In the last 100 years, our planet has experienced unprecedented technological improvements and breakthroughs. Humanity is making tremendous strides toward a better, more convenient, and borderless future. In recent years, technological progress has even affected the most stable of all industries — the currency market. Cryptocurrency has arrived dramatically, sweeping the world with its innovation and presenting a fortified way to transact.
While the road to realizing the full potential of Crypto has been more than a little bumpy, this industry is getting larger every year. As of 2023, over 1 billion people have transacted with cryptocurrency, and around 420 million people are using Crypto for payment. Thus, despite some roadblocks, the cryptocurrency market is shaping to be a significant industry that could uncover new revenue streams for businesses worldwide.
The uprising of cryptocurrency users from 2016 to 2022:
Today, it is no longer financially feasible to completely negate the promising opportunities presented by crypto payments. Many businesses remain negligent of the industry in general due to frequent fluctuations and volatility. However, many industry-leading companies have already started accepting payments with cryptocurrency regardless of the potential risks. Worthwhile investments always present a certain degree of risk. With that said, let us discuss the exact benefits and quality-of-life improvements of accepting Crypto as your additional payment method.
How Crypto Payments Surpass the Fiat Way
The surge of cryptocurrency solutions is not surprising since there are tangible and material improvements compared to fiat transactions.
First, you acquire a global outreach. Unlike Fiat currencies, Crypto is not bound by numerous limitations and regulations. The cryptocurrency owner can purchase your offerings from anywhere worldwide without interruptions.
Secondly, you get reduced fees. Traditional currency transactions go through several financial entities. Each institution takes its respective commission, which might be a significant fee on certain payments. With Crypto, there are no various intermediaries that need to benefit from the transaction. Thus, the transaction costs are practically always lower.
Reduced Transaction Time
Additionally, fiat currency operations take a significant amount of time. Some transactions can even take up to several weeks, depending on your means of payment. This often leads to customer frustration and generally slow business growth since every payment is needlessly delayed. Conversely, crypto transactions take a small fraction of that time. For example, Bitcoin transactions take no more than a single hour. While there may be severe outliers to this transaction period, Bitcoin has remained stable for the overwhelming majority of the time. Below is the chart of BTC transaction times over the last decade.
A chart of bitcoin transaction times over the last 10 years:
The Powerhouse Security
Last but not least, the security of Crypto is a prime reason for its existence. Due to the inherent nature of blockchain technology, cryptocurrency payments are virtually impenetrable and offer unprecedented levels of security from top to bottom. From state-of-the-art encryption protocols and the fully decentralized nature of transactions to complete transparency, now standard currency can stack up to cryptocurrency in terms of safety. The risks of fraudulent activities and digital theft are virtually zero since every transaction is heavily encrypted and does not allow tampering. This benefit is the biggest attraction for crypto users, as cybersecurity threats have become a prevalent part of worldwide commerce.
After delving into this great list of benefits, it is much easier to understand why the crypto industry is growing at a high clip and how it can be a sturdy opportunity to broaden your business horizons. So, if you want to add Crypto as a payment solution, we present a detailed guide on achieving that.
Your Very Own Crypto Wallet
As an aspiring business that aims to adopt crypto payments into its payment portfolio, your first step is to set up a cryptocurrency wallet. Crypto wallets are secure digital accounts that enable you to receive and send cryptocurrency payments across the globe. Naturally, you can also store Crypto in your digital wallet. Crypto wallets have thoroughly built-in security benefits of Blockchain, which we discussed above. Their encryption enables wallet owners to access and manage their possessed cryptocurrencies securely and without any outside risks of theft or fraud.
Main Types of Crypto Wallets
Much like traditional bank accounts, crypto wallets come in two principal types – software and hardware.
- Software wallets can be seamlessly installed on your digital devices, letting you access your account and conduct all the necessary operations without a hassle.
- Hardware wallets can answer your demand if you need more security than encryption protocol and proof-of-transaction. These physical storage devices contain your crypto amounts offline, completely safe from malware attacks and other digital threats that could rob you of the asset.
Choosing a Perfect Digital Wallet for Your Needs
When it comes to acquiring a crypto wallet, the market is stacked with different choices that all present their unique benefits. Since customers prioritize different aspects of crypto technology, various wallets accommodate certain functionalities more than others.
For example, the Metamask wallet is the best choice for Ethereum users, while Bluewallet serves as one of the most convenient mobile apps on the platform. On the contrary, the Coinbase wallet is the best choice for beginners to get their feet wet in the crypto landscape. As we can see, there are many options to consider, and there are no objective answers. Therefore, you must consider your unique circumstances and preferred utilities when choosing the perfect option as your crypto wallet.
