How To Accept Cryptocurrencies in Your Business

Are you interested in cryptocurrencies? Do you have a business and do not know whether you should take it as payment, and how to do it? Visit the right place.

The price of Bitcoin continues to increase, and the public interest that cryptocurrencies arouse is only growing as time passes, so in this article, we will see what alternatives we have if we want to accept cryptocurrencies as a means of payment (as well as the implications that have) in a business.

Large companies are already investing a lot of work and money to operate these cryptocurrencies, but small businesses can also benefit from the same advantages.

For those businesses that transact frequently, it may be interesting to consider accepting payment in cryptocurrency in general (and in Bitcoin in particular) to increase the revenue from their sales, and even more so with the current hype of cryptocurrencies.

The main reasons for this step can be as diverse as attracting new customers, eliminating certain types of fraud, or showing a modern, up-to-date company.

Although we are going to focus the article on Bitcoin as it is the most popular and widespread cryptocurrency, much of what we are going to comment on is directly extrapolated to the rest of the cryptocurrencies.

To understand how Bitcoin payments work (and how to accept), it is necessary to familiarize yourself with some terms. If we are clear about these concepts, taking this type of payment is not excessively complex.

1. Terminology

Wallet:

A wallet, electronic pur se, or wallet is a software program in which cryptocurrencies are stored. Technically it is not a correct definition since bitcoins do not “move” anywhere, but conceptually we will take it that way.

Exchange:

It is a digital market in which traders can buy and sell bitcoins using different currencies (FIAT, or legal tender currencies such as the euro or the dollar, or ALTCOINS, or alternative cryptocurrencies, such as Ether, Litecoin, etc.).

It is still a digital way that acts as a source between users and bitcoin sellers.

QR Code:

It is a type of barcode formed by a matrix of blocks or dots, and that can be easily scanned with the camera of a Smartphone.

Public key:

For safety reasons, it is always used to encrypt a message. To decrypt a different key is used but associated with it, the private key. This is termed as asymmetric cryptography. The public-private key pair ensures secure communication.

Hardware terminal:

It is a hardware communication device that manages the input and presentation of data. For example, a terminal can be a PC connected to the network. For more details, Financial freedom is Here.

2. Offline Operations

Wallets:

If we are talking about businesses with a small volume of potential cryptocurrency users, the first way we can accept payments in Bitcoin, and the easiest, would be to ask customers to directly transfer the money.

Still, before doing something like that, it is necessary to configure a Bitcoin wallet in any of the existing crypto exchanges.

All you have to do is register a wallet with an online Exchange, receive the wallet address, which is also the public key (a string of letters and numbers), and a private key, necessary to sign transactions and which should be kept secret, and use the public key as the wallet address for customers.

To make the process easier, it is a good to present the wallet address as a QR code. In this way, all the user has to do is scan the QR, enter the corresponding amount of Bitcoins, and sign with their private key.

Since the value of Bitcoin fluctuates a lot, it is imperative to make sure you get the current exchange rate (at the moment) in any recognized and guarantee Exchange before making the transaction.

In this case, to withdraw the funds from the wallet and obtain fiat currency again, it will be necessary to link the checking account or the credit card.

Also, it is essential to notify users or clients that payment in Bitcoins is accepted through an advertisement since otherwise, they will rarely know that they can pay with a cryptocurrency.