If you own an online business, the chances are high that you have grappled with the decision to accept cryptocurrencies as a payment option. Despite its growing popularity, cryptocurrency is still far from being the mainstream currency that its founders envision.
Nevertheless, the benefits of accepting crypto are significant. As a savvy business owner, it is up to you to weigh the pros and cons and make the right decision for your business.
The promise of cryptocurrencies for businesses
Crypto enables cheap, borderless, and near-instantaneous transactions. Therefore, accepting cryptocurrencies gives you the chance to reach and sell to customers from around the world, even those that do not have access to traditional banks.
Furthermore, while remitting or receiving large payments takes a few days with current solutions, it is nearly instantaneous with crypto. Cryptocurrencies are also not bound by a country’s exchange rate. Instead, their value is universally recognized.
Another benefit is that crypto can make it easier for your customers to contribute openly to a single purchase. Transaction information is recorded on a smart public ledger, which can facilitate transparent crowdsourcing.
Transactions aside, accepting crypto can help you reach a younger, more tech-savvy demographic that prefers the simplicity and anonymity of cryptocurrencies to more mainstream solutions like PayPal.
The risks of accepting cryptocurrencies
The benefits of crypto for businesses are as publicized as their risks. According to experts, the primary risks of accepting crypto have to do with security, volatility, and regulation.
Volatility and lacklustre regulation in the crypto space might be beyond your control, at least for now. However, you can do a lot to keep your hard-earned crypto coins secure.
When it comes to cryptocurrencies, one of the main safety concerns for businesses is using crypto exchanges. These exchanges enable you to convert cryptos like Bitcoin into fiat currencies so that you can use your money outside the crypto ecosystem. The downside, however, is that exchanges leave cryptocurrencies vulnerable to theft.
To counter the security risks of accepting cryptocurrencies, you must understand how to keep your cryptos safe. An effective measure is to transfer your crypto coins to offline storage, or “hard wallets”, and only take out the amount you want to exchange.
How can your business accept cryptocurrencies?
If the benefits outweigh the risks, the obvious choice is to embrace crypto as a payment method. The first step towards accepting cryptocurrencies is acquiring a digital wallet. Having the right software and support enables you to foster seamless interaction between your customers and your business.
A payment service provider like Secure Trading Ltd can help you to integrate a suitable crypto gateway with your ecommerce platform. Your customers would then be able to check out using cryptocurrencies, which will be deposited into your digital wallet.
Are cryptocurrencies the future?
Cryptos offer notable advantages for businesses and customers alike. Despite their risks, accepting them could mean readying your enterprise for a plausible future where crypto is the dominant mode of online payments.
Whether or not you decide to accept them today, it is essential to know the facts. Keep an open mind, evaluate your level of risk and proceed with care.