What is The Best Way to Accept Crypto Payments?
Articles
Cryptocurrencies disrupted the classic finance world, introducing new ways to trade, pay and secure personal assets. These digital currencies were created utilising cutting-edge technologies that every company is racing to adopt and promote.
The decentralised economy is the notion behind cryptocurrencies, where transactions happen peer-to-peer without the intervention of a centralised authority. Therefore, they remove the necessity for a central bank or intermediate to process the transaction.
Crypto payment is becoming increasingly popular, and more companies now use a Bitcoin payment system to take advantage of its multiple advantages. If you own a company, the article will introduce the best way to accept crypto payments to grow your business.
Key Takeaways
- Accepting Bitcoin payments requires creating a crypto wallet, where funds are stored and transferred.
- More businesses accept crypto payments because they are faster, safer and easier.
- Bitcoin is the best crypto for payments due to its stable security system and growth over the years.
Understanding Crypto Payments
Cryptocurrencies are digital means of payment that happen virtually and without physically owning the money. Tradable securities and payment methods are the most common utilities of cryptocurrencies.
Accepting crypto payments is becoming more popular in e-commerce, virtual stores, and online service providers. Crypto payments are instant and peer-to-peer, which means they happen directly between users and are not processed through an intermediary like banks.
Crypto transactions happen using blockchain technology, which works like a public ledger where all transactions are logged, and users can track transactions using blockchain scanners.
Companies use crypto payment by adding a Bitcoin payment gateway, where transactions happen almost instantly from the buyer’s crypto wallet to the merchant.
This way, businesses receive payments faster, avoiding additional taxes or transaction fees imposed by credit card payments, whereas the only charges associated with crypto transactions are the gas fees.
These transactions work similarly to online payment providers like PayPal, Skrill and other digital wallets. However, decentralised payments incur lower fees and fewer intermediaries, which makes them cheaper and highly convenient.
How To Accept Crypto Payments
There are over 20,000 cryptocurrencies and tokens, and each of them has a distinct value denoted in fiat money. For example, 1 Bitcoin equals $30,000, and 1 Ethereum equals $1,800. Buyers can pay 1 ETH to sellers instead of paying $1,800 using classic payment methods.
Cryptocurrencies change their values depending on many reasons, including demand and supply of coins, speculations and global regulations. Therefore, 1 ETH does not hold a fixed value of $1,800; it can change in a couple of days to $1,900, for example.
Users can transfer fractions of cryptocurrencies and not the whole coin or token. For example, if you want to purchase something worth $30 and if 1 BTC = $30,000, the Bitcoin payment provider will deduct 0.001 BTC from your crypto wallet.
Why Accept Crypto Payments
Cryptocurrency payments are becoming increasingly popular because they are more convenient. Cryptos are used by various individuals and companies who benefit from the following advantages.
Global Access
Traditional payment methods have limited coverage across countries and nations. For example, some countries may not support PayPal, or international transactions with a certain fiat currency might be restricted for political and economic reasons.
However, cryptocurrencies are universal and not subject to local laws and regulations. Some governments restrict trading Bitcoin as a security, but transacting with crypto wallets is more lenient and easy to use.
Higher Security
Bitcoin payment processors do not collect any personal or private information, whereas payment processing only requires that you have enough funds in your crypto wallet address.
Users are not required to provide any information prior to sending or accepting cryptocurrency, unlike banks that collect personal information and collect payments before processing them. Therefore, crypto users preserve their identities.
Lower Fees
Cryptocurrency transactions involve fewer intermediaries than traditional payment options, leading to lower transaction fees. Gas fees are the only prominent charges a user pays, compensating the validating nodes and contributing to developing the blockchain network.
Sending money across different countries and currencies is easier with cryptos, where the Bitcoin price is the same everywhere, without extra currency conversion fees.
Faster Transactions
Receiving and sending crypto coins and tokens is faster than conventional payment options because they use peer-to-peer networks without intermediaries.
Every crypto payment processor deploys smart contracts that check the amount you have in your cryptocurrency wallet, and if the terms of the transaction are met, the funds are directly released.
In Feb 2021, Tesla announced accepting Bitcoin as a payment method, which increased the currency price by almost 20% in one day, from $38,800 to more than $46,000.
The Best Way to Accept Crypto Payments
Transacting with cryptocurrencies can be confusing because it is a relatively new term. This is how you can get started with crypto transactions.
Find a Crypto Payment Gateway
In order to accept Bitcoin payments, you must find a crypto gateway. These platforms provide the interface and software carrying Bitcoin and other crypto payments.
Choosing the best crypto payment gateway helps you offer broader options to pay, from credit cards to crypto payment gateways, which allow transferring funds with a classic payment method. Thus, the payment gateway directly generates a one-time crypto wallet address and facilitates sending digital currencies everywhere.
Create a Crypto Wallet
Cryptocurrency wallets are necessary for companies and individuals who accept cryptocurrency payments, where coins and tokens are received and stored.
There are several digital wallets for cryptocurrencies that support various coins and tokens, such as MetaMask, B2Binpay, and Trust Wallet, that suit merchants and enterprises around the world.
Choosing the best crypto wallet allows you to accept various currencies and NFTs and receive alerts when Bitcoin and other coins’ prices change. Also, if you have a business with multiple users who access funds, you can integrate a multi-signature wallet, which entails higher security measures and advanced configuration options.
Add Crypto Payment Plugins
Accepting cryptocurrency payments means adding the option to pay with Bitcoin and other coins on the checkout page. Thus, virtual stores on Shopify or other online merchants enable crypto payment choices to promote quick and safe transactions.
Use a Scannable QR Code
QR codes are becoming more popular to overcome the technicalities of wallet addresses and manually manage transactions.
This way, buyers use their wallet app to scan a QR code that carries information about the amount and the recipient address and convert crypto money much faster.
Conclusion
Dealing with digital currencies can be complicated. However, the best way to start accepting crypto is by finding a gateway provider, creating a decentralised wallet and integrating crypto payments as an option on the checkout page.
Accepting Bitcoin payments is not only technologically advanced and modern, but it also helps you receive money faster and quickly grow your business.
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