The world of cryptocurrencies can be perplexing for a beginner, so it is essential for you to understand them correctly. They are a new type of digital currency that makes use of cryptography for securely executing transactions across the world and to control the creation of new coins. They have been in the news in the past few years and have salient advantages over traditional fiat currencies in the world.
Kavan Choksi– delving deep into the world of cryptocurrencies
Kavan Choksi is a business and cryptocurrency expert who advises beginners to be well informed when before they opt for buying or trading crypto coins. Bitcoin was the first cryptocurrency that came into the world in 2009, and today it is the most popular of a lot of others like Litecoin, Ethereum, etc., that gradually surfaced over time.
Cryptocurrencies are decentralized and not subject to government control. Moreover, they are anonymous and are never linked to any individual identity, making them attractive for users who wish to carry out illegal transactions across the globe. They are digital in nature and are present in the virtual realm, so you will never find them in a physical form like traditional fiat currency of banknotes and coins.
They use the blockchain, which is a digital ledger for transactions. Here, blocks of transaction data are created with cryptography, and they are added to one another to increase the chain. Each block has a hash code and is linked to the previous block, so the instances of fraud are reduced, and the information in the league is challenging for a hacker to tamper with. Cryptocurrencies are secure and confidential, thanks to blockchain technology.
Individuals and businesses can also trade in cryptocurrencies against digital assets and other fiat currencies. However, the market is highly volatile, so investors must take the advice and guidance of cryptocurrency experts to proceed safely with a trade or a transaction.
When it comes to businesses, they often need working capital to expand and grow. They have two options- they can opt for debt financing, or they can choose small business equity financing.
An insight into small business equity financing
Debt financing refers to the act of borrowing a loan that will comprise a principal amount with interest rates applicable. The business owner needs to pay back this loan to the lender in a time frame mutually agreed by both parties.
In the case of small business equity financing, one approaches investors who will take a share of ownership rights in the business. According to expert Kavan Choksi, this means that you need to consult the investor about every business decision you make as they will have a share in the ownership of your business. You do not have to give back the funds as the investor will be taking control of your business and, like you, be concerned about its growth and improvement of business practices and processes. Here, you do not have to worry about repaying the funds, and if you are comfortable with transferring ownership rights, this financing option for your business is perfect for you!
