This article is brought to you by Tomer and Alon Marketing and Publicity
In this digital era, the method of making payments has been changed. We are now introduced to plenty of digital payment platforms that allow us to make payments easily. Nowadays, entrepreneurs and corporations have started accepting bitcoin as a medium of exchange.
But some businesses are still confused about accepting cryptocurrencies like bitcoin. Businesses cannot decide whether accepting bitcoin is good for the business or not, or whether it will it help in the growth of the business. You can also trade in bitcoin by downloading the bitcoin up app.
If you are a businessperson and want to explore bitcoin more, you can get detailed information in this article. Before you put a sign on board saying, “Bitcoin accepted here,” there are certain things that you must take into consideration, which are as follows:
Minimal transaction fees
The best benefit of cryptocurrencies is that there are minimal transaction fees charges as compared to credit cards. Earlier, when people used credit cards, users would have to wait longer to complete the transactions, and also, the fees were very costly. Accepting bitcoin is a great solution for small and large businesses, and you need to spend money on processing transactions.
Companies can focus on new and enhanced technologies
Bitcoin is a digital currency, and it is different from traditional currencies. The transaction fees of bitcoin change according to the price of bitcoin. If you are eager to learn about bitcoin and want to accept it for your business, you must learn about its volatile market and learn about bitcoin trends.
Reach new and emerging markets
Entrepreneurs and corporations that have started accepting bitcoin payments get the benefit of emerging markets. Many citizens in countries in the developing stage don’t have bank accounts or have access to banking services. With no access to banking services, they also don’t have their credit cards. Entrepreneurs who accept bitcoin payments get access to emerging markets, and they can easily buy almost anything in the world.
Another main benefit that comes with accepting bitcoins is that companies can focus on new and enhanced technologies. You can start trading internationally and attract markets with the ultimate features of bitcoin that are anonymity and simplicity.
Fast and easy payments
The main disadvantage with traditional payment methods was that the processing time of transactions was quite slow. With newly built electronic methods, there was some issue that businesses and companies were facing. By accepting bitcoin, the transactions don’t involve central authorities and government. Due to this, bitcoin allows quick and easy transactions, and no transaction needs to be approved by any authority.
No central authority is involved, which will slow things down, and miners work on verifying transactions. Even if entrepreneurs want to make payments internationally, it won’t take more than 1 hour to complete the transactions.
There is a high risk of digital tokens getting hacked by fraudsters
With the benefits of bitcoin, there are also some risks involved with accepting bitcoin payments, which are crucial to entrepreneurs’ understanding. Let us show you the three main risks involved:
1.Volatile market
The market of bitcoin is volatile, and its price keeps on fluctuating dramatically. Entrepreneurs need to plan a business and understand the estimations of all expenses and cash flow. As compared to traditional currencies, bitcoin’s volatility is the main factor that makes it infamous. It is a valuable asset, but people fear to accept bitcoin for their businesses.
It is always recommended to choose a cold wallet
2. Security issues
The digital currencies are stored in digital wallets, and they must be secured properly as these are vulnerable to cyber-attacks. Storing bitcoin in a bitcoin wallet means that users don’t have complete control over their funds and exchanges have control, and they can anytime freeze user’s assets. Also, there is a high risk of digital tokens getting hacked by fraudsters.
There are various types of bitcoin wallets available for entrepreneurs. Still, it is always recommended to choose a cold wallet because it is much better than other wallets and is secure.
3.Regulations on digital currencies
Entrepreneurs need to know complete details about regulatory restrictions implemented on accepting bitcoin payments for KYC compliance. There are many restrictions and guidelines that businesses need to follow and know about tax details. Bitcoin is completely different from traditional currencies, and therefore entrepreneurs need to learn about tax related issues.
This article is brought to you by Tomer and Alon Marketing and Publicity
Feature image courtesy of Aleksi Räisä via Unsplash. Image license found here. No changes made to this image.
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