Startups can leverage the popularity of cryptocurrencies in a variety of ways to boost trade. No one way is correct or indeed the only approach to take.
Here we look at some options for startups that are interested in basing their business around the blockchain or providing services that support its greater adoption.
Provide a Service Helping Other Companies Implement the Blockchain
One approach to leveraging cryptocurrencies to expand the business is to provide consultancy services to help other businesses successfully implement blockchain technologies. While cryptocurrency involves different coins, companies can decide what blockchain technology makes the most sense for them to adopt.
The idea with using the blockchain is to simplify, streamline, and reduce transaction fees along the way. Going global more easily instead of national is another advantage that can expand the scope of a business sooner than expected to spur growth.
Accepting Cryptocurrency for Transactions
Most companies are still stuck with the credit card and debit card model that costs 1 to 3% in fees to the gatekeepers of these services.
Allowing customers to pay with crypto has several benefits:
- Customers have more choice
- They can use crypto profits to fund consumer purchases
- Buying digital goods with Bitcoin or altcoin makes intrinsic sense
- Lower fee structure
- Possibility of offering a crypto discount (like when paying with cash)
Older companies can instantly look modern by accepting cryptocurrency. There are coin exchanges to quickly convert coins acquired through transactional business into local currency via a bank wire transfer.
Trade or Invest Cryptocurrency
For adventurous CEOs, particularly those that have a vested interest in crypto over the long-term, investing or just trading different coins has much attraction. While it should never be considered the same as cash due to the price fluctuations in the crypto market, for investing purposes it’s another matter.
Some investors like the idea of buying on the dips. Others choose to pick up and coming altcoins that are generating considerable buzz with their price picking up steady momentum. Riding the wave up and jumping off when it hits a plateau, or a permanent top can provide a strong return on funds under investment at a company.
Rather than having excess retained earnings sitting around earning less than 1 percent in annual interest, deploying cash not needed as working capital or for future projects into investments makes a lot of sense for CFOs and CEOs.
Create a Specialist Recruitment Division for Crypto Jobs
While the recruitment for programmers and other jobs in connection with the boom in cryptocurrency hasn’t gone unnoticed, most recruitment firms and job sites fail to capitalize on the phenomenon.
Starting a website to provide job listings just for jobs that have some connection to working with crypto technology allows employers to locate the most suitable new recruits. The range of jobs that crypto touches is larger than people realize.
Just a few of the job titles include:
- Full stack developer
- Engineer or developer of blockchain supporting technology
- Business strategists with crypto background
- Technology or cryptocurrency writers
Create a Trading Platform
Trading platforms can be created using blockchain technologies. They’re especially useful to let a diverse group of organizations or individuals trade assets that aren’t usually easily accessible within the same system.
Using the blockchain, the level of transparency makes it possible to trade certain parts of an asset and leave other parts alone in much the same way that’s done with derivative contacts in the financial world.
These kinds of platforms can bring together teams of people with different experience which naturally complement each other, but whom would not normally operate in partnership.
For startups interested in getting involved with cryptocurrencies, it’s a fascinating time. The only question is, what direction do they want to take it?