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Step-By-Step Guide:
Crypto Currency for Your Business
What Is Cryptocurrency?
A cryptocurrency is a type of digital or virtual currency that uses encryption to protect it from counterfeiting or duplicate spending. Blockchain technology, a distributed ledger enforced by a dispersed network of computers, is the foundation of many cryptocurrency decentralized networks. The fact that cryptocurrencies are often not issued by any central authority makes them potentially impervious to intervention from or manipulation by governments.
Cryptocurrencies represent a brand-new approach to money. They offer to accelerate and reduce the cost of the current financial architecture. Their architecture and technology decentralize existing monetary systems, enabling parties to transactions to exchange value and money without the need for third parties like banks.
With cryptocurrencies, there is no need to visit a bank, make a cash withdrawal, or even enter a credit card number prior to making a purchase online. Digital payments are being driven by the same need that has fueled the online retail industry, and if handled properly, this might be a wonderful addition to your current offerings.
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What is Fiat Money?
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While cryptocurrency is a digital asset whose value is derived from its original blockchain, fiat money is legal tender whose value is linked to a government-issued currency, such as the U.S. dollar.
Fiat currency is a term that describes the money you use every day. The U.S. dollar is a fiat currency, as are most other modern currencies circulating around the world.
Today, the term fiat currency is commonly used as a way of distinguishing regular money from cryptocurrency.
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Types of Cryptocurrency
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Bitcoin
Bitcoin is the most popular and valuable cryptocurrency. Invented by Satoshi Nakamoto, Bitcoin was introduced to the world in 2008 via a white paper entitled “A Peer-to-Peer Electronic Cash System”. Nakamoto hoped to create a system that would decentralize the financial sector and give power back to people through a digital transaction system.
Ethereum
Ethereum was a coin created based off of the invention of bitcoin. Its creator, Vitalik Buterin, wanted to develop a platform that would transform the internet entirely. He imagined Ethereum to be a platform that would be used for more than the financial transactions - than Bitcoin allows. The Ethereum platform is now a place for developers to create decentralized applications such as contracts or codes without using third-party platforms.
USDC
USD Coin (USDC) is a digital dollar, also known as a stablecoin, that’s available 24/7 and moves at internet speed. USDC is running on many of the world’s most advanced blockchains. Every digital dollar of USDC can always be exchanged 1:1 for cash.
Each cryptocurrency asserts that it has a unique purpose and specification. Ether, for instance, is promoted as gas for the underlying smart contract platform. Banks use Ripple's XRP to enable transactions between different geographical areas.
10,000 bitcoin for 2 large pizzas.
this is considered the first real-world Bitcoin transaction in history.
In 2010, Laszlo Hanyecz, a Florida resident, spent 10,000 Bitcoins at a local pizza restaurant called Papa John's to buy himself two pizzas. Back then his Bitcoins were worth only $40.
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In order to get those two pizzas, the bitcoins were sent to a volunteer in England, who made a transatlantic phone call and paid for the $40 delivery of pizza to Florida-based programmer Laszlo Hanyecz.
The Beginning (2008-2010)
On October 31, 2008, Satoshi Nakamoto published the Bitcoin white paper, describing the functionality of the Bitcoin blockchain network.
Satoshi Nakamoto mined the first block of the Bitcoin network on January 3, 2009. They embedded a headline from The Times newspaper in this initial block, making a permanent reference to the economic conditions — involving bank bailouts and a centralized financial system — that Bitcoin was partly a reaction against.
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This first block — which resulted in 50 bitcoins being mined — is now referred to as the Genesis Block. Bitcoin had virtually no value at this time, as well as for the first few months of its existence. Six months after bitcoin became tradeable, in April 2010, the value of one BTC was just under 14 cents. By early November, the price ‘surged’ to 36 cents before settling at around 29 cents.
Investopedia / Bailey Mariner
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Why Use Cryptocurrency?
