When Should Your Business Accept Cryptocurrencies?
Cryptocurrencies have revolutionized payment trends in the payment industry. Nowadays, a lot of people have a digital wallet, and they procure products or services over the Internet using cryptos as a means of payment. When should your business accept cryptocurrencies?
It’s no secret that technology is reshaping e-commerce and cryptos have changed the digital landscape as we know it. Ever since Bitcoin, the very first crypto, entered the market back in 2009 alongside blockchain technology, the world has set its gaze upon it.
That said, a lot of businesses have followed this trend and started accepting cryptos. The main reason is that they are now open to a broader range of consumers, and they can enjoy all the benefits that cryptocurrencies bring with them.
According to crypto news, not only companies, but also a few educational institutions are accepting cryptocurrency payments for tuition. With that in mind, here are a few benefits of accepting cryptocurrencies.
No Transaction Fees for Cryptocurrencies
The beauty of cryptos is that they are designed for peer-to-peer transactions and can be stored inside a crypto-wallet for easy use. In other words, no middleman or institution will serve as an intermediary in these transactions. Compared to traditional payment processes, this benefit significantly reduces transaction fees or eliminates them altogether.
Even if you do use PayPal, they have lower transaction fees for cryptocurrencies. For example, back in 2017, businesses paid over $90 billion in fees to Mastercard and Visa for card swipes alone.
A lot of crypto payment processors either charge between 0.5% and 1% per transaction, while some processors charge nothing at all. This can save your business a lot of money should you choose to start accepting cryptos as payment.
Even though cryptos are oftentimes referred to as currencies, they are actually assets that can be used as a currency. Alone, they have their worth on the market based on which currency you possess.
For instance, a single Bitcoin is currently worth $31,160. What’s interesting is that you don’t have to acquire cryptos through transactions alone.
You can also invest in Bitcoin mining and be rewarded with this crypto for your efforts that way. Everything you gain through mining can serve as a digital asset you can later invest or cash in.
For example, you can exchange your cryptos for equipment and inventory or use the assets to fund your business growth. That said, cryptos have more value than it meets the eye and they carry more advantages than just seamless transactions.
Like Bitcoin, many cryptos are based on blockchain technology. What that means is that transactions are recorded and verified within a specific block.
Once that is done, the transaction is finite and can no longer be altered in any way. This means that transactions are very secured, encrypted, and fraud-proof.
This means that neither you nor your customer has to worry about being cheated or scammed. Aside from that, your sensitive data is also protected and your privacy guaranteed.
Traditional payment processors and banks require too much information from you, such as name, address, financial information, etc. On the other hand, the only information crypto processors will require from you is transaction ID and walled address, and that information won’t be shared with anyone else.
Cryptocurrencies are Instant Transactions
Trading with cryptocurrencies is available all over the world. Moreover, payment speed is fast. Transactions are instantaneous, and there’s no processing time, so you don’t have to wait until the transactions are approved. Transactions are, therefore, completed in minutes instead of days or weeks it would take a bank to process your transaction.
And, as mentioned before, there are no fees, so anyone in the world can send money to anyone else around the globe whenever they want to. This is not only convenient but useful.
For businesses, you can receive money instantly, which means you can cover immediate expenses without any delays. In other words, cryptos can, in many ways, help you ensure a positive cash flow for your business.
One thing about cryptos that will interest all business owners is that digital assets are not correlated to any physical assets. What that means is that the global economy or inflation won’t impact cryptos in any way.
They have their own digital factors that may reflect on the price of cryptocurrencies. In other words, global uncertainty, like the pandemic we’re currently living through, may impact the stock market or the price of gold, and have an effect on energy consumption, but they have less impact on cryptos.
And yes, the crypto market may not be regulated, and it is highly volatile, but it can, however, provide certainty in trying times. Businesses will still have assets to work with and a way to remain operational even when things get pretty dire.
Moreover, cryptos can be exchanged for real money, and they can be exchanged instantly. This can help you combat the volatility and unpredictability of the crypto market at any given moment.
Your Business Should Accept Cryptocurrencies
Cryptos help you to optimize your ecommerce checkout process. Businesses that are planning not to accept cryptos will miss out on a great opportunity.
Cryptocurrencies open new doors and possibilities that are more than beneficial to companies all over the world. That’s why now is an ideal year to rethink your approach and consider digital assets as the best way forward for your business to accept cryptocurrencies.