Did you know that there are now over 2,000 different types of cryptocurrency available on the market? And did you know that the total value of all cryptocurrency in circulation is now over $200 billion?
BACKGROUND
Cryptocurrency is a type of digital asset that uses cryptography to secure its transactions and to control the creation of new units of the currency. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009.
There are numerous benefits for businesses that choose to accept cryptocurrency as payment. Perhaps the most obvious benefit is that businesses can avoid the high fees associated with traditional credit card payments. Credit card companies typically charge businesses a fee of 2-3% per transaction. When accepting cryptocurrency, businesses only have to pay a small transaction fee, which is often less than 1%.
Another benefit of accepting cryptocurrency is that it allows businesses to tap into a new customer base. Cryptocurrency users are typically early adopters of new technology and trends. As such, they are often more engaged and willing to spend more than the average customer.
Finally, accepting cryptocurrency can help businesses protect themselves from fraud. Traditional payment methods, such as credit cards, are susceptible to chargebacks. This is when a customer disputes a charge with their credit card company and the company reverses the transaction. This can be a costly and time-consuming process for businesses. When accepting cryptocurrency, businesses can avoid this type of fraud altogether.
While there are many benefits to accepting cryptocurrency, there are also some risks. The value of cryptocurrency can be volatile, meaning it can fluctuate up and down in value. This can be a problem for businesses if the price of the currency drops after a customer has made a purchase. Additionally, because cryptocurrency is still a relatively new technology, there is some uncertainty about its future. It remains to be seen how governments and financial institutions will react to the rise of cryptocurrency and whether it will be here to stay.
Despite the risks, businesses that accept cryptocurrency can reap many rewards. By doing so, they can avoid high fees, tap into new customer bases, and protect themselves from fraud. As the technology continues to evolve, it is likely that more businesses will begin to accept cryptocurrency as a form of payment.
Have you considered accepting cryptocurrency at your business? What benefits or concerns do you have about doing so? Let us know in the comments below!
How to accept crypto as a business
As a business, there are a few different ways you can accept cryptocurrency as payment. The most popular way is to use a service like Coinbase Commerce. With this service, you can easily accept payments in multiple cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and more. You can also choose to receive payments in U.S. dollars or Euros.
Another option is to use a cryptocurrency payment processor. These services allow you to accept payments in cryptocurrency and receive payouts in U.S. dollars or Euros. Some popular cryptocurrency payment processors include BitPay and Coinify.
Finally, you can also choose to accept cryptocurrency directly. This means that you would need to set up a digital wallet to store the currency. You would then provide your customers with your wallet address so they can send you payments.
Whichever method you choose, accepting cryptocurrency as payment is a great way to tap into a new customer base and avoid high fees. Just be sure to weigh the risks and benefits before making a decision.
