Search
Close this search box.
Blog » Business Tips » How to Accept Cryptocurrency in Your Business

How to Accept Cryptocurrency in Your Business

Bitcoin And The Rise Of Cryptocurrency

Many people have never heard of cryptocurrency. Others have and believe that cryptocurrency is not only here to stay, but will become more commonly used in the near future. Businesses are already started to accept cryptocurrency. There are several reasons for this, of course.

Because of its encryption, this digital form of currency is difficult to both forge and steal. Furthermore, it isn’t heavy to carry or dirty like paper money and coins are. Fees are almost non-existent since banks are not necessary in order to complete monetary transactions.

But even if you have heard of cryptocurrency and know about its advantages you may still want to know more about it. For example, you may wonder how to accept cryptocurrency in your business.

1. Understanding Cryptocurrency

If you want to accept cryptocurrency in your business you must first understand that its values in the past have had some wild swings. This means if you decide to begin accepting it, what you get paid today could be worth nothing tomorrow. Of course, it could also be worth thousands.

Transactions are secured by using blockchain, which is a way of digitally recording them using cryptography. In addition, they are not recorded on one central server but instead on a network of many computers. This is why it is so secure.

However, just because it’s more secure doesn’t mean cryptocurrency can’t be stolen at all. In the recent past cyber thieves have made off with millions of dollars of digital currency.

Unfortunately, since cryptocurrency is not backed by any bank or the government, losses from theft are not covered. In addition, the encryption makes it much harder to catch a hacker who steals it.

2. How to Accept Cryptocurrency

One of the first things you must do to accept cryptocurrency is to set up a virtual “wallet”. Each of the wallets has different security features such as backup systems and identification methods.

There are wallets that are available free to users while others must be paid for. Blockchain and Coinbase are a couple of options you could choose from to set up a wallet to hold your cryptocurrency.

Next you must advertise so your customers know they can pay using cryptocurrency. For starters you could put up a small sign that shows that you accept bitcoin. And you can advertise in other ways too, such as over the internet.

Finally, to accept cryptocurrency in your business as payment you may need to set up an app on your computer or phone. The app generates a quick response code, or QR code, that is used in the transaction.

BitPay and CoinBase are two types of payment processors you could choose to complete your cryptocurrency transactions. They may have fees attached, so check out the features of each thoroughly before you decide on one.

3. Is it Legal?

Currency in the U.S. was backed by the gold standard up until 1971. Since then it has been backed by fiat meaning it has value because of government declaration.

However, digital currency such as cryptocurrency is not backed by the government. It only exists through digital transactions.

Regardless, that doesn’t mean it isn’t legal. It just isn’t backed by anyone. That may be one reason not all countries accept it. But that doesn’t preclude you from accepting it as payment in your business.

4. How to Pay Taxes

The IRS does not classify cryptocurrency as money. However, if you intend to accept cryptocurrency in your business you should likely pay taxes on it the same way you would on other income.

Talk to your accountant or tax preparer to make sure you comply with tax rules and regulations.

As cryptocurrency becomes more widely used you may want to start accepting it as well. Now that you know how to accept cryptocurrency in your business you can do so and ensure your business continues to grow in the future.

About Due’s Editorial Process

We uphold a strict editorial policy that focuses on factual accuracy, relevance, and impartiality. Our content, created by leading finance and industry experts, is reviewed by a team of seasoned editors to ensure compliance with the highest standards in reporting and publishing.

TAGS
Financial Author
Kayla is passionate about helping people get their finances in order so they can pursue a life of freedom. She quit her job to work for herself with over $148,000 of debt and swears it was the best decision she’s ever made!

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Categories

Top Trending Posts

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More