Worldwide interest and use in cryptocurrency can no longer be ignored. As adoption rates continue to rise, it is only natural for businesses to begin taking notice.
It all began with the introduction of Bitcoin, the first cryptocurrency created and launched back in 2009 by Satoshi Nakamoto. It is estimated that the value of Bitcoin in 2017 had reached $180 billion.
Why Do More Consumers Use Cryptocurrency?
So what is the attraction to cryptocurrency and why are more customers looking to use cryptocurrency as their preferred form of payment? Here are some of the key reasons:
- It’s Secure
Cryptocurrency uses code, which makes it virtually “untrackable”. This in itself is incredibly alluring to customers.
- It’s Accessible
Whereas traditional banks have always been selective as to whom they do business with, the “decentralized nature” of cryptocurrency makes it available to all.
- Transactions Are Anonymous
For the vast majority of transactions, addresses, public and private keys are all “read in text strings”, where it does not link to anyone’s personal identity.
- A Good Investment
Since cryptocurrency has soared in popularity as the “new type of cash”, the markets have soared as well. Even a modest investment can prove to be lucrative. One investment practice known as “holding” is a common practice where clients will purchase cryptocurrency, only to hold on to it in order to see an increase in value.
How To Start Accepting Cryptocurrency For Your Business
Knowing that the market for digital currency will only continue to grow and more businesses are beginning to accept cryptocurrency as a form of payment, how can you take advantage of this profitable strategy? Here are some ways you can begin accepting cryptocurrency payments for your business.
- Wallet Addresses
If your clientele is made up of only a small number of cryptocurrency users, the simplest way to accept digital currency as payment is to ask your customers to transfer the funds directly to you. But before that, you will need to set up a wallet.
Wallet services can be found among numerous cryptocurrency exchanges. Simply register with one of them, get your wallet address (also your public key), and a private key, which is essential for signing for transactions. In order to withdraw your cryptocurrency in fiat currency, you will need to link your credit card or bank account.
To simplify things further for your customers, it would be beneficial if you presented your wallet address in QR-code. This way, they only need to scan it, put in the amount of crypto necessary, then sign with their private key. Before you carry out a transaction, do look up the current exchange rate as this type of currency is known to fluctuate.
- Screen Apps
Software developers continue to innovate by creating touchscreen apps. Merchants simply need to connect their wallet address with the app, put in the necessary fiat currency, then the app will create the QR-code. This will contain the address and the amount of funds that need to be sent in that cryptocurrency. Then the customer will need to scan the QR-code with their mobile wallet app and sign for the transaction. Most smartphones and tablets will support this app.
- Hardware Terminals (POS)
Since cryptocurrency has become a “viable form of payment”, more hardware point-of-sale solutions (POS) are being created. They can come as “Bitcoin-specific payment terminals” and even “Bitcoin-oriented APIs” can be integrated directly into current point-of-sale terminals.
In Legal Terms, Cryptocurrencies Are Still In The Grey Area
Despite its growing use and popularity worldwide, cryptocurrency falls into the legal or unregulated category. While accepting this digital currency may be legal in certain areas, laws and regulations vary dramatically by country. Before moving forward with accepting Bitcoin or any other cryptocurrency, it is highly recommended that you seek legal advice from a legal advisor.