. The more people invest in crypto, the more funds are available for small businesses to borrow.
That said, let’s see the role of cryptocurrency in getting startup investment.
Streamlined Payments and Transactions
Buyers and sellers prefer safe and convenient cashless transactions. Digital currencies such as Bitcoin, Bitcoin Cash, Ethereum, and others are becoming more acceptable today. The good thing is that businesses can transact across borders with ease. Blockchain platforms are more secure and convenient. So, if you are planning to start a business, consider accepting BTC or paying for goods using Ethereum.
This move will also entice more investors into your venture. Those who know how BTC and other crypto work will be more than happy to invest in your business. They are assured that their hard-earned money will not go to waste. When a business buys and sells using cryptocurrencies, it can later convert them into cash through the help of NakitCoins and make some profit out of it.
The benefits of transacting using cryptocurrencies are endless. But on the other hand, there are some risks involved, and you should be aware of them to navigate through. All in all, the benefits outweigh these risks. And as you can see, there is an increased chance of getting investments.
Using Blockchain Technology
Blockchain technology, as mentioned earlier, has been adopted into numerous businesses, including startups. If this is part of your business strategy, you are likely to get support from investors. The reason you will be successful is that this technology is highly reliable and solves numerous business challenges at once.
For records, the investors will be looking for how the adopted blockchain technology will promote the smooth running of a business, reduction of costly errors, and increase profits. For instance, banks have greatly reduced costly errors because when one person makes changes, for example editing an account, many other people see the changes and the seniors have to approve for it to take effect.
Your business strategy will not only entice the investors and financiers, but it stands a chance of growing very fast.
Startup Opportunities
There are numerous business opportunities created by the introduction and growth of cryptocurrencies. As an aspiring entrepreneur, you should know that there are many business opportunities in the crypto world. If you venture into any one of these businesses, you are likely to get investment fast. Investors trust these businesses because they are likely to succeed. After all, the crypto sector is doing well and there has been steady growth throughout.
Any apprising entrepreneur looking for the best crypto-related business can think of the following:
- Exchange platforms or brokers – Although this is a big business startup, one can still do it. The broker creates a platform that will allow users to trade different cryptocurrencies such as Bitcoin, Ripple, Ethereum, Bitcoin Cash, etc. You might also offer other services, such as hosting digital wallets. With a compelling business plan, getting investors and finances is a strong possibility.
- Bitcoin mining – With enough experience in Bitcoin, blockchain, and cryptocurrency, you can start a BTC mining business. You need to have expensive hardware and steady internet to process the transactions. So, when looking for investors, they will be coming in to support the purchase of hardware, and software and fund any other processes involved.
- Cryptocurrency digital marketing services – All businesses that do crypto-related services are digital-oriented. This means that they have a website, social media website, or any other platform. You can come in to offer digital marketing services such as SEO, digital ads, web content management, or media marketing. Again, it is easy to get investment for such a startup if your business plan is compelling enough.
- Crypto lending services – It is possible to look for investment to start a crypto lending service. Investors will be excited to know that their digital coins will earn interest within a short time. However, this is a risky business for both you and the investors unless you have a very stable business strategy. The good thing is that many borrowers have been repaying well so far. Therefore, this is a crypto venture you should consider using.
- Accepting crypto in any other business startup – Apart from starting businesses that offer crypto-related services, you can also venture into any other business such as retail, manufacturing, service sale, and integrate crypto as a mode of payment. With this, you still stand a high chance of getting investors into your business. Again, this calls for a compelling business plan to attract as many investors as possible.
Conclusion
Cryptocurrency plays a big role in getting start-up investments. But as you can see, this works better if your business idea is oriented to cryptocurrency. However, any other good business idea will still get funds, especially if they integrate crypto technology such as using blockchain technology or accepting crypto as a mode of payment.