Cryptocurrencies in e-commerce: how they work and their advantages
Payrexx offers merchants the option of integrating cryptocurrencies via the external payment providers Coinbase and Utrust . Both can ultimately lead to a lower volatility risk thanks to stable coins. Stable coins? Volatility risk? Cryptocurrency? If these are still foreign words in the truest sense of the word, we can help you get started: What are cryptocurrencies, how do they work and what are the advantages of offering your customers payment with cryptocurrencies? Payrexx has the answers.
A wide range of cryptocurrencies can be accepted with Payrexx
What are cryptocurrencies?
Let's start with the simplest and most fundamental question: What are cryptocurrencies actually? The term covers a wide range of digital currencies such as Bitcoin, Ethereum or Ripple, which are limited in number and can be exchanged - just like traditional metal and paper currencies. However, there is one crucial difference to traditional currencies that makes them so interesting - also for your customers: Cryptocurrencies are not yet subject to the control of large financial institutions or governments.
How do cryptocurrencies work?
But how does it all work? Generally speaking, bitcoins and co. are similar to the money in a bank account. Except that, in case of doubt, you can't withdraw any of it from an ATM. Trading in cryptocurrencies takes place exclusively virtually. This is very convenient and possible for your clientele anytime and anywhere!
Cryptocurrency is not physically available from a bank, but none is needed to trade it. Transactions take place solely in the blockchain. This is the name of the system of the financial services provider of the same name on which virtual trading with cryptocurrencies is based - comparable to the online banking of a bank, where customers can transfer money.
Interaction between cryptocurrencies and blockchain
Digital cryptocurrencies are stored in the blockchain, where they are assigned to users and where transactions are documented. This is one of the top arguments for cryptocurrency users: Everything is visible and can always be easily traced. This is also a top argument for you vis-à-vis your clients. If you want to participate, you first have to put "real" money into the crypto system on a coin exchange in order to exchange it for BTC or ETH, for example.
The personal crypto wallet
Once you have taken this step, you will find the first units of the selected cryptocurrency in your personal crypto wallet (= wallet) and can trade with them. The wallet is comparable to a bank account. In principle, it is a code that is individually assigned and corresponds to an account number, so to speak. In the wallet, you can keep track of your digital currencies and trade cryptocurrencies. All you need to send cryptocurrencies around the world within seconds is the recipient's wallet address.
Who uses cryptocurrencies?
If you are now wondering which of your clients you can offer this concept of trading with virtual online currency to, it is now anyone who is interested in progressive financial solutions or who wants to have part of their assets outside the banking system. While cryptocurrencies were initially more of a playground for speculators with an affinity for online trading and a lot of "play money" that could also multiply rapidly, a broader mass of people have gradually discovered this method of trading and investing for themselves.
Digital currencies can be interesting for everyone
The industry they come from is almost irrelevant these days. This means that you too can consider cryptocurrencies as part of your service as an attractive idea because a lot of people are interested in them. And with our little guide here, you can also convince newcomers of the idea.
Anyone who still has concerns, for example whether money in a cryptocurrency is safe to invest or whether the system has security gaps, will certainly find good answers here:
The disadvantages of cryptocurrencies:
Cryptocurrencies do not have the best reputation, even though they are actually based on a completely transparent system.
The methodology is still under development - but this in turn means that much progress can be expected.
Bitcoin and co. can be subject to significant price fluctuations and are not yet a generally recognized means of payment.
The advantages of cryptocurrencies:
The biggest advantage for your clients is the independence of cryptocurrencies from financial institutions.
Sellers and buyers enter into a direct business relationship - this costs less time and fees.
Users have no limits and can sell all their bitcoins at once if necessary.
Cryptocurrencies are limited in number, in the case of bitcoins to 21 million. This means that no bank can mint currency and the exchange rate is stabilized by the users themselves.
The blockchain makes cryptocurrencies transparent and therefore secure.
It can be used anonymously (only by ID code) and is accessible worldwide.
What options does Payrexx offer for cryptocurrencies?
These are all advantages that your customers can enjoy when using cryptocurrencies as a payment method. And what advantages do you have if you use Payrexx in this context? We cooperate with the external payment providers Coinbase and Utrust, through which users can integrate cryptocurrencies. With Coinbase, the volatility risk can be avoided by directly accepting stable coins as payment. With Utrust, cryptocurrencies received can be converted directly into e.g. CHF in the wallet in order to also avoid the volatility risk.
All in all, a worthwhile package for everyone involved!
The parallel connection of Coinbase, Utrust and over 45 payment providers is possible with Payrexx with just a few clicks. We would also be happy to advise you in a free, personal consultation to show you all the possibilities and opportunities for your business.
