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Understanding cryptocurrency & its impact on business

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By now most people have no doubt heard at least a few rumblings about cryptocurrency (crypto for short), at least specifically relating to the individual in terms of being a potential investment opportunity. But what you may not be aware of yet is that there are more and more businesses across the globe getting involved in the crypto market—and with good reason.

Although crypto for business is a rising trend in our current marketplace, there is a large number of people who still aren’t fully aware of how it works. This article will clear things up and provide the information you’ve been looking for.

What is cryptocurrency?

The first question you might be asking is ‘what is digital currency?’ Otherwise known as cryptocurrency, it is a decentralised and encrypted digital currency which is based on blockchain technology.

It doesn’t have a central authority that maintains its value (like USD, for example), but is managed by crypto users around the internet.

Blockchain technology: Imagine you have a book in which everything you buy is written. One page can be referred to as a ‘block’, and the whole book can be referred to as a chain of blocks or… a blockchain. Instead of a physical book, it’s accessible digitally by anyone who uses the cryptocurrency—they all have their own copy of this ‘book’—and is updated constantly with any new transaction. Because so many computers across the world have the same ‘book’ with all transactional records identical, it’s impossible to create fraudulent transactions. 

So which is the best cryptocurrency? Some of the top cryptocurrency players in the game currently are:

  • Bitcoin

  • Etherium

  • Binance coin

  • Tether

  • Solana

The best way to keep track of how a particular crypto is performing now is to stay updated with the latest crypto news.

The impact of cryptocurrency in business

One of the obvious reasons for accepting payments in digital currency is to expand the customer potential of businesses.

The use of cryptocurrency also brings the benefit of positioning your business as a forward-thinker and innovator in the eyes of both customers as well as prospective manufacturing brands you might be interested in selling for. 

Let’s not forget how companies have begun investing in cryptocurrency as a way to raise capital to invest on staff and equipment to further improve or increase your company’s operational potential. 

(Note: It’s important to keep in mind that crypto markets, like all other similar types of investment opportunities, need to be carefully risk-assessed prior to investing. Consult with your accountant before making any financial decisions).

How can my business incorporate cryptocurrency?

If you’re thinking about following the likes of some of the world’s biggest companies who are accepting crypto as payment these days like Tesla, Mastercard and Paypal, there is one major consideration to think about first; are you simply going to accept it as payment, or do you want to hold it as currency on your balance sheet? 

If you’d rather just add it as an accepted form of payment, at least initially as a soft introduction to the world of crypto markets, you can utilise a payment platform that converts the coin into and out of traditional currency.

However, bringing it onto your books and into your balance sheet means you’ll need to determine whether you’d rather engage with a third party vendor who offers wallet management services, or bring it in-house and integrate it within your business’ system, where management becomes your responsibility. 

Future-proof your business with cryptocurrency

We all know that it’s continuing to trend upward, so it’s time for businesses all over the world to consider entering into the realm of cryptocurrency. Multi level marketing, online retail, digital and even physical services may find that investing in crypto for their business as a payment method improves their bottom line and opens up a whole new demographic that would otherwise have never engaged with them. 

The use of crypto for business and a trusted and reliable worldwide delivery service like DHL Express really does look to be one of the very best ways to future-proof businesses as we surge ahead in this digital age. Open a business shipping account with DHL Express today!