More than 420 million users own digital assets. Accepting cryptocurrencies is becoming a mandatory option for many major brands: Microsoft, Starbucks, Apple, Tesla, some Subway branches, and AirBaltic. Small and medium-sized businesses are also keeping up with market giants, increasingly accepting Bitcoin, Ethereum, and other coins as payment. Here are the factors you need to know before doing this.
Factor 1. Decentralization
Most digital assets are decentralized. This means that they are issued not by a government regulator but by private companies and miners. Decentralized currencies include Ripple (XRP), Bitcoin (BTC), Ethereum (ETH), Dogecoin, and many others. Decentralization can be both a plus and a minus. The advantage is that governments cannot directly influence the mechanisms within the crypto market. This allows for free receipt of payments from around the world and the ability to buy goods anywhere.
The downside is the irreversibility of transactions. In case of a mistaken transaction, it is extremely difficult to get your funds back, and all risks fall on the owner. If a fraudster gains access to your wallet, it will be impossible to recover the lost funds. It is important to remember that cryptocurrencies lack a central authority ready to resolve such issues for users at the legal level.
Factor 2. Volatility
The value of cryptocurrencies depends on many factors, including demand for them and the news background, rather than the exchange rate of the national currency. For example, when Elon Musk, after acquiring Twitter, replaced the famous blue bird logo with a dog, the value of Dogecoin rose by 30%.
Volatility can be both a plus and a minus. You can earn well on price swings if you constantly monitor them and sell the grown coins in time. At the same time, high volatility can lead to significant loss of part of the income. To protect its users from this, Cryptadium has implemented a hedging option. Thanks to this, non-stable cryptocurrency is automatically exchanged for stablecoins, i.e., coins pegged to the dollar. Thus, merchants' funds do not suffer from exchange rate fluctuations.
Factor 3. High Speed
Another factor making digital assets more attractive is the fast cryptocurrency payments. Often, they are processed within a few minutes, whereas bank transfers sometimes need to wait for a day. This is a significant advantage, but there is also an important nuance to be aware of—the network fees. Users set these themselves. When the network is heavily loaded, you will have to pay high fees for the crypto transfer to be sent quickly. If you do not want to spend on miner fees, you can simply wait a bit and make the transaction later.
Factor 4. Novelty for Society
Cryptocurrency payments are still new to the general public. On one hand, this is a plus. By implementing them, you can gain a reputation as a modern technological business that keeps up with the times. This will favorably distinguish your business from competitors.
On the other hand, users sometimes show distrust towards crypto due to lack of experience using digital assets. Many consider cryptocurrencies a financial pyramid or scam scheme due to their lack of physical backing. However, over time, people's awareness of cryptocurrency is growing, and negative perceptions are decreasing.
Thus, cryptocurrency payments and digital currency are an ideal option for those who value the speed of transfers and want to work in international markets. With them, you can expand business boundaries and freely receive foreign transfers, as well as pay for services and purchase goods anywhere in the world.
The main thing is not to forget about the negative aspects, carefully send each transfer, use hedging, and learn more about the world of cryptocurrencies.
