How to Accept Bitcoin? – Full Guide
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Bitcoin (BTC) is a virtual coin that can be used as one of the many ways to make payments online and offline. There are many merchants accepting the coin, and the popularity is increasing by the day.
Should your Business Accept Bitcoin?
Modern shoppers are after convenience, satisfaction, and experience that discerns them. If you want to take your business to the next level, you need to start planning on how to accept cryptocurrencies. Bitcoin is a decentralized form of currency that you can transfer fast, easily and safely from your wallet to another almost in real time. All transactions involving digital currencies are done online. Once your business starts accepting Bitcoin payments, you will save your customers the fees incurred with credit cards. Secondly, Bitcoin transactions cannot be reversed hence you save time and money associated with traditional chargebacks. This is a problem that cryptocurrencies are set to solve.
Cryptocurrencies are gaining popularity across the globe, and many businesses are beginning to accept Bitcoin as a payment method. However, one needs to know how to accept Bitcoin before using it. Accepting BTC means lower transaction costs and increased market reach. There are many ways you can use, but you need a Bitcoin processor to make the transactions easy and convenient. Before we go to these service providers, you need to know the pros and cons involved.
Pros of Accepting Bitcoin for Business
Elimination of Middlemen
Online payments are the next frontier in doing business locally and across the borders. Accepting Bitcoin payments eliminate third parties, hence additional gains to your business and consumer satisfaction. Customers spend more in your store since they have more money at their disposal than when third parties are involved in the transaction process.
Lower Transaction Fees
In order to sustain miners on the Bitcoin platform, Bitcoin imposes some fee which is lower than what you are charged when using credit cards. This is a peer-to-peer platform and transactions are very low. The State, among other financial institutions, are not involved in crypto transactions thus their share is eliminated. Low fees will translate to increased profits in the long run once you accept Bitcoin in your store.
No Chargebacks to your Business
With the blockchain technology, transactions cannot be reversed since the technology is immutable. Being charged back is costly when using credits cards, and this is eliminated once you decide to accept crypto. These typical credit card penalties can cost your business up to 1.47% annually.
Accepting BTC enable you to trade across the border as payments are fast and secure. You avoid the waiting time for funds to be cleared, and goods are shipped immediately. You can send and receive Bitcoin anywhere, any time.
Increased Foot-Print to your Store
More and more customers are turning to online shopping due to modern consumer needs. Accepting Bitcoin for your business adds value to the consumer. It is convenient; works well with their daily schedules and their transactions remain anonymous. As Bitcoin usage, acceptance and global appeal continues to skyrocket, your business grows.
Cons of Accepting Bitcoin Payment
Bitcoin transactions are anonymous, and people tend to associate the feature with illegal transactions. Anonymity is a blockchain feature that works well with a decentralized platform. Transactions are hard to trace hence users tend to take advantage of the same.
Cryptocurrency volatility is another issue businesses accepting Bitcoin are faced with. The market price fluctuations can result in in losses when the markets plummet or profits when there are surges in prices.
How to Accept BTC using processor services
There are many processor services that you can use to accept Bitcoin for your business. Payment processors have different systems, below are some guides on how to accept Bitcoin payments.
BitPay is one of the largest Bitcoin payment processors in the world. They handle over 45,000 businesses across the globe. Once you start utilizing their services, they give you a free lifetime membership where your transactions do not attract any fee. They convert your USD, EURO, CAD, GDP and other selected fiat currencies to Bitcoin at no extra fees as long as you are affiliated with them.
To get started, you are required to open an account on their official website. This requires your real name, phone number, and business address. Your application is manually screened and once accepted, you receive a link to your email to confirm registration and indicate the preferred currency.
There are several currency options available. These include USD, Australian Dollars, Euros, Pounds, Mexican Pesos, New Zealand Dollars, and South African Rand. All these are options you can land to transact your business in Bitcoin.
With your BitPay account ready, you can start to accept Bitcoin. Initially, you can only accept up to $ 1000worth of Bitcoin daily. Increasing the limit requires extra verification.
