If you have been following cryptocurrency in the news or even heard someone mention Bitcoin in passing, it may seem like a topic purely for computer nerds. While it is true that the technology behind cryptocurrencies plays a large role in the discussion, many of these coins are already taking steps to become more mainstream. The use cases for cryptocurrency are growing rapidly, and most of them involve replacing traditional currencies.
The Price of Cryptocurrency Is Still Volatile
A reason why businesses might be hesitant in accepting crypto is volatility. Cryptocurrencies are new currencies, and their value is extremely volatile. This means that their value can increase or decrease by a large percentage in a short period. This makes it risky for businesses to accept them as payment since their value can change within hours. And since there isn’t enough liquidity to convert cryptocurrency (fiat).
In fact, because of this high volatility risk, some cryptocurrency exchanges don’t even allow users to transfer cryptocurrencies into bank accounts. Or buy crypto with a credit card, due to the price fluctuations they’re known for.
There Are Cryptocurrencies for Everyone
Besides the more well-known currencies, many other cryptocurrencies have different focuses. For example, Litecoin is an alternative to Bitcoin, which has faster transaction times and is easier to mine. Another example is Monero, which handles privacy in a more robust way than Bitcoin by obscuring the amount sent in each transaction and to whom it was sent. It’s been called “crypto for criminals” as a result. There are even cryptocurrencies specifically designed for the IoT (Internet of Things), such as IOTA.
With all these options out there, it’s clear that cryptocurrency isn’t just some fad or bubble waiting to burst. It has the potential support needed to become a mainstream payment method that will be here for years to come. As businesses begin adopting cryptocurrency payment methods, they’ll enjoy many benefits. These would be increased financial security, lower transaction costs, and chargeback fraud. And finally, the improved accessibility across borders and the improved privacy and anonymity for their customers.
Cryptocurrencies Can Be Hacked, but That Doesn’t Mean Your Money Will Be Stolen
When you hear about hackers stealing cryptocurrencies, you may think that your money could be stolen, too. But when it comes to cryptocurrency, theft, and hacking aren’t the same thing. Hacking happens when someone gains access to an exchange. It is the service that lets users swap traditional currency for cryptocurrency tokens.
The thief makes off with some of those tokens. Theft happens when someone steals your cryptocurrency wallet or gets your private key. Since hacking can happen on exchanges but not wallets, the best way to avoid money being stolen is by using a wallet that has good security features.
Some wallets have basic security systems like 2-factor authentication (2FA), where you enter a password and then confirm your identity with another piece of information like a code sent to your phone or a fingerprint scan. Other wallets use more sophisticated systems like multi-sig wallets, which require several people to verify transactions before they go through biometric scanning. There instead of typing in a password, you provide biometric data such as fingerprints or retinal scans to identify yourself.
There Are Fewer Transaction Fees With Cryptocurrency
Because cryptocurrency transactions are peer-to-peer, the transaction fees are typically lower than those charged by third parties like banks and credit card companies. Typically, these fees range from 0 to 1%, as opposed to the 3%-5% cut that traditional payment processors take on credit card transactions. PayPal is another option for businesses that want to accept online payments without charging high processing fees. However, this service has a flat fee of 2.9% + $0.30 per transaction, which can quickly add up over time if your business is making many small sales each day. The ability to avoid these processing fees may be a compelling reason for businesses to consider a system where they purchase cryptocurrency and use them for payments.
It’s Easy to Set up a Crypto Payment System
It’s easy to set up a cryptocurrency payment system. There are many companies, such as GoCoin and BitPay, that have payment processors that are compatible with the major cryptocurrencies. You can also use the APIs of Bitcoin, Litecoin, and Ethereum directly to make your integration process easier.
You can also look into using an eCommerce plugin like WooCommerce or Magento, which already has built-in support for accepting cryptocurrency payments. Your customers will be able to buy cryptocurrency, and use them for store purchases on your site.
Starting to Accept Cryptocurrencies as Payment Is an Easy Decision to Make When You Look at All the Upsides
Accepting cryptocurrencies is the right move if you want to get ahead of your competition and attract the attention of a large number of tech-savvy customers.
When it comes to accepting cryptocurrencies, there are several advantages that you cannot afford to ignore. First, when you accept cryptocurrency, you receive an instant payout as soon as the transaction is confirmed on the Blockchain.
Second, accepting cryptocurrency does not involve any intermediaries, so both parties receive their funds immediately after the payment is made. Third, accepting cryptocurrency requires no paperwork or approval from a third-party financial institution because all transactions take place directly between two parties on the Blockchain.
Last but not least, accepting cryptocurrency will allow you to stay competitive and up-to-date with the latest technologies, which in turn will help build trust among your customers who are looking for innovative ways to pay online. They want to do so without having to go through long approval processes or waiting times associated with traditional financial institutions like banks or credit card companies.