Accepting cryptocurrencies as a payment option opens up a whole new market of tech-savvy consumers who have formed a community inside the cryptocurrency market. Giving customers the option to pay with a digital wallet or a credit card platform helps you to tap into larger markets and appeal to customers all over the world.
The Benefits of accepting crypto payments
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Secure. Transparent, Decentralized & Global.
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Cryptocurrency is secure. Transactions are encrypted and can only be seen by the parties involved. This makes it very difficult for anyone to fraudulently manipulate the transaction.
Cryptocurrency is transparent. All transactions are publicly visible on the blockchain. This makes it difficult for anyone to hide illegal or nefarious activity.
Cryptocurrency is decentralized. It is not controlled by any one central authority. This makes it very resistant to censorship.
Cryptocurrency is global. It can be used by anyone, anywhere in the world.
Crypto Users number is on the rise. Fast.
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The worldwide cryptocurrency market is expected to increase in response to the growing need for payment certainty. As a result of improved information accessibility and payment independence in insurance, financial services, banks, and other economic sectors, the cryptocurrency market will grow fast in the future years. The number of crypto users is increasing fast and is estimated to reach the 1 billion milestone by December 2022.
“Global Crypto Users Can Reach 1 Billion by December 2022, says Crypto.com
In the latest report from Crypto.com, based on last year’s rate of growth, a possible prediction for 2022 says that the total number of crypto users by December could reach the ten-digit figure (over 1 billion).” Yahoo finance
Nearly half (48 percent) of U.S. consumers reported investing money in cryptocurrency
According to a Consumer Crypto Survey of more than 2,000 U.S. customers, nearly half (48%) reported investing money in cryptocurrency in the first half of 2021.
21% of worldwide customers are active owners of cryptocurrenciesAccording to a 2021 Visa survey, 21% of worldwide customers are active owners of cryptocurrencies, meaning they have used it to transmit or receive money, buy things, or accept payment at least once. A smaller percentage (11%) said they had purchased cryptocurrencies as an investment but had yet to use it.
Increase sales and market share.
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Forrester Study Shows Accepting Crypto Attracts New Customers & Boosts AOV (Average Order Value. Accepting Crypto attracts new customers and increases average order value, according to a 2020 Forrester report, with purchase quantities twice that of credit card sales
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According to the Cryptocurrency Payments Report published in 2021, 31% of cryptocurrency owners make transactions of $100 to $1,000, while 19% make purchases worth more than $1,000.
The study showed that Businesses who began accepting cryptocurrency payments saw a 40 percent boost in new consumers, two times the average order value, remarkable ROIs, and significant revenue improvements, according to the report.
Enhance your brand identity
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Accepting Bitcoin on your website contributes to your brand identity since it shows you're an inventive, cutting-edge organization that isn't scared to embrace new technologies, in some people's views.
Get your money faster
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When it comes to small business cash flow, the faster the better, and payment processing is no exception. This works to the cryptocurrency's benefit because transactions are completed instantly, compared to credit card transactions that take a few days. Having faster access to funds is a very appealing advantage for any business owner.
Lower transaction fees
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Transaction fees are drastically reduced due to the lack of a central mediator. Small businesses that accept credit card payments through credit card processing companies typically pay roughly 25 cents per swipe plus 2% to 4% of the overall transaction amount. These expenses pile up, which is why many POS systems in smaller establishments impose credit card purchase minimums. Accepting cryptocurrency reduces these fees to less than 1% of the transaction value.
Merchant protection
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The decentralized nature of cryptocurrency also protects retailers against chargeback fraud. Because no third party may reverse charges, the transactions are final, just like cash.
Every business can potentially benefit from the cryptocurrency trend by accepting digital payments through online payment processors. These processors normally charge a transaction cost of 1% or less, which is less than the fees charged by most credit cards.
How to Buy, Sell and Trade Crypto Currency & NFT?​
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Crypto Exchange
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A crypto exchange is a platform on which you can buy and sell cryptocurrency.
