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Can I Use Bitcoin To Purchase Insurance For My Business?

Cryptocurrency is a payment method that can be exchanged online for goods and services. Many companies have their digital currencies, known as tokens, which can be traded for that company’s goods or services. Crypto users exchange fiat currency for cryptocurrency to access goods or services. Digital currencies use blockchain, a decentralized technology spread across multiple computers that manages and records transactions. Blockchain is known for being a highly secure technology.

A Rise in Popularity

Cryptocurrency has grown in popularity since its value soared starting in 2017. Companies are increasingly integrating digital currency into their operations due to improvements in crypto technology. Innovations such as the Lightning Network scale the number of transactions within the crypto network, making them faster and more efficient. Crypto is also no longer obscure in the financial services industry.

How To Buy Cryptocurrency

Some cryptocurrencies can be bought with fiat currency, and others can only be bought with tokens. Crypto holders need a wallet to buy and hold digital assets from a cryptocurrency exchange. There are several crypto exchanges on the market today, and there are a growing number of online brokers offering digital currency.

Approximately 3.2 percent of the Canadian population own cryptocurrencies. Bitcoin (BTC) held more than 30 percent of this market in 2020 thanks to its highest-recorded value. Canadian crypto traders invest in popular cryptocurrencies, including Ethereum, Ripple, Tether (USDT), Cardano ADA, and Binance coin. Canadian crypto traders are always on the hunt for the best bitcoin exchange Canada has to offer. The personal finance website Wealth Rocket offers its pick of the best exchanges based on ease of use, trade fee, withdrawal fee, accepted payment method, mobile app, functions, and other advanced features. The list of crypto exchanges includes Coinbase Coinsmart, Bitbuy, VirgoCX, and Shakepay.

Users need a digital wallet to store their crypto holdings. A hardware wallet is a physical device similar to an external hard drive that stays offline and stores crypto holdings in cold storage. A software wallet is an encrypted nonphysical program that has a private key that allows you to access your digital assets and a recovery phrase to recover your tokens in case of damage or hackers.

What You Can Buy With Cryptocurrency

Businesses are increasingly accepting cryptocurrency as a payment method; however, large transactions with crypto are rare. There are a wide variety of products and services that can be bought online using digital currency. Many car dealers accept tokens as payment, from utilitarian cars to luxury dealers. Several companies that sell technology and e-commerce products, such as Newegg, AT&T, and Microsoft, accept tokens as payment. When it comes to jewelry and expensive timepieces, many luxury goods makers and retailers are opening up to cryptocurrency.

The insurance industry has been cautious to adopt crypto, but this is beginning to change. Premium payments using tokens are beginning to be accepted, but do note that life insurance is off-limits. Another thing that the insurance industry has been slow to embrace is providing insurance coverage for the cannabis industry. Most insurance carriers don’t offer cannabis insurance, but they do offer multiple insurance products that, when combined, provide adequate coverage for cannabis businesses.

GreenWrap Insurance Solutions offers comprehensive insurance products to hemp- and cannabis-related businesses from seed to sale. The insurance company offers a range of coverage options for cultivators, dispensaries, processors, distributors, wholesalers, legal and support entities, and other ancillary businesses. Their lines of coverage include property coverage, general liability coverage, product recall, professional liability, product liability, errors and omissions, cannabis crop, workers’ compensation, and more.

Crypto continues to grow in popularity as there is more awareness surrounding it. While there are plenty of retailers and payment processors accepting crypto as a payment method, there are still some industries that are slow to adopt it.

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