The Bitcoin (BTC) technology has acquired prominence without corporate or government backing. Despite constant resistance from mainstream finance, Bitcoin has managed to shape its own narrative — from just an idea into a decentralized asset with high returns. This transformation attracts investors across all generations toward owning and using Bitcoin as a means of payment.
Considering the spending immunity from geographical restrictions that Bitcoin brings, businesses across the globe are eyeing customers who were out of reach just a decade ago.
But in the case of cryptocurrency, the saying “all press is good press” hasn’t quite lived up to the truth. This is why there is a knowledge gap over how to turn BTC into a legitimate means of payment for businesses.
When it comes to accepting Bitcoin as payment for your goods or services, the following steps will ensure a smooth journey toward adoption.
Law of the land
Not all governments are happy to see their citizens deal in Bitcoin. This is because many Bitcoin platforms don’t mandate Know You Customer (KYC) and Anti-Money Laundering (AML) requirements, which makes it difficult for the authorities to track transactions.
If you want to run a business that accepts Bitcoin, make sure you use a service that complies with local laws and regulations. Depending on the government’s stance on cryptocurrency, income taxes will be imposed differently for different locations.
This has led many businesses to move off-shore to places that allow tax-free crypto incomes or less scrutiny. Currently, two of the safe havens are Malta and Portugal. While Gibraltar’s low-tax environment allows crypto-powered businesses to get away with just 10% in corporate income tax, countries like the United States have more stringent policies toward crypto earnings.
Choosing the right platform
Now that you’ve researched local regulations related to Bitcoin incomes, it’s time to determine the best method for transacting Bitcoin — for you as well as your clients.
Bitcoin transactions are made possible by BTC addresses, QR codes, point-of-sale (POS) systems and online payment gateways. To identify the best method to accept Bitcoin, ask yourself the following questions: “What kind of demographic do I serve? How tech savvy are they?” This will help you to weed out the complex gateways and take you closer to your final mode of accepting Bitcoin.
To make a more informed decision on choosing the right platform, read Cointelegraph’s detailed guide for an explanation of the nuances of getting paid in BTC, including setting up a BTC-ready store and the software ecosystem that makes it possible.
Telling your customers the “B” word
Giving customers more options for payment can never be a bad thing. Bitcoin has turned out to be a surprisingly successful marketing tool for many businesses. While it cannot guarantee a loyal customer base, the “Bitcoin accepted here” stickers will give your business the limelight you are looking for — both offline and online.
No matter how many banks work together, fiat currency can’t come close to Bitcoin’s capability in seamless cross-border payments, even at this early stage of the blockchain’s lifecycle. This makes it easier for a buyer to fulfill their needs. On the flipside, it would be easy to set up a merchant to sell a local exotic or handmade product and ship it across the borders and continents in exchange for BTC.
Additionally, Bitcoin store aggregators connect this vast ecosystem of borderless sellers and buyers. Getting your business listed on a popular aggregator can help your potential customers find you. Today, you can legally buy everything from hoodies and t-shirts to phone cases and face masks using Bitcoin. Here is a more extensive guide on what you can buy with Bitcoin.
Once you have taken care of the legalities, feel free to market your new Bitcoin payment options. People around the world are keen to discover more stores that accept Bitcoin for their services, so early adopters have a big advantage. If you are ready to accept Bitcoin for your online business, it will be ideal for you to ship items internationally, as the Bitcoin community knows no boundaries.
Overall, it is important to keep yourself up-to-date with the latest innovations around Bitcoin. Follow Cointelegraph’s beginner’s guide to discovering the best places to discuss everything about Bitcoin. To make things easier, we have also curated a guide to help you choose the best wallet options available in the market.