Bitcoin is undoubtedly the most popular cryptocurrency among businesses. Find out how enterprises get Bitcoins.
While multi-global corporations boast the largest Bitcoin reserves, small to medium businesses have also increasingly invested in crypto over the recent years. Many companies primarily use Bitcoin as a transaction currency for various goods and services online and in physical stores. Unlike the traditional payment systems, Bitcoin is a digitized currency that facilitates prompt, secure, and relatively cheaper transactions.
Some businesses also use Bitcoin as an alternative investment to diversify their portfolios and hedge against inflation. That is because Bitcoin is a decentralized asset with a better resilience to inflationary risks. Small to medium businesses are currently the main driving force behind Bitcoin’s adoption, bringing it closer to the general public. So, how do companies get Bitcoins? Here are the main ways businesses use to acquire Bitcoin.
Payments from Customers
Bitcoin has increasingly gained popularity as a reliable, secure, and faster means of payment than credit cards, debit cards, or bank transfers. Its success has inspired an emerging global market of crypto enthusiasts willing to spend Bitcoin. That has convinced several merchants to adopt crypto into their payment systems, allowing their customers to shop for various goods and services with Bitcoin.
There are several products and services that you can now buy in Bitcoin, including cars, groceries, coffee, jewelry, video games, mobile apps, air tickets, and health treatments. Some businesses process Bitcoin payments through service providers, while others transact directly via personal wallets. There is no fee for receiving Bitcoins, and several wallets let companies control their spending, ensuring greater autonomy.
Bitcoin payments are irreversible, protecting merchants from chargebacks and fraudulent risks common in most electronic payment systems. Bitcoin also gives businesses increased exposure to a global clientele, driving sales exponentially. Overall, adopting crypto payments has enabled many companies to accumulate significant Bitcoin reserves over time.
Cryptocurrency exchanges are the most popular marketplaces for anyone buying or selling Bitcoin. They allow businesses and individuals to purchase Bitcoins using fiat currencies or other cryptocurrencies. Besides crypto trading, cryptocurrency exchanges also offer other financial services, including processing transactions on behalf of their clients for commissions.
Leading crypto exchanges such as bitiq.org, offer businesses multiple options for buying Bitcoin. Companies can buy Bitcoin through bank transfers, credit cards, or debit card payments. However, the exchange rates vary across crypto exchange platforms. Thus, merchants who wish to buy Bitcoin from crypto exchange platforms must study the markets to reduce their risk exposure.
Investment Brokerage Firms
Despite concerns over its high volatility and regulatory fears, Bitcoin’s stellar performance and projected growth have also caught investment brokerage firms’ attention. Investment brokerage firms mainly allowed businesses and individuals to buy and sell stocks, but they have now added crypto into their portfolios. Unlike other investment platforms, they support commission-free trading and investing. That has made investment brokerage firms a famous avenue for many businesses to gain exposure to Bitcoin.
Bitcoin ATMs and Retail Stores
Bitcoin’s steadily growing market demand has impacted the proliferation of several crypto marketplaces. Bitcoin ATMs and retail stores are also increasingly becoming popular among crypto enthusiasts, allowing businesses and individuals to buy Bitcoin in person. Bitcoin ATMs work just like regular cash-based ATMs, allowing you to buy Bitcoin in local currencies. Several retail stores also exist where you can purchase Bitcoin in cash. Visit websites such as Coin ATM Radar to find a Bitcoin ATM or retail store in your city, state, or region.
Several ways exist for businesses to get Bitcoins, including payments from customers, crypto exchange platforms, investment brokerage firms, Bitcoin ATMs, and retail stores. However, each option has unique challenges and benefits that every merchant should understand before investing in Bitcoin.