Whether you’re a small business looking to get your foot in the door with the latest online investing trend or a budding startup looking to attract more investors to your funding round, Bitcoin and other digital currency exchanges offer benefits no other investment opportunity can match. For one thing, virtual currency exchanges are typically much cheaper than their fiat currency counterparts. Let’s say you want to buy $100 worth of Bitcoin but can’t seem to afford it.
By opening a Bitcoin 360 online trading account, you could sell your Bitcoin in the exchange for dollars or another virtual currency like Ethereum instead. As with many other types of financial transactions, doing so too frequently or in high volumes could lead to higher transaction fees, but for less volume and a lower cost basis, this is where cryptocurrency exchanges come into play. Here are some ways startups and small businesses stand to gain from opening an account at a Bitcoin or cryptocurrency exchange:
Save Money on Fees and Commissions
Some of the most expensive trading platforms in the world charge hefty fees for every transaction. Even if you’re not charged a cent for buying or selling a single coin, there are still plenty of fees associated with opening an account. For example, the average trading platform charges 0.30% or $0.30 per trade, with some going as high as $0.50%. This can add up over time and can prevent you from making the most of some of the more advantageous features of a trading platform.
For example, if you’re interested in targeting long-term investors, you may want to open an account where you don’t have to make frequent trades or incur high trading fees. Additionally, some platforms are more fee-friendly for smaller purchases, allowing for cash-only purchases.
Access New Markets
Beyond just trading financial assets like shares or Forex, many online brokerages now offer access to niche markets like gold and silver, Japanese yen and Singapore dollars, and more. For example, if you’re interested in buying and selling cryptocurrencies in a variety of markets, you may want to consider opening an account with Interactive Brokers. In addition to the wide range of financial assets it offers, IBR offers a variety of markets, including commodities and ETFs.
Make Inroads into OTC Markets
Thanks to the ongoing growth of the internet and social media, there are now more markets than ever before to trade in, including over-the-counter markets like dark pools and over-the-counter trading platforms, also known as OTC trading. OTC markets are not subject to the same regulatory oversight as marketplace exchanges, so it’s important to understand the risks and benefits of each before deciding where to trade.
For example, an OTC market isn’t subject to the same level of surveillance as an exchange, so there’s a chance that the market has been corrupted or tampered with. Additionally, some OTC markets allow you to trade anonymously, which is nice for those who want to stay away from the prying eyes of regulatory bodies but not so great for investors who want to know who you are trading with.
Build Customer Relationships
One advantage of purchasing physical assets like real estate or stocks in a brokerage is that you can show off your financial savvy. For example, if you own a home in a good neighborhood and are looking to sell it, you may launch a real estate website where you list your home for sale and let buyers search through your listings. In doing so, you build customer relationships and make yourself more accessible to potential buyers.
On the other hand, when you trade digital assets like Bitcoin, you’re trading with strangers. Some of them may be frauds and others may be legitimate investors looking to buy Bitcoin for cash. The latter is likely how you’d want to present yourself to potential investors, but you’ll have to let them see through your eyes.
There are plenty of ways for startups and small businesses to get into the online investing game. Whether you’re looking to buy and hold coins or want to trade them regularly, online trading platforms are a great way to go. With so many benefits that come with opening an account at a Bitcoin or cryptocurrency exchange, it’s no wonder why more and more people are getting into this new way of trading.