Using Cryptocurrency In Your Business

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21 May 2020. Cryptocurrency can offer many benefits to your business. With its quick processing times, low transaction fees, and access to an international customer base, cryptocurrency is rapidly becoming an acceptable form of currency in the world of business.

People all over the world are buying and selling cryptocurrency, such as Bitcoin, using a secure BTC wallet. Before long, it could be one of the main ways of paying for goods and services, so being prepared for that is helpful.

In this post, we will look at three ways to help you to start to accept cryptocurrency as a form of payment from your clients and customers.

Find a payment processor

You will need access to a merchant account before you can start taking cryptocurrency payments. Cryptocurrency is kept in protected digital wallets to preserve the integrity of your deposits. While standard wallets are easy to access, you will need a merchant wallet if you want to accept and receive payments.

Search for a payment processor that can easily transition your cryptocurrency funds to real monetary value. This will protect your funds from market fluctuations and ensure that your capital is available when you need it. Other features to take into consideration include a good level of security and low transaction fees.

Offer it as a payment option

Once you have set up a merchant wallet, start applying cryptocurrency payment options to your standard points of sale. Your payment processor should be able to help you incorporate payment methods in your store and on your website. If you work with larger clients, discuss how to integrate cryptocurrency into your current billing system.

Inform the relevant authorities

This is where it can potentially get a little complicated. At the moment, the IRS sees cryptocurrency as an asset and not as a form of capital. Because of this, it needs careful consideration when reporting it on your tax return.

Any changes to the value of cryptocurrency need to be reported – if $50 of Bitcoin turns into $65, which is quite possible, it needs to be noted down as a gain; losses also need to be reported.

Because of this, it is a good idea to convert your Bitcoin or chosen form of cryptocurrency into cash as soon as you possibly can.

Get professional advice

Because cryptocurrency is relatively new, there is still some uncertainty about how it all works, so getting professional advice from someone who understands it inside out is essential. Also, even though cryptocurrency is an entirely legitimate payment system, there may be legal issues surrounding sending and receiving payments in this form.

An STO – security token offerings – attorney will know the ins and outs and can make sure that you are doing everything above board and reporting your takings and expenses correctly, as well as knowing the best way to handle any payment disputes.

Accepting cryptocurrency such as Bitcoin as a form of payment is an excellent way to widen your customer base and bring your business into the modern age.

Editor’s note: The views in this post are the contributors and not those of Science & Enterprise.

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