Challenge involved in developing Cryptocurrency?

What are cryptocurrencies for?

Cryptocurrencies are still currencies, but digital. Thus, we can make payments between people. In fact, companies like Microsoft , Destinia, WordPress, among many others , already allow you to buy with bitcoins, or other cryptocurrencies, on their websites.

7 Challenges Cryptocurrency Companies Must Overcome

This moment, known as the bear market, creates uncertainty and greater positioning challenges, defi development company even for the most established crypto companies. While some pessimistic forecasters fear for the future of the crypto market, other experts maintain that this new cycle will bring a necessary purification to the industry, which will allow it to emerge even stronger. This is where communication becomes essential for these companies.

On the one hand, the reliability and safety of its operation have been called into question; on the other, it begins to face regulatory processes that in some cases have been prohibitionist and in others, such as Colombia, seek to complement the current financial sector and fill those gaps to start applying better controls. Therefore, for the growth of these companies dedicated to the management of digital assets to occur, it is necessary to face the communication challenge of educating and sensitizing companies and users about operations and market dynamics to dispel these questions.

Along these lines, the consulting firm shares the seven communication and marketing challenges that crypto asset management companies must overcome:

1. Misinformation and distrust as the main problem in users against cryptocurrencies.

The study reveals that communities begin to trust the digital currency market when an expert speaks on the subject, demonstrating its benefits and operations; daily updates are given on the value of cryptocurrencies and explain the causes of the variations; The news of the global market is exposed, the benefits of investing in these assets are explained or the increase in the value of cryptocurrencies is given visibility.

2. Sustain positioning in a highly competitive environment and whose currencies are in a period of “hibernation”.

There are currently more than 100 platforms available to buy or sell digital currencies, and 18 already have unicorn status. This demands a positioning challenge as a reliable and secure company, where a differential and a storytelling that manages to connect with its audience at all levels is demonstrated later, but which also translates into a story doing where facts are reflected.

3. Take advantage of digital assets, not only to communicate but also to listen. Undoubtedly, crypto asset management companies must include user acquisition strategies; and they must establish an active and analytical listening in networks, to constantly evaluate what their audiences demand and how to solve problems or messages from detractors that may arise.

4. Have a strategic partner. A communication partner with experience working in cryptocurrencies will help companies in this industry to leverage the desired positioning.

5. Regulation: The challenge of establishing mature relationships and mastering the conversation. To date, few Latin American countries have adopted a regulation for cryptocurrencies, but in almost all territories there are already bills under treatment, tests and study commissions and Colombia is no exception. It is important that crypto companies participate in this conversation, which is often biased by the limited knowledge of those who carry it out on the subject. In this way, defi development services they will contribute their expertise on the subject and will be relevant interlocutors.

6. Attract investment. Investors read the economic, general and specialized press every day. A compelling reason for a startup to have a media presence or increase its visibility in the appropriate forums and events, with the aim of relating and interacting with the investment sector. This also helps to project a more solid image that conveys confidence and consistency and attracts business angels, venture capital and private equity firms, and other economic agents to approach the project willing to join.

7. Strengthen relationships with partners. Finally, if the crypto company obtains the necessary financing to be able to launch its product on the market and grow, the investors become its shareholders, and communication with them becomes as important or even more important than in the previous stage.

Advantages and disadvantages of cryptocurrencies

To delve into this new way of managing money, it is interesting to know what its benefits are, as well as its risks. In this sense, we have to point out that cryptocurrencies are characterized by being volatile. An element that lies between the advantage and the disadvantage, since the user can double his earnings from one day to the next, just as he can also lose them quickly.

● Some cryptocurrencies are deflationary

In the case of Bitcoin, 21 million and Litecoin 84 million. This makes them deflationary cryptocurrencies, as the issuance of these digital currencies shrinks over time.

● They have irreversible transactions

Other of its advantages are irreversible transactions. That is, if cryptocurrencies are used, no third party can cancel or modify a transaction that has already been made.

● They are characterized by their immediacy

If we have international clients, this payment method could greatly speed up the exchange process , especially between banks from countries that do not have treaties with each other, and have to go through a central bank, causing payment processes to be delayed for several days .

● They are transparent

All transactions made through the Blockchain are public . Thus, defi smart contract development this type of storage allows it to be readable by all users, making it transparent and difficult to tamper with .

Disadvantages of cryptocurrencies

At the same time, we find a series of disadvantages in cryptocurrencies that can be the cause of their non-settlement in society and their mistrust in potential and future users.

● Possible loss of money

One of its main dangers, and its most risky characteristic, is that if you lose the private key to access your wallet, you lose all the money you had in it , since it is virtual money. Therefore, it is advisable to have a backup of your wallet to avoid this fateful situation.

● Changes and lack of regulation

Currently, work is being done on its regulation and there are several European Union directives pending approval.

In Spain, given the vertiginous expansion that cryptocurrencies have been experiencing, particularly for the use of remittances and also as an investment asset, new regulations on the matter are expected. In this sense, the State Agency for the Tax Directorate of Spain indicates that “in relation to the fiscal risks observed in operations carried out with cryptocurrencies”

Advantages of cryptocurrencies

● They are global currencies

These virtual currencies are not regulated by any type of governmental organization , such as the State, banks, financial institutions or companies. For example, Bitcoin claims that “in the same way that no one controls the technology behind email, Bitcoin also has no owners” .

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