A cryptocurrency is a digital form of money that has continued to gain widespread popularity among the financial world and consumers alike. Bitcoins and altcoins are advanced forms of money that provide convenient and secure payments for goods and services. Due to the volatility of bitcoin, cryptocurrencies have also been widely recognized as money-making opportunities.
Many businesses (both small and large) have recognized the value of cryptocurrencies and meet their customers where they are. With cryptocurrency exchanges like Crypto Exchange focusing on easy-to-use interfaces and businesses accepting bitcoin and other altcoins as legal tenders, adoption continues to become more widespread.
Benefits of Accepting Bitcoins or Altcoins
As a business owner you might agree that chasing down every trend isn’t going to get your business anywhere. However, there are several additional benefits for businesses to accept bitcoins or altcoins. Here are a few:
Increase the Reach of Your Business
Cryptocurrency is available for trading 24 hours a day, 7 days a week since its markets extend across the globe. Recognizing cryptocurrencies as a tender proves to customers that prices are fair regardless of where they are purchasing from. Many consumers feel ripped off when exchange rates seem unfavorable. This is virtually eliminated with cryptocurrencies.
Furthermore, accepting bitcoins and altcoins may also help your business attract a younger audience. Many millennials are amongst the early adopters of cryptocurrency and are actively seeking opportunities to support its widespread adoption.
More Payment Options
Some buyers may only want to transact with your business through a cryptocurrency exchange. Therefore, having this option available opens the door to an entirely new group of consumers. Bitcoin ATMs are gaining popularity across the globe, getting more consumers used to the idea that cryptocurrency payments are an option.
Furthermore, the more payment options, the better your sales conversion rates will be. Especially since many consumers are often afraid to use PayPal or credit cards on websites, they haven’t transacted with them before.
Cost Savings for Transaction Fees
Business owners may already be paying fees for accepting certain credit cards (typically around 1.65% per transaction). As a result, many small business owners have found it to be more effective to accept other payment forms such as cryptocurrency to reduce the fees associated with using a middle man.
Considerations Before Accepting Cryptocurrencies in Your Business
With every opportunity, there are also a few considerations that need to be made. First, if you don’t trade cryptocurrency yourself, you may now know how to keep your cryptocurrency safe. Proper wallets and storage techniques are needed to avoid hacking incidents.
Secondly, cryptocurrencies, in general, are highly volatile. Therefore, many businesses have made the decision to exchange their cryptocurrency for fiat money on a regular basis. Using a trusted exchange like CryptoExchange can help your business avoid lost profits from an unfavorable dip in the market.
Finally, regulations and taxes on all cryptocurrencies depend on the region you are operating in. Therefore, necessary research is needed to determine how your business can abide by these policies.
Begin Accepting Bitcoins and Altcoins Today
For online businesses, PayPal has made payments with bitcoin available already. Therefore, using their services will grant you access to the bitcoin payment option. Other options for accepting crypto on your business website include Bitpay or Coinbase. Both sites have plug-ins that allow for the easy acceptance of bitcoin and other altcoins through your existing payment system.
Alternatively, for those who have a physical location or brick-and-mortar store, you likely are already paying for a point-of-sale (POS) machine. Most modern POS machines offer a Bitcoin wallet program that allows you to create a QR code for the customer to scan. Using these apps may cost an extra fee for the transaction. For small businesses looking for justification, you are typically already paying a fee to accept credit cards.
The decision for your business to accept cryptocurrencies should only be made after carefully weighing the benefits, drawbacks, and potential configuration options of doing so. You may decide to read or ask other business owners in your area about their experiences to determine if it is worthwhile to proceed.
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