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Cryptocurrency is the alternate money. It is the money of the internet, and there is a lot of hype around it. Everyone is talking about crypto and looking to indulge with it more and more.
Crypto users want to use their assets for transactions, payments, investing, and whatnot. And as a business owner, you should allow such users to buy your services/products using crypto. So the question is, should your company accept crypto payments?
Well, accepting crypto as payment is not a huge thing. There are many businesses that are already doing so. But if you are unaware of the whole thing, let me guide you:
Pros of accepting Crypto Payments
Faster Cross Border Transactions:
If your business operates internationally, then when it comes to taking payments, there are only a few options. Also, most of these services charge you a hefty transaction fee. On top of that, banks also take a few days to process the payment.
You may think of using services such as PayPal or Payoneer. But these platforms are not available in most countries.
This is where crypto comes as a great option. Most cryptocurrencies have a P2P or peer to peer payment system. This allows you to send money to anyone anywhere instantly. Plus, it has lower transaction fees compared to what most financial services charge you.
Bitcoin As An Investment:
When you are taking crypto as a payment method, you get the option to hold your assets for a long time. If you happen to be in the bull market, your crypto assets can grow at a crazy speed. As a result, you will enjoy capital gains.
Plus, the best part is that the capital gains would be tax free. Also, if you don’t want to consider your crypto holdings as an investment instrument, then you have the option to sell your holdings and get your preferred fiat currency like US dollars.
Low Transaction Fee:
Another benefit of accepting crypto as a payment method is that it has low transaction fees. Most payment gateways can charge you about 4% to complete a transaction. Along with that, there are payment processor annual subscription fees and other charges.
But the same doesn’t go with crypto payments. For instance, Bitcoin transactions can charge about a 1% fee per transaction. But there are other cryptocurrencies which have a lower transaction fee, like BNB.
Cons of accepting Crypto Payments
Market Volatility:
The thing about cryptocurrencies is that there are no regulations. There is no one who controls the price of cryptocurrencies. As a result, the crypto market is extremely volatile. Your crypto holdings may lose their value overnight. Hence, you will face a huge loss.
But you can always keep a certain amount of funds as your crypto holdings. And the rest of the funds can be converted into fiat currency. This way, you won’t face a huge loss.
Security Concerns:
Another con of crypto payments is security concerns. Your crypto wallet can get hacked. As a result, you will end up losing all your funds. Plus, you won’t be able to get back what you owned. There are many crypto exchanges that lost millions of dollars worth of cryptocurrencies to hackers.
Wallet Addresses Are Unrecoverable:
Another thing with crypto is that you store them in virtual wallets. And if you lose your access to the wallet, you lose your funds. As crypto wallets don’t really offer you an option to recover your keys. So if you lose your crypto wallet, you lose your funds.
General Safety Tips when accepting crypto
Use Cold Wallet
To protect your crypto assets, you can use a cold wallet. Cold wallets are also known as hardware wallets. It is a physical device that keeps your cryptocurrencies completely offline. As a result, hackers won’t be able to reach your funds.
Cold wallets are useful when you plan to hold your assets for the long term. But if you are going to use it, make sure to backup all the wallet keys.
Also, hardware wallets are not free as web wallets or app wallets. Instead, you have to buy the device.
Some good examples of cold storage are Ledger Nano X, Trezor One, SafePal S1. etc.
Using reputable exchange
You should also use a reputable exchange to withdraw your funds. Why? Because they do offer you good security. Along with that, most of the reputable exchanges have competitive transaction and withdrawal fees. So when you are cashing out your crypto, you won’t have to pay too much.
There are a lot of different exchanges available online. However, some of the most popular yet reputative exchanges are Binance, Kraken, Bybit and Coinbase.
Choose A Good Crypto Payment Gateway
Similarly, you should also choose a good crypto payment gateway. It should provide you with many options like QR code, NFC, and URL. Also, it should be able to complete transactions within seconds. As a result, you will be able to manage your payments in real-time. Along with that, it should also be easy to integrate with existing services and have lower transaction fees.
Final Words:
So that was the answer to your should your company accept crypto payments questions. Accepting crypto payments is a great idea. As this helps you in a lot of ways. But you should also be aware of all the risks involved. Anyway, if you want to know anything else, feel free to comment below.
