It took just four months in the first half of 2021 for global cryptocurrency usage to double to over 200 million. In this article, we’ll show you how to accept crypto payments as a small business.
As more people continue to become familiar with cryptocurrencies, a good number of small businesses are getting ahead of the news and positioning themselves to serve the growing number of customers who pay with cryptocurrencies.
Reading: How to accept bitcoin payments
accept cryptocurrency payments
according to a national hsb survey from January 2020, 36% of small businesses accept cryptocurrency payments. If you’re among the companies left out of crypto payment support, it’s probably time to start figuring out how to accept crypto payments to keep up with the competition.
Among small business owners surveyed, 50% cited cryptocurrency adoption by major payment processors and large innovative companies as a motivator for accepting crypto payments. in the survey, 35% of respondents said they turned to cryptocurrencies to keep up with competition and customer demands.
But cryptocurrency adoption is not just a survival tactic for small businesses. it is also a means to business efficiency. There are numerous benefits of using bitcoins and other cryptocurrencies for small businesses. these include:
- increasing its international reach
- better security due to the decentralized nature of cryptocurrency
- faster payments
- lower processing fees, and
- elimination of the dreaded chargeback fees that eat up your hard-earned money.
Crypto payments, however, are not without their drawbacks. high volatility and the risk of cyber attacks top the list. Depending on how you adopt crypto, you can minimize these risks and get the most benefit from crypto.
how to accept crypto payments as a small business
Accepting crypto payments is easy. here’s how:
set up a cryptocurrency wallet
You will start by setting up a crypto wallet. a wallet works like a bank account, where you send and receive digital money.
Since you are likely to accept different types of cryptocurrencies from various clients, it is best to opt for a multi-crypto wallet that contains several types of cryptocurrencies.
A multi-cryptocurrency wallet contains different types of cryptocurrencies, saving you the inconvenience of opening many cryptocurrency wallets for different cryptocurrencies.
Bitcoin is the most popular cryptocurrency among small businesses, followed by Bitcoin Cash, Ethereum, Litecoin, and Binance. consider a wallet that can hold these popular cryptocurrencies.
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Other factors to consider when choosing the best multi-cryptocurrency wallet are:
- supports cryptocurrencies (wallets like ledger nano s and guarda support over 30 cryptos)
- affordability in terms of purchase fees (for cold or offline wallets) and transaction fees
- ability to integrate with other software wallets
- security (malware and hacker proof)
- ability to link with other applications for seamless money transfers
integrate crypto payments into your website
Once your crypto wallet is up and running, it’s time to integrate crypto payments into your website.
If you run an eCommerce site on platforms like shopify, magenta, and woocommerce, there are numerous plugins you can install to set up crypto payment processing.
If you can’t find the right plugin, you can sign up with a crypto payment gateway. Crypto processors provide various ways in which you can accept payments on their website. some of these methods include payment buttons and invoices.
some of the world’s leading crypto processors are coinbase commerce and bitpay.
find a cryptocurrency gateway that:
- supports multiple types of crypto
- has low transaction fees
- integrates with platforms that are important to your business
- isolates your crypto of market volatility through instant conversion to fiat money
- has no minimum balance or payment restrictions
- can settle your payments in multiple currencies
- provides other perks like billing, recurring payments and other accounting options
- has a good reputation and attractive reviews
- is safe and secure with strict login and user verification processes
If you can’t or don’t want to integrate, you can arrange direct payments with your customers. all they need is your wallet address or your qr code, which you can generate from your wallet. your customers will enter their address or scan your qr code to make payments.
protect yourself from cryptocurrency drawbacks by accepting cryptocurrency payments
You can maintain the security and value of your crypto by:
- instantly turn your bitcoin and other cryptocurrencies into cash
Sign up with payment processors like bitpay and flexa, which automatically convert your bitcoin to cash, eliminating volatility issues that can reduce the value of your crypto.
- avoid direct contact with cryptocurrencies
You can also accept bitcoin payments without crypto exposure by letting your customers pay via the crypto option on paypal.
once your crypto farm sends the digital money, paypal credits your account with us. dollars.
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what to consider before accepting payments with cryptocurrencies
- crypto tax implications
According to the International Revenue Services (IRS), all cryptocurrencies are capital assets and attract capital gains taxes. If, as a small business, you use bitcoin to make purchases, the IRS treats that purchase as a cryptocurrency sale.
If the coins you “sell” are worth more than you “bought” them, you’ll pay capital gains tax in addition to any applicable sales tax.
- cryptographic regulation (or lack thereof)
no bank or government body regulates cryptocurrencies, as cryptocurrencies are largely decentralized. With limited regulation, your business assets are not completely safe. You’ll need insurance to cover issues like data security breaches and cybercrime losses.
You also need to be prepared to keep up with changing regulations as stakeholders continue to consult on how to regulate cryptocurrencies.
- your audience
Research indicates that 74% of cryptocurrency holders are between the ages of 25-44 and 19% are between the ages of 44-55.
The ability to accept crypto payments could be a crucial requirement for your business if you cater to a younger, more tech-savvy audience.
However, the older generation at least 60 years old is catching up and you will still have to adapt if you serve the senior market.
get ahead of the competition & Dive into Cryptocurrency Accepting crypto payments paints your business as innovative and forward-thinking, enhancing your brand image.
While your customers may not jump into making cryptocurrency payments right away, it’s important to learn the basics of bitcoin and cryptocurrencies and how to accept bitcoin payments. be prepared to seize every opportunity to excel and thrive in today’s dynamic marketplace.
image: depositphotos
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