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Transitioning Your Business from Fiat to Crypto — A Guide [2024]
Due to the many compelling benefits that cryptocurrencies offer, many businesses are considering taking a leap by investing a percentage of their revenue (or holdings) into this exciting new asset class. Look no further than a UK construction company that has recently shielded its surplus from inflation by using crypto.
The problem, however, is that some businesses are hesitant to invest in crypto due to a lack of understanding of how digital assets work and believing the common misconception that crypto onboarding is a complex affair. This couldn't be further from the truth.
This article will therefore seek to dispel these misconceptions by providing a breakdown of the current barriers for a business' transition to crypto, and how these can be easily overcome by using crypto business accounts.
We'll have a look at:
- Why Should a Business Consider Crypto Instead of Fiat?
- Current Barriers For a Transition to Crypto
- ICONOMI — Transition From Fiat to Crypto With Ease!
Let's dive right in!
Why Should a Business Consider Crypto Instead of Fiat?
Before we delve into why, it's perhaps best to briefly elaborate on why businesses should make a transition in the first place.
As was mentioned in a previous article, there are many compelling benefits for adding crypto to your company's balance sheet, and some examples include:
1) Less dependency on fiat currency
Fiat currency and traditional banking are often impacted by harsh economic fluctuations, harmful government monetary policies, and cross-border transaction barriers, to name a few things. What's more, fiat currency is highly inflationary and is often impacted by some of those above.
For this reason, cryptocurrencies can allow businesses to achieve a higher degree of autonomy and insulation from geopolitical ongoings and inflationary pressures, thus preserving their capital's value more effectively over time.
2) Access to impressive ROI opportunities
While cryptocurrencies are well known to experience frequent volatility (which can be perceived as a risk), this also provides the potential for high rewards, especially for businesses that can time their market entry and exit strategically. So, diversifying into cryptocurrencies like Bitcoin and Ethereum can expose businesses to impressive ROI opportunities that are not typically available through conventional investment means.
Look no further than the Blockchain Index Strategy, which has produced a yearly ROI of around +99.50 %!
3) Continuous access (24/7)
Unlike traditional financial institutions that operate within fixed hours and can be limited by public holidays or system downtimes, cryptocurrency markets operate 24/7. This round-the-clock access allows businesses to execute transactions, manage assets, and respond to market changes instantaneously, which is invaluable for companies that operate on a global scale and need to manage their finances in real-time across various time zones.
4) Improved capital efficiency
Because crypto transactions usually incur lower fees than those processed through traditional banking, businesses can save a significant amount on fees alone; especially if the nature if thir business requires daily transactions.
Additionally, the speed and efficiency of crypto transactions mean that capital can be used quickly, which is a big difference from fiat, which is usually tied up and has lengthy processing delays. This, in turn, enhances a business's liquidity and operational flexibility.
5) Superior real-time analytics
Last but not least, because blockchain technology (which powers each cryptocurrency) facilitates an immutable and transparent record of all transactions, businesses can gain unparalleled insights into their crypto-related activities. This real-time data can then be leveraged for more accurate forecasting, budgeting, and strategic decision-making.
Furthermore, the enhanced visibility into asset flows also aids in risk management and compliance, offering a comprehensive overview that is often more fragmented in traditional financial systems.
Current Barriers For a Transition to Crypto
Now the benefits of businesses using crypto have been established, it's time to have a look at some barriers that are preventing businesses from transitioning part (or all) of their holdings into crypto.Below are some of the most common barriers to entry according to businesses themselves:
1) Lack of crypto knowledge
Barrier to entry: One of the primary barriers deterring businesses from gaining exposure to cryptocurrencies is a lack of understanding of the fundamentals of how digital assets gain their value and operate. Many businesses are still unfamiliar with crypto and blockchain and therefore do not feel confident enough to take the leap.
How to overcome this: Businesses can engage in educational initiatives (plenty of online resources readily available), or employ specialised financial advisors who are well-versed in the nuances of the crypto market. What's more, there are service providers out there who specialise in providing management and staff with training sessions on how to navigate the crypto landscape effectively.
2) Complex onboarding processes
Barrier to entry: The perception that transitioning to crypto requires navigating complex onboarding processes can intimidate businesses. This includes setting up wallets, understanding private keys, and securing assets against potential cyber threats.
