The adoption of cryptocurrency in the business world is on the rise, offering various benefits such as global reach, reduced fees, and faster settlements. Curious to see how it works? Schedule a demo with Januar today and discover how cryptocurrency can revolutionise your business payments!

Why consider a cryptocurrency account for your business? 

Global reach
Expand your customer base and market reach by accepting payments from anywhere in the world. While transferring money domestically or to countries with established financial sectors poses minimal challenges, transferring funds to businesses in developing countries can be significantly challenging.

Often, transactions get held back or simply get lost because many different banking institutions are involved in passing an actual simple transaction forward. Only a so-called “investigation” by your main bank can determine who is holding the money. This usually costs money and takes multiple days to get it back. 

In Web3, everything is transparent and recorded on the blockchain. If your business (or your clients) need to send or receive money to/from various different countries it will be worth it to look into Web3 solutions.

It’s no secret that any business that touches crypto in some form or another often has a hard time opening a traditional bank account. With Januar.com this is not the case anymore, since we are specialised AND regulated in the EU. Feel free to request a demo account here. 

Streamlined payments
Cryptocurrencies simplify the process of accepting and sending payments, making transactions more efficient.

Faster settlements
Crypto transactions offer near-instantaneous settlements compared to traditional methods, improving cash flow. While neo-banks are also becoming faster, crypto transfers are confirmed within a few seconds or minutes. Plus, everything is transparent.

Reduced fees
Bypass high processing charges associated with credit cards and other payment methods, saving on transaction costs. Traditional financial institutions often impose both transparent and hidden fees, but this can usually be avoided with crypto payments. It depends on what kind of account you choose and how much responsibility you want to delegate. In general, it can be said that because in Web3 there are no or fewer middlemen involved in a transaction, fees will be minimal.

Enhanced security
Leverage blockchain technology's inherent security features, ensuring safe and secure transactions. While moving funds around in Web3 might seem daunting, it is becoming easier each year. At Januar, we help protect you and your team members as much as we can, allowing you to use the benefits of crypto without compromising security.

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Types of crypto accounts for businesses

There are a lot of very different “crypto accounts” out there. As a business, it’s important to understand the differences so you are able to choose the best solution for your business long term. As always in life there are advantages and disadvantages for every solution. Here, we outline the key types of crypto accounts: 

Crypto exchanges (like Coinbase, Binance, Kraken, …)

Pros:

• Access to a Wide Range of Cryptocurrencies:  It’s great if you trade a big amount of cryptocurrencies on a daily or regular basis.
• Lower Fees for Large-Volume Transactions

Cons:

• Custodial Risk: Funds are held by the exchange, meaning users do not have full control over their assets. In the past plenty of exchanges got hacked. 
• Compliance risk: Your traditional bank will need to send money back and forth to the exchange. 
• Capital-inefficiency:  Having to 'park' money on an exchange, and therefore constantly waiting for payments between bank accounts can lead to capital inefficiencies.
• Transaction fees: Each money transfer to and from exchanges and bank accounts as well as forex transfers come with a cost. 

Crypto wallets (MetaMask, Ledger Nano, Trust, Trezor, Exodus, Electrum,…)

Hot Wallets (usually software which you can simply access or download via the internet):

Pros:

• Convenient for Frequent Transactions: Easy access for sending and receiving cryptocurrencies, often available as browser extensions or mobile apps.
• User-Friendly: Intuitive interfaces suitable for everyday use.

Cons:

• Security Vulnerabilities: Being connected to the internet makes them more susceptible to hacking, making them less suitable for storing large sums.

Cold wallets (usually hardware devices which look like a USB stick):

Pros:

• Enhanced Security: Offline storage significantly reduces the risk of hacking.
• Ideal for Long-Term Storage: Suitable for holding large amounts of cryptocurrency securely over the long term.

Cons:

• Less Convenient for Daily Transactions: Requires physical access to the device, making frequent use cumbersome.

Crypto custodial accounts (like Januar.com)

Pros:

• Enhanced Security Features: Benefit from industry-leading security measures, including multi-signature wallets and whitelisting of addresses, ensuring your crypto assets are protected against theft and cyber threats.
  
