Whether you sell products or services on your website, it’s a wise move to start accepting cryptocurrency as a method of payment. An increasing number of people will be using cryptocurrencies in 2021 and the upcoming years. The ability to accept cryptocurrencies as methods of payment will put you at a competitive edge. Figuring out how to do this can be tricky, so read on for some helpful tips on what cryptocurrency to accept and how.
Decide Which Cryptocurrency to Accept
Before you set up your website to accept a cryptocurrency as payment for a product or service, you need to decide which ones to accept. Bitcoin is the most popular, but it only has about two-thirds of the market. If you don’t want to miss out on the other one-third of consumers who use cryptocurrencies, you might want to accept some of the altcoins, such as Ethereum.
You might also want to consider accepting some of the options available through initial coin offerings. This allows a company to trade its own new cryptocurrency for capital. If you get in on a cryptocurrency early, and it takes off, you could end up with a great asset in your digital wallet.
Consider Market Volatility
The biggest challenge you will face if you decide to accept cryptocurrency as a payment for goods or services is its volatility. If you sold an item for $100 of Bitcoin in March 2017, your trade would have been worth $1,300 right now. If you made that trade in December 2017, your Bitcoin holding would only be worth $68 as of mid-October 2020.
Considering this type of volatility, you must convert your BTC to INR, USD, EUR, or whatever your local fiat currency is before there’s a change in Bitcoin price. This eliminates any risk of loss due to crypto market volatility.
Invest in Website Security
Cryptocurrency theft is on the rise. Since it is a digital transaction, it can be hacked. Hackers can also target bank accounts. Before you start accepting cryptocurrency as a payment option on your website, please look at your current security measures, and make sure they’re as strong as possible.
Know What Your Objective Is
Think about why you want to add cryptocurrency as a payment option. You might want to give your customers more choices. Maybe you want to add to your customer base and sell products or services to people who don’t want to pay by credit or debit. People who want to offload their digital coins might be looking to do so in a trade for a product or service rather than some other coin or a direct coin to cash trade. If somebody has a bunch of digital coins and wants to start a business, they might want to pay with coins to get the equipment or supplies they need for their products.
What to Do With Your Cryptocurrency Payments
Think about what you’ll do with the cryptocurrency payments you receive. These payments are more difficult to reinvest in your business. You can’t directly pay your employees, suppliers, or utility companies with digital coins.
Cryptocurrency to Accept – Integrate Payments
Several payment gateways allow you to accept cryptocurrency as a payment method on your website. Shopify allows Bitcoin payments. BitPay also allows you to receive Bitcoin. Coingate and Spicepay allow you to take Bitcoin and most altcoins. You’ll need to consider the transaction fee when choosing a provider.