FOR BUSINESS: THE RISKS AND BENEFITS
If you’re a
business owner and are looking for ways to improve your bottom line, maybe you’ll
want to think about accepting cryptocurrencies as a form of payment from your
clients and customers. Cryptocurrencies are getting recognized more and more as
a legal form of payment, and are something that should definitely be considered
if you want to stay up-to-date with new technology and new forms of payment
that have the potential to increase your bottom line profits.
So what are
the benefits of using cryptocurrencies in your business?
One of the
reasons why cryptocurrencies are becoming increasingly popular with businesses
is that cryptocurrencies have lower transaction fees. Unlike credit card and
debit card payments which would usually charge about 3-5% for each purchase,
cryptocurrencies offer lower fees that reach maximum of about 1% of the
2. NO CHARGE
sales done with cryptocurrencies are final, as cryptocurrencies act basically
as cash, there are zero chargebacks. Chargeback rates under 1% are typical, but
even rates this low can significantly increase your rates when dealing with
credit card companies. Accepting cryptocurrencies means one less thing to worry
3. NEW CUSTOMERS
Due to the
quick development of new technology, more and more people are using digital or
mobile wallets, and since paying through those services is quicker, easier, and
safer, people are increasingly gravitating to this new forms of payment. By
accepting cryptocurrencies, you’ll be attracting more new-generation customers
that are slowly taking over the market.
credit card to purchase something is the preferred method of payment for many
people because you don’t have to bother with the amount of cash you have in
your wallet. However, every time we purchase something, we’re revealing
personal information that can be hacked by cyber thieves. With cryptocurrencies
there is no customer information to steal which makes both you, a business
owner, and your customers less susceptible to fraud.
YOUR BUSINESS ACROSS THE WORLD
businesses limit themselves to their native country because the costs of doing
business in multiple currencies is restrictive. However, cryptocurrencies do
not know these barriers because cryptocurrencies such as Bitcoin, Dash,
Ethereum, and LiteCoin offer fast transaction and are easily converted into the
there are many benefits to using cryptocurrencies in your business, but there
is also one major risk if you decide to accept this form of payment.
Cryptocurrencies have a tendency to have volatile price fluctuation. In other
words, the price of various currencies (such as Bitcoin or LiteCoin) can change
significantly from one day to another. However, potential losses can be
prevented by using various programs or apps that will calculate the price of
the coin at the time you accepted the payment and convert it into your local
currency right away, depositing it into your local business bank account. So
basically, even this volatility doesn’t have to present a problem if you
approach working with cryptocurrencies with the right means and knowledge.