Setting Up Your Crypto Wallet
If you have already selected a convenient and feature-rich crypto wallet that is tailor-made for your specific conditions, a set-up is nothing to worry about. The main pitfall to consider here is finding a reputable source to purchase the wallet. Cyberspace is filled with questionable entities that could easily seem legit. So, we implore you to do diligent research and find a reputable provider for your wallet of choice. After that, you merely need to download the crypto wallet software (or purchase the hardware version) and set up all the essential passwords to ensure security. Don’t forget to consider backup options since no software is truly safe from potential cyber threats and tech breakdowns.
Now that we have a firm grasp on how to research, choose and set up a crypto wallet to conduct payments, let us get to the core activity – mastering the art of crypto payments.
Master Crypto Payments Using These Steps
Let’s dive into the exact steps you need to go through to create payment addresses or QR codes in order to receive and manage crypto transactions. First, we have to choose a wallet that supports our preferred cryptocurrency. This might be Exodus, Coinbase, or Ledger. Once you have created your digital wallet, find the “receive” or “deposit” option to create a unique address that will be shared with others so you can receive payments. Alternatively, you can generate a QR scannable code to simplify the payment process.
To handle payment processing and manage crypto transfers securely, the blockchain system utilizes a certain amount of confirmations ensuring a given payment is valid and irreversible. While waiting, you can freely monitor your transaction status through blockchain explorer.
Make sure to create strong passwords and back up your data regularly to protect your funds. But how can you manage volatility and effectively convert cryptocurrencies to fiat currency? Well, here are some valuable tips that can help!
For starters, you should carefully determine how much Crypto you want to convert into Fiat and, most importantly, when. Timing the conversion process is crucial to maximizing the profit, as cryptocurrency prices significantly change over time.
Then, choose the exchange platform that is reputable and credible. The most popular choices are Coinbase, Binance, or Kraken. They also support fiat currency withdrawals and are known for their reliability.
Keep in mind that every country has different laws and tax regulations regarding crypto conversions. Play it safe and consult with your tax professional to ensure compliance and maximize the profit.
Finally, here’s one simple piece of advice that might significantly help you avoid complications along the way. Simply consider stablecoins that will help you reduce volatility while still staying in the crypto space. Stablecoins are pegged to the value of the world’s currencies, so they remain stable all the time, giving you peace of mind.
Safeguard Your Digital Transactions The Right Way
Now, let’s make sure your cryptocurrency payments are secure all the time. Despite the fact that the blockchain has top-notch security, you still have to make sure that your digital payments are as hacker-proof as possible.
Here are some of the best practices for securing your Crypto payments:
The simplest and most useful advice: keep your passwords as complicated as possible. Forget passwords that are related to your personal information. Come up with a system that makes sense to you and only you. Use numbers, uppercases, and symbols, and make your wallet passwords as long as possible. Alternatively, enable encryption to make things even more complicated for hackers, and don’t forget that multi-factor authentication is always here to help! Simply add an extra step that will complicate the hacking process for thieves of the digital world. This extra step makes it tremendously difficult for a hacker to get into your crypto wallet account.
The second step might not be as fun as creating an illogical password, but still – it’s important. Try following your government rules and regulations to prevent money laundering and make sure everybody is using Crypto responsibly.
You need to be aware of two important regulations when using Crypto payments. These are Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. These are pretty simple to follow, so trust the process and follow all the necessary guidelines. Cryptocurrency platforms will ask you to provide personal information and verify your identity to prevent fraud and illegal activities. Additionally, you will have to verify the identity of your customers or business partners. They also have specific systems that prevent money laundering, so don’t skip any of the suggested steps your provider might ask you while creating or managing your crypto wallet.
It’s elementary to create a safer environment by following the government regulations and different security measurements your Crypto transaction provider has set for you. Doing so will protect yourself and others from all the potential risks that hackers always have ready for you.
In Summary: Everything To Make Sure You’re Ready For Success
Let’s conclude this article and recap all the benefits of using Crypto payments for your online business. Firstly, accepting cryptocurrencies opens up a whole new market opportunity for your business as more and more people use Crypto every year.
A new revenue stream is never wrong, so you should consider giving your customers another way to pay. Doing so will create a new revenue stream and increase your chances of landing sales. Simply use сryptocurrencies to discover fresh opportunities for growth and stay ahead of the curve.
To ensure your business is operating in the most efficient and effective way, you have to embrace all the competitive advantages the ever-changing digital landscape offers. Well, cryptocurrencies are one of them. Don’t miss out on all the potential customers who need crypto payment options. Instead, show them that you’re ready for the future by attracting and accommodating all the customers (including the tech-savvy ones) who prefer using digital currencies over traditional payments.
Lastly, consider and analyze all the risks and factors associated with Cryptocurrency payments. Assess the volatility of the crypto market to keep your profits stable. Additionally, understand the tax regulations and legal aspects and use them to your advantage. Consult with a professional, do thorough research to mitigate risks, and make a data-driven decision to keep your business effective, stable, and profitable.