Cryptocurrency has taken the financial world by storm. Both large corporations and small businesses have taken notice, realizing that the use of cryptocurrency is no longer a passing trend. To stay competitive, businesses of all sizes should consider accepting cryptocurrency as a form of payment.
Cryptocurrency, also known as crypto-currency or crypto, is a type of currency that occurs in digital or virtual form and uses cryptography to secure transactions. It does not have a regulating authority but instead uses a decentralized system to record all transactions and issue new units.
As a digital payment system, cryptocurrency does not need to rely on banks to verify any transactions. It is a form of “peer-to-peer system” that facilitates the ability for anyone to receive or send payments, anytime, anywhere.
How it differs is that, instead of physical money being hand-carried and exchanged in the real world, cryptocurrency payments live as digital entries to an online database, which describes specific transactions. The transactions are recorded in a public ledger when cryptocurrency funds are transferred. Cryptocurrency can also be stored in digital wallets.
The way the name cryptocurrency came about is that it uses encryption to verify all transactions. What this means is that an advanced system of coding is involved when it comes to storing and transmitting cryptocurrency information between wallets and public ledgers. The goal of encryption is to offer security and safety in making these transactions.
One of the best-known forerunners of cryptocurrency is Bitcoin. Founded in 2009, it remains the most popular of all digital currencies.
Advantages Of Using Cryptocurrency In Your E-Commerce Store
Besides placing your online store on the map as being innovative and forward-thinking, there are many benefits to using cryptocurrency as payment for your e-Commerce store. Let’s take a look at a few:
- Expands Your Market
If you haven’t discovered this, know that the cryptocurrency market has established a tightly-knit, enthusiastic community that wants to be the driving force for the worldwide adoption of this digital currency.
By accepting cryptocurrency in your business, you are granting your business access to this very niched community. These consumers are tech-savvy and this customer base is growing worldwide.
- Quick Transactions
One of the great benefits of accepting cryptocurrency is just how fast these payments are processed. Credit card systems typically take a few days to both “batch out and process”. Whereas cryptocurrency payments are processed immediately. This means you, as a business, have access to these funds a lot quicker than credit card payments. Your cash flow is also streamlined.
- Fees Are Low
When it comes to cryptocurrency fees, they are remarkably low. Of course, the prices will vary as it depends on whether you accept them into your personal wallet or via a third-party provider. However, you will see that the fees associated with cryptocurrency are considerably lower than what you would pay with PayPal or any credit card provider.
- More Secure
When a customer completes a transaction with cryptocurrency, it is virtually impossible to reverse. Unless of course, you have the express permission of the merchant. Merchants can protect themselves even more from fraud since there is no middle power (bank) that has the power to withdraw money from your account without your permission.
How To Begin Accepting Cryptocurrency
So now you are convinced that if you don’t accept cryptocurrency, you may be missing out. Now the question is, how do you get started? So there are two ways to accept cryptocurrency in your e-Commerce store: this can be through your personal wallet or through a third-party payment processor.
If you choose to go down the route of a personal wallet, you need to first set up a virtual wallet. They can be downloaded to your phone or computer. You can even get a hardware wallet. A hardware wallet is a “physically safe” that securely keeps the cryptocurrency within the device, on a special hard drive. Within this secure hardware device, you can store a user’s private key.
If this is not an option you prefer, you can then use a third-party payment processor as they can manage the entire payment process, much like the way credit card processors do. The great thing about using a third-party payment processor is that it can instantly convert cryptocurrency into fiat. This will save you a lot of headaches as it completely avoids price volatility. This means that you will be paid the amount you charged. Even if the value of that cryptocurrency changes in mid-transaction.
Be At The Forefront Of Technology
If you want to be seen as an online business that is evolving just as quickly as technology is, then accepting cryptocurrency can be a very lucrative step. By using reputable cryptoprocessors, you can protect your business from unpredictable price fluctuations and ultimately lose money.
You can appeal to an ever-growing community of “crypto-enthusiasts” and boost the visibility of your brand, all the while, protecting yourself from risk.