Cryptocurrency has become very popular nowadays as the number of people using it for payments is increasing. Well-known cryptocurrencies as Bitcoin, Ethereum, and Litecoin are showing high growth and instill confidence in the success of cryptocurrency as a whole in the future. According to statistics, the number of daily transactions of Ethereum has increased by more than 80 percent for the last year, and the number of Litecoin transactions has tripled from 2019 to 2020.
What is cryptocurrency?
Cryptocurrency or just crypto is digital money. It is a program code that doesn’t have an offline option and is solely driven by the market. Now, there are different types of cryptocurrency. The most popular ones are Bitcoin, Ethereum, Ripple, Bitcoin Cash, EOS and (thanks in large part to Elon Musk) Dogecoin.
Benefits of cryptocurrency payments
Cryptocurrency offers several advantages compared with fiat money. You can pay by crypto cheaply and fast regardless of your location, even if it’s a different country. In this case, there is no commission for transferring digital money between countries. You can check the reliability of the operations performed at any time. Thanks to the openness of the code, everyone can mine virtual coins. Because cryptocurrency is issued in a limited volume, it’s not subject to inflation and is inherently a deflationary currency. And finally, crypto is an independent currency as nobody regulates its issue or controls the movement of funds on the account.
Why is it defined as high risk?
Despite its growing popularity, cryptocurrency is still considered high risk. Government structures are wary of cryptocurrency, and many countries have imposed restrictions on its use. The “key” for access to electronic money is a special password. If you lose it, the crypto coins in the wallet become unavailable. There is no common organiser of trade, which reduces the trust in cryptocurrency. And what is most important, each user of cryptocurrency is personally responsible for their savings. There are no regulatory mechanisms here, so in case of theft, it won’t be possible to prove anything and return the money.
How can I accept crypto if I’m an online merchant?
There are two main steps to make here. First, you should set up a cryptocurrency wallet. Some cryptocurrencies have their own recommended wallets: for example, Bitcoin recommends using Bitcoin Wallets. The wallet can be stored online as well as on your desktop, personal/business mobile, or physical hardware. As soon as you create the wallet, you receive a public address, QR code, and a private key to have exclusive access to the wallet. Second, you should integrate cryptocurrency into your business’ website. There are different methods to integrate crypto (manual payment, a ‘Pay with Crypto’ button, and payment via a service provider) and each of them depends on the needs of your business.
What PayFasto can do for merchants from the crypto industry
At PayFasto, we understand all risks of cryptocurrency and are striving to provide you with payment processing services to experience all benefits of crypto. Our solutions are cryptocurrency merchant accounts and payment processing that includes services and tools to make your business secure and successful.
This is a piece of basic information to integrate cryptocurrency into your business. PayFasto is always ready to offer secured methods of cryptocurrency payment processing. If you have any questions, don’t hesitate to contact us.