Are you a business owner looking for a small business crypto guide? If you own a small business, you might be wondering whether it’s possible for your business to accept cryptocurrency.
Not only is it relatively easy to get set up to accept crypto, but it also comes with many benefits for your business. For example, attracting a new customer base, hiring and paying workers around the world, and keeping your business competitive.
If you’re new to crypto, you might think it’s complicated to accept it as payment in your business. That’s why we’ve started this new small business crypto guide to help clear things up for business owners interested in digital currency.
This series will walk you through everything you need to know about crypto and your small business, including its benefits to customers and employees, what technology you’ll need to accept it, and taxes and regulations.
Why is crypto gaining popularity?
The first cryptocurrency, Bitcoin, came onto the scene 13 years ago in 2009. Since then, cryptocurrency has exploded in popularity, especially in the past few years.
Cryptocurrency’s total market capitalization reached an all-time high of over $3 trillion in late 2021. While it’s decreased since then, it still remains at a about 2.6 trillion as of the time of this writing.
Of course, Bitcoin makes up most of this amount, with a market cap of a little over 1.3 trillion.
2021 was also a big year for Bitcoin in terms of institutional adoption. It became recognized as an official legal tender in El Salvador. And in the U.S., several politicians have pledged to take their paychecks in it.
But what’s behind all this interest in cryptocurrency?
Many people turn to cryptocurrency because they believe it’s more secure, less regulated, and isn’t controlled by a single entity.
Blockchain, the underlying technology that powers crypto, is one of the most secure cryptographic systems. This is because it is decentralized – transaction data isn’t hosted on any single server.
Instead, copies of that data are spread out across thousands of computers worldwide. This makes it very difficult for a hacker to get into the system because they would need to take over 51% of every computer in the network.
And because no one “owns” or controls the system, cryptocurrency can’t be artificially inflated. Some cryptos, like Bitcoin, have a fixed supply, ensuring that more coins can’t just be created out of thin air. Others have regular “burnings,” where supply is cut to maintain value.
Others turn to crypto because it is less regulated and controlled than the traditional financial system. Instead of going through middlemen before making a transaction, crypto opens up the possibility of direct, peer-to-peer transactions, whether domestic or international.
While regulation will come to crypto in the near future, and already has in some places, at the moment it remains largely unrestricted.
Pros of accepting crypto in your business
Throughout this small business crypto guide, we’ll explore why you should consider accepting crypto in your business. But in general, what benefits can you expect from embracing digital assets?
First, using crypto can help you attract a broader customer base in a couple ways. Younger, more technologically savvy consumers may be more inclined to shop at your business when you make it easy to pay with their preferred payment method.
And if your small business does transactions online, offering crypto payment methods can make it easier to gain international customers who don’t have to worry about fiat currency conversions.
Another benefit is fewer, if any, transaction fees. Credit cards come with fees because middlemen are involved in the process. As the merchant, you are responsible for paying these fees, including processing fees, interchange fees, and assessment fees.
But with crypto, it’s a direct payment between you and your customer, so there are no fees. If you choose to use a crypto payment processor (the easiest way to accept crypto), you’ll probably have to pay a fee, but it will be considerably less than credit card companies or traditional banks charge.
Another benefit of accepting crypto is that transactions are instant. Instead of waiting days to receive your payment, crypto is received in your account instantly, where it can then be converted into fiat currency. This is also due to the lack of middlemen in the transaction.
Lastly, as mentioned above, crypto comes with better security because of its decentralized nature. Your transaction data is stored safely on the blockchain, and you don’t have to worry about trusting third parties with any sensitive information.
Risks of accepting crypto as payment
Of course, it’s important for this small business crypto guide to be honest about some of the risks associated with cryptocurrency and what that can mean for your business.
The biggest and most obvious risk is crypto’s volatility. It’s no secret that the price of crypto fluctuates rapidly – it can sometimes change by the hour.
However, crypto makes a great long-term investment. Crypto payment processors will allow you to convert your crypto to fiat currency the instant it enters your account. But if you’d rather wait until the market price rises, you can always convert it later.
Another risk is storing your crypto safely. Finding the right wallet to protect your crypto is crucial. The most secure option is cold wallets, where your crypto is kept offline. But they come with a bit more responsibility in keeping the wallet password in a safe place.
Keeping your crypto on an exchange is not ideal, as that’s where you’re more likely to experience theft.
What’s next in the small business crypto guide?
Crypto is more than just a popular trend. It’s likely to be a key part of the financial future, and many businesses have already made the shift to accept crypto.
In the next post in the small business crypto guide series, we’ll look at how businesses have adapted to technology throughout history and how doing so can make your business more competitive and efficient.
About the Author
Michael Hearne
About Decentral Publishing
Decentral Publishing is dedicated to producing content through our blog, eBooks, and docu-series to help our readers deepen their knowledge of cryptocurrency and related topics. Do you have a fresh perspective or any other topics worth discussing? Keep the conversation going with us online at: Facebook, Twitter, Instagram, and LinkedIn.
