Buying Bitcoin as a Small Business

Written by Eric from Zoseco

April 8, 2021

Bottom line? Just use Cash.App:

My Preference: For small amounts under $2,500 per week, use Cash.App from Square. (Super easy & fast and costs about a 2.2% fee)

For larger amounts, use Kraken.com (This is much, much, MUCH slower, can also cost a wire fee but can handle much larger amounts and takes a smaller % fee)

After I made the decision to purchase crypto and bitcoin with non-operating cash, I found most other options were a complete pain as a small, Main Street-style business. None of this is investing advice or the like, just sharing my experience.

Why Cash.App? It was the fastest, I just had to add a debit card, confirm basic info, and I was good to go in under 12 hours.

I looked into Coinbase, Gemini, and a few others, but those all required lengthy application processes, and seemed way more geared for institutional investors and traders. For those of us with small businesses who just want to sock some of the business funds into bitcoin, they weren’t worth the hassle. I wanted to buy and hold, not daytrade, and I suspect many small business owners are in the same boat. 

Cash.App was the fastest, I just had to add a debit card, confirm basic info, and I was good to go in under 12 hours. Alternatively, Kraken was a much lengthier process, and took me over a week start to finish before I could purchase anything, but thankfully it opened up the option to purchase more than $2,500 in a week.

How to buy bitcoin as a business with Cash.App

  1. Setup an account with your business debit card
  2. Change the account it to a business account and update your name
  3. Add Cash from your debit account to your cashapp account
  4. Buy bitcoin with said cash
  5. (optional) tip $zoseco for this sage advice wink
  6. (optional but highly recommended) Eventually send a batch of bitcoin to a more secure wallet. Folks talk about hardware wallets like Trezor.io

 

How to buy bitcoin as a business with Kraken.com

  1. Click Create Account, and then on the bottom of that page click “Create a business account”
  2. Follow through the prompts to get verified as a business account (this took me awhile)
  3. Deposit funds via Wire or one of their options. This was kind of a pain for me.
  4. Buy bitcoin or another crypto asset for your business
  5. (optional but highly recommended) Eventually send a batch of bitcoin to a more secure wallet. Folks talk about hardware wallets like Trezor.io

Like anything, if you make a profit on your purchase, then that’s a taxable event. Be sure to work with your accountant to determine and figure out your tax liability. If you’re using a process like Profit First, this could be a good additional strategy for socking away your profit account. This way you’re storing your medium and long term savings in something with more potential upside than a savings account. (Way way way more risk though!)

I’m not a fan of trading back and forth as that’s way too speculative and way too much like gambling to me. Hopefully though, you can treat it like an asymmetric option with some of your excess cash.

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