CRYPTOCURRENCIESFOR BUSINESS: THE RISKS AND BENEFITS If you’re abusiness owner and are looking for ways to improve your bottom line, maybe you’llwant to think about accepting cryptocurrencies as a form of payment from yourclients and customers.
Cryptocurrencies are getting recognized more and more asa legal form of payment, and are something that should definitely be consideredif you want to stay up-to-date with new technology and new forms of paymentthat have the potential to increase your bottom line profits. So what arethe benefits of using cryptocurrencies in your business? 1. LOWERTRANSACTION FEESOne of thereasons why cryptocurrencies are becoming increasingly popular with businessesis that cryptocurrencies have lower transaction fees. Unlike credit card anddebit card payments which would usually charge about 3-5% for each purchase,cryptocurrencies offer lower fees that reach maximum of about 1% of thepurchase price. 2. NO CHARGEBACK FEESBecause allsales done with cryptocurrencies are final, as cryptocurrencies act basicallyas cash, there are zero chargebacks.
Chargeback rates under 1% are typical, buteven rates this low can significantly increase your rates when dealing withcredit card companies. Accepting cryptocurrencies means one less thing to worryabout. 3. NEW CUSTOMERSDue to thequick development of new technology, more and more people are using digital ormobile wallets, and since paying through those services is quicker, easier, andsafer, people are increasingly gravitating to this new forms of payment. Byaccepting cryptocurrencies, you’ll be attracting more new-generation customersthat are slowly taking over the market. 4.
TIGHTERSECURITYUsing acredit card to purchase something is the preferred method of payment for manypeople because you don’t have to bother with the amount of cash you have inyour wallet. However, every time we purchase something, we’re revealingpersonal information that can be hacked by cyber thieves. With cryptocurrenciesthere is no customer information to steal which makes both you, a businessowner, and your customers less susceptible to fraud. 5. MARKETYOUR BUSINESS ACROSS THE WORLDManybusinesses limit themselves to their native country because the costs of doingbusiness in multiple currencies is restrictive. However, cryptocurrencies donot know these barriers because cryptocurrencies such as Bitcoin, Dash,Ethereum, and LiteCoin offer fast transaction and are easily converted into thelocal money.
Obviously,there are many benefits to using cryptocurrencies in your business, but thereis also one major risk if you decide to accept this form of payment.Cryptocurrencies have a tendency to have volatile price fluctuation. In otherwords, the price of various currencies (such as Bitcoin or LiteCoin) can changesignificantly from one day to another. However, potential losses can beprevented by using various programs or apps that will calculate the price ofthe coin at the time you accepted the payment and convert it into your localcurrency right away, depositing it into your local business bank account. Sobasically, even this volatility doesn’t have to present a problem if youapproach working with cryptocurrencies with the right means and knowledge.