The popularity of cryptocurrency in the form of its acceptance, recognition, and usage is spreading like a fire in the jungle. In 2021, within a couple of months, the usage of crypto almost doubled. With such a massive surge in crypto trading, many businesses are adopting crypto-related payment methods for providing ease to their potential customers. According to a recent survey, more than 36% of businesses have started accepting cryptocurrencies as payments. And the ones, who have not joined the party yet, are learning the methods of accepting crypto payments so that they are not left behind. These startups are accepting Bitcoins Trading crypto– the most valuable and commonly known cryptocurrency tradable via Bitcoin Trading Software, and Altcoins (cryptocurrencies other than Bitcoin) as payments.
How To Accept Cryptocurrency Payments?
1. Understanding The Concept Of Cryptocurrency Payments
Crypto owners can use their holdings for trading (buying & selling) goods and services. There are times when crypto is considered as an investment, in terms you have purchased something and keeping it for value appreciation, and then sell it for capital gains when its value increases. Since crypto payments are autonomous and unregulated, they work as P2P payments and are sent from one crypto wallet to another. On the other hand, in the case of a traditional system, debit/credit card payments are transferred by banks or card networks.
2. Setting Up A Cryptocurrency Wallet
To accept cryptocurrency payments, a crypto wallet is mandatory. So, you have to set up a cryptocurrency wallet. A crypto wallet is the same as your bank account by which you can transfer (send or receive) digital money. In the future, you will have multiple customers with different digital currencies, so you have to choose a crypto wallet that accepts and holds a variety of cryptocurrencies. Such a wallet will protect you from the inconvenience of handling more than one wallet at a time. You have to consider the following factors while choosing a crypto wallet:
- It should support more than 30 cryptocurrencies.
- It must be economical in terms of fees.
- It should integrate with other digital wallets.
- It must be safe from malware.
- It should possess the ability to connect with other apps for smooth money transfers.
3. Integrating Cryptocurrency Payments On Your Website
After setting up your crypto wallet and bringing it into operations, you have to integrate cryptocurrency payments into your online checkouts. You can do this in two ways;
- Open-source API
- Plugin / Application
If you are unable to get the valid plugin, you have the option of a crypto payment gateway. Crypto processors offer multiple ways of accepting payments. While choosing a crypto gateway, take care of the following factors:
- It should accept different types of cryptocurrencies.
- The transaction fee should be minimal.
- It must integrate with networks that are crucial for your startup.
- It should provide safety and security to your funds.
- It should have the potential of settling your payments in various currencies.
4. Offering In-person Cryptocurrency Payments
If you could not, or you were not willing to integrate, you can receive direct crypto payments from your customers. For this purpose, your customers require your wallet address or your QR code that is generatable through your wallet. They will enter your wallet address or scan your QR code for making payments in the form of cryptocurrencies.
Advantages & Disadvantages Of Accepting Cryptocurrency As Payment
Advantages
- It boosts your sales by facilitating more payment methods.
- The internet-based transactions are speedy and convenient.
- The fee for payment processing is meager as compared to other payment methods.
- The risk of chargebacks is 0%.
- It makes cross-border selling easy, and the currency conversion process is also simple.
Disadvantages
- There are chances of capital gains tax.
- Since crypto payments are decentralized, there are finite or limited regulations.
- Cryptocurrencies are highly fluctuating currencies. Therefore, their valuation and exchange rate turns out to be extremely volatile.
- The sword of cyber attacks by cybercriminals (hackers & scammers) is always hanging.
- It can be costly because it would require the purchase and installation of additional technology setup.
Conclusion
Whether you are with or away from the crypto trend, accepting cryptocurrencies as payments can set you apart from traditional businesses by enhancing your sales volume and profits.