With BitPay, you have 5 methods that you can use to accept crypto.
- The BitPay Mobile web application is the most popular. This is a simple checkout application that you integrate with your Point-Of-Sale system, and your customers will only use their smartphones, home computers or tablet to make purchases from your online store.
- BitPay also uses Bitcoin invoices over email. This method is not very popular because the process gets completed only when the consumer reads their emails.
- BitPay offers Bitcoin users a plugin to install on their e-commerce platforms. Once you install the “Buy with Bitcoin” tab, the process is hassle free, secure and fast.
- The other method to accept BTC payments entails installing the BitPay API. This is a very easy way to accept orders, and the API automatically handles the checkout process.
Coinbase is a reputable cryptocurrency exchange that allows you to trade with digital coins and other digital assets. The platform is supported by a good number of countries across the globe including Australia, Austria, Belgium, Bulgaria, Canada, Norway, Poland, Portugal, San Marino, Singapore, Spain, Sweden, Switzerland, United Kingdom, and the United States. Coinbase is a global brand, secure and trusted by digital asset users. The system continues improving its services to satisfy the consumer demands. Fast and transparent transactions have made the exchange popular in the market today.
How to Accept Bitcoin through Coinbase
To accept Bitcoin through Coinbase, you need to have an account through their website. Once verified, you need to create a wallet and use the two-factor authentication feature for enhanced security of your funds.
With your account set up, you can choose the best available method to start accepting Bitcoin on their website. Coinbase has only four options to choose from:
- Functional payment buttons that enable fast transaction online.
- Sending Bitcoin Email invoices
- Using Coinbase e-commerce integration solutions and
- Using the Coinbase API
To set up your merchant account and start accepting Bitcoin, you need to open your merchant account and chose any of the above tools to start accepting Bitcoin instantly.
Website or Blog- This method will help you accept BTC, but you need to know HTML basics. You need to embed code to your website or blog to enable customers to remit to your Coinbase wallet.
Payment Buttons- Putting payment buttons on your website is very easy. Once consumers purchase goods or services, they pay directly to your Coinbase wallet. This is a convenient way to makes cryptocurrency payments and easy to accept BTC and other digital coins. This method is popular with WordPress sites, Woocommerce, Zencart, and magneto.
CoinPayments is designed with the merchant users as the key focus. However, you can still sell, buy and exchange your digital assets on the network. CoinPayments accepts over 130 digital coins and charges a transaction fee of 0.5% to fund its operations
This is a Canadian exchange and has over 710,000 merchants spread across 182 countries. It virtually operated in countries where cryptocurrencies are allowed. It has several products and tools to its vendor and users.
CoinPayments Products and Services
- Accept Bitcoin, Ethereum, Litecoin, Ripple and Lisk among the list of over 100 other alternative coins. All these coins are stored in one wallet, and it is for users to choose the one they want to convert, sell or buy.
- The system allows you to store money in escrow for fast transactions during live All users are protected against fraud during transactions’
- CoinPayments offers the user a shopping cart plugin for the web. You cannot miss one that works well with your online store.
- Furthermore, you can launch your ICO on the platform to raise funds for your projects.
How to use CoinPayments to Accept Bitcoin
To start accepting Bitcoin using CoinPayments is easy. All you need is sign up through their website. They will prompt you to enter a unique username, create a strong password and key in your best email address and your correct time zone. Once your account is verified, and you receive an email notification, an inbuilt setup wizard will guide you through the CoinPayments dashboard. The interface has two options; to select multiple coins or a single coin; in this case, select Bitcoin (BTC).
CoinPayments offer a multi-sig option to their users but has had a hacking case reported in the past. Due diligence is required on the user’s part. If you notice bugs in your wallet, the support desk will be able to help you. Anonymity on the platform is below par since your account is linked to you.
BitGo is a bitcoin payment processor and wallet that helps businesses and individuals utilize their digital coins and assets in real life. It offers a multi-sig wallet for Bitcoin. The wallet comes with three keys; one is retained by the provider, the other one by the user and the third by the Key Recovery Service (KRS). The platform uses smart contracts to protect users against fraud.
