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Cryptocurrency may seem like a fad, but after fifteen years of strong growth and innovation, I’ve gotta tell you it’s here to stay. Any resistance you’re feeling to accepting crypto or BitCoin as a form of payment in your business is understandable: for most of us, this is not something we grew up with. The human mind tends to exclude the unfamiliar after a certain age.
I’d like to introduce you to Neil. Neil and I were working together earlier this year to launch his small business in South Africa. Halfway through our work, the value of the South African Rand took a nosedive compared to the United States Dollar. Suddenly, Neil was feeling rather uncomfortable about his finances. Our work together wasn’t done, but working together using our government-issued currencies wasn’t making financial sense.
And so we pivoted to making payments using Cryptocurrency. The beauty of crypto is that most currencies are not tied to Fiat, or government-issued currency. While the USD grew stronger and the SAR got weaker, Bitcoin’s relationship to Bitcoin remained the same.
Fellow business owners the world over have noticed this awesome value proposition and have jumped on board. Organizations like Code To Inspire teach women to code and pays them for their services in regions of the world where they are not allowed to own Fiat currencies. Microsoft and WholeFoods accept crypto in payment for their products.
Part of my job as a Scaling Coach is to remain familiar with cutting-edge trends in business. Cryptocurrency is one of them. That’s why I am accepting crypto as payment for my coaching services. Here are some things to consider if you want to do the same.
Things To Consider Before Accepting Crypto in Your Business
1. Crypto can be volatile.
Bitcoin’s value is likely to go down over the next several months due to the cost of energy needed to mine it on servers. In contrast, Etherium just merged to a new system which cut the total global energy use by 0.02% (and likely increased its value in the long run). All that to say, choose which currency you wish to receive payment in wisely.
2. Will you hold or transfer?
You can receive payment in crypto and immediately transfer the funds to a Fiat currency. There are pros and cons to this, just as there are in investing in stock markets. If you hold, you have the chance to capitalize on any increase in the value of that currency. However, if the value decreases, you also experience those losses. Some crypto wallets have debit cards associated with them, so you may not need to transfer to a Fiat currency to use the funds. It all depends on what you want to do with the funds, next.
3. Talk to your CPA + Financial Advisor
Opinions still vary regarding Cryptocurrency. The most important thing is that you are clear on the real numbers of how you will be taxed for accepting crypto in your business.
4. Does your Target Market even care?
For my business, accepting crypto shows I’m keeping up with market and business trends. That’s my job. But if you’re selling gourmet dog treats like one of my clients, it may not make as much sense. If you need help determining how your target market might react, let’s book a complimentary chat.
How to Accept Crypto Payments
Despite its name, BitPay allows you to accept crypto payments in multiple currencies. They also offer a Zero Price Volatility feature to help protect you from the ups and downs in the market.
Coinbase has been a mainstay in the crypto market for ages. In fact, my first Bitcoin was gotten through their predecessor, Earn. It offers flexible pricing and a wide marketplace for accepting multiple currencies.
NOWPayments allows you to start accepting payments in crypto, well, now. They accept over 100 currencies and have a low fee structure.
This is *sort of* an option. One can make a payment in Crypto if they have US holdings, but PayPal will automatically convert and send you the payment in your Fiat currency. So you won’t be receiving funds in crypto, but your customers will be able to pay in crypto.
Another honorable mention, Stripe currently doesn’t receive payments in crypto but can export your funds to a crypto wallet. So if your goal is to bolster your crypto holdings, this may be a fine option for you.
So, is taking payments in crypto right for you? Tell us about it in the SCALING:lab community.