With the appearance of multi-choice payments on eCommerce, business owners have to provide their customers with diverse purchase options. If you plan to integrate cryptocurrency payments into your business in the near future or already look for a company that will help you to launch this service, this guide is for you.
Firstly, ask yourself how much do you know about cryptocurrency that is changing the world of business and finances. Let’s begin with a few quick definitions. Cryptocurrency is digital money. It helps to simplify transactions and make them faster and safer. With cryptocurrency, your business doesn’t need physical money anymore or even banks in some cases. You can avoid transaction fees or use it as an investment as their value goes up. The most well-known cryptocurrencies are Bitcoin and Ether but new cryptocurrencies are constantly created. Cryptocurrency keeps safe in a digital wallet, either online, on your computer, or on other hardware.
The rise of cryptocurrency is associated with blockchain technology that was originally created for bitcoin transactions but now is widely used by banks and some companies (e.g. Shopify, Expedia, Overstock, Pay Pal, Microsoft). The blockchain is a decentralized ledger that has no location and transactions can be confirmed without a central authority confirmation. Blockchain also has the potential to go far beyond bitcoin and cryptocurrency because it offers higher revenue for business owners than traditional investments. This guide will help you understand these changes and what is necessary to do with them.
What cryptocurrency can give for business?
Here we will discuss in detail the advantages of cryptocurrency for business.
No Banks: Bitcoin is a peer-to-peer network, no need to visit banks for loans.
Anonymity: When you trade using a cryptocurrency wallet, only your wallet ID is visible. This can protect your business and identity and digital gold is a perfect opportunity for startups as well as medium and large businesses. However, it can be a disadvantage because of illegal transactions that cannot be traced.
International payments: You don’t have to worry about exchange rates when you are trading and buying cryptocurrency.
Investments: Bitcoins and other cryptocurrencies is a perfect opportunity to scale your business as their value is steadily rising every year.
Transparency of the payment system: Existing transactions are sometimes inefficient, expensive, and vulnerable to data leakage. Blockchain technology is impregnable to any third-party interference and hacker attacks.
Drawbacks:
No regulations: There are no regulations within or between countries, not so many businesses use cryptocurrency at the moment.
Cybersecurity: Though blockchain guarantees the safest transactions, don’t trust anyone with your private keys.
Currency fluctuation: As a physical currency, cryptocurrencies also fluctuate in value. Due to the limited amount of bitcoins for example, their value can significantly go up and down. This peculiarity should be taken into consideration.
Which business needs cryptocurrency?
Many businesses are now thinking of cryptocurrency as a possible payment method because of its numerous benefits for small, medium, and large companies. Blockchain can be used to track every step in the shipping, cross-border trade, supply chains, financial services, government, retail, etc.
A cryptocurrency exchange or wallet?
Though exchanges continue to improve their security, the main drawback is that you don’t have direct ownership and need to trust your private keys to a 3rd party.
On the contrary, the only drawback of cryptocurrency wallets is that you are fully responsible for your funds. In case you have lost your backup phrase, there is no possibility to access your wallet. Anyway, cryptocurrency wallets are considered to be safer and more reliable. A wallet can be secured via two-factor authentication.
Evercode Lab developed unique multi-currency crypto wallets (Atomic Wallet and White Label Wallet). Atomic Wallet is easy to use and it can independently determine the best exchange rate. White Label Wallet is a non-custodial cryptocurrency wallet that has all basic features: send tokens, receive tokens, view transaction history, transaction fee control, and many other features upon request. If you have any questions, please leave your contacts, and Evercode Lab will offer you a free consultation.
