Cryptocurrency is today’s current standard in online commerce. This online money source is getting plenty of attention in today’s business world.
Crypto has no governmental or bank control. Cryptocurrency operates on a network of volunteer digital systems to sustain it.
If you’re a business owner considering this modern currency system then this article is for you. Check out this crypto guide for beginners. It will help you understand what cryptocurrency is all about.
You’ll soon see how it’s changing our traditional monetary system. Then you’ll know if it’s right for you.
Crypto Guide for Beginners: What Is It?
Cryptocurrency is open-source software. It allows groups of online members to buy services or goods from each other. The first cryptocurrency unit ever created was the bitcoin.
Members of these associations are called “miners.” Miners create each electronic monetary unit. Then they validate their transactions on encrypted general ledgers called a “blockchain.”
Bitcoin mining refers to exchanging cryptocurrency units with other entities. There are no centralized authorities like a banking or government that tracks transactions or protects the funds.
You can use cryptocurrency to buy airplane tickets, housewares, or gift cards. Another cryptocurrency trend includes investing in cryptocurrency itself.
Investors consider cryptocurrency a commodity. They’ll buy it, relying on it increasing its value over a period of time.
What Are the Benefits of Cryptocurrency?
Both large and small companies see many benefits to accepting cryptocurrency in their online or retail stores. Crypto makes these online payments quicker and easier.
It also helps merchants streamline their online transactions. That way they will reach more international customers.
When a business creates an online fund transfer capability, the banks and credit card companies will have a lot of requirements for them.
These businesses will have to fill out applications and pay user fees to use online transfers. They’ll also have to pay user fees to support their online account.
With cryptocurrency, a business will only need an online address to launch online transactions. They can also advertise from their company’s website that they will accept electronic payment.
If a business predicts they’ll receive more cryptocurrency transactions than they can manage, they can also engage a payment processor. Payment processors like BitPay will then manage their sales for them.
Cryptocurrency can also control transaction fees in a cost-effective way. A smaller business might have a hard time getting a lower transaction fee with credit card companies than larger companies can.
Cryptocurrency payors (any party sending money) decide their own transaction fees. They can also decide not to charge fees at all.
Cryptocurrency also helps fight fraud. Transactions are transparent between members on a business network.
That way, a miner can review any history and fund transfers immediately. This capability will help them recognize suspicious transactions immediately.
Cryptocurrency can also protect the consumer. Cryptocurrency companies and their customers conduct all transactions without using any confidential information. This keeps any personal information out of a cyber criminal’s reach.
Which Countries Use Cryptocurrency?
There are growing numbers of countries using cryptocurrency today. In the US, cryptocurrency is labeled as a Money Service Business (MSB). An MSB refers to those banks or financial institutions that send money.
In Canada, cryptocurrency is a commodity. Any crypto-generated income there is considered “business income.” Cryptocurrency also has wide use in Australia, Japan, and the United Kingdom. More than 80 percent of today’s cryptocurrency mining, occurs in China.
What Can Cryptocurrency Buy for You?
There are plenty of conventional and non-conventional items you can purchase with cryptocurrency. The list of consumer goods grows longer every day. Examples of these goods include:
Online travel agency Cheap Air.com accepts cryptocurrency for flight reservations. Expedia accepts cryptocurrency for travelers to pay for hotel room reservations.
Zynga, the online game company, accepts cryptocurrency for in-app purchases. Dish Network began accepting cryptocurrency payments for satellite television.
Microsoft will also accept cryptocurrency for movies, games, and apps from their Xbox and Windows online stores.
Online retailers like Overstock.com started accepting cryptocurrency in 2014. They accept cryptocurrency for everything from jewelry to home décor. Electric vehicle manufacturer Tesla, Inc., accepts crypto purchases.
Online retailer Newegg.com will also accept cryptocurrency. Digital purchases for consumer products range from electronics to beauty care.
Non-Retail Uses for Cryptocurrency
Cryptocurrency is also gaining wide popularity as a payment method for professional services.
Some life coaches, web designers, and accountants now accept cryptocurrency for their services.
The digital professional services marketplace, Fiverr, now accepts cryptocurrency. Online dating service OKCupid.com accepts cryptocurrency as well.
Bitcoin is also an easy and effective way to promote global philanthropy. The International Save the Children Fund uses blockchain technology.
This technology allows donors to track their donations. Donors can see if their dollars reach their intended goals.
Investing in Cryptocurrency
As mentioned above, you can also sell, trade, and buy cryptocurrency. Cryptocurrency traders buy bitcoins when their prices are low and selling them off when their values are higher.
A cryptocurrency trader uses this investment method to capitalize on lower buying prices. They’ll buy crypto funds with the expectation that their value will increase in the future.
When you invest in cryptocurrency, you’ll have to pay capital gains tax on any profits you make from these sales. US tax laws require investors to report any profits on their annual tax returns.
Consult with your accountant to see if they can advise you on today’s best cryptocurrencies. There are more currencies besides just bitcoin. You can learn more on just two of today’s leading cryptocurrencies, reading the Ethereum vs Bitcoin article.
What Are Your Next Steps?
If your company is thinking about using cryptocurrency, follow the steps in this crypto guide. It will help you get started on the right path.
Create a cryptocurrency address. This address is also called your online “wallet.” This is where customers will send over their payments.
Once you have your wallet created, you can start trading and accepting cryptocurrency. These activities will help you create your virtual “cash drawer” you’ll need to operate your business.
Be sure to check our website for more information on cryptocurrency. Read up on this revolutionary payment system to see if it’s right for you.
The post A Quick Beginner’s Guide to Cryptocurrency first appeared on Mind My Business.