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Why You Should Accept Cryptocurrency in Your eCommerce Store
Running an e-commerce site provides you with a plethora of possibilities that are unavailable to brick-and-mortar enterprises. One benefit is that you'll be well-positioned to accept digital currency as payment, often known as cryptocurrency.
Due to the increasing demand for tokens like Bitcoin and Ethereum, cryptos have been in the news a lot recently. Many online companies have begun to consider taking various cryptocurrencies as payment for products and services, and investors aren't the only ones who may gain from this technology.
Is it OK for your company to be one of them? Continue reading to find out.
How transactions work in cryptocurrency
If you want to accept cryptocurrency payments from your customers, you'll need to understand how they work.
Almost all cryptocurrencies make use of blockchain technology, which acts as a secure digital record of all transactions done with a particular token.
When a new transaction is registered, unlike conventional digital records (which are typically maintained in a single location), blockchain distributes several copies of the record to different devices over a large network.
It makes transactions nearly hard to fake in this way. Any effort to falsify a transaction or tamper with a record would be quickly debunked by several copies of the original.
Advantages of accepting cryptocurrency as a payment method
Customers and vendors alike may be confident in the security of bitcoin transactions because of blockchain technology
You won't have to worry about credit card fraud, and you won't have to worry about misplacing physical money. It's also possible that you won't have to deal with client refunds or returns.
This is due to the fact that several cryptocurrencies provide their users with partial (or even complete) anonymity.
Users of Bitcoin, for example, must have a "Bitcoin address," which need not be linked to their actual address or even their real name.
Many users like cryptos because the possibility of anonymity helps them secure their personal information — but you can't give a client a refund if you don't know who they are.
Let's look at a few of the specific advantages of taking cryptocurrencies into your online store:
Accepting bitcoin as a payment option will open up a whole new market of tech-savvy customers who have formed a community around the cryptocurrency market. Allowing customers to pay with a digital wallet or a credit card platform helps you to reach out to a wider audience and appeal to customers all over the world.
Unlike credit card systems, which take a few days to batch out and process, Crypto is handled instantly, allowing you to access cash much faster. Fast transactions can help your company's cash flow run more smoothly.
The minimal fees connected with each transaction are another advantage of using cryptocurrencies as a payment method. The fees vary depending on whether you accept bitcoin into your personal wallet or through a third-party source, but they will almost certainly be cheaper than those charged by PayPal or credit card companies.
Unless you have the merchant's permission, it's impossible to reverse a bitcoin transaction once it's been completed. This gives shops additional protection against eCommerce fraud since there is no middleman, such as a bank, who may remove cash from your account without your permission.
To summarize, there are several advantages to adopting cryptos:
- Records of secure transactions
- Anti-fraud protection
- There's no need to provide refunds
- Broader market
- Fast transactions
Disadvantages of accepting cryptocurrency as a payment method
Cryptocurrencies provide a lot of advantages for companies, but they also have a lot of hazards.
Accepting payment in cryptos carries the danger of their value fluctuating dramatically and without warning. Even highly utilized tokens like Bitcoin are prone to wild market swings, but smaller tokens are even more vulnerable.
Furthermore, a group of investors may coordinate their attempts to buy a token at the same moment in order to artificially inflate its value and attract new investors.
However, when they continue to sell their tokens to these investors, the value of the token will fall, leaving the future holders with a worthless investment.
These "pump-and-dump" tactics are particularly prevalent with new or lesser-known tokens because their limited user base makes moving the token's value with a smaller set of players simpler.
The value of cryptocurrency can also be influenced by regulations in certain countries that limit the ease with which tokens can be mined or distributed.
The following are some of the drawbacks of accepting cryptocurrency at your business:
- The value of the tokens you acquire is uncertain or unpredictable, and
- There’s a chance that regulations in your region will change and restrict the usage of cryptos.
Accepting payments in cryptocurrency
Accepting bitcoin in your eCommerce business may be done in two ways: through your personal wallet or through a third-party payment processor. Both techniques will be discussed.
You'll need a virtual wallet if you want to accept cryptocurrencies through your personal wallet. You can buy a hardware wallet or download most wallets instantly to your phone or PC. A hardware wallet is a physical safe that saves bitcoin on a dedicated hard drive within the device. It's actually the only safe hardware device for storing a user's private key.
Otherwise, you may utilize a third-party payment processor like Coinbase or BitPay, which will manage the whole payment process for you, much like credit card payment processors. One advantage of utilizing a third-party payment processor rather than a personal wallet is that they may convert bitcoin into cash quickly, avoiding price fluctuations.
The term "price volatility" refers to the rapid and dramatic swings in value that bitcoin experiences. If you're shielded against this, you'll get paid the amount you charge, even if the coin's value changes in the middle of the transaction.
Royex Technologies has been at the forefront of Blockchain and Cryptocurrency development for many years now. We will help you seamlessly integrate blockchain and cryptocurrency technology in your mobile app and eCommerce solutions. We have developed our own crypto, ryxcoin, so we are well familiar with this emerging technology. If you are interested in any blockchain and cryptocurrency projects, contact us today. Feel free to call us at +971566027916 or mail us at email@example.com, and we can send you a proposal based on your idea.
About the Author
Shams Mohammed works as a Digital Marketer for Royex Technologies. He has over 5 years of experience as digital marketer with special focus on lead generation and brand awareness. He has undertaken several projects and delivered them successfully and wishes to continue developing and growing as a successful Digital Marketer.