ESOP and crypto trading share an interesting intersection. Both options for fiscal security offer tax incentives to owners, yet their structures diverge in important ways. Exploring the benefits that each investment position can present to employees and investors is a crucial decision for anyone considering a new approach to business expansion or a growing portfolio of investments.
ESOP and Employee Ownership: The Employee Stock Ownership Plan
Many small business owners often come across this term and ask “what is ESOP?” ESOPs, or Employee Stock Ownership Plans are a great way to reward your loyal employees with shares of company stock and bring them into an ownership stake in the endeavor. This boosts morale and provides a financial incentive to keep up the hard work. ESOP rollouts are often met with great results, and ESOP-receiving employees are often some of the hardest working in the industry already.
An ESOP is the perfect way to give back to your staff and continue to promote a happy and professional atmosphere. The ESOP landscape is growing in the U.S. and beyond, and a joint partnership with owners and founders and their most loyal team members through the use of an ESOP offers the perfect way to continue building toward a brighter future.
One of the greatest assets that an ESOP provides to both employees and employers is a tax incentive and tax-deductible opportunities that come along with the issuing of company shares. The ESOP option allows you to pay out what essentially amounts to bonuses to your hardest working staff members while giving everyone involved the ability to capitalize on tax deferred treatment. The ease of use when it comes to an ESOP is unrivaled as well. The ESOP structure and these deferrals were once a staple among large brands and the rich, but ESOP rollouts in small businesses all across the U.S. are building steam and bringing these benefits to everyone.
Crypto provides a similar benefit (perhaps even a better option) for employees and traders looking to lock in great returns on their existing investment portfolios. Cryptocurrencies offer a hybrid financial asset that can operate as a cash vehicle—providing you a currency that can be leveraged for purchases just like fiat currencies all around the globe—while also giving you the ability to buy and hold assets like stock market commodities. The crypto market is in constant motion and commodities like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) are always in high demand among traders in the cryptocurrency space.
Cryptocurrency is traded on a cryptocurrency exchange like Coinbase, Kraken, Binance, or Gemini. There are a multitude of unique crypto exchanges, and the ongoing debate over Kraken vs Coinbase or Binance vs Kraken is one that you will have to decipher for yourself. Coinbase is perhaps the most well-known crypto exchange. Coinbase has recently gone public, trading as COIN on the NYSE and broker accounts all across the U.S.
Coinbase, and Kraken as well, offer unparalleled user experiences and intuitive interfaces that provide a great cryptocurrency trading experience for even beginner crypto enthusiasts. The best way to choose Kraken or Coinbase for your trading—or a different exchange altogether that isn’t Kraken or Coinbase—is to simply try them out. Signing up for an account is easy, free, and requires little time commitment. Sending coins to your new Coinbase or Kraken account is simple and the transaction is often completed in ten minutes or less for Bitcoin and many other crypto assets.
This unique financial tool, and the facilitators of trading like Coinbase and Kraken, is a great way to grow your wealth, just like an ESOP rollout in the office. The tax advantages of investment opportunities far outweigh many of the other cash building options that are available to employees all across the United States, and investing in cryptocurrency through Coinbase or Kraken accounts, or holding stock in your own company through an ESOP arrangement can build significant wealth over the long run.
There are simply too many advantages involved in each option for you to pass up the opportunity.