How to overcome this: To overcome this, businesses can leverage crypto business accounts offered by platforms that simplify the onboarding process. These platforms provide user-friendly interfaces, comprehensive support, and security measures that make the transition smoother. Additionally, many crypto service providers now offer tailored onboarding services that guide businesses through each step, ensuring compliance and security are maintained.
3) A lack of regulatory clarity
Barrier to entry: The ever-evolving regulatory landscape of cryptocurrencies can be a significant barrier. The absence of standardised regulations across different jurisdictions makes it challenging for businesses to ensure compliance and avoid legal repercussions.
How to overcome this: To mitigate these risks, businesses should seek out crypto platforms and service providers that are recognised by regulatory bodies and adhere to the stringent legal standards. Consulting with legal experts who specialise in crypto regulations can also provide clarity and guidance, helping businesses navigate this complex regulatory environment effectively.
4) Not knowing how to efficiently manage crypto holdings
Barrier to entry: Efficient management of crypto holdings is crucial for maximising the benefits of digital assets. Many businesses struggle with managing their crypto investments, safeguarding assets, and optimising their financial strategies in the volatile crypto market.
How to overcome this: Adopting crypto treasury management tools and services can address these challenges. These tools offer features like automated rebalancing, advanced analytics, and integration with traditional financial systems, making it easier for businesses to monitor their investments and make informed decisions.
ICONOMI — Transition From Fiat to Crypto With Ease!
As can be seen from the previous section, although there are indeed some potential barriers to entry, the good news is that all have feasible solutions which can make a crypto transition straightforward. But what if we were to tell you that all of the aforementioned barriers to entry could be overcome, simply by signing-up to a regulated crypto investing platform?
Enter ICONOMI!
Why ICONOMI is an excellent platform for a crypto transition
ICONOMI is an ideal solution for helping businesses transition from fiat to crypto due to its crypto business account offering, which is specifically targeted at those with little crypto comprehension.
As a regulated entity under the Financial Conduct Authority (FCA), ICONOMI provides a secure and compliant platform for crypto investments, addressing one of the significant barriers businesses face—regulatory compliance. What's more, the platform simplifies the digital asset management process by offering a user-friendly interface and a suite of tools designed for effective crypto portfolio management. These include automated rebalancing, real-time analytics, and access to a diverse range of cryptocurrencies and strategies; the latter eradicating the need for any crypto expertise.
Furthermore, with features such as multi-factor authentication and cold storage solutions, ICONOMI ensures that business assets are safeguarded against cyber threats, providing peace of mind for businesses who want to include crypto in
Gain exposure to crypto in 3 simple steps!
1) Register your business account: Start by registering for a business account on ICONOMI's platform. This process is straightforward and involves filling out basic details about your company. Once submitted, an ICONOMI relationship manager will quickly get in touch to finalise things.
2) Choose your crypto strategy: Once your account is set up, take advantage of ICONOMI's diverse crypto strategies. Whether your business aims to hold long-term positions in Bitcoin and Ethereum, or actively invest in more speculative DeFi assets, ICONOMI offers tailored strategies to meet various risk and return profiles. So use the platform’s intuitive dashboard to browse and copy tried-and-tested crypto investment strategies; or develop your own with expert support.
3) Monitor and adjust: Once you make your investments, ICONOMI’s advanced monitoring tools will allow you to track performance and market conditions. The dashboard provides comprehensive insights and analytics that help you make informed decisions and optimise your portfolio. Automatic alerts and rebalancing are also included, which help to ensure that your investments stay aligned with your business’s financial goals, allowing you to manage your assets efficiently and effectively.
Conclusion
As can be seen, the transition from fiat to crypto doesn't have to be daunting. By understanding the potential barriers and how to overcome them, businesses can smoothly navigate their entry into the world of cryptocurrencies.
But even better, businesses can sign-up to ICONOMI, which facilitates a streamlined transition with simplified processes, comprehensive regulatory adherence, and intuitive treasury management. So by following the three simple steps outlined in the article, businesses can leverage ICONOMI to strategically position themselves in the crypto market, capitalising on the benefits of digital assets while mitigating associated risks.
So what are you waiting for? Gaining exposure to cryptocurrency has never been easier, so sign up for your crypto business account today!
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