Cryptocurrencies are now widely accepted as a form of payment by many businesses. Furthermore, given the recent boom of the crypto sector, the number of such businesses is likely to skyrocket. Even the most experienced crypto firms make blunders, despite the fact that taking cryptocurrencies is not as difficult as it appears. Here’s a rundown of the most typical blunders businesses make when accepting cryptocurrency payments.
Taxes must be paid by merchants who take cryptocurrency.
More crypto payment methods should be available to merchants.
5 Mistakes not to make when accepting cryptocurrencies
1. Using custodial wallets
Your crypto money’ security should always be your top priority. Businesses, on the other hand, frequently overlook this and take cryptocurrencies as payment using their crypto address from custodial wallets, which hold their clients’ private keys. One of the most common types of custodial wallets are those used by cryptocurrency exchanges. Basically, if you accept Bitcoin using an address created automatically by a crypto exchange, you’re probably utilizing a custodial wallet. To resolve the issue, you must move all of your funds to a non-custodial wallet address and keep your private key hidden from exchanges and others.
2. Limiting your crypto payment method selection
Accepting bitcoin as payment is a terrific idea, but having only one cryptocurrency payment option may not be the most practical solution. The crypto industry is brimming with incredible coins, each with its own committed investor base. Many of these people are constantly delighted to learn about new methods to use their favorite coins. As a result, businesses that do not diversify their crypto payment alternatives risk missing out on potential income generated by customers who own a variety of altcoins. That is why, in order to maximize cryptocurrency revenue, it is critical to deploy many crypto payment gateways rather than limiting one’s options to Bitcoin and Ethereum.
3. Not paying taxes
Every company that accepts cryptocurrency payments is aware that crypto transactions are, to a large part, anonymous. However, cryptography’s anonymity does not imply a lack of accountability. To put it another way, it’s critical to pay taxes on your cryptocurrency revenues if you accept cryptocurrency. Companies that fail to comply may face legal repercussions. As a result, it is critical for every company interested in deploying a crypto payment gateway to first investigate their country’s tax legislation. Of course, there are cryptocurrencies like Monero that make tracking your crypto assets exceedingly difficult for tax authorities. However, not every customer is willing to pay in Monero for your goods or services.
4. Selling cryptocurrency on dodgy platforms
After learning how to accept cryptocurrency payments, many merchants immediately begin looking for ways to convert their cryptocurrency gains to fiat currency. When people Google “how to trade crypto to dollars,” they frequently find search results that lead them to dubious websites that provide inflated conversion rates and eventually steal coin from unsuspecting retailers. There are also platforms with low exchange rates but high fees, but consumers continue to use them because they are unaware of better possibilities. It is self-evident that such websites and platforms are nothing more than profiteers and crooks. As a result, businesses who accept crypto should only use trustworthy platforms like ChangeNOW to swap their funds or use built-in solutions like NOWPayments’ Crypto-to-Fiat auto conversion tool.