How To Accept Bitcoin For Payments
Know as much as Possible
As stated before, you should always know what you are getting into and know what you are doing. If someone is interested in using Bitcoins as acceptance as currency, then they need to know exactly how receiving them for payment works. It could result in their business suffering if they didn’t know.
Payments and invoices can be processed by the business owner and can process payments into BTC or local currency.
Accounting & Taxes
Bitcoin works similarly to foreign currency. Merchants should always get advice regarding tax for their jurisdiction from a qualified accountant.
A business can be submitted quickly to online directories, and the logo can get displayed on their website.
Bitcoin is a form of digital asset that acts as a payment system; it was invented by a person only known as Satoshi Nakamoto in 31 October 2008. It was first intended for cryptography list before being released as open source software in 2009. Several people have tried to claim that they are Satoshi Nakamoto but none has yet to provide enough proof to back up their claim.
It is a peer to peer system where Bitcoins transactions take place from one user to another without the use of intermediaries. All users in the world are partial owners of the blockchain technology; this is because regardless of software improvisation by developers, users are free to choose which software or version they will prefer to use. For users to stay compatible with each other, they should use software which complies with the same rules thus all developers and users have an incentive to protect the consensus.
Over the years, the number of individuals and businesses using Bitcoins has grown exponentially.
Bitcoins are usually acquired for payment of goods and services. To acquire them, one has to purchase the from either a cryptocurrency exchange, exchange the BTC with another user or earn coins from competitive BTC mining (this is the use of computers to solve complex math questions where the winner is rewarded. The present-day rates are 6.25 Bitcoins for the winner). Most exchanges do not allow payment via methods like a credit card or PayPal due to money reversal.
Some advantages for individuals include:
The current dynamic of the world requires individuals to be able to pay for goods and services regardless of the time and location. For mobile payment, one has to have enough funds in their mobile wallet. The payment is done in two simple steps. It does not require signing up hence an individual just swipes his card, inputs his pin or anything that will identify him. The receiver should be able to display his QR code in his wallet application and let the sender scan his mobile or bring the two phones together (this uses NFC radio technology). Bitcoins give users total control of their money by eliminating banks, borders and bureaucracy.
Money security and control
Fraudsters are continually coming up with new ways to cone people off their hard earned money. Bitcoins has several necessary steps that should be implemented to ensure that individuals have a solid level of protection and control over their money. Operations are secured by use of high end military grade cryptography. No individual is able to make payment in accounts that are not theirs or charge another person. Additional security is ensured by the use of the backup system and encryption. Users can increase their security by:
- Choosing a trusted wallet provider. Wallet providers have different levels of security; some wallets have recently incurred cases of breaches. Choosing a trusted, secure and insured walled does the trick.
- Use of secure passwords. Passwords are your paramount line of defense to your wallet, experts have ideally decided that people should have sixteen character long passwords that include letters, symbols, numbers and punctuation marks.
- Keep a small amount in wallets. To minimize the risk of losing a lot of money or having it stolen, one should keep only the amount he expects to use soon. The rest of the money can be kept in a crypto vault which is designed to be less accessible than the wallet.
- Works anytime, anywhere
The technologies used for Bitcoin transactions are all compatible hence individuals have the option to use any software they prefer. It works just like emails; you can send a message to any person regardless of the site he used. Its an international currency and its network does not take a break, even during holidays.
Reliable worldwide payments
Cryptocurrencies are not bound by any nations laws. Sending them to another country is as easy sending them to your friend across the street. We are used to the normal regulations of banks making people wait for at least three to five business days, incurring an extra fee for international transfer or limitation to the maximum or minimum that one is allowed to send, but with Bitcoins, no such regulation exists.
Choose your own fees
The available wallets let you decide how hefty a fee to pay before spending, for receivers, Bitcoins come at no fee. All wallets have a set reasonable default fees but for faster confirmation of transactions, the higher the fee the better it becomes. The amount of fees paid is not directly proportional to a number of Bitcoins transacted hence you can send one hundred thousand coins at the same fee as of one single BTC coin.
Other payment systems require users to link their credit cards hence being vulnerable to malicious attempts. With Bitcoins, no one can collect your data or impersonate you since no credit card is required. Just like real money, the user can send money without revealing his identity. The software may, however, require your information to protect your privacy.
Some disadvantages include:
Degree of acceptance
Bitcoins are still a new currency in the world and a lot of people still do not know its availability or how it is used. The amount of businesses accepting them is still small and this numbers should significantly grow for it to benefit from network effects.
Never before has this world experienced such a start-up currency, it is an exciting and interesting new venture. The overall value of Bitcoins in circulation and the businesses involved is small thus small events or business activities can easily affect its price. The positive from this disadvantage is that the volatility will decrease as the blockchain technology matures.
Crypto gambling software platforms are still in their initial versions of development; there are so many incomplete features currently available. New services and tools are springing up daily to make it more accessible and secure to the masses. With time, more businesses will start to offer insurance hence becoming more acceptable.
People trust Bitcoins due to the fact that it requires no trust. It is a decentralized and open source hence anyone can go through the whole source code at will. Any knowledgeable developer in the world can decode how it works. Any ongoing transaction can be visibly consulted in real time by both users.
Bitcoin can be used to pay physical stores or online business just like real money. It can also be exchanged with physical forms like Casascius coins. Their balances are kept in large distributed networks and cannot be altered by any mischievous person.
Bitcoin Casinos have naturally been growing in popularity with all of the benefits afforded by the king of cryptocurrency. Both online players and casino operators benefit from the low cost framework supporting the digital currency’s transactions. Some online casinos are offering generous welcome bonuses up to 5 BTC on new deposits.