Updated: Dec 10, 2022
Cryptocurrency is a digital currency that uses encryption to secure transactions and control the creation of new units. It's not controlled by any central authority, so no one can dictate its value.
What is cryptocurrency?
Cryptocurrency is a digital currency that uses encryption to secure transactions, control the creation of new units and verify the transfer of funds. It's also commonly used as a medium of exchange.
Cryptocurrency is an asset, but unlike traditional assets such as gold and silver, it doesn't have a fixed price or value. Cryptocurrencies can be used to buy goods or services online—and can be used for investment purposes too.
How cryptocurrency is evolving business payment
A cryptocurrency is a form of digital currency that is designed to be secure and anonymous. It's decentralized, meaning it isn't controlled by any government or central bank. In essence, cryptocurrency is a digital currency that acts as money; you can use it to buy things online or in person using your smartphone or computer. With over 15000 plus businesses accepting cryptocurrency as a form of payment cryptocurrency is more than just a fad.
The benefits of accepting cryptocurrency in your business
Cryptocurrency is an excellent way to accept payments and make sales online. When you accept cryptocurrency, your customers don't need to worry about exchanging their money into another currency before they can use it in their purchase. This means that there are no transaction fees—and this can save you a lot of money! The following are the most common reasons you should implement cryptocurrency into your business payment strategy:
Lower fees and faster transactions
When you accept cryptocurrency, you can lower your merchant processing fees. The most obvious benefit of accepting cryptocurrency is that it offers lower transaction fees and a faster transaction completion rate than traditional payment methods. There's no third party involved in the transaction and there's no middle man taking a cut of your profits—the payment goes directly to the person who bought something from you or someone else who wants to do business with them. This means that if someone buys an item using Bitcoin or another cryptocurrency and then pays for their purchase using another type of currency (like USD), there will be no credit card company involved in making sure everything goes through smoothly; instead, all parties have agreed upon how much value is owed between each other based on those particular digital tokens being used as currency instead of dollars/euros etc.
Cryptocurrency is borderless. If you have a business that accepts cryptocurrency, then it doesn’t matter where you are in the world—you can accept it! There are no bank accounts or credit card processors required. The merchant account process isn't necessary either since there will be no chargebacks from customers who don't pay their bills on time or whose banks rejected payments due to fraud concerns. You don't need any payment gateway services either; all your transactions will be processed through the blockchain (the decentralized ledger) directly between the sender and receiver without going through any third-party intermediary like Stripe or VISA/Mastercard
Fraud and Chargeback Protection
Cryptocurrency transactions are irreversible, and there is no central authority to reverse fraudulent transactions. The blockchain ledger is the only record of transactions and can be accessed by all parties involved in a transaction. Transactions are transparent and visible to all parties.
Current challenges of accepting cryptocurrency in your business
When you accept cryptocurrency in your business, there are many different implications that can affect your bottom line.
The price of cryptocurrency is volatile. It can fluctuate significantly, and often does. This means that if you accept cryptocurrency as payment for your goods or services, you may find yourself paying more for it than you were expecting.
For instance: Let's say that Bitcoin was sold at $10000 USD on January 1st 2021. Now let's say that in December 2021 it increased to $20000 USD per coin (a 50% increase). On January 2nd 2022, however, its value dropped back down again by 50%. You'd be missing out on half of what your business would normally charge customers if they used this method to pay for their purchases instead!
As with any other form of currency, cryptocurrency is not tax-free. In fact, it's often subject to the same taxes as regular income. However, there are some differences between how you pay your taxes on cryptocurrency compared to fiat currencies such as dollars or euros
Complex implementation challenges
The most common challenge for businesses is the technical knowledge involved in integrating cryptocurrency into your business. This can be overwhelming, especially if you don’t have an advanced degree in IT or programming.
But this is not to say that you should feel intimidated by the complexity. The good news is that implementing cryptocurrency into your business is getting easier every day, and there are many resources available to help you get started.
Let us help you get started...
Getting started with accepting cryptocurrency in your business is a challenge, and there are several options to consider. The best way to get started is by working with a crypto consulting firm that specializes in helping businesses accept cryptocurrency. We can help you navigate these challenges, Book a meeting with us today.