In recent years, cryptocurrencies have proven to be not just a viable alternative to traditional banking systems, but also the most effective means of making online donations. It’s sometimes enough to just ask for financial support to monetize a site, make money from internet streams, or raise funds to aid those in need. NOWPayments can show you how to raise money in a safe, convenient, and productive manner.
The most efficient way to raise funds for your Great Goal is through cryptocurrency donations.
Crypto donations can aid streamers, bloggers, and other non-profit groups tremendously, but you should proceed with caution when selecting a donation service.
10 Things to remember when accepting crypto donations
1. Service security
Crypto donations have recently grown in popularity, owing to the security, speed, and low fees associated with bitcoin transfers. As a result, there are an increasing number of crypto donation sites. When selecting such a service, exercise utmost caution. Because if you come into scammers, you risk losing not only the given dollars, but also the public’s faith. Examine the service’s reviews on independent sites like Trustpilot and examine the information supplied. Keep in mind that claiming there are no payments is a clear symptom of deception, as no one will labor for free. We take security very seriously at NOWPayments, which is why we work with well-known businesses like OKEX, Travala, Guarda, and others.
2. Choose the best way to receive crypto donations
To date, there are a variety of ways to receive cryptocurrency donations via the internet. Each of these platforms has its own set of advantages and disadvantages. You can take donations using credit cards that support cryptocurrency payments, for example, but keep in mind that these cards only support a limited number of cryptocurrencies. It’s worth noting not just which cryptocurrencies the business accepts, but also what the minimum donation quantities are, as well as which countries people can use this feature.
3. Custodial or not?
Keep in mind the type of service you’ll use to take money. Users that receive donations via custodial platforms should be aware that they do not have complete control of their funds. Furthermore, such systems are less secure, as they are vulnerable to hacking and other technical issues. NOWPayments is a non-custodial service, which means we don’t keep donated monies on our servers and all transactions are done wallet-to-wallet. Furthermore, because the service is custody-free, you will receive your funds as soon as the transaction is done. There’s no need to take them out of your account and incur a withdrawal fee on top of that.
4. Service fees
Pay close attention to the fee that the service charges. Every Satoshi matters when it comes to cryptocurrency donations. For example, it is critical for charitable organizations to raise as much money as possible, and it is certainly more pleasant for anyone who collects gifts to receive the highest possible remuneration. As a result, it is extremely important to research the magnitude of the service cost. NOWPayments has reasonable costs that start at 0.4 percent. Furthermore, our service allows for donations of any quantity, starting at $1 and continuing indefinitely.
Study your country’s tax code thoroughly. The subject of regulating cryptocurrencies in various nations throughout the world is still contentious and fraught with complexities. We urge that you research the tax issue before receiving bitcoin donations to avoid getting into issues with the government. Remember that donations are made without charge, therefore if you decide to donate something in exchange for a donation, the IRS may view your actions as fraudulent. This does not, however, deprive streamers or bloggers of the ability to offer preference to those who have donated. Furthermore, gifts to recognized non-profit organizations are tax-deductible in some countries.
6. Don’t beg – but justify
Crypto donations are an excellent approach to draw attention to your Great Goal from around the world. In addition, bloggers and streamers can monetise their efforts by addressing a new sector of potential funders. You can become closer to the public with the help of crypto donations; additionally, some contributors become “patrons” who donate on a regular basis. As a result, it’s critical to justify your decision before approaching your audience about crypto donations. A video blogger, for example, would put money aside for a new camera in order to provide high-quality content. Donors will go to great lengths to ensure that they are investing in a major transaction.
7. The functionality of the donation service
When it comes to selecting a service, versatility, convenience of use, and integration are some of the most important factors to consider. When it comes to deploying the contribution tool, you should have no concerns. In addition, the effectiveness of the support service should be considered. Our consumers can choose from a variety of donation options at NOWPayments. You can utilize the Donation Widget, which you can embed on nearly any site, the Donation Button, which is especially useful for Twitch users, and the Donation Link, which allows you to take donations on popular platforms like YouTube, Twitter, and Instagram.
8. Pay attention to the supported cryptocurrencies
For all types of non-profit organizations and people, crypto donations open them new possibilities. You can collect donations from all across the world whether you’re a blogger, a streamer, or a charity foundation staff. As a result, it’s critical not to limit your contributors’ gift options to just a few cryptocurrencies. The purpose of crypto donations is to raise as much money for your Great Cause as possible. And the more cryptocurrencies you can accept, the larger your audience will be, and the more money you’ll be able to raise. As a result, NOWPayments offers over 100 coins to give with.
9. Invest wisely
Charities, bloggers, and streamers who accept gifts in cryptocurrencies, such as Bitcoin, are actually accepting a highly profitable financial asset, which, by the way, has recently overtaken traditional instruments in terms of profitability. The idea of using contributed monies to profit from the rise in the bitcoin exchange rate is very appealing. However, keep in mind that investing in cryptocurrency is a dangerous proposition. If you raised money to buy the same game but didn’t buy it because you lost money on the investment, your audience will be disappointed.
10. Use the full capabilities of the services
Despite the fact that bitcoin is already accepted by a vast number of businesses as a form of payment, there are still some exceptions. Not every purchase may be made using cryptocurrency; some businesses only accept cash. If you’re a streamer, for example, and you’re raising money to buy a new game, what if the game is only available in fiat currency? NOWPayments provides a simple option for instantly converting incoming donations into fiat currency. You won’t have to deal with third parties or waste money on exchange and service fees if you work with us. For crypto-to-fiat cash-outs, we simply charge 0.5 percent.
Cryptocurrency holders are becoming one of the most sought-after benefactors for charities, bloggers, broadcasters, and other non-profits. Cryptocurrencies are becoming more mainstream, and it would be a mistake to overlook the possibilities of raising funds with them. NOWPayments provides a variety of readily connected options to help you raise money in a secure, timely, and effective manner.