Digital currencies and transactions are becoming more common and common as the time passes by. And now, blockchain technology is the closest we’ve come. It simply denotes a different form of recording transactions. Unlike conventional transaction scenarios, blockchain-powered transactions are open ledger for all who take part in the transaction. In fact, it is much secure and reliable as no records are modified and are shared among all participants. However, the question here is, how efficient is coin payment when it comes to startup fundraising? What are the advantages of using the same? Or is there any disadvantage to that? This document promises to provide a clear-cut idea on coin payment and its potential benefits.

What Makes Coin Payment Better than Traditional Transaction Methods?

Conventional transactions are well familiar with everyone and are considered the safest we’ve got so far. But, however, we have the Crypto trend going on now. A lot of businesses has already adopted the same as well. Well-established businesses like Microsoft, Pay pal, Expedia, Subway etc., accept cryptocurrencies at the moment. Below provided the potential benefits of coin payment and justification for employing coin payment as your payment method.

Much Lesser Strings than Conventional Payment Methods

Traditional transaction funding approaches comprise an abundance of strings, where coin payment system includes considerable fewer strings to deal with. However, this seems to be an incredible benefit for founders. Typically, initiating coin payment methods with a unique currency, which can be further converted to Bitcoin or Ether can be a little tedious and confusing. Anyhow, dealing with banks and traditional venture capitalist fundings are much more sophisticated than coin payment.

Far Cheaper than Traditional Fundraising

Crypto Currency

Even though we consider transactions through banks or debit/credit cards as the safer medium, the most neglected factor here is the ‘third party interruptions’. Moreover, a user should have to provide his/her’s personal information to get access. Since there are no ‘middlemen’ in crypto transactions, the intermediary fees and interest can be cut out of the box. Above all, the funder can frame rules and regulations regarding equity and returns by himself.

A Flexible Approach for Investors

The most alluring factor that makes investors keep the hold of the coin payment system is, the return of investment on fundraising via crypto transactions are much more accelerated than conventional methods. Also, they can quickly liquidate, they can ‘trade in’ their investment and allow more investors into the game.

Ideal for Startup Founders

Fundraising through Coin payment is extremely profitable and effective. This is because, in crypto transactions, funds can be received in a variety of currencies. Both flat and cryptocurrencies will be accepted, whilst traditional funding will only deal with single currency. Entrepreneurs starting up a crowdfunding platform should make use of the coin payments. Developing such a platform is now made easy with the Kickstarter clone script.

Possible Drawbacks of Crypto Crowdfunding

Since the coin payment is a novel concept, it requires more advanced use cases to outrun the traditional methods. Here we discuss the potential demerits of coin payment.

Blemished Notions of governmental rules and regulations

Bitcoin Government Regulations

Even if the platforms like Bitcoin, Ether etc., are well familiar among businesses, the legal complications associated with funding via an unregistered token will always haunt the concerned enterprise or the person. Since coin payment is a new concept, it might take some time to get a clear picture on the legal formalities.

Over Expectations

The funds raised through coin payment is not stable, which means it isn’t that reliable as you expect. For instance, Bitcoin and Ether are so keen to invest more and more in new businesses, whereas, startup founders are eagerly looking to raise more funds, far more than they actually need. Imagine the situation when the process failed to generate an expected outcome. This will substantially affect the reputation of the system itself.

Limited Control for Investors

When it comes to crypto transactions, investors will be given very little control over how the funds are used. Hence, the chances for deception is considerably high. Anyway, this is an issue with coin payment which is yet to be resolved. However, when considering the overall familiarity, flexibility in transactions, security, and freedom, coin payment clearly have an upper hand over conventional payment methods.

Agriya Introduces Coin Payment into their Crowdfunding Product Range

Crowdfunding demo

AS we recognized the future potential of digital money, we have reached an inevitable conclusion to integrate coin payment system into our crowdfunding script. Agriya’s premium crowdfunding software is segmented into 4 varied scripts. Pledge, Donate, Equity and Lend are the four distinguished scripts developed by Agriya. To ensure an unrivalled user experience and to offer solid money transactions, we have adopted this new concept of coin payment.

Bottom Line

Crowdfunding generally is a widely recognized conception. In fact, a major percentage of businesses have utilized its benefits at least once in their business journey. When collaborating a new idea with a well-familiar and established concept, there is a multitude of factors to keep an eye on. Even though the coin payment or crypto transactions are considered new, it has been there since the 90’s. And what we have access to is possibly the best form of the same. Anyhow, there is still room for crypto transactions to improve, hopefully, we will achieve it in near future.

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