Several small businesses are now accepting payments in cryptocurrencies, and it is time your business should jump on the bandwagon as well. However, before adopting entirely new technology, there are a few aspects that you must understand before you start accepting payments in Bitcoin. Although it may not be mainstream yet, trends suggest that it will soon become a global currency empowering the digital payments landscape.
If you own an online business, several eCommerce platforms such as Shopify and Etsy have now partnered with popular exchange platforms, including Coinbase and Binance, enabling eCommerce businesses to accept payments in Bitcoin. Visit this site for those options. However, if you are new to the landscape, there are some concepts that you must understand before you take the dive into the deeper end of the pool. Therefore, here are some things you need to know before accepting Bitcoin payments.
1. Transactions are Irreversible
Yes, you must understand that Bitcoin transactions are irreversible, and you are not allowed to make mistakes. Once you have submitted the transaction to be approved by the blockchain network, you cannot get it undone. Although it takes some time for the miners operating in the system to verify transactions, you cannot cancel the transaction if you had the amount or the receiver’s address wrong. Therefore, if you are an online business planning to accept payments in Bitcoin, ensure that you give the correct address so that the funds can be transferred without any hiccups.
2. Secure your Wallet
Similar to the way we store all the gold and physical assets we own in a bank’s locker, you must exercise double the caution with a crypto wallet. Once you register your business with a crypto exchange, they will issue you a digital wallet from which you can trade cryptocurrencies. However, ensure that your digital wallet is safe with double or even triple levels of encryption protecting the private keys necessary to execute the transaction. You can also transfer your funds and the keys required to implement transactions to a cold wallet (it could be a USB thumb drive or hard disk) to protect your crypto funds from potential malware attacks.
3. Market is Volatile
Yes, the crypto market is subject to incredibly high volatility. It could be the minute you accept the payment, Bitcoin is at its all-time high, and after an hour, its price has dropped down by $10,000. There is no certainty, and it can impact your business’ cash flow if the price drops down frequently. Since cryptocurrency coins are high-risk assets, you must ensure that you have other investments to cover the potential loss you might bear in the market. Although high-risk, cryptocurrencies such as Bitcoin are an excellent hedge for inflation. Even though its price oscillates like a pendulum, individuals who have invested in Bitcoin from the start are still rolling in incredible profits.
4. Blockchain Technology is not Anonymous
For those who think all the transactions executed on the Blockchain are anonymous might be in for a gross misconception. Contrary to what you believe, Blockchain is an openly sourced ledger that records every transaction executed on the Blockchain. This ledger is non-alterable and can be accessed by anyone operating on the network. As a result, it is far from being anonymous, as some people claim. What remains unknown is the identity of the individual who initiated the transaction. However, it can be disclosed during a purchase or in other circumstances, not allowing one hundred percent anonymity to Bitcoin users.
5. Unconfirmed Transactions aren’t Secure
The first step towards implementing a transaction is having it verified by the network. The transactions don’t start out as irreversible. However, they give a confirmation score that indicates the duration by which it will get approved. It can take a few seconds to even ninety minutes to verify a transaction, with ten minutes being the average time. The duration for approval also depends on the transaction fee. If it is too low or atypical, getting a confirmation from the network can take longer.
6. Bitcoin isn’t Mainstream yet
Although launched in 2009, Bitcoin has come a long way to where it was then and to the traction it commands now. Every development in Blockchain technology reveals Bitcoin to be more efficient and is empowering its adoption globally. However, many individuals are still skeptical about its feasibility and whether it can command a considerable market like fiat currencies.
As the market comes more under scrutiny, please be prepared to encounter a hike in transaction fees, slower confirmations, or issues with wallet security. You can also employ a cryptocurrency consultant to take care of the investments you have made in the market until now to help you establish any stop-loss mechanism to mitigate any loss of funds. However, please keep in mind that nobody can predict Bitcoin’s future, so you can revel in the high profits until the market stays relevant to today’s trends.
The Bottom Line
If you are new to Bitcoin and do not understand the concept yet, please do not get intimidated by the several ideas and applications that grace the industry. Instead, try to research and build your knowledge base by reading articles and listening to podcasts to know more about the theory and practical applications of Blockchain. Or you can can read more online recension.
Since it is not traded like most fiat currencies, understanding how Bitcoin transactions are implemented can be a bit complicated if you are not tech-savvy. It would help if you informed yourself on all aspects governing the industry and whether you can treat your crypto wallet with the same care as you do with the physical one.
If you are an eCommerce business owner, take note that accepting Bitcoin can open your business to clients globally. You will be able to better integrate your business with the world’s economy while also receiving unwavering support from crypto enthusiasts. Since cryptocurrency has always been viewed in a skeptical light, you can help digital assets become more mainstream by jumping onto the bandwagon of adopting Bitcoin.