The Pros and Cons of Accepting Crypto Payments for Your Business — Advantages and Disadvantages
There are lots of pros and cons of accepting crypto payments for your business, but the pros will be prominent undoubtedly.
The pieces of information are important due to the super growth of crypto in recent years, especially after 2021. Nobody can neglect the role of digital currencies nowadays and forget the great potential of this market.
In this guide, we will explain a list of advantages and disadvantages, so the rest will be on you to decide if it is good to accept crypto payments or not.
Pros
+ Obtaining New Customers
+ Lower Transaction Fees
+ Faster Transfer
+ Lower Fraud Risks
Cons
- High Volatility
- Concerns of Regulation
- Requires Knowledge
- Not Globalized
Pros of Crypto Payments
Let’s start our discussion with the positive sides of crypto payments. Later, we will go to negative points in the second part of the article.
1. Obtaining New Customers:
Our first point about the pros and cons of accepting crypto payments for your business is the benefit of obtaining new customers.
Crypto is a new market and lots of people are using it as their daily payments. Lots of people, especially young ones, are using it almost for all their transactions. They have forgotten fiat money because of its disadvantages.
If you want to reach their suppliers, you must accept crypto payments. The portion of crypto payers depends on your local conditions and the attitude of your nation toward crypto payments.
For example, more than 70% of Nigerians and Vietnamians are likely to use crypto payments while the percentage of Chinese payers is lower. You need to research to find your local national percentage.
2. Lower Transaction Fees
There is a famous quotation that says if you pay 100 dollars in the bank system, you are paying 101 dollars actually. Then, your receiver will pay 101 dollars again and the chain will continue for a while.
By 100 transactions, you have paid 200 dollars and the bank has received all your money only as a fee. It is horrible, you must stop it and save your money in your pocket.
Crypto will do so! transaction fees in crypto are much lower than what you need to pay in bank systems. Crypto transactions have no fees, or it is lower than 1% at most, just for some pairs.
3. Faster Transfer
Pace is the third issue to talk about in the list of pros and cons of accepting crypto payments for your business.
Crypto is a volatile market and prices are changing second by second. That’s why speed is the most important factor influencing your payment amounts.
the speed of traditional methods like credit cards or bank transfers cannot protect you from the danger of the volatility of the market.
On the other hand, any business loves to increase its cash flow and it can’t be reached unless by high-speed transactions.
it is worth noting that the increase in the speed of transactions will not affect on security and safety of your money in bad manners.
4. Lower Fraud Risks
The fourth and final positive issue in the list of pros and cons of accepting crypto payments for your business is the capacity of digital currency to reveal the face of defrauders.
Frauding is an issue related to security domains. Security is a general term that acts like an umbrella and lots of concepts are included in it.
Most importantly crypto transactions are irreversible and no third party guys can control or track your money flow.
At the same time, crypto payments or transparent and defrauders will be transpired by the nature of the blockchain network.
Cons
In the second part of the present article, we will talk about the negative points of accepting crypto payments for your business.
1. High Volatility
We were lingering to consider the high volatility of the crypto market as a positive point or a negative one. Lots of people used to consider it as a negative aspect, but they changed their attitude after 2021.
Suppose that you have an asset that can rise quickly just after you bought it. It will be awesome. We are living in such an era that crypto value is increasing daily.
It wouldn’t be an exaggeration to say that almost all crypto receivers are making a profit just because of having crypto, not a fiat currency.
But, any financial market has two sides. There are both pros and cons of accepting crypto payments for your business.
It means you will be in risk by holding crypto assets. Your crypto’s value can fall and make you lose your money in a few seconds.
Hence, it is advised to take care of risk management methods and use experts’ analysis like those we have introduced in the article of 10 Reliable Crypto Signal Providers for Profitable Trading.
2. Concerns of Regulation
There are lots of people all over the world that love to a stick to traditional ecosystems that are established many years ago.
Fiat currency and bank systems are old money flow platforms that are highly regularized by governments and everything is under governments’ control.
But, cryptocurrency market is not regularized by central banks like Federal Reserve and old-fashioned persons may consider it as a negative point for crypto payments.
3. Requires Knowledge
Among various pros and cons of accepting crypto payments for your bussines, knowledge is the challenging one.
Crypto is not just a currency but it is an asset that is priced by 7/24 trading changes. As we said before, the value of crypto assets are changing second by second and crypto users need technical analysis knowledge and fundamental analysis power to understand the nature of the market.
Skilled persons in those two general domains of crypto knowledge are safer and will injure from volatility lower than others.
To be honest, we seriously advise to stay away from crypto market if you have no clue of influencing factors on price action and changes of the crypto value.
4. Not Globalized
In the beginning of the article, we mentioned that you will reach to lots of new customers by accepting crypto payments for your business, but we must remember that crypto is not a global payment method that everybody can use it with no restrictions.
There are lots of illiterate persons who are spending lots of money, but they do not know what cryptocurrency is at all.
Conclusion
We talked about various pros and cons of accepting crypto payments for your business and mentioned 4 pros (obtaining new customers, lower transaction fees, faster transfer, lower fraud risks) and 4 cons (high volatility, concerns of regulation, requires knowledge, not globalized) for it.
As we said before, the rest of the mission will be on you. It is you who must decide if it is good to accept crypto or not. But it seems that crypto accepting pros are stronger than cons.
Also Read:
Prediction of Crypto Regulations by AI
10 Best Crypto Signals Telegram Groups in 2023 For Informed Decision