  
• Dedicated Account Management: Enjoy personalised support and guidance from experts dedicated to helping you manage and optimise your cryptocurrency holdings, providing peace of mind and professional advice.
  
  
• Additional Services: Take advantage of extra features such as an EU IBAN, which simplifies integration with traditional banking systems, making it easier to manage both crypto and fiat transactions seamlessly and efficiently.

By opting for a crypto custodial account, businesses can enhance their financial operations with robust security, expert support, and convenient banking integration, driving growth and operational efficiency. It’s the best out of two worlds.
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How to open a cryptocurrency account for your business - Step-by-step guide

‍Step 1: Choosing an account type
First, decide between a crypto exchange, a custodial account, or a hot/cold wallet based on your business needs. A crypto exchange is ideal for businesses that require frequent transactions and wish to trade a variety of cryptocurrencies. A custodial account is best for secure storage and management of large crypto assets, offering additional support services and features like multi-signature wallets. Hot wallets are convenient for everyday transactions but are more vulnerable to online threats, while cold wallets provide enhanced security with offline storage, suitable for long-term storage of significant amounts of cryptocurrency.

Step 2: Researching providers
Look for reputable crypto exchanges or custodial service providers. Choose providers with a strong track record, positive reviews, and robust security measures. Opt for regulated providers to mitigate the risk of legal and financial issues, and confirm their adherence to local and international regulations to ensure long-term viability.
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Step 3: Completing registration
Next, go through the registration process, which includes KYC (Know Your Customer) verification. This usually requires providing identification documents and business information. Be prepared to submit documents such as the company’s founding date, details of key personnel with necessary rights, and other information to verify that you are operating a legal company. Ensure all documentation is accurate and complete to expedite the verification process and avoid delays.
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Step 4: Funding your account
Finally, fund your account with fiat currency, transfer existing crypto holdings, or provide your clients or partners with your IBAN or wallet addresses to collect money. You can use bank transfers, credit cards, or other accepted payment methods to deposit money into your crypto account. Move your cryptocurrencies securely from other wallets or exchanges to your new account, and facilitate seamless transactions and business operations by providing the necessary payment details to your clients or partners.

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What you need to consider before opening a crypto account

Supported cryptocurrencies
Ensure the provider supports the cryptocurrencies you intend to use for your business transactions. Very often it will be stable coins like USDT or USDC which are pegged to the dollar.

Security measures
Evaluate the security features offered, such as multi-signature wallets, cold storage, and encryption. Multi-signature (multi-sig) wallets require more than one private key to authorise a transaction. This adds an extra layer of security, as multiple approvals are needed to move funds, reducing the risk of unauthorised access. For businesses, this is strongly recommended.

Transaction fees
Compare the fees associated with different providers to find the most cost-effective option for your business.

Customer support services
Choose a provider with reliable customer support to assist with any issues or queries.

Regulatory compliance
Ensure the provider complies with relevant regulations to avoid legal complications.

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Conclusion

Opening a cryptocurrency account is only slightly different from opening a traditional bank account. However, it can offer numerous advantages for your business, including enhanced efficiency and a broader market reach. The banks of the future will need to accept cryptocurrencies. By embracing innovation and exploring the possibilities of crypto payments, your business can gain a competitive edge in the modern market.

Optimise your crypto payment process with Januar

Januar is a unique offering because customers get a one-stop platform that both enables them to get an IBAN account to receive and send fiat (USD, EUR, etc.), a custody wallet to receive/hold/send crypto (Bitcoin, ETH, etc.), and an integrated trading solution that helps you convert seamlessly between all types of currencies.

Januar ApS is a Payment Institute licensed by the Danish Financial Supervisory Authority (Finanstilsynet) and operates across all EEA markets under the European passport regime.

Book a demo

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Disclaimer
The information provided in this article is intended solely for general informational purposes and should not be interpreted as professional advice from Januar. Please be aware that Januar is not a financial advisor. We strongly recommend that individuals seek independent guidance from qualified legal, financial, or accounting professionals before making any cryptocurrency investment decisions.