Introduction
The fact that institutions are acquiring cryptocurrencies demonstrates that interest is no longer limited to the shadowy corners of the internet. While some early adopters may be disappointed, Bitcoin has entered the mainstream, which is a necessary step for crypto to gain widespread acceptance.
Crypto business accounts and acceptance of cryptocurrency payments as a business owner is something to think about as adoption grows. If nothing else, you should open a crypto brokerage account so you can buy and sell digital currency and have an easy path to accepting it when the time comes. Every business is unique, and some owners will never feel truly comfortable accepting such a volatile asset as payment. However, if cryptocurrency is an intriguing venture for your company, here are a few brokers and exchanges that can assist you in getting started.
Best Crypto Accounts for your Business
If you’re opening a business account, you’ll need a few extra pieces of documentation that individuals don’t have to provide. To begin, you will most likely require registration and tax documents from the country in which your business operates, as well as to disclosures of majority owners. To deposit funds into your business crypto account, you’ll also need to use a business bank account.
If you have all of the necessary paperwork and want to get started, here are a few of Benzinga’s favorite cryptocurrency brokers for businesses. There is no one-size-fits-all solution here, as there is with traditional bank and brokerage accounts – you must select the crypto account that best meets your business needs.
- App- Yield App provides a digital asset corporate account that leverages the power of digital assets and decentralized finance (DeFi) to provide annual interest rates previously unheard of in the finance space. Business account holders can earn up to 18% p.a. in interest. Yield App offers 36 times the rates of the highest yielding traditional business savings account in the US, which pays only 0.5 percent.
Pros: Yield distinguishes itself from the other industry leaders for two reasons. On the backend, they use a ‘Bloomberg-esque terminal,’ and on the frontend, they use a mobile banking application. The creators and team of yield also state that they are constantly monitoring and improving their applications.
Cons: Liquidity is provided in this type of quick withdrawal application by teams investing in a variety of markets. If things don’t go your way, this method can expose you to price swings and a sudden drop in assets. Of course, this is the risk of investing in alternative currencies such as cryptocurrency.
- Kraken– Kraken is a newcomer to this market, but they have a plethora of business-friendly offerings. Corporate clients have access to the Kraken Trade Desk and Kraken Account Management, which provide assistance for large trades and 24/7 customer support, respectively. Note: reading a Kraken review produced by the industry experts is a great practice if you are planning to trade on this platform.
Pros: Kraken employs hundreds of full-time, dedicated Client Engagement crypto and finance specialists who are well-versed in all of our products and services. Our global team is fluent in a variety of languages, responds quickly with personalized solutions, and works every day of the year – including major holidays. We offer unrivaled support in the cryptocurrency industry.
The wide range of assets available through the Kraken exchange will also appeal to institutional clients. There are over 50 different digital currencies to trade, including some rare coins like Gnosis, Kava, and, yes, even Dogecoin.
Cons: Limited options for funding accounts. Not available in all U.S. states.
- BlockFi- BlockFi is a platform at the forefront of the DeFi movement, which aims to transform traditional centralized banking into a decentralized peer-to-peer network. The platform focuses on purchasing and lending to institutional clients. You can buy and borrow funds in US dollars, cryptocurrencies, or stablecoins as a business owner.
BlockFi also provides some of the highest yields for cryptocurrency investors.
Pros: There are no commissions or monthly fees when trading cryptocurrency. There are no minimum balance requirements or balance caps. Earn a high-yielding interest rate on your cryptocurrency holdings.
Cons: Interest account withdrawals are limited monthly by cryptocurrency type
- Robinhood- For some business owners, holding stocks and cryptocurrencies in the same account may be more convenient. If you want that level of simplicity (and you only want to buy and hold Bitcoin or Ethereum), a Robinhood account might be the best option. You can buy stocks, ETFs, options, and seven different cryptocurrencies through Robinhood: Bitcoin, Bitcoin Cash, Bitcoin Silver, Ethereum, Ethereum Classic, Litecoin, and Dogecoin.
Pros: Robinhood’s mobile app is quick, easy, and one of the best in those categories. For stock trading, Robinhood provides the following features: basic watch lists, basic stock quotes with charts and analyst ratings, recent news and streaming Bloomberg TV, as well as simple trade entry.
Cons: One disadvantage of using Robinhood for business is that no business-specific accounts are available. Robinhood provides several types of personal accounts, but no additional services or increased limits are available. You will also be automatically signed up for a margin account and will need to request a downgrade if you want to avoid PDT rules. Furthermore, despite being commission-free, Robinhood’s cryptocurrency spreads are quite high, negating some of the value of zero commissions.
- Voyager- Voyager is an excellent choice for mobile-oriented cryptocurrency investors looking to trade more than 60 cryptocurrencies at a low cost. The app is also ideal for institutions that require order execution and custody of crypto assets.
Pros: Voyager is a mobile cryptocurrency broker that allows you to trade over 60 cryptocurrencies. The app also provides interest rewards, and institutional clients can use a variety of cryptocurrency services. To trade assets such as bitcoin, ethereum, litecoin, and dogecoin, you’ll only need $10.
Cons: There are no coin-to-coin exchanges available. There is also no self-custody for individuals, which means you cannot secure your crypto assets with a private key that you control. It is also not available to New York residents, and international assistance is limited.
- Coinbase: Coinbase is the largest cryptocurrency exchange in the United States, trading nearly 100 cryptocurrencies. Coinbase fees, on the other hand, can be perplexing and higher than those of some competitors. While Coinbase provides appealing security features, cryptocurrency trading is extremely volatile, so always consider the risks.
Pros: Access to nearly 100 cryptocurrencies is available. Account funding requires a low minimum. In the event that a website is hacked, cryptocurrency is protected.
Cons: Higher fees than other cryptocurrency exchanges.
Accept Crypto Payments for your business
You can now easily accept cryptocurrency payment for products and services through a variety of channels. Square and PayPal now accept cryptocurrency for personal and business transactions. Your company can also set up a payment system using a cryptocurrency exchange, such as the Coinbase Commerce platform. You’ll only pay fees when you withdraw or convert your funds to fiat with Coinbase Commerce.
Crypto currency Payment Security
Because blockchain transactions are irreversible, security is critical for cryptocurrency transactions and investing. When you send Bitcoin to another wallet, it is no longer available. This can be advantageous and disadvantageous for business owners; you don’t have to worry about chargebacks, but you also have no recourse if your holdings are hacked or stolen.
Always use two-factor authentication for your brokerage account and wallet, and change your passwords on a regular basis. If you’ve amassed a large amount of cryptocurrency, you should also consider using ‘cold’ storage. Cold storage harddrives are kept disconnected from the internet and network computers, preventing hackers and scammers from gaining access to your passwords and transferring your holdings.
Acceptance for Cryptocurrency is Growing Rapidly
Acceptance of Bitcoin and other cryptocurrencies will grow exponentially now that financial institutions and payment processors such as Square and PayPal are on board. On your CNBC app, crypto prices are already listed alongside stock futures and commodities prices, and Coinbase’s upcoming IPO will only encourage more investors to get involved with digital assets. Accepting cryptocurrency payments has never been simpler for business owners. If you do not have a plan in place for cryptocurrencies in the future, you may be left behind by competitors.
Bottom Line
Any entrepreneur who chooses to accept cryptocurrency should be prepared to adapt to periodic changes in the law. You should keep an eye on the ever-changing local and state business regulations in general, particularly laws about doing business online and data privacy regulations if you accept digital payments.
