Accepting cryptocurrencies like Bitcoin within your business is a bit complex. The decision to accept the active crypts is more similar to the decision to accept foreign currencies.
The acceptance of cryptographic technology has important advantages, but it does have some drawbacks. The owners or managers of the smartest businesses must know how to weigh these pros and cons when making the decision that would most benefit their company.
Should your company accept cryptocurrencies?
According to Michael Foster, co-creator of localethereum, a decentralized Ethers market that allows peer-to-peer exchanges:
“Active cryptoes allow transactions that are almost instantaneous, very cheap and without borders. This allows customers from all over the world, even those who do not have access to traditional banks, but with access to the internet, to buy the goods and services offered by their company. “
Dibu Paul, from Alchetron, the Free Social Encyclopedia for the Grand World said:
“Especially for large amounts, which historically have taken longer to liquidate, the encrypted transactions are almost instantaneous.”
Cryptocurrencies are not subject to the exchange rate of a specific country, rather they are universally recognized, which makes them much more attractive to many open-minded companies technologically speaking. For those international e-commerce companies in particular, these advantages can be very important.
Paul also points out another benefit of cryptography, which according to him, makes it easier for many people to contribute with a single purchase, because everything goes to an intelligent public book, which can be trusted. This makes cryptoes a good medium for massive fundraising. Using cryptocurrencies as payment is also a good option for high-risk companies, since traditional payment gateways are usually not compatible.
Putting aside these traditional benefits, Josif Reif of Reif Ventures adds that:
“Accepting cryptocurrencies can help you attract a younger demographic group of people who prefer the simplicity and anonymity of encrypted transactions.”
For example, Carmen Mastropierro, owner of 3 digital magazines and an E-Web, the commerce website that accepts cryptocurrencies agrees that adding the active crypto to the payment methods of your business is an excellent one:
“I think that accepting cryptocurrencies as a method of payment is a good idea for many companies, only with the offer of numerous payment options has always been linked to much higher income rates. In addition, some customers feel more secure when paying with cryptography compared to PayPal or even credit cards. “
Alexander Winston, CEO of PPC Limited added:
“I think it’s important to always be open to new technologies. If a client wants to pay him in crypto assets, why should he reject it? Originally we only accepted payments in dollars through processors such as Stripe or PayPal, but with the large increase in the number of crypts available in recent years, we have had enough customers who request to pay with encryption, and we were not going to lose those sales. “
But, and what are the risks of Bitcoin?
Foster says that there are 3 types of fundamental risks in accepting cryptography
1. You do not know how to keep your crypto assets safe.
2. Cryptocurrencies are known to be highly volatile; just look at the Bitcoin price chart this year.
3. Regulatory and fiscal schemes are confusing and depend on where your business is located.
CPA and COO, Matthew May, founder of Acuity adds that other risks include transaction charges, liquidity problems and counterparty risks associated with the use of cryptographic Exchanges, which act as processors for companies that do not directly accept encryption. Exchanges allow you to convert cryptocurrencies into fiduciary currency, for example, cash backed by the government, but leaving money in the Exchanges leaves the cryptographic currency vulnerable to theft.
“To solve this problem, those who have significant money in cryptography should generally move it to a hard wallet offline, without an internet connection, like a Ledger Nano.”
Have you decided to accept cryptocurrencies? Here are some ways to start.
If you have already studied it and the pros overcome the disadvantages in your business and you want to add the cryptocurrencies to your payment method:
First you need a digital mobile wallet or a point-of-sale (or PoS) machine, although the two methods are exactly the same, having the designated equipment and software allow for a more seamless experience for you and the buyer. Although PoS has several benefits, but most of them charge a fee for this service.
Now, to accept crypto assets through your company’s website, register to a service like BitPay or CoinBase, which has an add-on that simply installs automatically into your system.
Whether or not you choose to accept them for your business, it is clearly prudent, and the smartest, to know facts from real life. Ask other entrepreneurs about their experiences, assess their level of risk aversion and process with care.