Cryptocurrency is slowly taking over all platforms of the modern market through its convenience and efficiency. As everyone is compelled to invest some of their earnings in crypto and receive good profits, they tend to save their actual cash and transact through crypto. Many retailers and companies are actively accepting crypto (not only Bitcoin) as a means of transaction, so it is also attracting people to experiment with this currency.
Companies and franchises like PayPal, Starbucks, Subway, and Tesla, among many others, have started accepting payments through cryptocurrency. This generates new ideas for entrepreneurs and small business owners to conduct payment through digital currency. Is it safe to do so, and will it benefit the business owners in the long run? Let’s look at some of the benefits and risks for companies performing transactions through crypto.
Benefits for Small Business Owners
In comparison to the standard transaction methods which work on the PoS system, cryptocurrency poses a lot of advantages. Some of them are listed below.
Minimal Transaction Fees
Without the intervention of a centralized bank, the transaction fee can be dramatically reduced. Credit card transaction per swipe requires a 25% fee in addition to the 2-4% of the transaction total. Some smaller stores have also set up a minimum limit on credit card transactions due to these charges. Using cryptocurrency transactions can reduce these costs to up to 1% of the total service.
Increment in Sales
As crypto is not bound to a single place, the purchases made through it can happen in any corner of the world. If you like something on a British website but live overseas, you can quickly pay through your crypto wallet and get the product shipped to your doorstep.
Convenience for Both the Merchant and the Customer
Merchants can be saved from fake cash backs as the transactions on crypto cannot be reversed, just like cash. Similarly, crypto adds an extra layer of protection for the consumer to keep the user’s details encrypted from other people.
Risks for Small Business Owners
Benefits come along with risks as it is the natural working order of the world. The drawbacks we have listed here are to make you aware of them, so you avoid making mistakes in the future.
Unregulatory Changing of Rules
As crypto is still adjusting to the market, rules and regulations are updated abruptly, which may interrupt your change of command. This is one of the things that makes small business owners hesitant to use crypto as a means of transaction. You can keep yourself updated with the current news and make your systems easy to upgrade so they can keep up with the new developments.
Volatile Nature of Crypto
This is the reason behind the popularity of crypto. Its volatile nature led to the fall of Bitcoin to more than half of its value after a few months of its highest value. It didn’t shake the crypto market, but people still don’t seem to stop their investments. Because they know what caused this problem and how they can overcome or avoid it, you must also make yourself aware of the market to dodge these bullets and manage your business peacefully.
The small age of currency also becomes an obstacle here, as most people don’t know how to deal with cryptocurrency. The easy answer is that we will provide choices other than crypto for those people. But what about the employees who aren’t familiar with the platform? The company will have to conduct some classes to teach them the basics of crypto. To test run a crypto trade, they can use the Revain Code app and learn more about the market fluctuations and how to tackle them without spending hefty money.
Making yourself aware of the market and using the fluctuations to your advantage is the best way to tackle these problems. You can always consult someone who has been in the field for a while. Other than that, the internet can provide you with tons of articles and videos on utilizing cryptocurrency in the best way possible.