The cryptocurrency (or crypto) market has developed remarkably over the years. It was valued at $1.49 billion in 2020 and is now projected to reach $4.94 billion by 2030—a CAGR of 12.8%.
This rapid growth can be seen most specifically in the last few years, where advanced oversight and regulatory control have transformed the crypto market into a somewhat conventional investment market. In fact, El Salvador made headlines. September last year when it became the first country in the world to accept Bitcoin as its official legal tender.
Because the cryptocurrency market is among the most technologically advanced, it offers individuals and businesses massive trading opportunities on crypto platforms. And as the crypto market continues to grow and evolve, the number of brands investing in cryptocurrency and reaping benefits is also growing rapidly, especially in the marketing area.
To answer that question, you need to fully understand the basics and big picture of how the cryptocurrency system works, including its advantages, versatility, and cons.
Pros and Cons of Cryptocurrency
Before we explore why you should consider incorporating cryptocurrency payment options in your business, it is worth defining what exactly cryptocurrency is, along with its pros and cons.
A cryptocurrency is basically any form of currency that exists digitally or virtually and uses cryptography (techniques derived from mathematical concepts for secure communication involving converting ordinary plain text into unintelligible text and vice-versa) to secure transactions.
Cryptocurrencies are designed to work as a medium of exchange through a computer network that is digital, encrypted, and decentralized. Some of the key advantages and disadvantages of cryptocurrencies as a form of digital/virtual currency include:
- Transparency of all transactions
- Motivates investment
- Low transaction cost
- Easy to access
- Market fluctuations - value of bitcoin and other crypto is extremely volatile
- No chance to recover if lost or stolen
When considering cryptocurrency as a payment option in your business, you should know that crypto payments are considered more secure than credit and debit card payments. That’s because the blockchain technology used to verify and record every cryptocurrency transaction is very transparent and secure, making it difficult, if not impossible, to steal someone's identity.
Moreover, with rising technology, almost everyone now is active in the digital world, which has led to a rapid expansion of potential markets for businesses that embrace digital currencies.
Through advanced technologies like blockchain and AI, people now have the opportunity to transact online and access better security assurances, especially with digital currencies like Bitcoin, Ethereum, Litecoin, and others.
But you may still wonder what is the need to incorporate cryptocurrency as a payment option when traditional digital payment options like credit and debit cards already exist and are widely used for transactions online. One of the reasons solely relates to the involvement of government.
Credit and debit cards are government-issued/regulated forms of currency, which means government and banks have a lot of say in their use. Meanwhile, cryptocurrency is not tied to any government or centralized authority, which means control of the currency is entirely in users hands. This has the potential of creating a more borderless and globalized economy for everyone.
With cryptocurrency, virtual assets like Bitcoin and other cryptos are used as digital currency to pay for products or services. Since these cryptocurrencies are decentralized, customers and merchants can transfer wealth between one another without having to go through banks or jump through government control hoops.
That presents many unique benefits that can make adding cryptocurrency payment options in your business a worthwhile undertaking.
Benefits of Accepting Cryptocurrency Payments
You may accept cryptocurrency payments through a cryptocurrency wallet, which is an application that allows cryptocurrency users to store and retrieve their digital assets. Many of these wallets are free and they allow you to send, receive, and spend cryptocurrencies.
If you don't have the time to put into learning about cryptocurrency, but you want to accept cryptocurrency as payment in your business, a cryptocurrency payment gateway can help you accept crypto payments much like you would with typical payment processiong gateways like PayPal.
Some unique benefits of accepting cryptocurrency as a payment option in your business are:
1. Zero transaction fee
Cryptocurrencies charge much lower fees, if any, compared to other digital payment processors/gateways like PayPal.
Since the payment is not tied to any local bank, the rewards go directly to the network, leaving cryptocurrency miners with no or little fees.
With a cryptocurrency wallet, only you have access to your digital keys that are used to track ownership. So, you don’t have to worry about anyone freezing your account or limiting your currency against your will.
3. High-level security
Unlike banks, digital currencies offer the most high-tech and best identity protection available. So, you can send your crypto payment to any recipient without having the need to provide any important information.
Since it’s a completely digital payment mode, you don’t have to wait for minutes on bank queues to make transfers.
5. Risk Assurance
Cryptocurrency transfers are irreversible, so scammers can’t do their thing here.
6. Quick Settlement
Another great thing is crypto does not require any third party and grants you the power to access important matters.
7. Universal consideration
Being a part of the crypto world grants you global recognition, so you’ll have the option of an easier and wider range of transactions.
8. Immune from inflation
Cryptocurrency is considered immune from inflation. Governments can’t manipulate the value of cryptocurrencies, which can be a big benefit.
Best Cryptocurrencies In the Market
Whether you see yourself engaging in crypto for a long time or just exploring it for a brief period, it’s important to do your research on the different cryptocurrencies you can invest in. Without due diligence, you can easily lose your investment/profits as fast as you earned it.
Admittedly, it’s not possible to state with finality which cryptocurrency is the best due to their remarkable differences and the volatility of cryptocurrencies in the market today. But, if you are a beginner who has very little knowledge or no idea at all about this field, you may be better off starting to invest in Bitcoin (BTC).
Over the last ten years or so, Bitcoin has emerged as the most widely known crypto that has rapidly increased in price, providing ;its investors with huge profits. Websites and resources like Bitcoin Era app can help you learn more and start trading cryptocurrency.
Other top cryptocurrencies you can accept in your business include: Ethereum (ETH), Solana (SOL), Yearn.finance (YFI), Polygon (MATIC), Avalanche (AVAX), and Dogecoin (DOGE).