Why Businesses Should Adopt Crypto Accounts — 5 Benefits
Unless you've been hiding under a rock for the past 5 years, the world is becoming increasingly digitalised, and so to are the way that businesses conduct themselves. This is particularly prevalent within the world of financial services, which have no choice but to adapt and innovate if they are to maintain and grow their user bases.
One prime example of financial innovation can be seen through the increased adoption of cryptocurrencies. Once viewed with skepticism, cryptocurrency is now being seen as a valuable asset class for modernising financial operations, and facilitating impressive returns on investment (ROI).
But the integration of these digital assets can be complex due to their volatility and the complex regulatory landscape that currently exists. To rectify this, an increasing number of providers are starting to offer crypto business accounts that act as an effective onramp and treasury management tool for crypto, and that offer an array of different benefits. But are these benefits really enough to motivate businesses to pursue crypto accounts?To help answer this question, this blog post will go over 5 of the main benefits that businesses can enjoy by opening a crypto business account, namely:
- Simplified asset management
- Enhanced liquidity management
- Integration with traditional finance
- Regulatory compliance
- Advanced security
Let's dive right in!
What Are Crypto Business Accounts?
Put simply, crypto business accounts are specialised financial accounts designed for companies that wish to engage with cryptocurrencies; either as an investment, operational currency (crypto payments), or both.
These accounts essentially serve to bridge the gap between traditional finance and the modern and complex world of digital currencies. Typically provided by regulated platforms like ICONOMI, these accounts offer functionalities of a conventional bank account but where businesses can also manage, trade, and invest in cryptocurrencies more securely and efficiently.
5 Benefits Businesses Can Enjoy By Opening a Crypto Business Account
Below are the 5 main benefits that businesses can enjoy after opening a crypto business account:
1) Simplified asset management
Managing a diverse portfolio of assets is often cumbersome and complex, and this is especially prevalent within crypto investing. So what crypto business accounts do is consolidate asset management into a single, intuitive dashboard, and provide businesses with a centralised view of their financial holdings; both in fiat and crypto.
Real-time tracking tools are also incorporated within these accounts, including up-to-the-minute updates on asset performance, market trends, and valuation changes. This not only streamlines the process of monitoring and adjusting portfolios, but also reduces the administrative overhead associated with managing multiple accounts across different platforms.
But perhaps the biggest perk of all is how some business accounts offer copy trading functionality, which basically means that businesses can copy the crypto investing strategies of other investors; many of whom are highly experienced and successful. This essentially removes the need for expertise, as crypto business account users can easily analyse the performance history of each strategy they are copying and their percentage allocations.
2) Enhanced liquidity management
The next benefit that crypto business accounts can provide is enhancing liquidity management. This is vital for businesses, as quite often they'll need to maintain financial flexibility in order to respond quickly to market opportunities or obligations. So what crypto business accounts do is provide tools that allow for the rapid conversion of digital assets into fiat currencies or other cryptocurrencies.
In addition to this, crypto business accounts normally have real-time analytical tools that help to monitor liquidity levels, which is especially useful for forecasting cash flow, or having a rough idea of the direction of the crypto market. This helps businesses to make informed decisions quickly, and without the delays that typically accompany traditional banking.
What's more, most crypto business accounts will often have tools such such as automatic stop-loss, rebalancing and real-time alerts. This provides further liquidity management protection.
3) Integration with traditional finance
Another advantage of using a crypto business account is how they integrate seamlessly with traditional finance, and allow for hybrid management of both fiat and cryptocurrencies through a single interface.
For example, most crypto business accounts will have compatibility with mainstream banking systems, and this is crucial for enabling businesses to easily deposit fiat currencies in order to purchase cryptocurrencies; and vice versa, seeing how businesses can easily cash out into fiat.
Furthermore, these accounts are often compatible with crypto tax software like Koinly, which significantly simplifies tax reporting for transactions involving digital assets. This means financial activities like reconciliation are much more straightforward.
4) Regulatory compliance
Some may argue that the most important utility of a crypto business account is that it ensures crypto exposure in a regulated manner. This is important for businesses who want to stay on the right side of the law, and who want to avoid any unnecessary fines or penalties.
The reason crypto businesses ensure regulatory compliance is because in order to operate themselves, they need to first be regulated, which means they need to meet certain guidelines. For example, in order to provide crypto-related services in the UK, ICONOMI had to be regulated under the FCA, which has a set criteria that financial service providers must abide by; including anti-money laundering (AML) and know-your-customer (KYC) provisions.
So investing in crypto via a business account all but ensures businesses have nothing to worry about legally speaking.
5) Advanced security
Last but not least, crypto business accounts are protected by state-of-the-art security protocols that effectively safeguard digital assets.
These accounts typically feature multi-factor authentication, encryption, and advanced cryptographic techniques to secure both the storage and transfer of digital currencies. Additionally, many platforms like ICONOMI integrate multi-signature wallets and cold storage solutions to enhance the protection against unauthorised access and potential cyber threats.
So by opening a crypto business account, businesses can manage their crypto investments with peace of mind.
Conclusion
As can be seen, opening and using a crypto business account offers some major benefits for businesses who want to enter the world of crypto stress-free and in the most efficient and secure way possible. So whether a business is looking to modernise its financial operations, gain access to lucrative investment opportunities, or simply add crypto to its balance sheet, crypto business accounts provide a holistic solution that aligns with the demands of today's financial demands.
Ready to transform your business with the power of digital assets? If so, then open a crypto business account with ICONOMI today, and position your company at the forefront of financial innovation!
If you enjoyed this article, you may be interested in our other titles:
5 Must-Have Books For Crypto Investing in 2024
Best Crypto Fund Option in the UK [2024]
Is Crypto Halal or Haram? A Guide For Muslim Investors [2024]A Guide For Long-Term Crypto Investing [2024]
Ready to start your journey with us?
Trusted by over 100,000 users from around the world.
