Words by Matic Jug, from ICONOMI – a copy trading platform that aims to empower users to invest in cryptocurrencies like a pro.
Cryptocurrencies like Bitcoin have been big news over recent years, with people from all ages and backgrounds scrambling to buy up these digital assets at low prices in the hopes of becoming crypto millionaires in the longer term. It’s a strategy that has seen amateur traders get lucky and some of the world’s mega rich grow their fortunes to even more eye-watering amounts, although it’s fair to say that trading on the crypto markets certainly comes with its risks.
Nevertheless, cryptocurrencies have become so popular of late that even small businesses are now leveraging them in the quest for higher yields and better capital storage, increasingly turning their gaze towards this burgeoning realm through the use of crypto business accounts, like those offered by ICONOMI, as opposed to traditional bank accounts in order to cut out intermediaries and save on additional fees and costs.
The need to find alternatives to traditional banking, which offers meager returns on corporate accounts, is becoming increasingly apparent, and crypto business accounts offer the ultimate solution. Here’s why a growing number of businesses are embracing them wholeheartedly.
Embracing digital assets for enhanced returns
The story of digital assets has always largely been dominated by individual investors, but now, businesses are also looking to cryptocurrencies as a means of enhancing their financial health. Consider the example of MicroStrategy, which invested heavily in Bitcoin and now holds a portfolio valued in the billions – the kind of move by a large enterprise that underscores the potential for significant gains through strategic cryptocurrency investments.
Small businesses can similarly benefit from the lucrative yields offered by digital asset accounts and by utilising crypto business accounts, they can enjoy access to cryptocurrency investment with priority support from the platform they choose, which of course, is an added bonus.
It’s important to remember, though, that digital assets carry their own risks and are not insured like traditional bank deposits. Thus, businesses – just like individual traders and investors – should conduct a comprehensive risk assessment and do diligent research before diving into a digital asset corporate account.
If it all sounds rather appealing, then you might wonder how to get started and make the move over to a crypto business account so that you can start reaping the benefits. Let’s take a look at how to get the ball rolling.
Starting your crypto account lourney
For small business owners ready to explore this avenue, the initial step is to establish a digital asset business account with a credible cryptocurrency exchange or digital wealth management platform. The market is diverse, with offerings that range from significant annual interest on stablecoins to attractive rates for cryptocurrencies like Ether (ETH) and Bitcoin (BTC) – so be sure to shop around to work out which offering best suits your business needs.
Opting for a business account rather than a personal one is beneficial because they usually come with higher funding limits and enhanced customer support, along with a host of other business-centric features.
After setting up the account, funding it is the next milestone. Transferring existing digital assets is straightforward, but converting traditional assets to digital form may require utilising an exchange or the services provided by the business account platform, so request a consultation with your chosen provider to find out what you need to do to make it happen.
Ensuring the safety of your crypto business account
When it comes to business finances, security is of the utmost importance – particularly in the context of digital assets, which lack the regulatory safeguards of conventional financial systems.
To mitigate risks and protect capital, crypto business accounts often employ a combination of security measures, including the use of hot and cold storage and rigorous asset due diligence.
For instance, many platforms prioritise security by partnering with established compliance and legal firms, and by using advanced risk modeling tools. Portfolio managers often follow stringent protocols for due diligence and diversification to reduce exposure to any single asset’s volatility.
The bottom line
The prospect of navigating the digital asset landscape may seem daunting for small business owners, but the relatively low interest rates from traditional banking make the potential high returns from crypto accounts increasingly attractive. With an abundance of online resources and tools, small businesses can begin to earn passive income through digital assets with greater confidence, so it’s easy to understand why they are becoming as popular a choice as they are.
As small businesses seek out new avenues for financial growth, crypto business accounts are emerging as a promising alternative, offering the potential for high yields whilst leveraging the relative stability of certain cryptocurrencies. This represents a novel facet of business finance, and with a strategic approach to security and risk management, small businesses can embark on the path to leveraging digital assets and potentially unlock substantial financial benefits in both the short-term and the longer-term.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
