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Cryptocurrency, an innovative payment solution, is gaining traction worldwide and with it, its popularity continues to rise. If you’re looking to broaden your services to cater to customer needs, or merely aiming to bring your payment systems up-to-date, it’s worthwhile to ponder over incorporating cryptocurrency payments in your small enterprise.
To accomplish this, entrepreneurs must conduct some groundwork and adhere to a few fundamental steps for correct setup. Thus, continue reading to gain more insight into cryptocurrencies – understanding their potential risks and benefits, and evaluate if integrating this emergent payment form aligns with your business goals.
As a business owner, you can accept payments in cryptocurrency manually. This method is achieved in several steps. Firstly, set up an account on a digital currency exchange platform like Coinbase. This becomes the destination where your customers send their crypto payments.
Secondly, you must incorporate certain features into your business website like QR codes.
This facilitates customers in transferring their cryptocurrency into your exchange account. The final step involves withdrawing your cryptocurrency from the exchange account. You have two options: transfer it to a digital wallet for safekeeping or convert it into traditional currency like dollars and then move the amount into your business’s bank account.
Knowing how to accept crypto payments as a business can offer a competitive edge in the evolving digital marketplace. Once your cryptocurrency wallet and gateway are up and running, integrate this payment method into your website’s checkout process.
There are primarily two ways to achieve this. The first involves using an Open-source API. If your website has compatibility with an open-source API, you can leverage custom HTML code to bridge a connection between your site and a crypto platform. This approach is often feasible with self-hosted wallets. One advantage is it gives you more control over your website’s design and operation.
The second method is through a plugin or app that fits your eCommerce platform. This involves downloading and installing the plugin or app onto your website. Cryptocurrency integration plugins or apps take care of all the technicalities, making the process easy for those who might not be tech-savvy.
Setting up a digital crypto wallet is essential for those intending to accumulate, manage, and utilize cryptocurrency for business or personal purposes. Furthermore, a crypto payment gateway becomes necessary if you plan to accept cryptocurrency payments but want them converted into traditional fiat currency. Services like BitPay provide both a wallet and a gateway.
Crypto gateways come with an array of features. They typically offer a hosted or noncustodial wallet that holds funds from customer crypto purchases until you convert them into fiat currency, like BTC to USD, and transfer them into your bank account. Moreover, they mitigate risk as the market rate applies during the transaction. This ensures you don’t lose money if the cryptocurrency’s value decreases while validating the transaction.
However, it’s worth noting that using a payment gateway in cryptocurrency transactions involves a third party. Incorporating a third party comes with additional costs. Typically, transaction fees and markups are higher with a gateway than with a crypto wallet.
Crypto is a digital asset that is becoming increasingly popular; it can provide great returns but also has a lot of risks. Knowing what to watch before investing in this digital currency is key. By monitoring the five metrics outlined in this post, any investor in the crypto sphere can assess whether an investment opportunity is worth pursuing or should be avoided.
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