How to use cryptocurrency in small businesses in the U.S.
Most small businesses cannot acquire enough capital by themselves. One of the most proven ways to get more profit is by raising money through cryptocurrencies. This article shows how entrepreneurs can use cryptocurrencies to improve their businesses, increase revenue, broaden financing options, boost savings, and accumulate no-risk rewards.
How to start using cryptocurrency?
Step 1: Create a cryptocurrency wallet
For beginners, the best way to get started with cryptocurrency is by creating an account at one of many online exchanges. These websites and brokers let you buy and sell cryptocurrencies like Bitcoin and Ethereum. You can also use them as a place to store your coins in digital wallets. Some exchanges will allow you to purchase popular cryptocurrencies with credit or debit cards while other platforms only accept wire transfers from banks or PayPal accounts.
Step 2: Get your coins
You can purchase cryptocurrencies like Bitcoin and Ethereum from an official exchange. These broker platforms will let you buy them using government-issued currency, such as U.S. dollars or euros. They also let you trade one cryptocurrency for another at a specific price (e.g., $10 for 0.05 Bitcoins).
You can also receive payments in crypto from your customers. Accepting payments in cryptocurrency can help you save on transaction fees. Cryptocurrency payments can’t be reversed, unlike credit card transactions. Because there is no middleman in the transaction process it is generally considered more secure than traditional payment methods.
Or you can take a Crypto loan. Crypto-backed loans are available to borrowers who own digital assets and maintain a certain loan-to-value (LTV) ratio. Instead of selling your cryptocurrencies, you can use them as collateral to receive cash or stablecoins.
Step 3: Transactions!
Cryptocurrencies are a form of digital money that you can use to purchase goods and services. You can also use them as an investment, or trade them like stocks on an exchange. Cryptocurrencies are generated by “mining”—a process where computers solve complex math problems at high speed. When a computer solves the problem, it receives a block of coins as a reward.
One of the best automated ways to earn cryptocurrency – smart contracts.
Smart contract is a written program, just like a set of functions and data stored in a blockchain. Smart contracts perform tasks ranging from selling tokens to managing decentralized organizations. You will profit as long as the program conducts crypto transactions. Don’t forget about regular smart contract audits, it needs debugging like any other technology.
Money withdrawal
Nowadays, cashing out funds from your cryptocurrency wallet to your bank account is really simple. It’s usually very straightforward, as there are many reliable cryptocurrency exchange platforms available today. The most popular way to withdraw money is through a credit card or an international wire transfer. For example, Binance runs an online peer-to-peer exchange, where people can sell crypto for dollars.
Bitcoin ATMs work differently than regular ATMs. To use this ATM, you must scan a QR code that enables it to send your Bitcoin. After waiting for a few minutes, the machine dispenses cash.
Some exchanges do not allow the conversion or selling of some cryptos to dollars, so you’ll need to take an indirect route to get your cash. Depending on which exchange you use, you may need to transfer or convert your cryptocurrency to another popular currency, before finally converting to dollars.
Security
Cryptocurrencies do not inspire confidence in you? It’s time to take care of protecting your data and assets. The cryptocurrency world is much more secure and trustworthy now than before. But that doesn’t negate the presence of hackers and scammers.
Simple defense practices
The easiest action to prevent cyberattacks is to make sure your cryptocurrency purchases are secure (for example, pick the biggest and most famous broker or cryptocurrency), and then enable two-factor authentication (2FA) in your exchange application for the cashing out. Using an authenticator application for 2FA, such as Microsoft Authenticator, can make your cryptocurrency account even safer. Try to avoid fake websites and software. Use different and strong passwords for your accounts. You can also periodically withdraw your coins into cash. In Smart Contracts, you can set up automatic withdrawals to your bank card when a certain amount is reached.
Special protection practices
Of course, more complex interactions with cryptocurrency require more sophisticated technology. To avoid the human factor, many investors use Smart Contracts. As mentioned earlier, a smart contract is a program, it prevents a lot of simple human mistakes and works 24/7. But all programs need debugging and testing. That’s why Smart Contract Audit is one of the most necessary services to keep the system safely earning you cryptocurrency. Also, cybersecurity specialists can check your accounts, wallets, and other data before they are used by hackers.
For a small business, the risks are not that big, but attackers can also hack entire websites or applications, where the size of your exchange does not matter. A well-protected and automated smart contract system will bring you regular income and facilitate money transactions.
