Cryptocurrency payments are not as uncommon as they used to be in the past. Bitcoin, Dogecoin, Litecoin, Ethereum, and many other tokens are freely exchanged nowadays. They are used in gambling, but also trading. Some stores are even starting to accept cryptocurrency payments, and crypto trading services are becoming more available.
Even though they are gaining more acceptance as time goes on, cryptocurrency payments are still not accepted everywhere. The demand is high among crypto enthusiasts, though, and if you own a business, the idea of taking cryptocurrency payments sounds pretty convenient.
There are pros and cons associated with taking payments in cryptocurrency, though, so if you do not know what to do, keep reading to learn what it could bring to the table.
The Pros of Taking Cryptocurrency Payments
- Quick Payments
Paying with fiat currencies can take some time. This is because many payment methods take days to process sometimes.
Meanwhile, crypto payments take seconds or minutes depending on the case. Thus, anyone can send the funds urgently when needed.
- Lower Fees
All merchants are aware that they have to pay high transaction fees when setting up certain payment processors. Whether you add an eWallet or a different option for payments, you’ll have to deal with setup and transaction fees.
This is less of an issue for cryptocurrencies because they usually have very low fees. For example, some Bitcoin exchanges only charge less than 1% in fees.
- More Opportunities to Get International Customers
If you’re looking to get more customers from overseas, cryptocurrencies increase your opportunities to do so. Crypto is an international currency, which means you have access to potential buyers in other markets as well.
- More Payment Security
Cryptocurrencies offer more payment security than debit or credit card payments. Unlike the latter, cryptos don’t require third-party verification. It’s harder and perhaps even impossible for someone to steal your identity when paying in crypto – that’s why cryptocurrency payments are so convenient for a lot of people today.
The Cons of Taking Cryptocurrency Payments
- Volatility
It’s not a secret that cryptocurrencies are extremely volatile. Their value changes a lot over time, and these fluctuations can affect many merchants. As a result, it’s hard to price products in crypto, and if you’re not careful, your funds will definitely take a massive blow.
- You Still Have to Pay Taxes
Many people who get into crypto do it under the impression that they will pay fewer taxes. Well, you should know that even crypto comes with tax implications. Cryptos are considered “property” by the IRS for tax purposes, so they must be reported as gross income based on what their fair market value was when you got them.
- Cryptos Are Getting Regulated
Governments worldwide are looking towards cryptocurrencies and banning them due to their impact on the environment. To mine cryptos, a lot of electricity is used. In fact, the Chinese government even ended up banning crypto transactions.
So, if the government decides to put a ban on crypto transactions, all your efforts to make cryptocurrency payments would have been in vain.
Final Thoughts
Taking payments in crypto can be beneficial, but there are also many downsides associated with it. Balance the pros and cons and find out if accepting crypto payments is the right thing for your business.