Crowdfunding with crypto, is it real?
Once in your life comes the day when you wake up understanding that working for someone is not your cup of tea at all. You are fed up with the routine, and you are not eager to waste your time anymore. With great enthusiasm, you start pondering on launching your own business. Then you fall back upon multiple calculations on how much money you will need to bring your project to life. After, when you have an approximate imagination of figures you need to spend, you check your bank account and… you give up. Sure thing, you could have lent money from your friends or ask for a credit, but you don’t want to owe someone.
In a moment, all the ideas and plans go quickly to the abyss of hopelessness, locking all your dreams in the old oak chest.
Know how it feels? Perhaps, yes. However, there is a good solution. You may not be aware that back in 2000 appeared an interesting option: crowdfunding.
As cryptocurrency is getting more and more popular around the world, crowdfunding with crypto is in great demand. Let’s discover what crowdfunding is and which platforms offer such an opportunity to pay with crypto.
Crowdfunding and its types
Crowdfunding is a method of raising money from a large number of people. A lot of small investments are pooled together to provide the needed capital for a company or project. Anyone can sponsor a campaign created by an individual, charity, or business for a specific cause.
There are few types of crowdfunding:
Crowdfunding with securities offers people the chance to invest in private companies (aka, startups). In exchange for capital, investors receive a promise of stock, future shares or another security issued by the company.
- Based on donations
The donation-based crowdfunding model refers to when someone donates to a particular charity or cause (GoFundMe).
- Based on rewards
It is indeed reward-based crowdfunding. Donors who support a project are rewarded in a specific way. Namely, in return for funding a new product line, you might receive the product.
Nowadays, one of the most popular crowdfunding appears to be reward-based. There are a plethora of online platforms offering people to share their projects and get a money backup. (Kickstarter, Seedinvest)
- Loans between individuals
Through peer-to-peer lending, individuals can borrow money directly from other individuals without going through a financial institution or a bank. It’s like debt crowdfunding.
- Property crowdfunding
Crowdfunding for real estate offers individuals the opportunity to invest in projects. Real estate investors who do not wish to deal with mortgage brokers, real estate agents, or contractors can take advantage of this. This is a type of security crowdfunding.
- Fundraising for human capital
People raise money through human capital crowdfunding to support projects or their personal growth. As a result of investing in a project, investors receive a share of its success. Most poker players crowdfund their money by playing online and then share their winnings with investors.
Crowdfunding with crypto is not a hoax
With the rising popularity of cryptocurrency, several platforms offering crowdfunding started accepting crypto. Let’s have a look at them.
There are almost all crypto investors who use Kickstarter because it is one of the top crypto crowdfunding platforms. Their website claims they have raised around $5 billion for 182,736 projects from 18 million people since it was released in 2009.
This platform in New York City employs a total of 95 people to support creative projects. The company has helped over 50,000 projects since it started. Their main task was to design the Kickstarter platform and build communities. The platform accepts various crypto as well as fiats.
RealtyBits is one of the decentralized crowdfunding platforms that allow investors to invest in US commercial properties. The company was founded in Palo Alto(United States) in 2018. The funds are raised through verified investors. Investments are made using RBX tokens, which it uses as a fundraising method.
Over 35 countries are managed from one single platform. Neither buyers nor investors have to pay any processing fees. In addition, the sellers can pay for additional services like investor identification, verification documents, background checks, etc. The fee is low when compared to other platforms. Several cryptocurrencies as well as fiat are supported by the platform.
There are some purely crypto crowdfunding platforms working on blockchain. Tecra Space represents one of them. It’s an online funding platform for aspiring investors in developing high-tech projects. By connecting creators to investors, it seeks to tokenize intellectual property. Essentially, it is a Space Platform in which visionary individuals on board will join forces to fight the problems. Although the interests of the groups do not align, Tecra Space provides satisfactory results for all parties.
Their solution promotes sustainable development and is environment-friendly – Tecra focuses on projects that promote environmental sustainability. The Foundation has already supported inventions made from graphene that reduce harmful light effects and electric bicycles. Space travel will lead to a better future. Tecra awaits you to join them on this expedition.
Technology along the lines of cryptography and tokenization has become a crucial part of Tecra.
In addition, it is cheap and accessible from anywhere in the world. Since Tecra’s network operates decentralized, the transactions are safe and secure without the assistance of banks or centralized institutions.
As a platform that operates on the principles of equity crowdfunding, Tecra Space allows you to profit from the commercialization of projects and participate in their implementation. In contrast with traditional equity crowdfunding, investors benefit from additional features: no taxation, transparent exits from the investment, or no upper limit on the amount collected for a specific project.
Another platform accepting crypto is Fundsurfer. It offers easy and convenient crypto crowdfund raising for creative, community, business, and nonprofit projects.
You only need to set a goal and create a shareable project to start raising crypto. They offer a simple and secure payment system for Bitcoin donations, take low commissions – 5%. All the donated money is sent directly to your crypto wallet.
After you get digital currency, you can use a crypto exchange (eg CEX.IO, best way to purchase Tether) to convert crypto back to USD, EUR or GBP.
Thus, you can consider these if you have a nice idea and cannot see how to realize it. And keep in mind that crypto may appear a promising payment method, so if you decide to find additional money to support your project, think of digital currency platforms.