Cryptocurrency is taking the world by storm! Adding cryptocurrency as a means of payment your business opens it for more exposure and more clients – leading to more sales and profits.
So if you are intrigued to know why and how to start accepting cryptocurrency as payments this is the place for you.
Here we have jotted down all the information for you to start right away.
Let’s start with the basics
- 1 What is cryptocurrency?
- 2 Reasons to accept cryptocurrency as payment
- 3 How to accept cryptocurrency as a retailer
What is cryptocurrency?
To put it simply and plain, cryptocurrency is a digital currency that is not controlled by any banks or government agencies. It is a peer-to-peer (P2P) technology where the transaction is protected and secured between the sender and the recipient.
Every transaction that occurs between the buyer and the seller are verified and becomes a public record.
There are different types of cryptocurrencies including,
- XRP (Ripple) and more
The key to using cryptocurrency is understanding each coin is unique, and knowing to use the right coin makes the difference
Reasons to accept cryptocurrency as payment
1. Takes your business global
Accepting cryptocurrency as payments opens the door for businesses to expand their market, anywhere and everywhere. For business owners operating globally, accepting International payments comes with a hefty cost. But with cryptocurrency transactions, there are no transaction fees involved with an added advantage of exposure in the global marketplace.
As there is no third party involved in the transaction, you don’t have to wait for 3 days for the payment to process. With cryptocurrency transactions, retailers get the best of both worlds
2. Using cryptocurrency is cost-effective for businesses
When running a business it’s obvious and common for retailers and business owners to spend a lot on transaction fees. The larger the transaction the higher the transaction fees. Even credit card fees run around 2% – 3%.
But with cryptocurrency transactions, the scenario is completely different. Bitcoin fees are not affected by the size of the transaction but by the speed of the transaction- just opposite to normal transactions.
Note: The network congestion may affect Bitcoin fees, so make sure to check on that.
3. Bitcoins are Volatile:
Bitcoins are certainly volatile. Retailers and business owners who accept payments in cryptocurrency set their prices in the local currency and get paid in their preferred currency. The foreign currency exchange is fluctuating meaning, a purchase of $10 can be worth $20 or $ 7 from a week from now, depending on the fiat exchange rate.
Though cryptocurrency is subject to risks, there are companies that can save you from such risks, though they may charge some traction fee.
To put it in simple words, cryptocurrency is indeed subject to risk, but it is worth it.
4. Real-time transaction processing
Traditional transactions take a long time to process, especially if you are making International transfers – and if it is during weekends or holidays, it becomes worse. It is frustrating for merchants waiting for payments.
But with cryptocurrency, businesses can make transactions in real-time, literally in minutes. Now you decide whether to wait for days for the money transfer or get it within minutes.
5. No chargebacks or fraudulent activities
As merchants, you already know fraudulent chargebacks are nothing but a headache. But with cryptocurrency, you don’t have to go through such headaches.
Cryptocurrency, especially Bitcoin, has similar features as cash, where the customer either has enough money to process the payment or they don’t. This protects you from common fraud issues and chargebacks present in financial dealings.
Moreover, cryptocurrency transactions are created as blocks that are verified and secured, making it almost impossible for anyone to buy your product if they don’t have money. So with cryptocurrency transactions, your business is secure!
6. No third parties
Most payment options involve a third party, like financial institutions, government agencies, etc. Though the money is yours and you are just entrusting them with the transactions, they hold the final say. If they want, they can freeze your account and not give you go penniless.
But with cryptocurrency, you don’t have to worry about it at all because it’s a decentralized system- meaning there is no third party involved in financial transactions, only the buyer and the seller.
7. Digital currency is the future!
Cryptocurrencies and digital wallets are booming. With more and more business owners and retailers getting access to digital currency the importance of paper transactions will become obsolete in no time.
How to accept cryptocurrency as a retailer
Now that you are convinced about the reasons to start accepting cryptocurrency as payments, the next step is to know how to kick-start the process:
Here are a few basic steps to start with cryptocurrency transaction:
Get a cryptocurrency receiving address
Your cryptocurrency journey starts by creating a receiving address. There are two ways to get through it.
1. You can either become a member of a Digital Wallet service like https://the-bitcoin-traders-app.com/de/login
2. Have your own wallet.
The only difference between the two is your private keys.
Print and post your retailer QR code
The next step is printing and posting cryptocurrency QR code on your site. This will help people know you accept cryptocurrency as payment.
Wait for transactions to be processed
Once you are through with the above-mentioned steps, now you have to wait and enjoy the benefits of cryptocurrency transactions with no middle man in between.
Note: It is also important to choose a digital currency that is faster and smoother.
Time to cash out
As a merchant, you also have to make payments and pay bills, because not everyone is as smart as you and accept cryptocurrency as payment.
Therefore you have to convert your cryptocurrency to local currency. This requires you to sign up for an exchange where they will sell your digital currency and convert them into local funds that will be directly deposited into your bank account.
Accepting cryptocurrency as a mode of payment is a step towards digitalization. An important point to bear in mind is – not all cryptocurrencies are the same and you have to be really careful and knowledgeable to know which one works the best for your business.
Hope you find this article helpful! Thanks for reading