You may utilize exchanges to convert one crypto to another, such as Bitcoin to Litecoin, or to buy crypto using ordinary cash, such as the US dollar.
Exchanges display the current market value of the cryptocurrencies they provide. You may also swap cryptocurrencies for US dollars or other currencies to keep as cash in your account (if you wish to trade back into crypto later) or withdraw to your regular bank account.
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Here are the most popular crypto exchanges:
Coinbase - Best for Beginners
Binance - Best for Low Fees
Crypto.com - Best for Security
BlockFi - Best for Earning Interest
Bisq - Best Decentralized Exchange
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Start accepting cryptocurrency payments in your business
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Here are the steps to follow in order to start accepting cryptocurrency payments in your business.
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How to accept crypto currency payments from your audience and clients.
Step 1:
How to Store your Crypto Currency and NFT Assets?
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Open a Crypto Wallet For Your Business
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A Crypto wallet is a digital wallet that stores your Bitcoin and other cryptocurrencies. It is similar to a traditional bank account but with some key differences.
Crypto wallets keep your private keys – the passwords that grant you access to your cryptocurrencies – safe and secure while allowing you to transmit and receive cryptocurrencies such as Bitcoin and Ethereum.
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They come in a variety of shapes and sizes, from hardware wallets like the Ledger (which looks like a USB stick) to mobile apps like Coinbase Wallet, which makes using cryptocurrency as simple as purchasing online with a credit card.
Unlike a traditional wallet, which can hold physical cash, crypto wallets do not store your cryptocurrency. Your assets are stored on the blockchain, but only a private key can access them. Your keys verify that you own your digital money and allow you to transact with it. You lose access to your money if you lose your private keys. That's why it's critical to keep your hardware wallet secure or to utilize a reputable wallet service like Coinbase.
Public Key and Private Key
A public key allows you to receive cryptocurrency transactions. It’s a cryptographic code that’s paired to a private key. While anyone can send transactions to the public key, you need the private key to “unlock” them and prove that you are the owner of the cryptocurrency received in the transaction.
A private key is a very long string of numbers and letters that acts as the password to your Bitcoins. It’s from this secret combination that your wallet derives the capability to tell you want to send your Bitcoins to another destination. The most important thing to remember is this: Whoever knows your private key has control over your bitcoins.
Cryptocurrency Wallet Types
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Custodial and noncustodial wallets
Custodial and noncustodial wallets are the two main categories. A third party hosts custody wallets where they keep your keys for you. This might be a business that offers high-level data security technologies used by companies to protect and safeguard their data. Custodial wallets are provided by several cryptocurrency exchanges for its clients. Noncustodial wallets are those in which you are in charge of keeping your keys safe. The majority of mobile cryptocurrency wallets fall under this category.
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Hot Wallets and Cold Wallets
Wallets come in two subcategories: hot and cold. A cold wallet has no connection, while a hot wallet is connected to the internet or another device that has one. Last but not least, there are three subcategories of wallets: paper, hardware, and software. These categories can all be classified as either hot or cold wallets.
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Hot wallets are essentially internet-connected wallets that provide less security in general. Hot wallets, on the other hand, provide better accessibility because of their internet connection. Hot wallets are extremely user-friendly even if they are susceptible to scammers and hacker assaults.
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Digital offline wallets known as "cold wallets" sign transactions offline before disclosing them online. To preserve strong security, they are maintained offline rather than in the cloud on the internet. The Trezor and Ledger are two types of cold wallets.
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Types of Hot Wallets
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Mobile wallets, web wallets, and desktop wallets are the three most popular categories of hot wallets.
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Desktop Wallets
In order to use a desktop wallet, you must download a program to your computer or laptop. The program will assist in creating a data file that will contain the users' keys. Additionally, users ought to set up a password to access the keys.
