The idea of accepting cryptocurrencies is not new. In fact, it has been around for over a decade. But it was not until the recent crypto boom that the idea took off. The reason behind this recent surge in popularity is simple: cryptocurrencies are an easy way to make money online and are also highly volatile. The price of Bitcoin has gone up too.
However, despite the gains from cryptocurrency, many people still do not know how to accept or use them in their business.
This article discusses suitable cryptocurrency payment gateway and why you should start accepting cryptocurrencies online.
What is Cryptocurrency?
Cryptocurrency is a digital currency that is based on blockchain technology. This type of currency exists only in the virtual world but can be used as a mode of payment at various places like online stores or offline shops etc. It’s also different from fiat currency as there is no government interference in its functioning. Cryptocurrency is also known as crypto money or digital currency.
There are many types of cryptocurrencies available that are used by people worldwide, such as Bitcoin, Litecoin, Monero, etc.
How to Start Accepting Cryptocurrencies Online
- Merchant Account
The first step in accepting cryptocurrencies on your online store is to open a merchant account with a reputable payment processor. A merchant account allows you to accept credit cards, debit cards, and other forms of electronic payments like PayPal. This is the easiest way to accept cryptocurrency payments because there are no additional fees associated with it.
- Merchant Tools
Once you have an online store, the next step is to use tools like Stripe or Braintree to integrate cryptocurrency transactions into your ecommerce platform. These tools allow you to accept crypto payments without setting up a dedicated cryptocurrency wallet address or installing special software on your site.
- Crypto Wallet Address
Once you have integrated your payments through one of these payment processors, all you need to do is create a crypto wallet address on your site where customers can send their money so they can be exchanged at the exchange rate when the transaction is processed by your payment processor or directly by you if they choose. You’ll also want to set up a secure HTTPS URL so customers can enter this address into their wallets instead of typing in randomly.
- Shopify
You can accept crypto payments on Shopify. Shopify is one of the most popular e-commerce platforms available. It has a wide range of features and apps that can help you to accept cryptocurrencies in your online store. Shopify allows merchants to accept cryptocurrency payments through a plugin called Crypto Payments. To get started with this, you need a merchant account with Shopify and an approved bank account.
- Direct payment
The simplest way for an online merchant to accept cryptocurrencies is through direct payment, simply allowing customers to pay with their preferred digital currency at checkout. This can be done with plugins like CoinPayments or BitPay, which will process the transaction on your behalf, or through more complex solutions such as OpenBazaar, which allows buyers and sellers to create their listings using decentralized peer-to-peer technology.
Why Accept Cryptocurrencies?
There are many reasons why accepting cryptocurrencies may benefit your business financially.
Exchange rate: The exchange rate between cryptocurrency and traditional currencies constantly changes. This means that if you accept only one type of currency, you will be exposed to fluctuations in value over time. By accepting multiple currencies, however, your business will have more stability when it comes to transaction costs and exchange rates for each type of currency accepted by your business (for example, USD, EUR).
Low fees: Cryptocurrencies have low transaction fees and can be used globally, so it’s easier to sell your product or service internationally.
No middleman: Cryptocurrencies are peer-to-peer, so there is no need for a bank or credit card company to take a cut of the transaction.
No third-party risk: There is no chance that someone will hack into your account or steal your funds because they’re stored on the blockchain, which is totally transparent and decentralized across thousands of computers worldwide.
What are the Steps for Accepting Cryptocurrencies on Your Online Store?
To start accepting cryptocurrencies on your online store, you’ll need to follow a few steps.
- Choose a cryptocurrency payment processor
- Set up an account
- Integrate the payment gateway
- Configure supported cryptocurrencies
- Display cryptocurrency payment options
- Set up a wallet
- Educate yourself and your customers
- Test the payment process
- Go live and promote
- Monitor and adapt
Key Takeaway
Cryptocurrencies can be used to buy goods and services online and pay for goods and services offline. There are several ways that people can use cryptocurrencies in their day-to-day lives. If you have an online store, you should consider whether or not you want to accept cryptocurrencies as a form of payment. Remember, while accepting cryptocurrencies can provide new opportunities, it’s essential to understand the risks, volatility, and potential regulatory implications associated with cryptocurrencies. Consider consulting with legal and financial professionals to ensure local laws and regulations compliance.
