The cryptocurrency market is growing, and the technology behind cryptocurrencies, namely blockchain, continues to grow as well. While these two have made headlines over the past year, they are now reaching more mainstream audiences, with companies like Expedia and Overstock accepting Bitcoin as payment for online purchases. With companies such as bitcoin pokie advising on the use of cryptocurrencies in casinos, gamers can benefit too. But before you jump into accepting crypto, be sure to consider these things first.
There Are Tax Implications
Accepting crypto as payment comes with its own considerations, and it is possible to understand these if you do some research. The first thing to be considered is the tax implications, which can vary depending on the crypto (e.g., Bitcoin or Ethereum).
With cryptocurrency growing rapidly, it will inevitably start being accepted by businesses and people alike. However, when businesses accept cryptocurrencies as payment, they must pay taxes on their profits, just like their conventional counterparts. This can be a bit confusing, but understanding the tax implications of accepting crypto can help businesses and consumers make more informed decisions.
It’s Still Considered Extremely Risky
Cryptocurrency is still considered extremely risky, but if done correctly, it can benefit your bottom line. Though crypto has been around since 2009, the market value of its most popular product, Bitcoin, has fluctuated wildly in the recent five years. Despite its volatility, the market is still growing rapidly. In 2017 alone, more than $450 billion was spent on Bitcoin and other cryptocurrencies.
Apparently, the 2018 crypto craze brought bitcoin to the masses, slowly making its way into everyday life, including payments. Now, an increasing number of merchants are offering to accept crypto as a payment method. But this still comes with its share of risk. As you may have to consider your store’s security protocols, payment processing systems, and payment data as well. You may need to properly understand the protocols in order to protect your customer’s and store’s assets from hackers. However, it would be worth your while to learn how a crypto payment solution can help you receive, process, and deposit cryptocurrency payments and know what assets are at risk when accepting crypto payments.
Crypto Wallet
A cryptocurrency wallet is a digital portal to send and receive cryptocurrencies like Bitcoin. Wallets are used to store cryptocurrencies, manage transactions, and provide other functions. They allow users to deal in different cryptocurrencies. In other words, these wallets make, receive, send, and store cryptocurrencies. It is worth noting that there are different kinds of wallets, such as hardware wallets, software wallets, and paper wallets, each offering varying levels of security and accessibility. Hardware wallets sold by firms like Monix tend to be preferred by individuals who value an extra layer of physical security for their cryptocurrency holdings. These wallets store private keys offline, making them less susceptible to online hacking attempts. On the other hand, some individuals prefer software wallets due to their convenience and ease of use. Software wallets, often in the form of applications or online platforms, provide quick access to cryptocurrency holdings from various devices.
Benefits Of Accepting Cryptocurrency as A Payment
People are accepting cryptocurrency as a payment method. With Bitcoins and other cryptocurrencies being so volatile, and with the rise of online shopping, cryptocurrency is a payment method that people are increasingly turning to. Merchants that accept cryptocurrency offer their customers several benefits, the best one being lower transaction fees.
As the technology behind cryptocurrencies such as Bitcoin and Ethereum continues to mature, they are becoming more compliant with everyday applications and can be used for paying for goods and services. The benefits are many, including a much lower transaction fee than a credit or debit card. For example, if you use a Bitcoin or Ethereum wallet, you can send money anywhere around the world for free, with no fees.
Merchant Protection
Accepting cryptocurrency has a myriad of benefits for both merchants and consumers. As an entrepreneur, you might want to accept cryptocurrency as a payment method. Accepting cryptocurrency as a payment means your transactions could be secured and protected against fraud, as long as you use a Secure mobile application with a trusted payment gateway. For consumers as well, it offers convenience, anonymity, and security, among other benefits. Still, you might have many concerns, which is natural with any evolving technology.
Increased Sales
Accepting cryptocurrency payments can be beneficial for small business owners and startups. The purpose of accepting cryptocurrency payments is to increase a client’s conversion rate. This can be achieved by providing the appeal of faster payments that, in turn, increase client satisfaction.
Convenience For Customers
Accepting cryptocurrency as a payment means buyers don’t have to convert the currency to actual cash, which can take several days. It’s convenient for both shoppers and businesses to accept payment in cryptocurrency. Also, if customers find your purchasing process easy, they may write positive reviews and commend your services on social media. With the help of an online reputation management firm, you can monitor the positive and negative reputation of your business on the internet.
Lower Fraud
Companies that accept cryptocurrency don’t have to deal with fraud as often because payments are usually made directly from the customer’s digital wallet without a centralized third party like a bank.
Predictable Cash Flow
Accepting cryptocurrency payments gives you more predictability in the cash flow of your business. Unlike with checks, customers don’t have to hold nonpayment until their check clears.
Reduced Fees
Companies that accept cryptocurrency don’t have to pay credit cards and other fees.
The crypto world is growing and evolving at a fast pace. But until now, it has only been accessible to a select few. But all that’s about to change. PayPal recently announced its acceptance of Bitcoin as a payment method. This means that transactions involving crypto can now happen using PayPal. This makes it a lot easier for average users to accept crypto as payment.
