Virtual currencies are already widely discussed, used in the market and have become a recurring feature in financial transactions. However, many still have questions about how to actually receive payments with Bitcoin.
In this post, we will be discussing all the steps that one needs to follow to achieve this:
- Decide how your bitcoins will be stored
- Open a Bitcoin wallet
- Use a payment processor with Bitcoin
- Spread the acceptance
- Always follow best practices
- Pay attention to taxes
- Look for partnerships with specialized professionals
1. Decide how your bitcoins will be stored
Defining how you are going to store your Bitcoin is extremely important. This because it helps keep both your customers and yourself protected against hackers. Therefore, it is necessary to use credible platforms within the market.
When conducting transactions with bitcoins and storing the currency, it is of utmost importance that you are undertake all possible security precautions. As this protects the interests of all parties involved.
Although nothing is entirely hacker-proof, there are consultants and professionals who can help you minimize the risk. We’ll talk more about this soon.
During the initial stages of this process, it is vital to have services from technology experts and Bitcoin. If you have a great amount of cryptocurrencies to store or if you want a higher level of security. Hence, you can benefit from the use of digital platform services. Which offer optimized options for you to conserve your Bitcoin.
2. Open a Bitcoin wallet
The second effective action to take is to open a Bitcoin wallet. Basically, this is the address that your customers will use to send the crypto payments, and this process operates similarly to utilizing an email service: you enter an address (or, more likely, scan the QR code with your smartphones), type the address value and click “Send”.
3. Use a payment processor with Bitcoin
If the vast majority of your financial operations are done during business hours. It is essential to have a payment processor.
These processors charge a percentage or a fixed monthly amount for their services. But their prices are still cheaper than the amounts charged by credit card institutions or even PayPal.
Furthermore, payment processors provide some interesting applications: you can send invoices directly via email, set up a POS to expose your products, or even add a plugin to your online store.
4. Spread the acceptance
Once you have gone through all the technicalities of setting up Bitcoin acceptance for your business, you need to address the issue that your site is crypto compatible. After all, what would be the reason for going through the effort to prepare for the acceptance of Bitcoin, if no one knows that your business is compatible with cryptocurrency? There are a few simple steps you can take that will help spread the word.
For example, you can place a logo in the header or footer of your site to receive payments with Bitcoin. The more visible the logo, the more likely people are to know that you accept this form of payment.
If you have an online store, you can include a button with an acceptance message and position it prominently on your page. Replacing or joining the other payment methods you work with.
Another simple method is to promote this concept on your social media pages. Whether using Facebook, Twitter, Instagram or email marketing, constantly mention this in your posts. You can help make more and more people aware of the fact that your site accepts cryptocurrencies. This option is particularly useful since it costs nothing, and if you have a significant reach and following on social media, it can be very effective.
5. Always follow best practices
Like a traditional cash register, you will probably have to withdraw the money at the end of the business day and store it in a more secured location. In general, it is good practice to keep only small amounts of bitcoins on your computer, mobile phone, or server for everyday use.
The good news is that you can allocate most of your money in a more protected and suitable environment for Bitcoin. The amount you bill with your sales falls immediately into your account, and you can choose to keep it there or exchange it for the national currency through a virtual exchange house.
Another important measure is to consider the use of a hardware wallet. This tool allows you to have full control of your private keys and your currency is stored offline, which greatly hinders intrusion attempts.
You will need to keep your hardware wallet in a safe place, especially if you are performing transactions that require large amounts of Bitcoin. It would be incredibly frustrating if you neglect this element of security as carelessness would make your business lose profitability.
Be selective and resourceful when choosing your storage wallets. You need to consider factors such as the platform’s interaction with fiduciary currencies, their regulatory frameworks, and the costs involved in using the platform.
Finally, since this is a new area for business and technology. It may be useful to select a platform that offers broad customer support. High levels of security, and the expertise of the industry.
As we are dealing with traditional wallet money, when receiving payments with bitcoin, our wallets need to always be protected. Bitcoin provides the transfer and receipt of amounts to anywhere in the world, but some safety concerns need to be addressed.
One is backing up your wallet, which will protect you from both human failures and computer deficiencies. If you choose platforms, prioritize those that offer this service. More conventional tips, such as using strong passwords, are also important when it comes to virtual currency.
6. Pay attention to taxes
Often, users may get the impression that, because they are operating with Bitcoin instead of cash. Plus paying taxes related to virtual currencies can be ignored.
However, even if the regulations are not yet strict, paying taxes on these coins is vital. Since your business is, after all, regulated by the official authorities from where you are based and operating.
The same principles of taxation that apply to traditional transactions are used in the negotiations involving cryptocurrencies.
However, it is important to note that issues become a little more complicated due to Bitcoin price fluctuations. And as such, governments are currently looking at ways to regulate virtual currencies so that there is an effective tax system to deal with these issues.
So, try to keep a detailed record of your transactions. So that you can properly monitor what is happening and not commit to actions that defy the regulations of your country’s tax authorities. It is essential that you avoid hiding your transactions or deferring your own manual records.
7. Look for partnerships with specialized professionals
Bitcoin is a milestone in technological innovation and its strengthening in the market has given more freedom to those seeking new ways to conduct financial transactions. If you want to manage the cryptocurrency in the best possible way, it is ideal to seek the help of qualified professionals.
Many users request the possibility of operating the currency on their own. Although it is possible to carry out Bitcoin mining in your company or even from your home, it is not a recommendable option.
This is due to the fact that this work will require a very high processing capacity of your own device. Paralyzing all the activities that you are developing on your computers.
In addition, software used in mining is quite complex and requires training to be fully understood.
Have you noticed how payments with Bitcoin can be fully adapted to your business? With the help of trusted partners, you can break down barriers and enjoy all the benefits of virtual currencies.