Cryptocurrencies rely on concepts and theories known for decades, yet modern technology has allowed the global expansion of thousands of new currencies in the past years. There are some clear benefits of integrating cryptocurrency payments on your website without going into predictions and assumptions of where the crypto market is going.
There is also an option to accept cryptocurrency from customers and receive fiat currency. Let’s find out how!
Benefits of Accepting Cryptocurrency
Before going into practical details, let’s take a step back and see how can your online business benefit from accepting cryptocurrencies. The first noticeable thing is fees. If you have experience with fiat payment processors, you probably know they take a fee for every transaction.
Card payment processors usually take around 3%, while cryptocurrency payments are generally around 1%. Opening your business to customers willing to pay with cryptocurrencies will open new possibilities for you since the cryptocurrency market is global and not centralized by any government.
One of the most significant benefits for you is the chargebacks. Cryptocurrency transfers are irreversible, allowing you to handle chargebacks the way you like. On the other hand, payments made through card payment processors can be cancelled and cost you time and money.
Understand the Regulations
Now that we know the benefits, it is crucial to understand how the government looks at this. Depending on where you live, regulations are different. Some governments support cryptocurrencies and even encourage their use. Other governments might ban cryptocurrency mining and transactions.
The best way to go with this is to spend some time communicating with an accountant informed about the matter. This will also play a role in the coming time since you can inform yourself how to correctly account for the funds you receive. Staying informed about news regarding the topic is essential, so we suggest building a relationship with people who are involved in the subject.
Set Up a Wallet or Gateway
There are two ways to accept cryptocurrencies – to your crypto wallet or through a payment gateway similar to the one you use for the other transactions. The core difference is that in the first case, you will receive cryptocurrency directly in your wallet, which can lead to an increase or decrease in the profits you make. This is because cryptocurrency value is changing.
If you are not involved in the crypto world and don’t plan to hold your assets in cryptocurrencies in the long run, we strongly suggest you choose a payment getaway, such as Coinbase or Paypal. Coinbase will let you decide if you want to keep funds in the original cryptocurrency or receive it as fiat. Paypal will automatically convert the payment into fiat currency.
After gathering all the information and setting up your wallet, you must notify your customers. This might bring a stream of new customers not using your service or products because they didn’t have a way to pay for them.
Keep up with the regulations and account for your cryptocurrency payments properly. Hold cryptocurrency on a wallet only if you understand the particular currency. Otherwise, you risk your asset becoming worthless.