Cryptocurrency is a digital asset that is becoming more frequently used worldwide. Nowadays, it is used not only for earning and preserving capital but also as a tool for accepting payments worldwide.
What are the advantages of cryptocurrency as a means of payment? Does it have any disadvantages? How to accept payments in cryptocurrency to sell goods and services? We will answer all the important questions.
Advantages of Cryptocurrency as Payment Acceptance Means
Cryptocurrency as a payment instrument has many pros:
- An increasing number of buyers around the world. It becomes easier to accept international payments. This is especially relevant for those who consider citizens of other countries as the target audience, for example, when sending goods abroad, selling digital products, etc.
- There is virtually no risk of funds being blocked. Cryptocurrency decentralization indicates the lack of a single supervisory body. Using cryptocurrency allows you to bypass most restrictions imposed by particular states and banks.
- Commission costs are reduced. When you make a cryptocurrency transaction, you are charged a blockchain network fee that is significantly lower than international bank transfer fees.
- Cryptocurrency transactions are carried out fast. Since intermediary banks are no longer needed, the time for each transaction is significantly reduced. Furthermore, the transaction speed can be accelerated by a higher fee.
- Inflation hedging is possible. The devaluation of fiat currencies is a major threat to all financial market participants. For example, for Venezuelans, buying stablecoins is one possible way to cope with hyperinflation, which has reached a million percent over the past years.
- Personal data is much better protected. Accepting payments in cryptocurrency ensures complete confidentiality of wallet owners' information. Due to this, the risk of fraud, information theft and other malicious incidents is minimized.
- It is possible to make payments at any time. Unlike banking institutions, transactions in cryptocurrency are conducted regardless of the date and time of day.
Disadvantages of Cryptocurrency Payments Acceptance
The cons of using cryptocurrency as a means of payment:
- Cryptocurrency is highly volatile. Unlike fiat, cryptocurrency is much more affected by many factors.
- No chargebacks. This means that it is impossible to dispute a transaction that has already taken place. Sometimes, it is beneficial, as unscrupulous market participants will create no problems. However, you should carefully monitor the correctness of details, as the responsibility for an error lies solely with the sender. It will likely not be possible to return the lost funds.
- Regulatory authorities pay increased attention to international counterparties that accept crypto-payments. Due to the lack of centralized control, they are sometimes under suspicion, even if they do not violate the law.
- Although accepting cryptocurrency payments is very promising, only some market players use it. Conservative heads of organizations and individuals do not trust crypto payments and prefer standard payments through international services and banks.
- Possible difficulties with paying taxes. When receiving income from the sale of cryptocurrency, it is necessary to pay taxes following the laws of a particular country.
What Is Crypto Processing and How Can You Connect It?
Crypto processing is a way to accept online payment for goods and services using cryptocurrency. By connecting it to your website or online store, you can increase payment conversion and improve the project's financial performance.
Pros of cryptocurrency acquiring:
- accepting international payments becomes much easier than with bank cards;
- payment risks are nearly eliminated, owners' accounts are safe;
- transactions are processed automatically regardless of the time and day.
To accept cryptocurrency payments, it is better to use the services of a company that offers clear payment terms and ensures the security of customer data. Previously, we reviewed the best crypto-processing services, which you can find here.
For example, the process of connecting crypto processing with CryptoCloud is as follows:
- You create an account and fill in information about your project in your personal account.
- You choose the connection method. You can use a ready module for popular CMS (Woocommerce, Opencart, PrestaShop, etc.), a structured API, as well as a generic HTML widget.
It will take you no more than an hour to start accepting cryptocurrency on your website.
Read more about the service features and connecting crypto processing in the article.
Cryptocurrency Is the Optimal International Trade Payment Method
Making and accepting payments without being limited to a particular country is much easier with cryptocurrency. Decentralization and anonymity, of course, have both positive and negative sides. However, cryptocurrency's advantages make it a sought-after financial instrument in different countries.
It is sufficient to connect crypto processing to accept international payments without difficulties. Today, one of the most convenient and reliable tools is the CryptoCloud payment processing service. If you have any questions regarding the operation of the service, we recommend you to read our knowledge base.