Starting to accept payments with cryptocurrency and fully integrating the cryptocurrency payment system into your business will help you grow and reach new heights. Although businesses generally accept their payments as payment for cryptocurrencies such as BTC and ETH, which have a strong, solid place in the crypto money market, Bitcoin is the most preferred in this area.
Compared to credit cards, Bitcoin provides low-cost and fast transactions. Secondly, Bitcoin is quite easy to use and accessible. To start accepting Bitcoin payments, you need to follow a procedure and announce that you accept Bitcoin payments on the market. Not only will this bring in new customers, but it will also attract the attention of the news media.
If you have a small business or have a restaurant or an online store, you may be thinking about how to start the process of Bitcoin payments.
In this article, we’ll talk about the steps that will help you in your business how to make the transition to a cryptocurrency payment system.
1. Create Your Cryptocurrency Address
The most important thing you need to start with is a cryptocurrency wallet. If we describe it through the Bitcoin wallet, the user or sender needs to enter the recipient’s Bitcoin address, scan the recipient’s QR code, and then send the requested amount by pressing send.
It is imperative that you store your money in a safer place just as you would store a cash register. It is recommended that you keep a small number of Bitcoins on a server, mobile device or computer for regular use and store bulk Bitcoins in a safe place. You can learn how to set up your wallet and use advanced security methods to protect your wallet.
2.Use a Payment Infrastructure
If your business is large-scale and you process a lot of transactions in a day, it is recommended that you use a payment infrastructure. Usually, they charge a monthly fee to provide payment infrastructure services, but they are still better and cheaper than credit card fees. With payment infrastructure applications, businesses can set up POS and send email invoices. Businesses that don’t want to risk their money and don’t want to hold Bitcoins can instantly convert bitcoins into fiat currencies using these infrastructure systems.
3. Announce the Acceptance of Bitcoin Payments
Bitcoin users always support the Bitcoin community and everything related to Bitcoin. Customers always expect businesses to announce that you only accept Bitcoin. It doesn’t matter what kind of business you have; online or offline, you need to put up a board “Payment can be received with Bitcoin at this business”, as well as payment for MasterCard, PayPal, Visa and more. The best way to attract and engage customers is to announce that you accept Bitcoin payments.
4.Accounting and Taxes
Accountants keep a record of all transactions and know when to start accepting electronic payments. Before you start accepting Bitcoin payments, contact your accountant and understand the way cryptocurrencies like Bitcoin keep and maintain records.
There are some accounting firms on the market that specialize in storing cryptocurrencies; reach out to them. Get to know the companies that handle Bitcoin-related tax issues. Understand the entire process and learn about the tax relief obligations that fall under the IRS guidelines. This will clarify you about Bitcoin’s accounting and tax procedures.
Disadvantages of the cryptocurrency payment system and the reasons why some companies do not receive payments with crypto money
If you think that getting paid with cryptocurrency sounds like a pretty sweet deal, make sure you’re aware of all the risks and possible drawbacks:
- Volatility: Cryptocurrencies are highly volatile, so the amount you get paid today may be worth much less tomorrow.
- Gamble: Some critics of receiving payments with cryptocurrency argue that this approach encourages people to gamble effectively. Due to the highly speculative nature of cryptocurrencies, there is no way to know how much your assets may be worth in the future.
- Regulatory changes: Cryptocurrencies are still largely unregulated. This means that there is always a risk that the value of cryptocurrency assets, or even their legality in some cases, will be affected by future law changes.
- Tax requirements vary: If you are buying cryptocurrency from an overseas source, you should be aware that the tax treatment of cryptocurrencies varies or may vary from country to country.
There are many large companies that receive payments with Bitcoin. The most recent of this was Elon Musk’s announcement that his company Tesla would receive payments in Bitcoin. Although cryptocurrencies have been around for about a decade, they are just beginning to gain popularity. In the past, companies only took out cash, loans, or checks, but now, with the ever-evolving society, many companies are finally starting to accept cryptocurrencies as a means of payment. At the beginning of these is Microsoft. Tech giant Microsoft is accepting Bitcoin. But there are conditions. For example, you can only use Bitcoin to transfer money to your Microsoft account. So you can’t buy anything from the Microsoft online store, but you can buy things like digital games, downloadable movies, and apps from the Windows and Xbox store for your Xbox console.
Businesses Using the Cryptocurrency Payment System
Subway: we know their sandwiches because fast food giant Subway now accepts Bitcoin as a source of payment. You can trade your bitcoins for sandwiches.
PayPal: It accepts Bitcoin as a form of payment. It is one of the first companies to start accepting cryptocurrencies as payment for transactions completed through them.
