The Benefits of Using Digital Assets for Business
October 29, 2021
Low transfer fees, high security, rapid transactions, and new market opportunities are among the main benefits of using digital assets for business.
Digital assets have virtually entered mainstream finance and are an incredible advancement in technology in their own right. Since the creation of Bitcoin in 2009, the digital asset ecosystem has grown ferociously with a wide range of tokens at your disposal today including ETH, BTC, USDT and a whole lot more.
Digital assets are unregulated due to their decentralised nature, but they are nonetheless a highly secure payment method. Paying with digital assets is rapidly becoming commonplace alongside paying with cash or debit card. There are many benefits for your business if you choose to use digital assets, of which the main ones are described below.
Businesses undertake hundreds and even thousands of transactions every month, and even every day. Digital assets hold the potential for businesses to undertake cost-effective transactions. It is important to note that transaction fees can be relatively low when initiating transactions using digital assets, but the costs associated with transactions can vary widely depending on a number of factors. For this reason, it is important to carefully check what processing fees, “gas” fees, and what the spread is when undertaking transactions using digital assets.
For example, when sending and receiving digital assets via third parties such as Coinbase, Coinomi and Blockonomics, you will have no choice but to accept their spread and transactions may incur processing fees as well. When initiating P2P transactions it is important to check the spread that the counterparty charges. Furthermore, certain tokens charge gas fees for processing transactions and these can vary from token to token so it is worthwhile checking what fees certain tokens charge and selecting one that meets your needs.
Digital asset transactions are recorded on transparent public ledgers that create an information flow of all transactions making it relatively easy to track transactions and establish audit trails. Furthermore, once a digital asset transaction has been initiated it can’t be reversed or tampered with. You have control over your assets and your transactions are protected by secure blockchain technology that prevents hackers from stealing or tampering with your funds.
Digital asset transactions are relatively fast and you typically have greater control over the process. You can view and approve transactions as well as choose when transfers initiate, meaning there is less uncertainty and potentially reduced waiting times unlike with payments systems such as the SWIFT network. Thanks to this, waiting times of several days and not knowing exactly when your funds will arrive is less common when using digital assets.
New business opportunities
Introducing digital assets to your business creates room for new clients. By giving the people who use digital assets the opportunity to interact with your business you’re not only opening up the potential to gain new clients, you’re also becoming more attuned to consumer trends and potentially gaining an advantage over your competitors.
Before you begin using digital assets in your business, it’s important you take into consideration the fact that digital assets are highly volatile. Due to the nature of digital assets, their value can rise and fall dramatically and it is important to factor this into your planning when exploring their use for commercial purposes. That said, the benefits of using digital assets for business, including those outlined above, present significant advantages that could give your business a competitive advantage, especially in a growing market.
Implement digital assets in your business with Baanx
Baanx offers a range of digital asset-ready tools for you to incorporate new payments and other services into your business. Our tools include payment gateways, multi-currency debit cards, virtual IBANs, white-label apps and more. For more information about our financial services visit our website.