Once again, Bitcoin has captured the world’s imagination thanks to its stratospheric rise in value. In 2017, it went up to $10,000 in value and people couldn’t believe it. Now it’s well past $40,000 and shows no signs of slowing down.
One of the reasons for its spike in value is that it is becoming easier to buy and use as an actual payment method. Which is why you need to have it as an option for customers on your business. Whether you have a brick and mortar store on High Street or an online store ecommerce site, it is essential to start accepting Bitcoinas a payment.
In this article, we will go over how you can set this up for your own business so you aren’t leaving any money on the table.
Get a wallet
It’s called a digital wallet just to make it clear that it is for you to hold your cryptocurrency after your Bitcoin account sign up. The best way to actually look at it should be like it’s a treasure map. It reveals the location of your Bitcoin on the blockchain where the transaction was registered.
Then, this is also an address where people will be able to send you their Bitcoin from their wallets. With a QR code, the customer will be able to send you the required amount of money for the transaction directly to your wallet.
There is no bank involved or any third party to verify the transaction. The nature of the blockchain is such that everybody can see the transaction and the miners are the ones who verify it where it cannot be changed.
Use a payment processor
If your business is online and you are seeing multiple transactions per second, then you may need to take on a payment processor. This can help speed along the process of accepting the Bitcoin and can even send the coins to a secure wallet to protect them.
It will cost a bit of money but is still far less expensive than using a traditional payment processor for a debit or credit card. Those processors have to use middlemen that take a far larger chunk of the transaction. And it can also take quite a while for the transaction to be verified so it can make its way to your account. This is a much faster alternative as you will get the Bitcoin in a matter of minutes.
If you are unsure about holding the payments in Bitcoin then the processor can also automatically convert the payment into the fiat currency of your choice.
This could potentially create an extra layer of complexity for your accountant so make sure to contact them and find a system that works before you begin accepting the cryptocurrency.
You should have a paper trail for them to follow albeit a digital one so they can easily track down every transaction.
*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be, investment, financial, or other advice.