Whilst some people might turn their noses up at cryptocurrencies as an investment, for others, it can be a viable opportunity to diversify their already growing portfolio.
Granted, cryptocurrencies haven’t always been the most stable investment type. Often enough, it’s described as a never-ending rollercoaster of ups and downs. However, despite the hardships and reception that crypto has received over the years, it’s persevering.
For businesses, cryptocurrencies are an interesting investment opportunity. With the general public taking more of an interest in it, it means that some of their customers might do too. Offering it as a payment method in return for a product or service could serve a business well if it’s the right coin.
With cryptocurrencies either making you super rich or sending your money down the drain, is it worth investing in? In this guide, we’ll look at why the tides may be turning for cryptocurrency. Alongside this, we’ll give you insight into several cryptocurrencies that are worth investing in as a small business.
Why should small businesses consider cryptocurrencies now?
It may seem like a type of currency that as a small business, isn’t worth the hassle. However, with over 2,300 US businesses accepting Bitcoin, there does seem to be a murmuring of change in the air. With an increasing number of businesses both big and small investing in crypto around the world, it feels only right to jump on the bandwagon.
As more businesses accept crypto, it means that more can be done business to business. This could mean that operational costs could be covered through the use of crypto and in some cases, to pay customers with crypto.
A big benefit of cryptocurrency is that it’s hugely accessible for any business, of any size. Why is that? Well, because crypto can be bought at a low cost that in some cases can be as low as $50. This type of investment before crypto was relatively unheard of, and it meant that few businesses on a smaller scale could explore investment opportunities.
The benefits of cryptocurrencies for a small business
What are the benefits? As with any business decision, it needs to have its advantages. Here are just some of the benefits that come with investing in cryptocurrency for your business.
- It can help provide you with access to new demographics.
- New customers are often those that are willing to pay via crypto.
- It enables a new pool of capital and liquidity that wasn’t available before.
- Crypto opens doors to financial opportunities that are only available through digital currency.
- There’s more likelihood of companies finding clients and vendors who also use cryptocurrency for payments.
- Improves many of the traditional financial options like strengthening control over capital. Not just that but it can enable real-time, secure, and fast money transfers.
As a modern-day business, no matter what size you’re at currently, it’s important to adapt and evolve with the times. It doesn’t appear as though they’re going to disappear anytime soon.
How do you invest in cryptocurrencies?
Before diving into the cryptocurrencies that you should be investing in for 2022, let’s look at how you can invest in cryptocurrencies.
Do your research
Articles like this one, with super insightful information on cryptocurrencies, are a must. As a first step, knowing as much about an investment option is the best way of getting the most value out of it. With that in mind, do the research, and don’t just skip ahead to spending your money on any and all cryptocurrencies that you come across.
There are plenty of official news outlets that also cover cryptocurrency updates, so you should consider signing up for any alerts they offer, to keep in the loop.
Have a separate business pot for your investments
With investments, it’s always wise to keep separate pots to avoid overspending where you can’t afford to. As a business, it means you can keep tabs on what your financial opportunities look like for investments into crypto.
For small businesses especially, this help encourages more investment by allocating some of your budgets to this pot each month.
Buy on crypto platforms like MoonPay
When buying crypto, consider what platforms are available and which one is a good fit for what you need. MoonPay is a reputable platform that offers many different cryptocurrencies which are easy to purchase.
If you’re looking at how to buy Ethereum on MoonPay, simply sign up on the platform, deposit money into your digital wallet, and buy as little or as much crypto as you desire.
7 cryptocurrencies to consider investing in this year
If you’re new to cryptocurrencies, it’s likely a little overwhelming when there are around 20,931 – to be exact – cryptocurrencies known to exist. How do you choose? What makes them special to invest in over others?
We’ve rounded up several cryptocurrencies that are worth investing in this year. Hopefully, they’ll come to provide many benefits for your business further down the line!
Bitcoin has become a notable favorite for many and when you think of cryptocurrency, you usually think of BTC. It’s a good one for those who are looking to step foot into the shallow end of cryptocurrency for the first time. This coin was created back in 2009, so it’s one of the OGs.
It’s the largest in terms of market capitalization and according to Time, Bitcoin’s price has recently risen back above $21,000 after being down at $19,000 in June 2022
The coin is most popular because of its scarcity. There will only ever be 21 million Bitcoin in existence, which makes it valuable to many. More ownership of one particular coin holds more power after all.
Another great cryptocurrency, and not just because it sounds cool, is Cosmos. An ATOM token that can be made through staking, is considered to be a governance asset. This is due to the owners of these tokens being able to vote on how the crypto project should proceed.
It’s one of the unique ones in that sense, and it shows its popularity through its current market value. As of now, at the time of writing, its value is around $0.0040604 per (ATMOS / USD).
Considered to be one of the top cryptocurrencies in existence, the project’s goals for this crypto are for the long-term. This includes growing more blockchains that are developer-friendly and seamless communications between these blockchains. For one that’s thinking of the future, Cosmos is a great option.
Ether is one of those cryptocurrencies that is known, like Bitcoin, to many who are somewhat familiar with the world of crypto.
Ethereum is different from one like Bitcoin though as it has a disinflationary supply. This means that Ethereum provides an unlimited number of Ether but the amount released is capped via its mining process. It gets rid of the scarcity, which may prove to be beneficial over time for those who invest in this cryptocurrency.
They’re also looking to opt for proof-of-stake, which is a mechanism used to validate crypto transactions. As a result, it may help to decrease the energy demand that it has, along with sky-high Ethereum gas fees. This may provide more opportunities for investors to make some extra profits in the process.
Binance Coin (BNB)
Binance is one of the third-largest, non-stablecoin cryptocurrencies on the market, and with a market cap of around $47 billion, it’s one that’s closely chasing the tails of Ether and Bitcoin.
It’s one that like Cosmos, is looking to expand the crypto’s ecosystem where BNB is the native coin within the Binance blockchain.
As a coin, its deflationary supply is one that’s looking to be cut down over time, in order to add to its overall value. It’s certainly one to take a closer look at as an investment.
Tether is a stablecoin, which is unlike cryptocurrencies in general. With a stablecoin, you’re backed by traditional currencies like US dollars, GBP, and the Euro. It helps to keep the value of the cryptocurrency in alignment with these currencies.
For a small business who may be wary of cryptocurrencies as an investment, it’s favored more so because of it’s stability on the market. Of course, that does have its disadvantages – but it’s swings and roundabouts.
6. XRP (XRP)
One that’s quickly picking up the pace and interest of many is XRP. Created by some of those who created Ripple, a payment processing and digital technology company, it’s grown in popularity.
Created at the beginning of 2012, it began to pick up in price and as of today’s pricing, it’s around $0.3553.
7. Dogecoin (DOGE)
Yes, the dog cryptocurrency that started out as a joke back in 2013 is considered one of the top cryptocurrencies now worth investing in. It’s perhaps helped by the hype that it created and the various, creative memes it’s garnered across the internet.
There’s no cap on how many Dogecoins can be created, meaning it’s more susceptible to decreasing in value. However, as of today’s price, it sits around $0.0637.
Take a leap into the unknown with cryptocurrencies
If you’re looking at investing in something new as a business, cryptocurrency has its advantages. Despite its risks and volatility, it’s still a viable option for those who are looking to join a digital realm of currency.
Author Bio: Natalie Redman (LinkedIn)
Freelance writer for many clients across multiple industries. Natalie has two years of copywriting experience. Natalie has a wide range of experience copywriting for web pages for businesses across many industries. She’s also an owner of two blog websites and a Youtube content creator.