Every business should at least think about accepting crypto payments considering how popular they are at the moment. Doing so could extend your reach and make your business look more in tune with the times, which could directly benefit your bottom line.
With that being said, not all businesses will benefit from accepting them the same, and in some cases, it might actually be detrimental to them. You also have to assess if you have the tech-savviness needed to handle those types of payments. Let’s take a look at some of the pros and cons of accepting cryptocurrencies in your business.
Pro – Low Fees
One of the biggest advantages of accepting cryptocurrencies is that you won’t have to pay as much to process them as you would with PayPal or credit card payments. Most of the costs will actually be incurred by the buyer, and if you intend to work with a payment processor, most of them have very modest fees. So, you can expect to save money on your crypto payments and lower your overall running costs as a result.
Con – Volatility
One of the major downsides of accepting crypto is the volatility of cryptocurrency prices. If you accept lots of payments early in the day, the amount you end up with at the end of it could be very different than what you expected. This is why you need to keep a close eye on Ethereum price USD at OKX.com if this is your reference currency and put solutions in place to deal with this instability.
One of the things that you can do is directly transfer your crypto payments into fiat and have them deposited into your bank account. This is something a lot of payment processors will allow you to do. Or you could exchange your crypto into Tether or another stablecoin as soon as you get paid.
Pro – Superior Payment Security
One underrated benefit of accepting crypto in your business is how much more secure they are than credit card payments. Chargebacks are a huge problem for businesses, and there is very little that you can do to stop them as fraudsters are getting increasingly sophisticated. With crypto, every transaction is final, so this completely eliminates the problem.
Con – Tax Issues
If you want to start accepting cryptocurrencies, you will need to get familiar with the tax implications and know how your crypto payments need to be reported. Your jurisdiction may impose a capital gain tax on your crypto assets, but only upon certain conditions.
You may not have to pay capital gains tax if you keep your payment in the same crypto they were paid in, for instance, but may have to pay if you decide to use that crypto to buy goods or exchange it for another crypto. So, you will need to consult with a professional who knows cryptocurrency laws inside and out before you do anything.
Accepting cryptocurrencies could allow you to reach thousands of crypto holders around the world. It can instantly broaden your audience, and cut costs all at the same time. You do have to know the risk and limitations that come with accepting them so you can be thoroughly prepared and avoid trouble.