What are cryptocurrencies?

Let’s start with the simplest and most fundamental question: What actually are cryptocurrencies? The term encompasses a variety of digital currencies like Bitcoin, Ethereum, or Ripple, whose numbers are limited and — just like traditional currency made of metal and paper — can be exchanged. However, there is a crucial difference from classic currencies that makes them so interesting — even for your customers: Cryptocurrencies are not yet under the control of large financial institutions or governments.

How do cryptocurrencies work?

So, how does it all work? Generally, Bitcoins and Co. are something similar to the money in a bank account. Only, in this case, you couldn’t just withdraw it from an ATM if need be. Trading in cryptocurrencies takes place exclusively virtually. This is very convenient and always possible for your clientele, everywhere!

Cryptocurrency doesn’t exist physically at a bank, but it also doesn’t require one for trading. Transactions are conducted solely in the Blockchain. This is the name of the system of the same-name financial service provider on which virtual trading with cryptocurrencies is based — comparable to the online banking of a credit institution where customers can transfer money.

Interaction of cryptocurrencies and Blockchain

In the Blockchain, digital cryptocurrencies are stored, they are allocated to users there, and transactions are documented. One of the top arguments for users of cryptocurrencies: Everything is visible and can always be well traced. So also a top argument for you against your clientele. Whoever wants to participate must first pour “real” money into the crypto system through a coin exchange to exchange it for, e.g., BTC or ETH.

The personal crypto wallet

Whoever has taken this step finds the first units of the chosen cryptocurrency in the personal crypto wallet (= wallet) and can trade them. The wallet is comparable to a bank account. It is essentially a code that is individually assigned and corresponds to an account number. In the wallet, you can oversee your digital currencies and trade with cryptocurrencies. All you need to send cryptocurrencies worldwide in seconds is the wallet address of the recipient.

Who uses cryptocurrencies?

If you are now wondering to which of your clients you can offer this concept of trading with virtual online currency: now everyone interested in progressive financial solutions or who wants to have part of their wealth outside the banking system. While cryptocurrencies were initially more of a playground for speculators with an online affinity and a lot of “play money”, which could also multiply significantly, a wider audience has gradually discovered this method of trading and investing for themselves.

Digital currencies can be interesting for everyone

The industry from which they come plays almost no role today. Thus, you can also view cryptocurrencies as part of your service as an attractive idea because many people are interested in it. And with our small guide here, you can also convince beginners of the idea.

Anyone who still has concerns, for example, whether money in a cryptocurrency is safely invested, or whether the system has security gaps, will certainly find good answers here:

The disadvantages of cryptocurrencies:

• Cryptocurrencies do not have the best reputation, although they are actually based on a fully transparent system.

• The methodology is still in development — which, however, also allows for much progress to be expected.

• Bitcoin and Co. can partly be subject to significant fluctuations in value and are not yet a generally recognized means of payment.

The advantages of cryptocurrencies:

• Your clients benefit the most from the independence of cryptocurrencies from financial institutions.

• Sellers and buyers enter directly into a business relationship with each other — this saves time and fees.

• Users have no limits and can, if necessary, sell all Bitcoins at once.

• Cryptocurrencies are limited in their number, in the case of Bitcoins to 21 million. No bank can reproduce currency, and the value is stabilized by the users themselves.

• Through the Blockchain, cryptocurrencies are transparent and thus secure.

• The use is anonymous (only through the ID code) and worldwide possible without barriers.

What possibilities do cryptocurrencies offer with Payrexx?

All these are advantages that offer your customers the use of cryptocurrencies as a payment method. And what advantages do you have when you use Payrexx in this context? We cooperate with external payment providers Coinbase and Utrust, through which users can integrate cryptocurrencies. Through Coinbase, the volatility risk can be avoided by accepting Stable Coins directly as payment. With Utrust, received cryptocurrencies can be converted directly into, e.g., CHF in the wallet to also avoid the volatility risk.

Overall, a worthwhile package for everyone involved!

The parallel integration of Coinbase, Utrust, as well as over 45 payment providers is possible at Payrexx with a few clicks. We would be happy to advise you also in a free personal conversation to show you all your options and opportunities for your business.