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An Entrepreneur’s Guide to Investing in Bitcoin

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Marcus de Maria, Founder and Chairman of Investment Mastery.

 

Over recent years, Bitcoin has been steadily growing in popularity among today’s investors. At the same time, there has been a lot of debate about Bitcoin, and other cryptocurrencies, and their value.

Its supporters argue that it is the future of currencies and investment; its critics are adamant it’s not all it’s cracked up to be and might not make the big profits people are expecting.

To better understand its true stature in the market, we need to look at recent developments. For instance, Bitcoin’s valuation has risen by more than 763% in just one year, easily surpassing the rise in the traditional stock market.

With more and more people buying Bitcoin, it is now gaining the attention of the mainstream financial institutions and platforms, when once Bitcoin was derided, joked about and said would never last.

Marcus de Maria

Fast forward twelve years since its’ launch, and we have Tesla and SpaceX mastermind Elon Musk recently announcing that his car empire will not only buy $1.5 billion-worth of Bitcoin, but will accept cryptocurrencies as payments in the future.

And well-known FinTech companies such as Square and PayPal have also announced their intention to support Bitcoin in the future.

Despite this, the most important Bitcoin development is, perhaps, the recent initial public offering (IPO) of Coinbase Global, Inc. (NASDAQ: COIN), today’s leading cryptocurrency exchange platform.

There is no doubt: Bitcoin is gaining momentum. Recent developments have contributed to the sharp rise in the value of Bitcoin, and asset proponents believe this is just the beginning.

 

Bitcoin background

Bitcoin was created in 2008 by a programmer, or group of programmers, under the pseudonym “Satoshi Nakamoto”. Twelve years on, and the true identity of Bitcoin’s inventor is still unknown, adding a little mystique to this already enigmatic entity!

Essentially, Bitcoin is a cryptocurrency. A cryptocurrency is a virtual “coins” or “tokens” and used in digital cryptocurrency systems instead of physical cash.

Similar to physical fiat currencies, digital coins have no intrinsic value, and are not backed by gold or silver.

Bitcoin is one of the most widely used of the thousands of cryptos now available to the investor.

Considering that the great attraction to crypto is that it’s a decentralized currency, thousands of different types of coin in “circulation” is a big giveaway to how popular it is among users and investors.

What gives Bitcoin its value is the fact that there will only ever be 21 million bitcoins “minted” or “mined” to give its proper definition (more on this in the future).

It’s this scarcity that provides the value, although one Bitcoin can consist of multiple denominations, the smallest being a “satoshi” which is 0.00000001 of one Bitcoin (or BTC as it is also known).

 

Bitcoin & The Blockchain: How does it work?

Bitcoin exists solely on the “blockchain” in “wallets.”

A wallet is the digital equivalent of a traditional bank account for fiat currencies such as dollars, sterling, yen, etc.

The blockchain is a public ledger that is totally transparent and accessible to everyone who uses the blockchain and bitcoin, and now any crypto that is in existence.

Transactions on the blockchain are “peer-to-peer”, meaning the transaction doesn’t go through a “middleman” (i.e. third party that would normally charge a fee for making the transaction).

Crypto transactions also undergo thorough verification and confirmation.

Crucially, every transaction and record of bitcoin activity is encrypted which means no one knows who owns any one bitcoin or where it goes to and from, unless they publically declare it (although the identities can eventually be detected under special police powers in cases of suspected fraud).

Only the transaction itself is recorded and is made visible to anyone.

That is why Bitcoin is a cryptocurrency (or crypto), because it has an extremely high level of privacy to it via cryptography.

“Crypto” comes from the Greek word “kryptos,” meaning hidden.

Bitcoin wallets operate via secret key.

This key is used to “sign” transactions. It provides mathematical proof that the transaction has come from your wallet (or owner of the transacting wallet).

This secret verification stops the transaction from being tampered with once it has been issued.

All transactions are confirmed and appear on the block chain network within 10-20 minutes.

It is this security and the fact YOU – and not the banks – are truly in control of your digital money that is so appealing to users and investors alike.

 

What to consider when investing

Firstly, and arguably most importantly, is risk-factor. Investing in Bitcoin as an individual is a lot less risky than investing as a business.

The mentality must be, ‘this is my business’s money. I won’t speculate with my business’s money, and I am not going to risk my employee’s livelihoods. Yes, I would be crazy not to invest but it would be crazier to risk it all.’

It’s very easy to go all-in and invest a large sum of money when you have it, but that is not really a sensible strategy.

So, to start with, entrepreneurs and business leaders should consider the risks, diversifying their portfolio and starting small.

 

Other Bitcoin Investment Options

There are different options when it comes to investing in Bitcoin.

First, you can invest in a company that uses Bitcoin technology so you will be exposed to it without purchasing it directly. When the value of Bitcoin goes up, the company shares go up too, providing a return on your investment.

I can’t invest in Bitcoin through my ISA, but investing in a company such as Block (previously known as Square) means I have an indirect tax-free investment opportunity in Bitcoin. Investing in a company that utilizes Bitcoin can be more volatile than Bitcoin itself, so more money can certainly be made.

