Last Updated on Dec 19, 2019 by James W
Cryptocurrencies have generated quite a buzz in the business sector. Since mid-2017, there has been an acceptance for crypto trading in many countries worldwide.
Shinhan Bank of South Korea announced the testing of Bitcoin wallet recently and there is a very rapid growth in cryptocurrency trading.
Though the major coins are Bitcoin and Ethereum, there are as many as 1300 cryptocurrencies. Many investors have profited millions of dollars from trading in the crypto market and there is a lot of significant change in the technological sector. Here are compelling reasons as to why your business should start investing in cryptocurrency:
1. The solution for the global instability
The stock market is affected by global unrest and political instability. The fate of many companies lies in factors like dependable personnel, market forces, social upheavals or major global happenings. But, Cryptocurrency trading is stable and unaffected by governments, economy or public services.
2. Plenty of options to buy and hold
There are many exchanges where you can purchase Bitcoins, like CoinSpot and CoinJar. These exchanges make it easy for a new business which has just begun investing in cryptocurrency. They allow you to pay with bitcoin or trade using other crypto coins available on the market. Bitcoin’s value has seen an increase from mid-2017 to December 2017- it has shot up from $1000 to over $18000. Though it is the top cryptocurrency at the moment, there are other players as well, which have become extremely successful. Many businesses have incorporated Bitcoin as one of their modes of payment, including Microsoft.
3. Plenty of cryptocurrency options
Altcoins refer to the cryptocurrencies alternative to bitcoin. Zcash, Iota, Dash, Ripple, Litecoin, Neo, Ethereum are some of the players in the cryptocurrency trading which are immensely successful. As a new business entering into crypto trading, make sure that you are thorough in your research as to which coins to trade in. Choose the one that best suits your business needs and at the same time, delivers you great profits.
4. Generate cryptocurrency through mining
Traditionally, bitcoin mining is done on demand and supply basis. But like in other markets, increase in demand means an increase in price. Bitcoin and Altcoins can be generated through the mining process, but the mining farms are not easily accessible to average persons. Since demand pushes the price, many traders use cost-effective cloud mining instead of using high maintenance hardware. Time taken to generate some altcoins like LTC is lesser when compared to others.
5. Arbitrage and Lending
Buy/sell rates differ from one crypto exchange to another, from country to country. The reason is that the price depends on how the buyer pays on that exchange. In theory, this means you can buy at a low price at one exchange and sell it for a higher price on another exchange. But, again, this is limited by the fees and exchange times which are different for every exchange.
Lending is a high risk and high returns method offered at some companies like USI TECH. They pay you an average of 1% of the bitcoins you lend for 140 business days, i.e. if you lend 1 bitcoin, you will have almost 1.4 BTC after the said time.
6. Smart Contracts and ICOs
Smart Contracts are agreements in the form of coded computer protocols, which use blockchain technology. These can be obtained easily and buyers can purchase shares or property directly, eliminating the need for the middlemen.
With a simple click of the payment button, investing in cryptocurrency becomes much easier with ICOs (initial coin offering). Any new coin or token can raise funds just like IPOs.
Though blockchain and smart contracts still have a long way to go before bringing in a complete transformation in the world, investing in the crypto market has definitely been a rising trend. Bitcoin’s success has led to the entry of other coins and it would be a wise strategy for your business to start trading in cryptocurrencies.