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Interest in cryptocurrencies has been growing since Bitcoin, the oldest cryptocurrency in the market, passed the $20,000 mark. With the growing popularity of cryptocurrencies, you may be wondering whether they would be a great fit for your business. This article will look at some practical and technical considerations that you need to think about before accepting cryptocurrencies. We will also look at what else you need to know before you do so.
While you do not need to know how cryptocurrencies work to accept them or use them, you need a level of technical knowledge to use them. First, you need to know how to create a digital wallet. This is the wallet that holds your cryptocurrency. Usually, you open a wallet with an exchange which helps you convert your fiat currency into cryptocurrencies and vice versa.
The good news is that cryptocurrencies have come so far that you do not have to think too hard about these technicalities, as most exchanges are straightforward. There are also platforms being developed to cater to businesses specifically. These platforms allow businesses to accept any cryptocurrency or digital asset.
Cryptocurrencies Offer Better Security
Credit card fraud has been increasing over the past few years as malicious actors have improved their methods and the number of people using credit cards has increased. Debit and credit cards make up a majority of the fraudulent transactions, Unfortunately, most attacks are targeted towards small business owners.
Cryptocurrencies are so secure because they do not require any verification. When a business accepts cryptocurrency or a customer pays with it, all this information is not stored in a database where malicious actors can siphon it off. Because most data breaches occur in databases, there would be no information to steal even when a database is breached.
All this information is stored in a wallet. Also, the general blockchain ledger records and verifies all transactions. So, unless someone steals your wallet, there is no way to get your crypto. That said, it is also important to put additional measures like 2-factor authentication or facial recognition in place to prevent unauthorised wallet access.
Cryptocurrency Transactions Cannot Be Reversed
Businesses lose billions of pounds every year from fraudulent chargebacks. However, cryptocurrency solves these problems because transactions cannot be reversed. This eliminates the losses businesses have to write off and reduces the amount of work businesses have to do keeping their records intact.
However, this can also be a problem. Because these transactions are not reversible, a business has to issue a refund manually. If there are many refund requests, a business can lose a lot of time and manpower checking the refunds and sending them manually.
Because of this, businesses are asked to keep immaculate records to make processing any refunds as easy as possible.
Cryptocurrencies Allow You to Cater to Customer Preferences
People are becoming increasingly concerned about their personal or banking information being leaked should a business have a data breach. This concern is not unfounded because there have been several high-profile data breaches in the past few years. Because of this, people are increasingly asking for a secure way to pay, and cryptocurrencies are the perfect option for businesses in this case.
Another case where people prefer cryptocurrencies is where they do not want their personal information tied to their financial transactions. The anonymity that cryptocurrencies provide is great for this. We see a significant demand for the acceptance of cryptocurrencies in industries such as the casino industry, where some people do not want their casino activity tied directly to them.
The good news is that if you are in this camp, an increasing number of casinos now accept various cryptocurrencies. You can explore the top cryptocurrency casinos in the world at OnlineCasinos, where they review online casinos and provide all the information you would need on them. OnlineCasinos provides detailed reviews that include games, payment options, live dealer options and much more.
Depending on the payment provider you choose, your business can pay up to 5% in transaction fees. This does not include the cost of setting up these payment options. Cryptocurrency transactions are very cost-effective because there are no payment processors or central authorities. These transaction fees can be as low as 1%, and in some cases, even lower than that. The difference in transaction costs can add up for companies that experience high volumes.
Cryptocurrencies also benefit businesses that conduct overseas business. Cryptocurrencies do not belong to any country or bank and thus are not subject to currency exchange fees or international transfer fees. Businesses do not have to deal with these costs or the time it takes for a business or payment processor to process the payment.
Cryptocurrencies Can Help Increase Sales
Reduced costs are not the only benefit of cheaper and faster international money transfer using cryptocurrencies. Cryptocurrencies allow you to sell your products and services to any country in the world. This opens up new markets where you previously could not sell due to prohibitive exchange rates. Businesses have reported seeing revenue increases of 5-10% by including cryptocurrency as a payment option.
The main thing that could stop your business from accepting cryptocurrencies is volatility. The price or value of cryptocurrencies rises and falls unpredictably. Because of this, your business would have to make records of all transactions and their values and try to convert cryptocurrencies into other currencies as soon as possible. This is a practical limitation that can put off a lot of business owners.
Fortunately, some services help convert all cryptocurrency a business receives into fiat currency. This helps protect businesses against volatility, but it also means businesses cannot see any gains from an increase in the value of the cryptocurrency they hold.
There is a lot to understand when it comes to cryptocurrencies. The good news is that you do not have to get too deep into the technical details to start accepting them in your business. Considering that they come with numerous benefits, it is worth setting up a wallet and accepting cryptocurrencies.
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