The cryptocurrency bull run has continued here in Apri and the momentum behind the movement appears to be gaining mainstream steam. PayPal and Square have begun to integrate cryptocurrency payments into their systems and large financial firms like BlackRock and Goldman Sachs have added cryptocurrency to their holdings. Yes, Bitcoin might not be making new all-time highs every week now, but that hasn’t stopped the rapid adoption of digital currencies.
Institutions sweeping up cryptocurrencies shows that interest is no longer reserved for shadowy corners of the internet. Bitcoin has gone mainstream and while that may disappoint some of the early adopters, it’s a necessary step for crypto to gain widespread acceptance. Believe it or not, it’s good for the long term prospects of Bitcoin and Ethereum if firms like Goldman and BlackRock are buying it.
If you’re a business owner, accepting payment in cryptocurrency is something worth considering as adoption grows. If nothing else, you should at least have a crypto brokerage account set up so you can both buy and sell digital currency and have an easy path toward accepting it when the time comes. Every business is different and some business owners will never truly feel comfortable accepting such a volatile asset as payment. But if cryptocurrency is an intriguing venture for your business, here are a few brokers and exchanges who can help you get started.
- Best Crypto Accounts for Your Business
- Accept Crypto Payments for Your Business
- Pros and Cons of Cryptocurrency Accounts
- Cryptocurrency Payment Security
- Acceptance for Cryptocurrencies is Growing Rapidly
- Frequently Asked Questions
Best Crypto Accounts for Your Business
If you’re opening an account for your business, you’ll need a few extra pieces of documentation that individuals don’t need to supply. For starters, you’ll likely need registration and tax documents from the country your business operates in, plus disclosures of majority owners. You’ll also need to use a business bank account to deposit funds into your business crypto account.
If you have all the proper documentation and want to get started, here are a few of Benzinga’s favorite cryptocurrency brokers for businesses. Like traditional bank and brokerage accounts, there’s no one-size-fits-all here – you’ll need to pick the crypto account that best matches your business needs.
Best for Easy Onboarding: Gemini
Gemini has a host of features for cryptocurrency investing, such as the Active Trader Platform, mobile app, and Gemini Wallet. They also offer more than 7% interest on coins like Dai and Filecoin through Gemini Earn. For business owners, Gemini has special institutional accounts with double the transfer limits of personal accounts.
A simple application will get the process started and a Gemini representative will get in touch to finish your account setup. Gemini has a very user-friendly interface and strong security features, making it ideal for business owners who are just beginning to dip their toes in the cryptocurrency waters.
Best for Cryptocurrency Availability: Kraken
Kraken is a relatively new entrant into this space, but they have plenty of business-friendly offerings. Corporate clients get access to both the Kraken Trade Desk and Kraken Account Management, which respectively provide assistance for large trades and 24/7 customer support.
Institutional clients will also appreciate the wide range of assets available through the Kraken exchange. More than 50 different digital currencies are available to trade, including some hard to find coins like Gnosis, Kava, and yes, even Dogecoin.
Best for High Yields: BlockFi
BlockFi is a platform on the cutting edge of the DeFi movement, which seeks to move traditional centralized banking into a decentralized peer-to-peer network. The platform specializes in buying and lending to institutional clients. As a business owner, you can buy and borrow funds in US dollars, cryptocurrencies, or stablecoins.
BlockFi also offers some of the highest yields available to cryptocurrency investors. Like Gemini mentioned above, BlockFi allows users to stake their cryptocurrency holdings to the network to provide liquidity. In return, BlockFi pays interest on these holdings – a lot of interest. Rates are subject to fluctuations just like savings account rates, but as of this writing BlockFi clients can earn upwards of 8.6% on certain cryptocurrencies. Even the most generous banks don’t come close to offering interest rates like that on savings accounts or CDs.
Best for Stocks and Crypto: Robinhood
For some business owners, it might be easier to hold stocks and cryptocurrencies in the same account. If that’s the type of simplicity you’re looking for (and you just want to buy and hold Bitcoin or Ethereum), a Robinhood account might suit you best. With Robinhood, you can purchase stocks, ETFs, options, and 7 different cryptocurrencies – Bitcoin, Bitcoin Cash, Bitcoin Silver, Ethereum, Ethereum Classic, Litecoin, and Dogecoin.