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Web Wallets
One of the most popular type of hot wallets for cryptocurrencies is the web wallet. No specialized software or applications need to be downloaded in order to use the online wallets; they can be accessed directly using a web browser. Web wallets guarantee accessibility for cryptocurrency assets from any location with your password, a device, and a web browser with the aid of browser access. With online wallets, the website would be the legal owner of the keys to your cryptocurrency holdings. Alternatives like multi-sig wallets, however, give consumers some degree of control over their cryptocurrency wallets.
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Mobile Wallets
Mobile wallets, which function similarly to desktop wallets, are another essential category of hot wallets for cryptocurrency. A mobile application that would act as the hot wallet must be installed on the phone. Mobile wallets offer more flexibility when exchanging money, but they also come with some security hazards.
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Types of Cold Wallets
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Mobile wallets, web wallets, and desktop wallets are the three most popular categories of hot wallets.
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Hardware Wallets
Hardware wallets function exactly like flash drives or USB and store private keys on a physical device in an offline environment. The fact that hardware wallets can be simply connected to computers or any other device via a USB drive makes them one of the most user-friendly crypto wallet kinds for cold storage.
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Hardware wallets outline the guidelines for creating a cold wallet. By totally avoiding the online exposure of private keys, they provide higher level of security.
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The private key stays on the device even if it is linked to the internet. The transaction would be completed when the device requested the transaction's specifics and provided data validation. The transaction information is then sent to the internet network, where it is recorded. Trezor, Ledger, and many other hardware wallets from various manufacturers are some of the well-known models now in use.
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Paper Wallets
The only thing inside a paper wallet is actual paper. All the information you would require to access your cryptocurrency must be in the paper.
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Cold wallets generally offer additional security. The same is not necessarily true, though, when it comes to paper wallets. You run the risk of losing the cryptocurrency assets in your wallet if you misplace the paper document.
Paper wallets also have the drawback of making it difficult to send only a portion of the money. Furthermore, the lengthy nature of transactions with paper wallets poses serious obstacles to their utilization.
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Most popular Crypto Wallets:
Coinbase Wallet
Exodus
Mycelium
Trezor Model T
Ledger Nano X
Coinbase Wallet is a self-custody (Non-Custodial) wallet that allows you to have full control over your cryptocurrency. This implies that your Wallet's private keys (which signify cryptocurrency ownership) are held on your mobile device rather than on a centralized exchange like Coinbase.com.
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The Coinbase Wallet is a wonderful place to start if you're new to cryptocurrencies. It's available as an Android or iOS app, with a straightforward UI and full integration with the company's exchange, making it simple to conduct transactions, such as purchasing coins and tokens using traditional currency.
Exodus supports more than 130 types of cryptocurrency including bitcoin, ether, tether USD and dogecoin.
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Exodus is a noncustodial hot wallet, which means that only you have access to your private key, which is a 12-word password phrase that safeguards access to your crypto assets.
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The Exodus wallet is compatible with Mac, Windows, and Linux computers, and an Android and iOS companion app is also available. The desktop user interface is simple and intuitive to use. Your wallet is fully connected with the Exodus exchange, making transactions simple.
Exodus supports more than 130 types of cryptocurrency including bitcoin, ether, tether USD and dogecoin.
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The official Binance cryptocurrency wallet for accessing Binance Smart Chain, Binance Chain, and Ethereum is Binance Chain Wallet. You can use it to store your cryptocurrency safely and connect to thousands of projects on several blockchains. On the Binance Chain portal, you can download the Binance Chain Wallet. Simply select the browser to which you wish to add the extension
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Mycelium started as a team of hardware engineers in 2008 with a mesh networking project. With the emerge of Bitcoin, Mycelium naturally leaned towards the new promising technology. To date, Mycelium has developed and launched three successful products in the bitcoin field: Wallet, Entropy, and Gear.
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Mycelium is one of the oldest of the currently popular bitcoin wallets. Over the years of its development, it has absorbed all the best that was invented in the rapidly growing community of hardcore bitcoiners.
