Cryptocurrencies are becoming more and more accepted by different companies all across the world. Actually, there are plenty of small businesses accepting Bitcoin and other digital assets as an official payment.
Important thing to say here is that cryptocurrency adoption should not be used as a survival tactic, especially when we talk about small business.
Of course, there are some huge benefits of accepting crypto:
You can increase your global reach
You will receive/proceed faster and more secure payments all over the world
The processing fees are much lower
Well, crypto adoption has its cons, too. As we know, cryptocurrencies are extremely volatile, and they can bring you huge profits, as well as huge losses.
Here are the basic steps, if you want to start accepting crypto as a payment for your small business:
Cryptocurrency wallet
First thing to do is choose and set up your digital wallet. It works as a bank account, where your cryptocurrencies will be stored.
If you are going to accept more than one type of crypto, you must choose a multi-cryptocurrency wallet, instead of opening different wallets for each different cryptocurrency your company accepts.
Of course, you should also consider the types of cryptocurrencies your business would accept. As we know, the most popular are Bitcoin, Ethereum, Litecoin, etc., but there are many other interesting digital currencies.
Do your research at the crypto market and think about the main characteristics of your target audiences, so you can find the most valuable cryptocurrency for your business.
How to integrate crypto payment on your website?
After you have done your research and have chosen the crypto wallet, you will have to integrate the crypto payments on your website. Just like for standard payment, for the crypto payments you can find different processors to implement at your site. Examples for such services are BitPay and CoinBase commerce, but again, we suggest you do your research and choose a processor offering high security, lower transaction fees, and of course has a good reputation. Find the service that provides the most value for your type of business.
How to avoid drawbacks?
As we already said, cryptocurrencies are highly volatile, and this is one of the drawbacks of crypto acceptance for the business. Well, it can also be a huge benefit if the price of the digital assets goes up.
Anyway, one way to avoid that is to sell your crypto right away. BitPay for example offers such service, and can automatically convert your crypto to cash. While that is one secure way to avoid volatility issues, it doesn’t really make much sense to want people to pay you with crypto.
PayPal also offers a service for accepting crypto payment, if you want to avoid direct contact with digital currencies. And again, once the crypto transaction goes by, PayPal will credit your account with dollars.
Things to consider before accepting crypto payments
The taxes
Cryptocurrencies are capital assets and if you make purchases using them, the International Revenue Services will consider it as a crypto sale.
The lack of regulation
While this is one of the main characteristics of cryptocurrencies, the lack of regulations can sometimes be a problem. Keep in mind that your business assets are not completely safe, and you may need insurance to cover some issues.
The audience
Of course, when you consider accepting cryptocurrencies as a payment, you should also think about your target audience. According to research, ⅔ of crypto holders are people aged 25-44. That means that the younger, tech-savvy audience is much more likely to accept the innovative way of payment.
Cryptocurrencies are a part of the future, and we believe they are here to stay. Anyway, before you consider investing in a digital asset or implementing one in your business strategy, you must be aware of all the possibilities and risks ahead of you.
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