The crypto market is currently taking the world by storm. Cryptos are a form of digital currency that are currently going mainstream as people start to understand what they are all about. Cryptos offer numerous benefits.
For instance, they are versatile, decentralized, can be used by anyone, and they offer anonymity and fast transactions. Also, they can assist startups gain a competitive edge over existing businesses. Below are some ways in which this can happen.
Using cryptocurrency to get investment
One of the most significant ways startups can gain a competitive edge with existing businesses through crypto is by using it to get investment. There are four primary ways startups can use crypto to raise funding for their operations.
- Launching an ICO- an ICO, also known as an initial coin offering, is where a startup business creates and raises proprietary crypto that people can purchase. Investors will buy your ICOs with the hope of exchanging them for money when your business grows. ICOs will introduce you to a new pool of investors that can contribute significantly to the growth of your business.
- Creating a novel crypto product- Cryptos are also a lucrative niche for startups. Therefore, developing a crypto product can help your startup become more relevant among investors and give it an edge in VC funding.
- Integrating crypto in your startup- integrating crypto in your business by either building a blockchain platform or creating your own currency can also help give you an edge in the investment pool.
- Joining a crypto accelerator-Crypto is currently very popular among startup owners. Therefore, joining the crowd will make it easier for you to network with other startups and existing business owners. You can do this by attending crypto events and joining the accelerators. Keeping in touch with the trendsetters in your location’s tech hub will significantly come in handy for your business. Also, establishing a network will help increase your visibility in the startup world. Remember, the more your visibility, the more investors know your company’s existence. This will make it easy to gain funds for your business.
One of the things existing businesses have over startups is more capital from the revenue earned throughout their existence. Therefore, getting more investors can help your startup compete with them. You can use the investment to reach markets that other startups cannot reach. The money from the investors can also help grow your startup to a point where it can compete with existing businesses.
Encouraging clients to pay in crypto
A startup business can also compete with existing companies by allowing their clients to pay in crypto. The crypto market is taking the world by storm. Forms of cryptocurrencies like Bitcoin are fast going mainstream. Many retailers, especially those in the eCommerce industry, are currently accepting crypto payments.
For instance, famous brands like Tesla recently announced their acceptance of Bitcoin as a tender for its operations, and its CEO publicly announced his endorsement for the crypto. Additionally, at the moment, you can buy cryptocurrencies from platforms such as Coingate, and also buy gift cards with cryptocurrencies.
Buying gift cards is just one of the first steps towards the global acceptance of cryptos. According to research, more people will be using crypto as a form of payment in the next few years. It is also worth mentioning that anyone can buy cryptocurrencies or specific forms like buy bitcoin. People can buy cryptocurrencies because the niche does not discriminate.
Therefore, allowing your clients to use crypto payments for buying gift cards and other products means that no one will be left behind or locked out. Therefore, allowing your clients to pay with cryptos will give you an edge over existing businesses. It will attract investors to your business as most of them are currently looking to get affiliated with crypto-related businesses.
It will also introduce you to a new world of clients that existing businesses do not have. This way, you may end up on the same playing field or better with the existing businesses. However, as a novel startup, you must be highly cautious about enabling crypto payments.
For instance, do not refuse current payment methods altogether. It would be wise to maintain the conventional payments as you adopt crypto payments. This way, you will not lose clients who are yet to embrace the crypto market. Additionally, the value of crypto is highly unstable. This means that it can fall as fast as it rises. Therefore, you do not want to risk your business by putting all your eggs in one basket.
Embracing crypto in a startup business can also help increase your opportunities. For instance, the crypto work is currently growing rapidly. Therefore, many entrepreneurs and investors are looking to join the crypto bandwagon.
Embracing the crypto world and joining the bandwagon will increase your growth opportunities. For instance, you have the chance to explore different markets thanks to the connections you make with fellow crypto fanatics. This will give you an edge over existing businesses.
One of the biggest issues that companies and governments face in terms of money is corruption. Existing businesses suffer the issues of corruption more than ever. The decentralization benefit of cryptos can help save you from this challenge hence giving you a fighting chance against existing businesses.
Most cryptos are focused on decentralizing their networks. This means that no one can influence the value of the coins. The crypto market is also impossible to control, thanks to its overarching authority. Therefore, getting into the crypto bandwagon can benefit your startup significantly.
The crypto market has been highly beneficial for startup businesses. This has especially been the case in terms of getting investment. A lot of startups, especially those in the tech sector, are currently using crypto to attract investments and grow their businesses.
As the crypto market continues to grow, so will the opportunities for startups to use crypto to compete with existing businesses increase. Therefore, businesses that have already joined the club, like those that accept bitcoin payments, are likely to benefit more in the long run.