Cryptocurrency and blockchain technology has been universally acclaimed. The introduction of digital wallets has paved the path for more convenient and immediate payment alternatives.
Cryptocurrencies have recently made headlines due to the increasing demand for tokens such as Etherium and Bitcoin. Many online businesses have already started considering taking various cryptocurrencies as payment for their goods and services.
By providing extra options at the checkout, using cryptocurrency as a payment method as an online e-commerce business can improve your user journey and expand your client base. Do you believe it is appropriate for your business to be one of them? Here are several compelling reasons to implement this service in your online eCommerce business.
What do you know about Cryptocurrency?
In simple terms, Cryptocurrency is a digital currency form that is not regulated by any bank or government but instead uses complex encryption techniques that allow users to spend money anonymously. Every transaction of cryptocurrency is validated by network users, and in most cases, such transactions become public records to prevent the same user from spending the currency multiple times. The key to using cryptocurrency is that each coin is unique and some coins provide more security and privacy than others.
Most of the cryptocurrencies use distributed ledger technology (DLT), which refers to a shared database where the information of each transaction is recorded in a specific currency.
Most popular cryptocurrencies use a form of technology known as blockchain technology to store information on each transaction that takes place. Transaction groups are added to this shared database, creating a chain of blocks that everyone can see. A transaction can’t be erased or amended once it’s been saved in the blockchain.
Top 4 Cryptocurrencies to Know
According to the major cryptocurrency exchanges, these four largest currencies need to be known:
- Bitcoin – a decentralized digital currency (the original cryptocurrency) was invented in 2008 by Satoshi Nakamoto.
- Ethereum – the second most powerful digital token after Bitcoin (BTC).
- XRP (Ripple) – RippleNet’s native cryptocurrency is used for international transfers with reliable and low transaction costs.
- Binance Coin (BNB) – the largest crypto exchange used for payment processing, and trading.
Accepting cryptocurrency as a payment method: the pros
Cryptocurrency and technology are gaining popularity in the eCommerce business. Using this technology you don’t have to worry about credit card fraud, and you don’t have to worry about physical transfers. It is also possible that you do not have to deal with clients.
Let’s take a look at some of the benefits of taking cryptocurrency in your online store:
Cryptocurrency data is stored in a cryptographically secure database (Blockchain). Cryptocurrencies are difficult to steal and counterfeit due to their critical encryption, which decreases the risk of fraud in digital transactions.
People are increasingly more aware of global cryptocurrencies due to the shifting terrain of the digital economy. Accepting Bitcoin as a method of payment will open up a whole new market for tech-savvy customers who have formed a community around the cryptocurrency market. Allowing clients to pay with a digital wallet or credit card platform expands your customer base and appeals to people all over the world.
Very Low fees
The minimum fee associated with each transaction is another advantage of using cryptocurrency as a payment method. Fees vary depending on whether you accept Bitcoin through your personal wallet or through a third-party source, but will almost certainly be cheaper than charging by PayPal or credit card companies.
For most credit card systems, which take a few days to batch out and process, Bitcoin is handled instantly, allowing cryptocurrency to access payments much faster. Fast transactions can help smooth out your company’s cash flow.
Accepting cryptocurrency as a payment method: the cons
To understand statistically that the emerging cryptocurrency market by the end of the last financial year has boosted the digital economy with a net market capitalization of $ 260 billion.
Cryptocurrencies offer many benefits to companies, but they also have many risks. Despite the rise of cryptocurrency in the online retail sector, many people still don’t think it’s suitable for broad use. As a result, public confidence in this digital payment system is still very low. It is important to continue your research before entering the crypto world.
Cryptocurrency adds a new type of currency, which your eCommerce can accept via a third-party system or a personal wallet.
If you think to accept Bitcoin and cryptocurrencies in your online store, make sure your system, transactions, and funds are as secure as possible. While new technologies can be confusing, we’re trying to introduce the benefits of cryptocurrency adoption to your e-commerce store.
For some years, our team (https://itech-theme.com/) has been at the forefront of Blockchain and Cryptocurrency development. We’ll work with you to integrate blockchain and cryptocurrency technologies into your mobile app and eCommerce solutions as effortlessly as possible. We’ve created our own crypto projects, the NFT marketplace, so we’re well-versed in this new technology. Please get in touch with us if you’re interested in any blockchain or cryptocurrency projects. We can send you a proposal based on your idea if you phone us at +8801832881491 or email us at firstname.lastname@example.org.