With the growing popularity of cryptocurrencies, some businesses have started to accept crypto payments.
What is a cryptocurrency?
In simple terms, cryptocurrency is a form of digital money. It can be used for online transactions and is designed to be secure. The most common cryptocurrencies are Bitcoin and Ethereum, but there are many more available.
Cryptocurrencies are very secure. They use computer code that is almost un-crackable, which means that making transactions using cryptocurrency is attractive to customers (particularly when buying online).
Why is crypto an attractive option for payments?
Cryptocurrency merchant accounts are available in the UK and overseas. From a business’s perspective, accepting cryptocurrencies for payments is appealing, in that transactions cannot be faked or reversed. This provides an element of security for both the customer and the merchant.
How do I get started with cryptocurrency?
A growing number of small and medium-sized businesses are already accepting cryptocurrency. If you want to start accepting crypto payments you will need a digital wallet, which allows you to accept, store and sell cryptocurrencies. These crypto wallets come with a private key which is your access code for your digital wallet.
If you already sell your products or services online on platforms such as Etsy or Shopify, these platforms often partner with payment processors like Coinbase and Bitpay, which allow users to accept payments in crypto currencies such as Bitcoin. Businesses can also sign up directly on payment processors such as Coinbase.
What are the potential drawbacks of accepting crypto payments?
Accepting crypto payments is not without its risks. The value of cryptoassets fluctuates a lot and significant swings in value from one day to the next are not uncommon. Any business that is accepting crypto payments needs to track its value on the day it was received and the day it was sold. Crypto payments are still in the early stages of being adopted by the wider business community. As such, it’s important to understand the challenges and risks inherent in accepting it as a form of payment.