Since the invention of Bitcoin, a lot of changes have been made to the digital currency to render it a safer and more reliable tender. This is typically why Bitcoin has joined the mainstream modes of payment and transaction as more people and businesses adopt cryptocurrencies as an alternative payment method.
Advantages of Accepting Crypto Payments
With the future of cryptocurrencies looking appreciable and the price of Bitcoin skyrocketing, more and more people are joining the race. Cryptocurrencies offer much faster transactions and at a lower cost compared to traditional credit cards. Another advantage is that cryptocurrencies are easy to use and they are highly accessible.
For you to start accepting crypto payments, there is a procedure you will have to follow, and you must announce to your market that you are accepting payments in cryptocurrencies. Such a move will not only attract more customers, but it will also draw news media to your business.
Bitcoin, for instance, is the most trending and popular cryptocurrency, and the Bitcoin community will do anything to support businesses that accept this mode of payment. If you run or operate a small or medium business and thinking of incorporating Bitcoin payments in your business, we will guide you on how to get started.
How to Get Started
Below are the steps you should follow when starting out with cryptocurrencies in your company or business.
1. Generate Your Bitcoin Address
The most vital thing to set up is a digital wallet. A Bitcoin wallet has its unique bitcoin address, just like an email address, which customers and clients will use to make their payments. All your customers will need to do is input your Bitcoin address, scan your QR code and send the invoice amount by pressing the send button.
It is important that you store your bitcoin in a safe place the same way you safeguard your cash register. Experts recommend that you only store a small amount of Bitcoin on mobile or a server for regular use and store the bulk of your cryptocurrency stash in a more secure place.
There are hundreds of articles online on how to set up a digital wallet and apply advanced security measured to safeguard the e-wallet.
2. Utilizing a Payment Processor
If you run a large-scale business where the number of daily transactions is high, using a payment processor is a smart idea. The payment processor provider will charge you a monthly fee for the service, but it is better and cheaper compared to credit cards.
By utilizing a payment processor, your business can operate a POS and send email invoices to your customers. If you are afraid of risking your treasure by holding your wealth in Bitcoin, this software will help to instantly convert the cryptocurrency into fiat currency.
3. Publicizing Acceptance of Crypto Payments
The cryptocurrency space is made up of a very supportive community that supports businesses that accept this mode of payment. Potential customers from this community are eagerly waiting for businesses to announce that they accept Bitcoin payments for them to start visiting your business.
Regardless of your business model, whether online or offline, you will need to put up a “Bitcoin Accepted Here” notice or include it in your payment methods alongside Visa, PayPal, and MasterCard. Publicizing your crypto payment acceptance is a great way to engage and attract more customers.
4. Taxes and Accounting
Accountants are hired to keep a track record of all business transactions, and they will know how to go about accepting crypto payments. Prior to accepting payments in crypto, consult your accountant to understand the best way to keep and maintain a record of crypto payments.
With many accounting firms specializing in crypto payment management, you have a plethora of options at your disposal. Find reputable firms that deal in crypto-related tax issues to help you understand the process of meeting tax obligations under the IRS guidelines while accepting payments in cryptocurrencies.