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Cryptocurrency and e-commerce are two aspects of the digital economy that have made 2020 survivable for many. With the massive shutdowns and pandemic issues of traditional commerce and banking, these virtual options meant businesses could continue with any degree of functionality.
Now, e-commerce companies are wondering if accepting cryptocurrencies could be a way to further facilitate and secure digital transactions for a population that is shopping online more than ever.
Cryptocurrency can mean a smoother, more secure process for virtual businesses. With the benefits of cryptocurrency and a growing need for alternatives, ecommerce companies are right to consider accepting cryptocurrency.
This is why.
The benefits of accepting crypto
The cryptocurrency market is much bigger than Bitcoin alone, although Bitcoin certainly dominates a majority of the industry. Thousands of altcoin options make for a diverse and thriving digital economy with an aggregate market cap of $260 billion. Ecommerce businesses will no doubt want some of this wealth.
But the wealth and breadth of the crypto market is only a small advantage in the many benefits that accepting cryptocurrencies can bring to any business. With everything from security enhancements to cost-saving potential possible through crypto, the benefits far outweigh the problems when it comes to adopting alternative currencies in an ecommerce market.
The security benefits
One of the most enticing innovations of cryptocurrencies and the blockchain systems on which they operate is the added security these systems provide for financial information.
Cryptocurrency data is stored in a cryptographically secure database known as a blockchain. Blockchains link information through encrypted hash functions that require deciphering every node of data in the chain to make changes to a single piece of information. As a result, crypto data is exceptionally difficult to steal or manipulate.
This is not to say that cryptocurrencies are also completely safe. As e-commerce is the most vulnerable individual sector of the digital economy as it faces 32.4% of direct attacksno system can guarantee perfect protection.
However, cryptocurrencies can protect vulnerable transaction data better than the average credit or debit card. As a result, customers will feel better about making an online purchase rather than abandoning their shopping cart due to security concerns without compromising their privacy.
More privacy and flexibility
In addition, cryptocurrencies generally offer more privacy and flexibility than their traditional counterparts. This is an advantage conferred by the underlying blockchain system, which operates as a decentralized platform, away from a single regulatory government or financial institution. The result is a currency that follows the rules without interfering with particular countries or agendas.
This means that the average consumer has unprecedented levels of control and confidentiality when using a cryptocurrency. International business, a staple of e-commerce, can then operate without the regulatory concerns that plague many legitimate businesses in national markets.
In front of industries such as kratom that have a high-risk trading status, cryptocurrencies are especially vital. As regulatory issues make this legal market a source of contempt for many traditional financial institutions, consumers can use crypto to bypass payment reserves and truly support their preferred suppliers.
Additional benefits
Security and flexibility are just the tip of the iceberg when it comes to all the benefits crypto e-commerce offers. These decentralized and immutable payment methods mean cost savings and a wider audience on the internet and the global economy it fuels.
The following are just a few of these additional benefits:
- Disabling the middleman. Crypto payments no longer need to be processed through a third-party service. This means faster, easier and more secure transactions without the associated costs.
- Democratizing financial accessibility. Millions of people in disadvantaged regions have limited access to traditional banking and commerce. Cryptocurrency helps level the playing field. With just a smartphone, anyone can start building and investing in decentralized wealth. Companies that accept crypto, in turn, make e-commerce accessible to a much wider audience.
- Building Tax Incentive Opportunity. Cryptocurrencies are not taxed as currency, but rather as property or assets. This means that with the proper knowledge of cryptocurrency and accounting servicescompanies may be able to defer tax burdens and value asset value at higher rates.
- Facilitate Global Transactions. The coronavirus pandemic caused significant difficulties in navigating goods and services across various regulations and lockdown procedures. Cryptograms are natural bypasses international payment problems so that aspect of e-commerce can at least remain smooth and secure despite global conditions.
These advantages and more make crypto in e-commerce a favorable move for any business looking to reduce its costs while broadening its audience. By cutting out the middleman, increasing accessibility and creating tax breaks, you have the potential to thrive in e-commerce. However, to take advantage of these benefits, good practices are required.
Keep a close eye on your crypto assets as a business, protect your crypto wallet assets with simple security tips, and follow protocols for securing your website and consumer data. These practices can help ensure successful crypto integration for all of your ecommerce needs.
In turn, proper implementation of cryptocurrencies as a payment method will broaden the capabilities of your digital marketplace, opening up more opportunities for increased revenue and customer base. With the pandemic increasing the need for such breadth and flexibility, businesses that accept crypto payments now can be better prepared for the future of e-commerce.
A future of widespread use of cryptocurrencies
More than ever, the call for alternative payment methods is heard in the digital market. As the new normal of homeworkers and global trading complications change the e-commerce landscape, crypto provides security and flexibility that make our transactions smoother and minimize the risks of cybercrime.
Soon, a host of innovations will make the widespread adoption of cryptocurrency all the more feasible. As Governments Solve Regulatory Problems, Major Players Embrace Crypto, And blockchain secures Internet of Things (IoT) devices, e-commerce companies that don’t use these systems will be left behind and at a clear disadvantage.
Cryptocurrencies will undoubtedly be an increasingly common standard for future digital commerce. Now that you understand all the benefits of accepting these payments for your online store, you can prepare your ecommerce business.
* The information in this article and links are for general information purposes only and should not constitute financial or investment advice. We recommend that you do your own research or consult a professional before making any financial decisions. Please acknowledge that we are not responsible for any loss caused by any information on this website.
