We Accept Bitcoin... Does Your Business?
How To Accept Bitcoin Payments For Your Business
As cryptocurrencies like Bitcoin are becoming more popular, the idea of your business accepting Bitcoin (and other digital currencies) is something worth considering – especially if you want to stay ahead of your competition. But how do you get started with cryptocurrency? And how do you start accepting Bitcoin payments for your business?
Because cryptocurrencies are relatively new, in this article, we’ll go over what crypto and Bitcoin are and some of the benefits of accepting them as payments for your business. Then, we’ll go over what you will need to start accepting Bitcoin as payments.
What Is Cryptocurrency?
Simply put, cryptocurrencies (crypto for short) are a new form of digital money. What sets cryptocurrencies apart is the technology behind them and not requiring a bank to make transactions. Crypto relies on a technology called blockchain. The blockchain is decentralized, meaning no single entity (person, middleman, centralized bank, government) is in charge or controls it. Instead, every computer in the “network” serves as the ledger that confirms the transactions.
This is very appealing as payment systems such as credit cards and wire transfers are outdated. It eliminates the middleman i.e banks and brokers that rake in fees in the process, making transactions costly and slow. It opens up global financial equality as crypto technology can be used by people who don’t have access to financial services – that’s about half the planet’s population!
Like Bitcoin, most cryptocurrencies were designed so that no one holds the power to control the currency, unlike the fiat currencies we use today.
These are just some of the problems cryptocurrencies aim to solve.
Still not sold on the benefits of adopting Bitcoin? Here’s a list of other cryptocurrency benefits.
What Is Bitcoin?
Bitcoin was the first-ever cryptocurrency created. Bitcoin was the first product of the first blockchain developed. An anonymous entity created it under the alias Satoshi Nakamoto. Satoshi released the concept of Bitcoin in 2008 with the idea of it being a “purely peer-to-peer version” of electronic money.
Since then, 1000s of other cryptocurrencies, also known as alternative coins (altcoins for short), were created. But, so far, Bitcoin has been adopted as the “gold standard” among all the cryptocurrencies. Other popular cryptocurrencies include:
- Bitcoin Cash
The value of Bitcoin has grown in recent years (over 300% in 2020), making it a popular investment. Mining and purchasing Bitcoin are two ways to invest in Bitcoin. However, taking Bitcoin payments is another way to accumulate it to ride the Bitcoin wave.
*Keep in mind investing in Bitcoin is speculative and very volatile. Be sure to do your research and assess your risk. DOP does not provide investment advice, just valuable information.
As Bitcoin transactions become more mainstream and widely used, it will help increase its value due to the “network effect.” So, it may be well worth it to be ahead of the curve by accepting Bitcoin payments sooner than later.
What Are The Benefits Of Accepting Bitcoin Payments?
There are a lot of benefits to taking Bitcoin as payment for your business. Here are some of them:
- Bitcoin can be accepted by anyone, anywhere in the world. People without credit cards, a PayPal account, etc., are not excluded from doing business with you.
- Transacting with Bitcoin has a level of anonymity. Those who are making a payment or purchase with you do not need to submit personal information or sensitive data online.
- Transaction fees are lower as there are no “middlemen” or banking services needed to complete transactions.
What You Need To Get Started Accepting Bitcoin Payments For Your Business
Before you can accept Bitcoin payments, you will need to :
- Create a Bitcoin Wallet
- Sign up with a Cryptocurrency Digital Payment Processor Service
- Implement your cryptocurrency payment methods onto your website and systems.
Let’s look at each of these steps in detail…
1. Create a Bitcoin Wallet (Cryptocurrency Wallet)
Essentially, a Bitcoin wallet is where you can safely store your Bitcoin (crypto) once received.
Wallets can be stored on your desktop, mobile device, on hardware, or the web. Cryptocurrencies are data/keys, so you can even write them down on a piece of paper for storage if you wanted to – just be sure to keep them in a very safe place!
We use and recommend the Coinbase Wallet. Another wallet we recommend is Atomic Wallet. You can have multiple different wallets and use them as storehouses for various purposes.
For instance, we use our Coinbase wallet exclusively for business transactions, and I personally Atomic wallet for personal transactions and Bitcoin storage.
2. Sign Up With A Cryptocurrency Digital Payment Processor Service
A cryptocurrency digital payment processor service will enable you to accept payments on your website. It’s not essential as you can make crypto transactions with most wallets, but you’ll need one if you want to accept crypto payments on your website or e-commerce store.
Once a Bitcoin payment is accepted on your website, the payment processor will automatically deposit the Bitcoin into your designated wallet. From there, you can hold it in Bitcoin or choose to sell it to convert it into your local currency and deposit it into your bank account.
Here are a few payment processor services that we use or have worked with:
- Coinbase – yes, Coinbase has payment processor services to accept Bitcoin and store it with its wallet.
- Bitpay – Bitpay is another popular Bitcoin and payment processor service. It also integrates well with popular website platforms, plugins, and applications.
- CoinGate – another digital payment processor that we recommend. It accepts over 45 different cryptocurrencies and integrates with multiple web platforms and apps, although it does not have a wallet service.
3. Implement your cryptocurrency payment methods onto your website and systems.
Once you have your Bitcoin wallet and payment processor service setup, all you’ll need to do is integrate it with your website(s) and systems. You may need a developer to help you with this step as it may require specific plugins for your website or apps to start accepting Bitcoin payments.
There you have it! Three simple steps to start accepting Bitcoin for your products and services.
And as always, if you need help with accepting Bitcoin payments in your business, we are here to serve you!
Stay ahead of your competition!