Investing solely in Bitcoin is different, as it doesn’t move so much in value, but the individual company using Bitcoin can go up and down sometimes by 80%.

Buying Bitcoins directly from an app like Coinbase allows investors to “physically” own the asset.

This is an important distinction to make, as Coinbase allows investors to actually buy Bitcoin and store it in their own crypto wallet. That way, investors will be able to gain access to the coin’s price performance and use it as the currency to make other trades.

Owning a standalone Bitcoin is no different from owning any other currency, except for the incredible fluctuations in value.

 

To invest directly into Bitcoin here’s how to get started:

  1. Sign up to an Exchange
  2. Enable two-factor-authentication for security
  3. Get a Bitcoin wallet
  4. Connect the wallet to a standard fiat bank account
  5. Place your Bitcoin order
  6. Manage your Bitcoin investment

When the set-up is complete, what you really need to consider is, how much do you know? I am a firm believer in spending at least 20 minutes a day educating myself on investing. I’ve seen too many beginner investors ignoring that advice and rushing in without understanding how it all works.

Surround yourself with people that understand crypto investment and dedicate time to reading up on strategies and tips that will benefit all investments you make.

Bitcoin is certainly a crypto asset you should be investing in alongside a diversified portfolio. It is certainly a highly volatile asset with large and rapid price swings, which in turn can offer the potential for large returns but also carries a high level of risk.

Before making any decisions, it is critical that you learn how to invest in Bitcoin responsibly and utilise proven, reliable strategies. Once you feel confident with your approach, take that first brave step.

As Warren Buffet once famously said, “Be fearful when others are greedy, and greedy when others are fearful.”

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The power of a proactive customer service

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By Delia Pedersoli, COO, MultiPay

 

2023 is shaping up to be another challenging period for B2C businesses. While the disruption of the Covid-19 pandemic has for now largely disappeared, new challenges like the cost-of-living crisis have arrived. As economic uncertainty impacts every consumer business from retail to travel and leisure experiences, service providers and suppliers must double down on their customer service to help clients through these challenging times. One area of customer service that is particularly important – and often overlooked – is proactivity.

A move to a more proactive customer service approach should not come at the expense of reactive measures. Regardless of how well-prepared customer service teams are and how detailed processes are, there will always be unforeseen and unexpected issues that need to be addressed. But by working in tandem, B2B service providers can deliver the service that customers now expect.

In recent years, the landscape has changed. Customers expect proactivity and for suppliers to understand what they want. Data from Salesforce that covered both consumers and business customers identified that two-thirds of respondents expect the suppliers they buy from to understand their needs and expectations. Not only this, but those that do take a proactive approach to customer service see a full point increase in their NPS.

Delivering a first-class proactive customer service is therefore a key requirement for businesses wanting to build and develop long-term relationships with their customers. However, for many businesses, it can be hard to know what to focus on and improve to attain the proactivity required. At MultiPay we have made proactivity a core part of our customer service, which has allowed us to identify several important factors.

A proactive process

Delia Pedersoli

The first area to focus on is getting close to customers. The more you know about a customer, how their business works, what the goals are and where there are challenges all helps in identifying areas to support with a proactive customer service. A good method to structure these insights is to conduct a SWOT analysis. Knowing the strengths, weaknesses, threats, and opportunities of a client helps identify areas that may need support soon. On top of this, it is important to invest time in speaking with clients. Not only will this help with the SWOT, but it can also highlight areas for operational improvements. Speaking with people from across the business allows you to truly get under its skin.

Knowledge is power when it comes to enhancing the proactivity of customer service. In addition to getting under the skin of a business, it is also important to understand its industry inside and out. Staying on top of key trends, themes, and issues affecting a client’s industry and sector helps with remaining on the front foot. Recently at MultiPay, we experienced a scenario that brought this home, working with one of Europe’s largest tourism operators, The Travel Corporation (TTC) which needed to bounce back quickly following the Covid-19 pandemic. With consumers excited to travel again, TTC needed a customer service and payments solution that could quickly scale and support its on-the-move workforce of travel directors. Working closely with TTC’s team along with monitoring the news and industry trends like the lifting of travel restrictions we were able to be proactive in scaling up operations in anticipation of key markets reopening. Staying ahead of the curve meant we were prepared to deliver new or replacement payment terminals at very short notice to travel directors anywhere in Europe. As a result, we eliminated the risk of downtime and loss of earnings that TTC could have suffered if there had been delays.

Planning for success

In addition to knowing a client’s business and their sector inside and out, it is also important to remember that no two businesses are ever the same. While some tactics and strategies may work for one, they may not translate to another. By getting to know clients, customer service can be tailored to them and their unique needs. Working with TTC for example, we learnt that its travel directors when out in the field, often lack an internet connection. Consequently, they needed to be highly self-sufficient. To achieve this, we developed a bespoke handbook that provided a step-by-step guide to setting up payment devices and solving common issues. On top of this, a dedicated hotline was launched, allowing travel directors to quickly gain help if needed when they did have connectivity. Taking the time to develop tailor-made services specific to TTC and its travel directors, helped provide the agility the business needed and removed pressure from TTC’s internal team.

