How to Accept Cryptocurrency Payments

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( — June 29, 2021) — If you want to accept cryptocurrency payments, you will first need to decide which cryptocurrency you intend to use. Bitcoin is the most renowned and arguably the most durable option. Still, a single coin costs an absurd amount of money, presenting a barrier to entry. More minor currencies such as Dogecoin and Ethereum offer a lower buy-in and an opportunity to make substantial gains if their value increases.

Next, you’ll want to consider which payment processor you’re using. While marketplaces like Etsy and Shopify have partnered to offer crypto as a payment option, other sites will need to use their crypto management platform. Options like Coinbase Commerce and Coingate essentially allow you to ‘become your own bank’ by providing software that allows you to accept and manage crypto payments.

The operation of this software is effortless: the transactions generate a unique link that the customer follows and pays by accessing his wallet. However, instead of being processed and facilitated in the usual way, cryptocurrency transfers take place in a “ledger,” which is a heavily encrypted and constantly updated database that is backed up on servers around the world.

Due to the nature of this encryption, every transaction (and therefore every change made to the general ledger) is immutable and cannot be tampered with or refunded. In other words, it’s impossible to pay for something if you don’t have enough digital currency to afford it. The software only manages your connections to this database and keeps track of your transactions with customers. Cardano payment provider also Accept Cryptocurrency Payments.

Multi-Cryptocurrency Payment Gateways

As the name suggests, the most apparent feature of multi-cryptocurrency payment gateways is the capability to transfer and accept payments in more than one cryptocurrency.

In what has become a somewhat fragmented ecosystem of forking platforms since Bitcoin entered the scene in 2009, multi-crypto payment gateways represent a more direct payment platform that is a welcome development. But how do they work?

Beyond the benefit of this increased compatibility, most potential users may not be aware of the innovations at this stage that enable crypto transactions to occur: from the functionality of smart contracts to the consensus algorithms behind the auto. In addition, -maintenance of the blockchain as a whole, each behind the multi-cryptocurrency payment gateways, has a complex critical role.

However, beyond the question of how multi-crypto payment gateways technically work, the question on the minds of many undecided crypto users is how these gateways work in practice for daily payments [1]; and in fact, how they stack up against gateways designed for traditional fiat transactions.

Conventional Cryptocurrency Payment Gateways: Limits In A Fragmented Environment

In an attempt to recognize cryptocurrency as a viable alternative to fiat for online payments, conventional payment gateways have likely limited the scope of this reality considerably. With a host of dangers and limitations, users of a Conventional gateway must change currencies when moving from one fork to another.

With the arrival of more than 500 forks of the original cryptocurrency since 2011, the honest answer to this difficulty is an ethereum payment gateway able to accept multiple cryptos; thus, making the adventure about as seamless as using conventional payments online.

Blockchain-Based Payment Gateways: Main Advantages

Despite the unique challenges of making cryptocurrency-based online payments compared to the flawless Fiat-based gateways we’re all used to, there are several benefits of using cryptocurrency that not only alleviate some of these shortcomings but may also be a better choice than a fiat-based gateway in specific shopping scenarios. One of these innovations is the automated smart contract.

While they don’t allow quite the same instant experience when using a Fiat-based payment gateway, intelligent contracts allow crypto transactions to be approved by both parties in just 15-20 seconds; this may seem like a lengthy comparison of Fiat-based alternatives – but is over 100 times faster eliminating the need for a third-party approval. This, coupled with the increase in transparency and anonymity facilitated by blockchain, can lead many otherwise hesitant users to switch to bitcoin for private, less time-limited online purchases.

What Is The Role Of Payment Processors In The Bitcoin Ecosystem?

A Bitcoin transaction does without any trusted third party who could slow down the operation or compromise its security. However, many businesses prefer to use the services of payment processors, i.e., third parties who will exchange bitcoin / local currency for them.

These services will allow them to accept bitcoins but only receive euros or dollars. This allows them to escape the currency risk and accounting difficulties associated with using a second currency while retaining the advantages of Bitcoin: fast and irreversible payments.

The cost of the service, generally lower than the cost of paying by bank card, is transferred to the price, and therefore to the customer.

What Is The Role Of Payment Processors In The Bitcoin Ecosystem?

Cryptocurrency forms of money grabbed the eye of the world back in 2017. Over about a year, Bitcoin’s worth soared from $921.35 to $13062.15. Then, out of nowhere, the world as a whole was focusing on blockchain-based monetary standards. While Bitcoin’s cost has since tumbled and recuperated to surpass its 2017 highs (such is its unpredictability), premium in cryptocurrency forms of money has gone one way. 

Today, interest in crypto has never been higher. Furthermore, it isn’t easy in BTC. Ethereum, LiteCoin, and Ripple have all flooded in worth and interest during the 2020s hitherto. Thus, there’s a result; there will never have been an excellent chance to set up a crypto trade. In other words, a stage that acknowledges clients’ fiat monetary forms in return for digital currency. 

This article will walk you through all you’ll require to prevail as a startup crypto trade. On the whole, how about we jump somewhat more profound into why this present time is the ideal opportunity to be in the crypto space.