Cryptocurrency is a digital currency that utilizes cryptography to secure transactions and control the creation of new units. In layman’s terms, it’s an internet-based payment system that allows you to send and receive money without using your name.
You can use cryptocurrency for anything from buying goods online to paying for pizza delivery late at night in Brooklyn. The abundant availability of crypto exchange is helping people to buy cryptocurrency with ease. They can buy crypto with a credit card or any other payment mode. Apart from helping users to purchase cryptocurrency, they also help to convert cryptocurrency (fiat) to US Dollars.
Why Take Crypto Payments at Your Small Business?
Cryptocurrency payments are becoming increasingly popular among consumers, and not just because they’re fast and convenient. Cryptocurrency has been used as an alternative currency in some parts of the world since 2009. However, it’s only recently gained mainstream awareness thanks to its rise in value during 2017 (a time when many people lost faith in traditional financial systems).
It can provide a new revenue stream for small businesses looking to generate additional revenue while keeping overhead costs low. It gets facilitated by avoiding transaction fees, typically charged by credit card companies or payment processors like PayPal.
Plus, accepting cryptocurrency helps build trust between customers and merchants. It demonstrates that you’re committed to offering cutting-edge solutions for modern shoppers who want more choices than just cash or plastic cards, and this can drive sales growth!
What Should You Know?
Accepting crypto payments is an excellent way of getting paid in a non-traditional currency. However, there are some notable drawbacks to accepting digital coins.
Cryptocurrency payments are relatively new, so your small business might need to educate customers on how it works and what they’re paying for with their digital coin. You can do this by either including a disclaimer on your website or sending out email reminders before each transaction occurs.
Enabling cryptocurrency payments will likely require you to pay high fees of around 3 percent.
Credit card companies generally charge 1 percent per transaction, and PayPal charges 2 percent plus 30 cents per transaction! So if you have the technical know-how and time to set up your wallet software like Electrum (which we would recommend), then there may be some savings here too!
It’s Simple
If you’re considering accepting cryptocurrency at your small business, then it’s reassuring to know that the setup process is simple. In fact, as a merchant who is not a cryptocurrency expert yourself, this will be one of the easiest ways for you to accept payments from customers.
There are many different crypto payment processing solutions available. One of them is called Crypto Wristband, which uses NFC technology on wristbands and bracelets as well as stickers and keychains.
Cost-Effective
Accepting crypto payments isn’t just about the benefits. It can also come with some upfront costs, like buying a cryptocurrency wallet and paying to accept crypto payments on your website or mobile app. So how do these costs compare to traditional payment methods like credit cards and cash?
Many factors affect how much it will cost you to accept cryptocurrency as a form of payment, including:
- Which type of currency do you choose?.
- Where are you from? (for example, if you live in New York City or London)
- How often do people pay using crypto?
- Do customers have access to their online wallets?
- What kind of liquidity is required from them before they can make purchases at your business? (if any)
If this all sounds complicated, it is! But don’t worry; there are plenty of tools available for small businesses who want help accepting cryptocurrencies without breaking the bank.
Blockchain Technology Ensures Security
Blockchain is a decentralized database that keeps track of a growing list of documents known as blocks. A cryptographic hash of the preceding block, a timestamp, and transaction data are all included in each block. The full blockchain database is accessible to any network participant.
Blockchain is like an online ledger where all transactions get recorded chronologically and publicly to create trust between two parties who may or may not know each other well.
You can think of it as similar to how your bank keeps track of all your transactions. However, this method does not require any central authority (like a bank) to verify or keep track of these transactions happening at various locations!
Blockchain technology ensures security through many factors:
The database isn’t stored in one single location but spread across thousands (or millions) of computers around the world. So even if one node goes offline or gets hacked, there will still be enough nodes available for anyone wanting access to certain information stored within this system.
Once something gets written on any given chain, no one can change its history without having access. Anyone who wants proof about certain actions taking place within this system will have full visibility as every transaction made using bitcoins happens publicly.
No Limits
You’re not just limiting yourself to crypto payments. You are also opening yourself up to a whole new world of possibilities. Cryptocurrencies can be a useful alternative to fiat currencies, which are subject to volatility and inflation due to government manipulation.
As such, they may not be the best choice for businesses that rely on stable cash flow or want their earnings denominated in something other than an easily inflated currency like the US dollar.
Cryptocurrencies can offer significant advantages over fiat currency when used as a payment method:
- Easy-to-use digital tokens that get sent peer-to-peer
- Support the blockchain technology underlying digital currencies like Bitcoin (BTC) and Ethereum (ETH)
- Provide strong privacy protections
- Allow small businesses to save money on transaction fees
It eliminates intermediaries like banks or credit card processors from transactions between buyers and sellers.
Conclusion
So, what should you do next? For starters, you should start accepting crypto payments at your small business. You could tap into the crypto market and reduce your transaction fees right away.
Crypto payments are also an easy way to accept foreign currency and get paid in digital money that can be transferred directly to your bank account. And since these payments will become more common in the future, it pays off to get ahead of the curve now!