One of the downsides to using Robinhood for your business is no business-specific accounts are available. Robinhood offers several different types of personal accounts, but you won’t find extra services or increased limits. You’ll also automatically be signed up for a margin account and will need to request a downgrade if you want a regular cash account to avoid PDT rules. And despite being commission free, Robinhood’s cryptocurrency spreads are quite high, which negates some of the value of zero commissions.
Best for Low Fees: Voyager
One of the drawbacks to investing in cryptocurrencies are the fees. Unlike stock brokers, crypto brokers and exchanges still mostly charge a fee for buying and selling coins. If you have your cryptocurrency staked to an interest-earning program and want to withdraw it and buy regular Bitcoin, you could be hit with THREE separate fees – but not with Voyager.
Voyager offers commission-free trading on cryptocurrency buy and sell orders. All you pay is the listed price. And unlike Robinhood, you won’t get squeezed by high spreads either. Voyager also has special opportunities for institutional clients, such as increased market access and liquidity, Smart Order routing, and customized custodial solutions for security.
Best for New Investors: Coinbase
Coinbase is the largest crypto exchange on the market and remains one of the best for new investors. With a wide range of crypto offerings, fair fees, and easy signup access, Coinbase is the standard other exchanges are measured against. And soon investors will be able to get in on the action as Coinbase preps for an IPO later this year.
A Coinbase business account is available for institutional investors. You’ll need to fill out the business account application and set up your account and wallet with a Coinbase rep. Coinbase has a host of features for business clients, including a commerce platform that allows you to accept crypto payments from customers.
Accept Crypto Payments for Your Business
You can now easily accept payment for products and services in cryptocurrency using a number of different avenues. Square and PayPal now allow use of cryptocurrency in individual and business transactions. Your business can also set up a payment system through your cryptocurrency exchange, like the Coinbase Commerce platform. With Coinbase Commerce, you’ll only pay fees with you withdrawal or convert your funds to fiat.
Pros and Cons of Cryptocurrency Accounts
Thinking of moving forward with crypto for your business? Here’s a simple pros and cons list to weight before getting started.
Pro: Cryptocurrencies are gaining acceptance at an ever-increasing rate.
Con: Bitcoin and other cryptocurrencies are volatile, meaning the price a customer pays may not be the same amount you eventually convert to USD.
Pro: Cryptocurrency allows you to accept payment from customers all over the world without needing to worry about exchange rates or red tape.
Con: The fees involved with cryptocurrency transactions remain high. For example, Ethereum gas fees continue to increase and most exchanges and brokers charge fees on both ends of transactions.
Cryptocurrency Payment Security
Security is crucial for cryptocurrency transactions and investing since exchanges done on the blockchain are irreversible. Once you send Bitcoin to another wallet, it’s gone. This can be good and bad for business owners – you don’t need to worry about chargebacks, but you also have no recourse if your holdings are hacked or stolen.
Always use two-factor authentication with your brokerage account and wallet and rotate your passwords frequently. Additionally, consider using ‘cold’ storage if you’ve amassed a large amount of cryptocurrency. Cold storage harddrives are kept off the internet and network computers, preventing hackers and scammers from discovering your passwords and transferring your holdings out.
Acceptance for Cryptocurrencies is Growing Rapidly
Now that financial institutions and payment processors like Square and PayPal are on board, acceptance of Bitcoin and other cryptocurrencies will increase exponentially. You can already see crypto prices listed along stock futures and commodities prices on your CNBC app and Coinbase’s upcoming IPO will only encourage more investors to get involved with digital assets. Accepting payment in cryptocurrency has also never been easier for business owners. If you don’t at least have a plan for cryptocurrencies down the road, you may be left behind by competitors.
Frequently Asked Questions
How do I open a Cryptocurrency account?
You can sign up for a business account through any number of exchanges or brokers, like Coinbase, Gemini, or Voyager. You’ll need to provide registration documents and ownership status to get the institutional perks though.
Can a business invest in Cryptocurrency?
Yes, businesses can buy and sell cryptocurrencies through their business accounts, or stake their coins to an exchange like BlockFi and earn interest on the holdings. Businesses can also accept Bitcoin and other digital currencies as payment through Square, PayPal, or platforms like CoinBase Commerce.