The most straightforward answer to the question of whether you can fund a business venture using cryptocurrency is, yes; not only can it be used as an effective form of seed capital, but there are also numerous benefits that come with taking this unique and increasingly popular funding approach.
However, simply saying that something is possible isn’t enough to actually explain how it can be done or why you should do it.
After all, there are many different ways to raise and contribute funding to a startup or joint venture, so why would you want to use cryptocurrency rather than funds from a typical business bank account or loan? In this quick guide, you’ll learn about ways that cryptocurrency can be leveraged for the funding of business ventures:
Raise Money on a Crypto Crowdfunding Site
Crypto crowdfunding is an interesting new lane that has emerged out of the obvious need to have crowdfunding platforms that accept and process cryptocurrency donations and transactions. Many crypto investors are just beginning to discover crypto crowdfunding platforms, which is good because people who have amassed a lot of crypto-based wealth are always looking for new ways to invest those coins.
Creating a campaign on one of these platforms gives your business venture the advantage of not just being funded by you and your existing business partner(s), but also by dozens, hundreds, or even thousands of other cryptocurrency holders.
Generally, you should try to collect crowdfunding donations in the form of the most valuable cryptocurrencies, a metric that can be checked in real-time at Coins.live.
Pay for Web Hosting and Other Critical Online Services
Another great reason why a cryptocurrency is a suitable form of funding for a business venture is that many web hosts and online service providers are now accepting Bitcoin and other major cryptocurrencies. In fact, many companies are offering exclusive discounts to people who pay using cryptocurrencies. Why would any business do that?
Well, if they can encourage more crypto payments, they’ll be increasing the total amount of coins they possess. Of course, any company that owns a lot of cryptocurrencies stands to generate a fortune of a return when the value of that cryptocurrency skyrockets exponentially the same way Bitcoin has in the past decade.
Benefits of Using Cryptocurrency to Fund a New Business Endeavor
So, now that you know it’s not only possible but also advantageous to use cryptocurrency for a business venture, let’s recap a summary of the main benefits that crypto-based ventures provide. First and foremost, crypto wallets provide one of the most convenient and secure forms of payment. Then, you have the advantage of becoming an option for millions of crypto investors who wouldn’t otherwise notice your startup.
Plus, let’s not forget that cryptocurrencies give you the option of investing anonymously, which could be appealing for some investors who want to dabble in potentially risky industries or emerging technologies that may or may not align with their public personas as business people.
For example, the online casino industry has seen strong adoption of cryptocurrencies as investors and casino platform users enjoy the privacy of being able to freely invest in gambling-related activities without creating any solidified link to their public image.
Thus, anonymity is another factor worth mentioning when discussing the freedom and flexibility that cryptocurrency provides to joint venture founders.
People with Crypto Wallets are Generally Savvy
Finally, one more reason why you might gravitate towards the idea of using cryptocurrency as the basis for your business venture is to collaborate and partner with like-minded individuals.
You’ll find that most people who use cryptocurrencies are more technically and financially knowledgeable than the average consumer or investor. Advanced individuals like that are exactly the kind you want playing major roles in the leadership and funding of your business.