The Mycelium wallet features a pleasingly basic UI, however it only supports a few types of cryptocurrency compared to the other wallets: You may send and receive bitcoin, ether, and ERC-20 tokens like tether USD, USD coin, and Binance USD. You can purchase and sell bitcoins right in the app, and Mycelium also allows you to buy bitcoins using conventional fiat currency.
The Mycelium wallet is noncustodial, meaning You will have sole access to your private key and PIN. It is also a fully open-source hot storage wallet.
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TREZOR is a pioneer in the field of hardware wallets. It's perfect for beginners and professionals alike since it combines world-class security with an easy UI and interoperability with other desktop wallets. The company has earned a lot of trust from the Bitcoin community. The TREZOR One and the TREZOR Model T are the two major models offered by TREZOR (which has a built-in touch screen).
The Model T has a touchscreen and a USB cord for connecting to your computer; it also has a microSD card slot for adding encrypted storage to your hardware wallet directly. However, it lacks Bluetooth compatibility, which some security experts prefer because Bluetooth connectivity might be used by hackers as an attack vector.
Trezor Suite is designed to operate directly on your desktop, which provides more protection than a web-based program, however you can also use the company's website to access it. Trezor wallets presently support over 1,600 coins and tokens, and you may use the company's integrated exchange to perform transactions directly in Trezor Suite.
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Secure, buy, exchange, grow your crypto and manage your NFTs with our new Bluetooth-enabled hardware wallet. All your digital assets secured in one place.
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Combine the Ledger Nano X with the Ledger Live app for maximum security and control over your digital assets. The Ledger Nano X keeps your coins & NFTs offline and protected.
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You can install up to 100 apps at the same time: including Bitcoin, Ethereum, XRP and more than 5,500 different tokens.
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​The Ledger Nano X is the perfect hardware wallet for managing your crypto & NFTs on the go. It connects to your phone with Bluetooth and has a large screen for ease of use.
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Connect to a Crypto Payment Gateway
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A crypto payment gateway allows merchants to accept transactions in crypto currency.
The third-party payment processors known as "crypto payment gateways" work with virtual currencies like Bitcoin and Ether. In the current crypto and blockchain world, these service providers play a crucial role in accelerating merchant acceptance of cryptocurrencies.
A crypto payment gateway performs the same tasks as a conventional payment processor, with the exception that it works on behalf of businesses that have opened accounts with the service provider to receive payments in crypto currencies and convert them into fiat money.
What to check for in a Crypto payment gateways:
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Easy Integration:
Make sure the Cryptocurrency payment gateway you choose is easy to integrate into an existing application.You should be able to integrate the crypto plugin to your desired application or website and start accepting payment in cryptocurrency.
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Volatility Protection / Real-time exchange
Except for stablecoins, cryptocurrencies are typically much more erratic than fiat money. The price you're quoting right now might not be valid in a minute. A price stabilization option is offered by some payment gateways, which ensures that you will be paid the amount you specified at the time of sale. Although not all businesses will require this feature, it can simplify your life.
Processing Fee and Cost
A bitcoin payment gateway typically charges a transaction fee of roughly 1%. However, keep in mind that the payment providers could impose extra charges for payouts or conversion to cash. Although they are not under the control of the payment gateway and are not paid to the gateway operator, network costs are another thing to bear in mind.
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Here are some of the best cryptocurrency payment gateways now on the market:
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The largest centralized cryptocurrency exchange that is currently accessible to the US market is Coinbase. Coinbase acts as an on-ramp and off-ramp for many consumers joining the cryptocurrency market, allowing you to buy or sell cryptocurrency using your local fiat currency. As one might anticipate, Coinbase also provides a bitcoin gateway that businesses may use to conduct transactions. WooCommerce and Shopify both have integrations with Coinbase Commerce.
