If you’re a business owner and you have never thought about accepting crypto payments, it’s something you should at least be looking into. Many coin holders would like nothing more than to be able to use their cryptocurrency to make purchases and offering them the option could instantly bring you more business. However, you need to be aware of some of the downsides of cryptocurrency payments and how to deal with them. Let’s take a look at some of the major pros and cons of accepting crypto payments in your business.
Pro – Free Publicity
One of the biggest benefits of accepting crypto payments is that you could get tons of publicity on the cheap just by doing so. You will get mentioned on lists of websites and businesses that accept crypto, and you could get mentioned by certain publications revolving around crypto as well. You shouldn’t underestimate the power of word-of-mouth advertising either. People who shop on your website using their coins will let others crypto holders know when they’re looking for a similar service or product. This could rapidly snowball and bring you lots of brand recognition.
Con – Volatility
One thing you have to be very careful with, however, is volatility. Here, you will have no choice but to always keep a close eye on the latest and most accurate price information and make sure that you can quickly see the equivalent in your local currency. If you’re looking for a site that will allow you to do that in seconds, you can check out the following site: https://www.okx.com/convert.
You will also have to directly transfer your coins into stablecoins or fiat money. This will protect you against any sharp decline in value for any crypto. It would also be a good idea to accept stablecoins as many people have some in their portfolios and may want to use them as an alternative to other coins. This will make things much easier for you.
Pro – Ease of Payment
One of the best things about accepting crypto payments is that you can accept payments from virtually anyone around the globe. There is no need for them to exchange their currencies and less need for you to apply geographic restrictions.
Payments are also processed very fast. Even if you accept coins like bitcoin or ether, which are known for having long processing times, there are services like CoinGate that will allow you to safely detect and confirm these payments before they have been formally entered into the blockchain.
Con – Tax Implications
You should know, however, that accepting crypto payments will come with extra tax implications. Most jurisdictions will see cryptocurrency as property and not currency and will therefore impose capital gains taxes on your payments. So, think about that before you start accepting crypto and know the exact rules where you are so you can remain compliant.
Accepting cryptocurrency could be a great option depending on your line of business and the nature of your operation. Look at both sides of the coin before making your final decision and consider speaking with other business owners who have accepted them so they can share their input.