As cryptocurrency gains traction, many businesses are moving towards crypto transactions, primarily by accepting payments made with some digital currency. Amid the Covid19 pandemic and the severe global economic distress caused by it, cryptocurrencies, especially Bitcoin, showed all signs of bursting into the mainstream. Even before that, a nationwide HSB survey in January 2020 showed that 36% of small businesses were already ready to accept crypto payments. The survey further revealed that the adoption of crypto by the major payment processors had been a driving force behind most of the small businesses accepting crypto payments. Added to this is the role played by large innovative companies that embraced crypto transactions that had a catalytic effect on small businesses. The trend seems to be catching fast as customer demands and the urge to stay competitive are essential factors driving small businesses to accept payments in cryptocurrencies.
Crypto transactions make it easy for small businesses to engage in foreign trade and expand their business rapidly. The unregulated currency allows peer-to-peer transactions without involving any third party, and it does not require any financial approvals and clearances to transact with crypto. Cryptocurrency payments are much faster, and there are no chargeback fees. If you wish to accept cryptos, you will need to know how to take them.
Accept crypto payments only if you know how to complete the transaction
All small businesses take help from banks when undertaking any financial transaction. Like opening a bank account, small businesses must establish a crypto payment set up first by creating a crypto wallet that substitutes the bank account. All payments of cryptocurrencies remain stored in the wallet, and businesses can use it to make payments. Since many types of cryptocurrencies like Bitcoin, Ethereum, Litecoin, Dogecoin, USD Coin, and many other cryptocurrencies, it is better to have a multi-currency wallet. It will save you the hassles of opening different wallets for different currencies.
Choose between a hosted wallet and a self-custody wallet. The two types of wallets commonly uncommon today wallet involve a third party that keeps your crypto the way safe. A self-custody wallet allows you to take complete control of the wallet without anyone’s involvement. You must safeguard your wallet’s responsibility for all transactions, including the safety of the keys and passwords.
Do you want to accept cryptocurrencies directly or convert them to fiat currency?
Creating a crypto wallet is essential only when you accept crypto payments directly, as the digital currency goes now from the party to your wallet. In this case, you must be conversant with the method of transaction and the operations involved in completing the transaction. It is like using your wallet when you make or accept payments.
Accept cryptos – You can even integrate crypto payments to your website. E-commerce businesses that run on platforms like Magenta, Shopify, and Woocommerce can set up a crypto payment processing facility by using plugins. Alternatively, you can sign up with some crypto payment gateway like Bitpay, Coinbase Commerce, or Blockonomics that provides many ways to accept cryptocurrency payments on your website or online store. Invoices and payment buttons are some of the methods used by the companies that provide the services by acting as a payment gateway.
Accept cryptos converted to fiat money – Some small businesses might find that dealing in cryptos might be stressful and instead would prefer to accept cryptos converted into fiat money. For example, a small business in the US that accepts payments in various cryptocurrencies can use the services of some crypto service providers that act like payment gateway. All crypto payments routed through the gateway will reach the bank account of that business in dollars equivalent to the cryptocurrency. However, you must pay the fees to the company that provides the service.
When you accept crypto payments, the conversion of crypto to cash seems to be a safe tactic due to the extremely high volatility of cryptocurrencies, as it can minimize losses
