Accepting cryptocurrency payments in 2022: pros, cons and how to get started

Accepting cryptocurrencies in a business has become easier and more common over the past decade. However, it is still difficult to earn them as a person. Finding a payment partner (likely), working through integration issues, and planning your cash conversion strategy are all on the to-do list.

Who accepts cryptocurrencies?

The first high-profile companies to accept cryptocurrency payments reflect the beginning of the technology - companies like Microsoft and PayPal have been accepting it to some degree for years. Overstock has pushed blockchain adoption one step further by supporting new blockchain initiatives as well as allowing users to buy a new coffee table, juicer, or whatever else they want using Bitcoin (quotation BTC). In recent years, less technologically advanced organizations have started going online, including Whole Foods, Home Depot, and the NBA, to name a few.

Global companies like these can generate stocks if they start accepting cryptocurrencies, but millions of small businesses around the world also accept payments, grabbing some of the more than $ 1 billion in daily Bitcoin transactions alone.

Why accept cryptocurrencies?

Payments are faster and cheaper and can be attractive to businesses. Payments can potentially promote the development of new business models, similar to how the rise of card payments has facilitated the growth of online shopping.

Should you do it yourself or use a payment tool? Peer-to-peer transactions are a core component of cryptocurrencies. In other words, you don't need the services of a third party processor. This is the most convenient option; for example, Bitcoin is free to receive and can be free to transfer.

Creating a payment process, on the other hand, is a task that requires time and technological expertise. Cryptocurrency payment gateways address this need by allowing businesses to easily start taking cryptocurrency payments. You will almost certainly need to fill out an application with information about your company, and additional information may be required if you intend to convert cryptocurrencies into cash through the service provider.

These services can act as a substitute for the payment processor because they can accept credit card payments. You will need both if you want to accept card and cryptocurrency payments.

Which cryptocurrencies to accept?

There are thousands of cryptocurrencies, however not all of them are accepted by all services. Bitcoin, the most popular, is widely accepted, as are other coins such as Ethereum, Litecoin, and Stellar Lumens.

If you are considering accepting cryptocurrencies, talk to your accountant or accountant first.

First of all, you should be aware of the tax ramifications, especially if you intend to hold the cryptocurrencies you receive.

Second, consider how your point of sale system information will be delivered to your accountant. If you're using a cloud-based system like QuickBooks or Xero, for example, you'll want to know if your cryptocurrency payment tool interfaces with it.