New Transaction Mode – Should You Accept Payments in Cryptocurrency?

crypto

It was only ten years ago that Bitcoin, the first cryptocurrency, was introduced to the world. But what is cryptocurrency? Who uses it? 

It can be difficult to know where to get accurate information about this new form of currency. However, if you are considering accepting crypto payments or looking into whether or not a transaction in cryptocurrency is worth it, we have you covered. 

This article looks at what exactly cryptocurrencies are, who uses them, when they became popular and how to accept payments in them.

Cryptocurrency Value in 2022

You can look at the currency’s performance between 2017 and 2018 as a benchmark to guess what your cryptocurrency can be worth in 2022. Many currencies trading in the single digits in 2017 shot up to $1,000 or more by December of that year. 

The value of each coin is likely to be different when 2022 rolls around. You need to understand what the currencies are and the underlying philosophy. If you consider Polkadots as an investment tool, you need to ask yourself: what is DOT, or why should I buy DOT?

Although, if you take the most conservative approach and assume you will not see 1 percent returns on your investment, you could still be looking at a substantial increase in cryptocurrency value over time. If that is not enough, consider this: Bitcoin was valued at less than $1,000 per coin a few years ago.

You may be interested in crypto’s underlying technology, the blockchain. However, you don’t feel like investing hundreds or thousands of dollars into an asset that lacks backing by anything tangible (such as real estate), and there are other avenues for cashing in on it.

What Are the Benefits of Accepting Crypto Payments?

Before you start accepting payments with cryptos, you need to understand how to buy them. You can google how to buy DOT if you are looking to get Polkadot or put a search as per your crypto. So just type in how to buy Polkadot and start your journey. Many merchants accept cryptocurrency payments because they offer the following benefits:

  • Fast transactions. Credit card transactions can take several days to complete, while cryptocurrency payments get processed within minutes.
  • Low fees. Most major credit cards charge a transaction fee of 2 or 3% per purchase made using their card. Cryptocurrency transaction fees are generally just a fraction of that rate.
  • Security. All that gets exchanged with crypto is an alphanumeric string that cannot get used to gain access to any other personal data about either party.
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What Are the Potential Drawbacks?

While the benefits of crypto payments are clear, there are also several drawbacks. For one, it’s important to know that cryptocurrency is highly volatile. 

Since cryptocurrency payments aren’t yet commonly accepted by many businesses or institutions, there may be other ways you’d prefer to accept payment. If you don’t have many other options or if your customers seem likely to get interested in paying with crypto, you can accept them.

How Can I Get Started?

In recent years, cryptocurrency has become increasingly popular in Canada. With its decentralized nature and the opportunities it presents for enhanced anonymity and financial freedom, many are flocking to this new form of currency to take advantage of all the perks that come with it. These include lower transaction fees and fast transactions.

This payment system type can be a great way to earn extra income, but you need to ensure that your startup costs get covered first. There are a few factors you must consider when deciding whether or not to accept cryptocurrency payments:

  • Start-up costs – These costs can amount to anything from buying an initial amount of bitcoin or other digital currencies off an exchange to larger purchases.
  • Conversion rates – If the value of crypto fluctuates wildly against fiat currency, then accepting cryptocurrency payments may not be the best option for your business.

The price point on crypto coins is too low for most businesses to consider this payment method reliable enough. However, once prices stabilize higher again, more businesses will likely be more willing to test out accepting these types of payments. 

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Many will argue that they have difficulty acquiring large amounts at a time because their customers tend to prefer $10 or fewer purchases. However, they might find that there’s still demand within their community in terms of smaller amounts due to their audience size and demographics. In addition, some businesses will worry about having their personal information compromised by keeping track of customer details through a third party.

Considerations for Acceptance

To be a successful business owner, you need to keep up with the times. In today’s world, that means accepting cryptocurrency as payment. While this may seem like a big step to take, it’s not that complicated. There are plenty of systems in place now that make this process streamlined. You can get started right away, and you’ll likely see many benefits.

One advantage of accepting cryptocurrency is that these transactions are much faster than those made through banks. No longer will your customers have to wait for their money to transfer from one account to another before they can finalize their purchase with you. By the time they’ve stepped out your front door, the money is already in your account!

Another advantage is just how secure these transactions are for everyone involved: no more personal financial information being exchanged or stolen by hackers! Because clients pay directly from their crypto wallets instead of through third-party financial institutions (such as credit card companies), there’s less risk of identity theft or fraud.  

Conclusion

There’s no doubt that cryptocurrency is here to stay, and small businesses may be among the first to see its benefits in full force. Accepting crypto payments is easy. Even if you’re not confident in your knowledge of this space, it’s possible to accept crypto payments without knowing how they work. Crypto payments are transparent, secure, and cheaper than credit cards. But most importantly, they’re the future of payments.

If you don’t accept cryptocurrency as a form of payment yet, consider following one of these easy steps today so that you can accept crypto as soon as possible. 

 

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