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Many online industries are constantly looking for cheaper and more efficient ways to serve their customers. Cryptocurrency has proved to be a particularly secure, fast and affordable means of payment.
In the early days of Bitcoin, small businesses avoided the payment method. Back then, crypto was a reserve for large companies like Microsoft, Overstock and Newegg.
Today, tons of small online businesses have learned to accept crypto as a means of payment. Here’s why:
Increasing Customer Reach
It is true—only a small percentage of the world uses Bitcoin. Still, it is one of the fastest growing payment methods in the world. This means there are a lot of people out there willing to spend their crypto at businesses that support it.
By accepting crypto, online businesses attract a segment of the market some competitors didn’t even know existed. What’s more, they stand to gain free publicity from crypto news and PR websites.
What does a business need to start accepting crypto? First, you’ll need a payment gateway. Secondly, you will need a crypto wallet. A payment gateway is the interface through which your customers are able to select amounts to send and the type of coins to use.
A wallet, on the other end, helps you store your digital currencies. There are two types of wallets: Hot and cold. Hot wallets let you store coins online through an app or software. Cold wallets help you keep your funds offline through a thumb drive or paper.
Fast and Cheap
Crypto is fast and cheap, a benefit for both online businesses and their customers. As a business, you can count on receiving money from customers instantly. And you can convert your coins to cash without paying huge amounts in fees.
As a crypto user, you benefit from quick services now that your payments are received instantly. Also, you get to save a lot of money in fees. These two benefits also lead to convenience.
Although crypto is fast and convenient, it has its own risks. It’s not regulated in the US, meaning you risk breaking the law by using crypto gambling sites in the country. Also, a lack of regulation has created room for scam operators to exist.
Against that backdrop, there are still many reasons to consider playing at real money online casinos. These operators accept fiat cash through credit cards, PayPal and wire transfer. They are regulated and safe.
Genuine and Trendy
The modern online business loves to keep up with trends. Not only is it good for PR, but it also sends a message to customers that you are willing to consider new technologies and services.
Crypto is both genuine and trendy. By supporting bitcoin in your business, you are not taking a risk on an unproven payment option. Lots of people have been using it in the last decade.
The only reason some people avoid it is a lack of information on how it works. Put simply, crypto exists in decentralized public ledgers called blockchains. When a customer sends you funds, you also get privacy keys that help prove you own the coins.
If you want to convert your BTC to cash, you need to use your privacy keys. Otherwise, if someone gets hold of them, you risk losing your crypto.
Simplifying International Payments
Nearly 60% of online businesses desire to expand to an international market. Yet, this isn’t always possible due to several factors. One of the reasons is problems with banking.
Far too many businesses say they have a hard time finding an appropriate payment method. Others are afraid that high fees and technical challenges will impact their bottom line.
Crypto has solved some of these problems. For example, it facilitates international payments fast. Crypto is fast because it doesn’t need a middleman. When your customers send money to you, it does not go through a bank or digital wallet.
It lands in your crypto wallet directly. The value of crypto is also similar globally. If a customer from Australia sends you one bitcoin, you will get one bitcoin in the US.
Another reason why online businesses are embracing crypto is because it helps eliminate the problem of chargeback fraud. You see, some people use a company’s services and later ask for a chargeback from their credit card providers.
This leaves online businesses on the hook. They have to spend days trying to recover their money, often to no avail. With crypto, payments can’t be reversed. If a customer has a problem with your products, they can’t ask for a chargeback. They have to contact you for assistance.
Now, the lack of reversals in crypto transactions is a double-edged sword. It helps businesses cut down of chargeback fraud. But it exposes customers to crypto scams.
As a bitcoin user, it is in your best interest to spend your funds at reputable websites. This way, you’re less likely to deal with scams that take advantage of crypto investors.
Safeguarding User Privacy
In this age of data breaches and cyber scams, people are prioritizing data privacy when choosing online businesses. They want to spend their money at companies that safeguard their personal information.
Embracing crypto is a good way to show customers that you care about their right to data privacy. By nature, digital currencies are designed to facilitate payments while keeping the identities of senders secure.
It is also possible to anonymize crypto payments. But it’s difficult to do so when dealing with regulated industries. You need to provide plenty of personal information to businesses by law.
A Hedge Against Inflation
In many parts of the world, the price of commodities has increased drastically in the past one year. Talks about a recession in the US have also fueled panic among people and impacted crypto and stocks prices.
Amidst the inflation talk, accepting crypto is a good way to protect your business. Sure, the price of Bitcoin might be down compared to last year. But it’s a limited commodity.
This means its price is bound to increase with time. In the long haul, companies that hold crypto will have hedged their funds from inflation. And they will benefit from growing crypto prices.
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.