Of course, before developing a user guide or establishing a hotline a plan needs to be created. Taking the time to meticulously map out the strategy and tactics to support a business is key. Factoring known events or challenges into a plan is vital in getting ahead of them. For instance, as well as navigating the reopening of travel destinations, our work with TTC also meant we had to work around the global chip shortage causing delays in device deliveries. To plan around this, we purposefully pre-ordered additional handsets that could be kept on standby. Then when a request for a new terminal came in, we didn’t have to let the client experience the delays caused by the chip shortage. In doing so we could ensure a smooth flow of devices to travel directors.

With so much uncertainty in the world currently, there has never been more of a need for proactive customer services from B2B suppliers. By building up a knowledge basis of a client’s business, their industry, and then planning and tailoring approaches accordingly, B2B suppliers can help their customers thrive in 2023 while also emerging as true partners. When uncertainty hits as much as we are now seeing, planning, and proactively become more important than ever.

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Digital Asset Management (DAM) To Transform Enterprise Brand Management

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Alexander Rich, Co-founder and CEO Desygner 

 

Rapid digital transformation fuelled by the pandemic has undoubtedly proven beneficial to overall business outcome. However, today we are witnessing the age of hyper-digitalisation. With user or employee generated content exposed to multiple channels of distribution, monitoring content that is authentic and on-brand is becoming an increasing challenge and threat to brand image, authority and identity. The present day branding team has a mountainous task to create, streamline, and monitor a huge number of branded files each time costing businesses a large amount of time and money.

According to a report by SkyQuest, the global digital asset management market was valued at USD 3.68 billion in 2021, and it is projected to attain a market value of USD 9.32 billion by 2028 at a CAGR of 14.2% over the forecast period 2022–2028.

Businesses are warming up to the concept of digital asset management (DAM). However, it is important to have a clear understanding of a DAM system to assess its significant impact on business. Let’s examine closely as to why DAM is an impeccable one-stop-solution for enterprise brand management.

What is a Digital Asset Management system?
Digital Asset Management (DAM) system is a centralised repository of visual files which includes, branding files, images, audio/video files, graphics, templates or any form of branded documents that are made easily accessible to anyone within the network of users. DAM tools are designed to achieve maximum business efficiency for creating and sharing of branded assets that are on brand and compliant to brand governance. Advanced smart DAM systems also offer AI driven intelligent features including animation, printing and multiple linguistic translation.  With the help of a DAM, users can effortlessly share huge files, resize and format their media, track usage patterns, and manage any digital file.

Increased Business Efficiency Cost and time effective
With organisations adopting remote and hybrid working models, access to information and company assets can be a huge challenge. Plus, with hyper automation, businesses are evaluating for better resource allocation and reduce  the production cost for speedy delivery and enhanced customer experiences.

DAM enables an ecosystem within an organisation which breaks inter-departmental silos. With an ideal digital asset management system, branding teams can create and store complex design assets with inbuilt restrictions for compliance while employees with no-designs skills can access pre-approved branded files with quick turnaround time to share with customers. Investing in an effective DAM system can bring 100 times the ROI for businesses saving not just valuable time and cost.

Brand management and Brand Governance
The volume of user generated content (UGC) disseminated globally with real-time personalisation is driving organisations to look for solutions that help them lead and control corporate branding while at the same time eliminate roadblocks of brand design and marketing bottleneck. With the adoption of DAM, employees can work with pre-approved ready to use assets cutting down dependency on design teams for a multitude of alterations in designs and templates. This means empowering employees to custom create pre-approved branded content that can be adapted to the local language & markets for specific business requirements – be it for sales, HR, marketing or social media promotion. Also, unlike the older version of asset management system which doesn’t allow control over utilisation, an advanced DAM notifies users of newer versions of templates every time restrictions are established by the admin. And since these assets are pre-approved and on-brand, each touch point of communication with users, partners, vendors and social media by employees can be used to promote brand advocacy.

Updating Legacy files:
With the multi-channel communication across a dynamic tech landscape and geographies, the ways and format in which we use branding assets have changed drastically. Many organisations today find themselves using outdated files that are no longer synchronised to the current tech landscape. Which means, these files are no longer usable for sharing in social media, emails or any visual formats. Not just that, the bulk of files that are outdated seem like a mammoth task for the design teams to individually update. Now imagine that, with a DAM in place, brand managers can choose the latest features and compliances to update all branded files with just a click of a button. Within seconds, the outdated files are updated and are ready to use saving time and cost.

Security & compliance:
For any business, information management and security of critical assets is an absolute priority. Streamlining content management with a centralised DAM system to control, regulate and monitor content can ensure safe sharing of content that is compliant and in line with company branding policies each time. A DAM system can control access and trace every single iteration to assets thereby limiting breach  against content malpractices.

Conclusion:
With marketing automation taking a centre stage in an increasingly UGC landscape, DAM has a significant role to play in enterprise brand management to both increase productivity by minimising operational silos and empower businesses to promote brand advocacy.

 

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