Small Businesses Must Understand Cryptocurrency Before They Start Accepting
Cryptocurrency is a rage with wild fluctuations in its value almost every day. After 13 years, it has found its way into the mainstream as a medium of exchange. It is traded actively 24/7. In the US, over 30% of small businesses are accepting it as the payment mode.
Payment gateways are an appealing exchange medium, as it allows businesses and individuals to exchange their cryptocurrency in FIAT currencies, and vice versa. SuisseBase is one of highly recommended digital asset exchange offering payment gateway Bitcoin in EU fees for high net worth B2B clients. They make it possible for investments on most of the cryptocurrencies.
It is a digital currency depending on P2P [peer-to-peer] blockchain technology. It is decentralized or unregulated or unsupported by regulations. The transaction payment process between the buyer and seller is direct without the need for 3rd parties.
Instead of storing your coins in banks or financial where you depend on them for security, you hold an encrypted key and conduct the payment process. Businesses can easily exchange their normal currencies with cryptocurrencies on SuisseBase. Hacking and data breaches are getting more and more sophisticated, so cryptocurrencies seem to be appealing because hacking blockchain is nearly impossible.
Small businesses can accept cryptocurrency payment modes for multiple reasons. The following points will enable you to understand if it is the right payment method for your small business.
Benefits of cryptocurrency acceptance
Save on transaction charges
As there is no third-party interference, the transaction fees are drastically reduced. For example, credit card processing cost for each swipe ranges from 2% to 4% of the total transaction cost. The costs add up but with crypto, the costs can reduce to less than 1% on every transaction.
Merchants are protected from duplicitous chargebacks because cryptocurrency has a decentralized structure. No 3rd party can reverse the charges because crypto transactions are final and irreversible.
Increase access & sales
Small businesses can widen their services towards international borders. Overseas buyers who were unable to buy your products or services can gain access with cryptocurrency acceptance as payment. Thus sales increases!
Customers find an extra convenient way to pay. It simultaneously offers an extra protection layer for their sensitive information. Customers can maintain their anonymity because there is no need to give details in cryptocurrency transactions.
Barriers to cryptocurrency acceptance
You need to set up a digital wallet, which can be technically a limitation for small businesses not tech-savvy. The learning curve is relatively steep because of the cryptocurrency’s high volatile nature.
Cryptocurrency value is highly unpredictable. Investors can choose cryptocurrency as their speculative investment, but it even seems like gambling with a business revenue stream.
Cyber threats are eliminated but it is the wallet where people store their Bitcoins or digital assets that are at risk. It is highly risky because, like fiat currencies, crypto coins have no insurance or legal support. Nevertheless, there is work going on in changing this security issue. It is generally the user’s responsibility to protect their wallet.
Most of the barriers can be avoided by using Suissebase exchange. They adopt the security principles followed by pharmacy companies and banks. 95% of their client’s digital assets are stored off-chain. The platform is designed to offer a smooth and stress-free trading experience.
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