Friday, April 8th, 2022
The crypto world has been a long time coming. Despite the slow pace of crypto adoption, we’re beginning to see crypto payment processors emerge as an alternative to traditional payment processors.
While crypto remains a niche market, there are some key benefits of using this new technology over traditional payment processing services. We’ll discuss what makes these differences so important and which ones work best for your business.
Cryptocurrency is a technology-based payment system that offers an alternative payment method to traditional fiat currencies.
What is Cryptocurrency?
Cryptocurrency payments are not processed by a single network or company. Instead, crypto payments occur on decentralized blockchains that run on peer-to-peer networks.
How Does it Work?
Cryptocurrencies use cryptography to verify transactions, and they are an intrinsic part of the blockchain’s design. Bitcoin is the most well-known cryptocurrency and was created in 2009 as the world’s first decentralized digital currency. The technology behind Bitcoin is called the “blockchain,” which is a public ledger that stores transaction data using cryptography.
This means Bitcoin transactions are secure and resistant to manipulation or counterfeits because they cannot be changed once added to the blockchain. When users make transactions with Bitcoin, they are sending and receiving data instead of physical cash from one person to another.
Because transacting in cryptocurrency does not require banks, credit card companies or any other centralized financial institution, cryptocurrency payments have lower fees than traditional payment systems. The lower transaction fees improve the profit margins for merchants who accept cryptocurrency as a form of payment for goods and services.
Crypto Payment Processing
The payment processing landscape is changing as more and more people turn to crypto payments. Whether you’re a freelancer, small business owner, or a large corporation, cryptocurrency can provide an alternative way to accept payments.
If you’re just getting started with crypto, your first step should be setting up a crypto wallet. A crypto wallet is essentially the same as your bank account. It’s where your cryptocurrencies are stored — and from where they can be sent to others.
You can use a software wallet on your computer or mobile device, or you can use a hardware wallet for extra security.
For eCommerce businesses wanting to accept cryptocurrency, it’s best to use a service that automatically converts crypto into fiat currency (such as US dollars). This protects you from the volatility of the crypto market and allows you to receive money in whichever currency you prefer.