It’s increasingly becoming a cryptocurrency world, and businesses have to get used to that fact. Even if you and your companies aren’t in the crypto business, the question of whether to buy Bitcoin or buy into crypto, blockchain and the changes they represent are asked in boardrooms across the world.
These tips can help businesses in Canada and around the world adapt to the crypto-revolution.
1. Cryptocurrency Exchange
As with any currency, the more different types of crypto are used, the greater the need for exchange services becomes. People who use crypto need exchange services that are fast, efficient, and offer low exchange rates and fees, and that’s doubly true for businesses.
Some of the most common types of crypto exchange companies on the market include:
- Ads-based exchange
- Binary exchange
- Centralized exchange
- Decentralized exchange
- Hybrid exchange
- Order exchange
Each of these is different (for example, in centralized, the majority of the control over your crypto account rests with a third party, whereas decentralized accounts are solely under your control), so do your research.
2. Give Employees a Choice
One of the most important keys for success in any business is empowering employees to make choices for themselves and feel as though they have a voice in the affairs of the company. Maybe some of your employees like the idea of being paid through crypto.
Maybe some already have expertise in it. Maybe some would prefer to just go about their lives and get paid the old-fashioned way.
All of that’s fine – simply raise the prospect with employees, empower them with information and debate, and let them decide for themselves.
3. Foreign Employees
One area where cryptocurrency really shines is in paying overseas employees. After all, one of the biggest hassles with paying foreign employees right now is having to deal with exchange rates. If you work for Chinese or Russian clients, for example, or hire employees from those countries, getting paid out on time can be a pain.
Cryptocurrency not only makes it easy but also ensures that payments can go through despite any outstanding geopolitical issues that might impact payments with traditional currencies.
4. Set up a Payment Service
If your employees do wish to get paid in cryptocurrency, you may want to set up a payment service to make it easy for them to do so. There are several options already available for this that are used by those who like to buy Bitcoin.
To set up an account with these services, you’ll typically need to provide your business’s name, address, website, and some personal details such as your name and date of birth. You should also be aware that these services, like those mentioned above, can charge a fee.
On the plus side, some of these services help correct for price volatility, which is one of the biggest red flags for those who are already cautious about cryptocurrency. With these services, you can wave that red flag away and be able to count on consistent payments every time.
5. Added Security
Even if you don’t plan to ditch the dollar, pound, euro, or yen any time soon, cryptocurrency payment systems for businesses can still be a great way to add security to your financial systems.
This is thanks to blockchain, which works by decentralizing servers while having them self-check each other. That way, hacking accounts is much harder and, in theory, there’s no single point of access that can be hacked and give your information away.
6. Check the Legal and Tax Side
One mistake way too many amateur crypto-enthusiasts make, both as individual investors and businesses, is to forget that just because you’ve left “traditional” currencies behind doesn’t mean you’ve left your legal tax responsibilities behind as well.
In fact, laws in Canada passed over the past few years have explicitly stated that crypto earnings must be reported and crypto businesses must follow Canadian tax law. Be sure to check Canadian law (and the tax laws for any other countries in which you may wish to pay clients) to make sure you have everything in order.
Following these tips can help ensure that your business is primed for cryptocurrency, the exchange system, and can take advantage of the opportunities they offer.