BitGo offers instant transactions in a transparent environment. Their fees are among the lowest in the industry. Any transaction below 1 BTC is free, but all transaction above 1 BTC attracts a fee of 0.25%.
This is an open on-chain system, and you can use it to accept Bitcoin on your website. However, you are required to check with the support team on partners who accept the BitGo plugin.
At the time of writing, you can only accept Bitcoin if you are already using BitGo wallet. According to their website, their API sand applications support major cryptocurrencies including Bitcoin, Bitcoin Cash, Ethereum, Bitcoin Gold, Ripple, Litecoin, and Ethereum.
Accepting bitcoin with BitGo
In order to accept Bitcoin using the BitGo interface, you need to create an account on their official website. Once accepted, you create a Bitcoin wallet. This is where you initiate transactions. You can also link your BitGo wallet with other wallets because the system is secure.
After activating your wallet, get the automatic activation code, and you are ready to go. You can download the app either on your smartphone or desktop. To accept Bitcoin, you have to generate your public key or address that you share with your consumers while making payments.
With BitGo, you can send and accept Bitcoin from anywhere across the globe. Once customers make payments, you can convert your BTC to any other cryptocurrency that the wallet supports.
The BitGo system is secure, but the interface is not user-friendly. Many users argue the process is complicated and time-consuming. However, there are no reported cases of the system being compromised. The platform, according to their website supports most countries where Bitcoin (BTC) is accepted.
How to Accept Bitcoin Manually
It is possible to accept Bitcoin manually for business. As a trader, you need to use a wallet where your customers can use their smartphone to scan your QR code and make payments instantly. When a customer purchases a product, they scan the product code, and money is debited from their Bitcoin wallet and transferred to your wallet instantly.
The pros of accepting Bitcoin are many; it is fast, secure and customers know what they are purchasing. The only downside of this payment method is the current delays Bitcoin is experiencing. Customers have to wait for minutes or even hours before their transactions are verified.
People who Accepted Bitcoin and Became Millionaires
Rapper 50 Cent (Curtis James Jackson III)
Unbeknown to him, rapper 50 Cents (Curtis James Jackson III) accepted Bitcoin from his fans to purchase his album in 2014 Animal Ambition and made over $400,000 when 1 BTC was worth $662. He left the coins in his wallet unused only to discover he is already a millionaire. The price of Bitcoin rose to hit $17,000 before dropping to the current price of $7,623. 50 Cent is already a millionaire after only five years.
Erik Fineman invested a total $1,000 worth of BTC when he was 11. This was in 2011, and 1 Bitcoin was trading at $12. He sold the coins in 2013 when each was going for $1,200. He had made over $100,000 and started an education company online in 2014 where he taught through chat and got paid in bitcoin. He moved to Silicon Valley, traveled the globe and made an agreement with his parents that if he became a millionaire at 18, he would not attend college, a target he met.
Olaf-Carlson Wee, now a millionaire, bought his first Bitcoin in 2013 when they were trading between $20 and $30. He got a job with Coinbase and saw the potential in cryptocurrencies. He agreed with the employer to be paid in BTC a decision that ended making him a millionaire.
And what about other Cryptocurrencies?
BitPay, Coinbase, CoinPayments, and BitGo are not restricted to only accepting Bitcoin; they also trade other major digital coins and alternatives coins as well. These platforms are sustained by transaction fees and the more coin they have on their trade portfolio, the better. This way, Bitcoin is paired with other coins for profiting.
In conclusion, it is highly commendable for online businesses to accept Bitcoin. It is a convenient way to make payments online without disclosing your identity. Transactions are fast, secure and are even done at the micro-billing levels. You do not have to carry hard cash since you own digital currency. Accepting Bitcoin allows you to grow your business to international levels. Bitcoin is decentralized, and this is a good cross-border trade catalyst. Transactions are cheap compared to credit cards since they are not liable to charge-backs.
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