Self Managed and Coinbase Managed are the two plans offered by Coinbase Commerce. The primary distinction between them is whether Coinbase or you is in possession of the private keys to the cryptocurrency you are paid in. The majority of bitcoin aficionados would advise you that holding your own keys is preferable because it is the only way to be certain that you genuinely own and manage the currency in issue. Additionally, you only need an email address to rapidly create a Self Managed account.
Coinbase Commerce charges a 1% transaction fee for both plans. Customers can pay in the following coins:
Bitcoin (BTC)
Ethereum (ETH)
Litecoin (LTC)
Dogecoin (DOGE)
Bitcoin Cash (BCH)
USD Coin (USDC)
DAI
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About ten years ago, BitPay entered the cryptocurrency payments market. The American Red Cross, Take-Two Interactive, and Shopify are just a few of its remarkable clientele. It provides support for payouts, invoices, and retail payments as a seasoned cryptocurrency payment solution.
For retail payments, BitPay employs a simple QR code invoicing mechanism. It then becomes intriguing. By securing the currency rate at the point of sale, BitPay aims to protect businesses against volatility. The following business day, BitPay will group your sales and deposit your balance in either fiat currency or one of many cryptocurrencies to your bank account or cryptocurrency wallet, as appropriate. With this approach, you can accept a cryptocurrency payment without ever holding the money unless you desire to be paid out in cryptocurrency.
Bitpay charges 1% per transaction and accepts:
Bitcoin (BTC)
Bitcoin Cash (BCH)
Ethereum (ETH)
Wrapped Bitcoin (WBTC)
Dogecoin (DOGE)
Litecoin (LTC)
Gemini Dollars (GUSD)
USD Coin (USDC)
USDP
DAI
Binance USD (BUSD)
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Payouts are available in fiat, BTC, BCH, GUSD, PAX, and USDC.
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With the help of Coingate's incredibly user-friendly app, business owners can set up and manage payments right from their smartphones. Additionally, it supports about 40 additional cryptocurrencies, which enables retailers to significantly increase the number of various payment options they provide just by utilizing this cryptocurrency payment gateway.
CoinGate can be integrated into your e-commerce website using a plugin for a few Commerce platforms (WooCommerce and Magento are two examples), payment platforms, or through the CoinGate API.
With CoinGate, you can generate invoices and deliver them via email or a link. Payouts can be converted to US dollars or euros, or they can be preserved in their original form. Some cryptocurrencies even support conversions amongst themselves.
CoinGate charges a 1% fee per transaction. There’s a 0.2% fee for settlement in USD (1% for Euros).
CoinGate accepts:
Bitcoin (BTC)
Bitcoin Cash (BCH)
Ethereum (ETH)
Wrapped Bitcoin (WBTC)
Dogecoin (DOGE)
Litecoin (LTC)
Gemini Dollars (GUSD)
USD Coin (USDC)
USDP
DAI
Binance USD (BUSD)
And many more
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NOWPayments is a non-custodial crypto payment gateway that lets you accept payments in 75+ cryptocurrencies and auto coin conversion supported, which enables merchants to accept any crypto they prefer regardless of what coin they are paid with.
NOWPayments also supports fiat conversion, and offers customized Casino solutions, Twitch donation button and a Mass Payouts solution.
NOWPayments can integrate with Shopify, Magento, and WooCommerce. It is a simple and straightforward crypto gateway and can process over 50 different coins.
Transaction costs start at 0.5 percent and decline as your monthly sales volume increases (measured in BTC, incidentally). If you want to settle in a different currency than the one you were given, there is an extra fee of 0.5 percent. In order to protect you from volatility, there is also a fixed rate exchange option, which increases the base charge to 1%.
NOWPayments accepts:
Bitcoin (BTC)
Bitcoin Cash (BCH)
Ethereum (ETH)
Wrapped Bitcoin (WBTC)
Dogecoin (DOGE)
Litecoin (LTC)
Gemini Dollars (GUSD)
USD Coin (USDC)
USDP
DAI
Binance USD (BUSD)
And many more
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