Cryptocurrencies in e-commerce: how they work and advantages
Payrexx offers merchants the possibility to integrate cryptocurrencies via the external payment providers Coinbase and Utrust . Both can ultimately lead to lower volatility risk thanks to Stable Coins. Stable Coins? Volatility risk? Cryptocurrency? For whom these are still foreign words in the truest sense of the word, we will help you get started: What are cryptocurrencies actually, how do they work and what are the advantages of offering your customers payment with cryptocurrencies? Payrexx provides the answers.
With Payrexx, a diverse range of cryptocurrencies can be accepted
What are cryptocurrencies?
Let's jump in with the simplest and most basic question: What are cryptocurrencies, anyway? The term covers a variety of digital currencies such as Bitcoin, Ethereum or Ripple, which are limited in number and - just like traditional currency made of metal and paper - can be exchanged. However, there is one very decisive 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 the whole thing work? In general, Bitcoins and Co. are something similar to the money in a bank account. The only difference is that you can't withdraw any of it from an ATM in case of doubt. Trading with cryptocurrencies takes place exclusively virtually. This is very convenient and possible for your clientele anytime and anywhere!
Cryptocurrency is not physically available at a bank, but it does not need one to trade it. Transactions take place solely in the blockchain. This is the name of the system of the financial service provider of the same name on which virtual trading in cryptocurrencies is based - comparable to the online banking of a bank, where customers can transfer money.
Interplay between cryptocurrencies and blockchain
Digital cryptocurrencies are stored in the blockchain, where they are assigned to users and transactions are documented. One of the top arguments for users of cryptocurrencies: 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
Those who have taken this step will find the first units of the selected cryptocurrency in their personal crypto-wallet (= wallet) and can trade with them. The wallet is comparable to a bank account. It is basically a code that is assigned individually 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 wallet address of the recipient.
Who uses cryptocurrencies?
If you are now wondering which of your clients you can offer this concept of trading with virtual online currency: by now, everyone who is interested in progressive financial solutions or wants to have a part of their assets outside the banking system. While cryptocurrencies were initially more of a playground for speculators with an online affinity and a lot of "play money" that could also multiply greatly, gradually a broader mass has also discovered this method of trading and also investing for themselves.
Digital currencies can be interesting for everyone
The industry they come from is almost irrelevant nowadays. So you can also consider cryptocurrencies as part of your service as an attractive idea, because a lot of people are interested in it. And with our little guide here, you can also convince newcomers of the idea.
Anyone who still has concerns, for example whether money is safely invested in a cryptocurrency or whether the system has security vulnerabilities, will certainly find good answers here:
The disadvantages of cryptocurrencies:
Cryptocurrencies do not have the very best reputation, although they are actually based on a completely transparent system.
The methodology is still under development - but that in turn means that a lot of progress can be expected.
Bitcoin and Co. can sometimes 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 business relationship directly with each other - this costs less time and fees.
Users have no limits and can sell all bitcoins at once if needed.
Cryptocurrencies are limited in number, in the case of Bitcoins to 21 million. Thus, no bank can re-denominate currency and the exchange rate is stabilized by the users themselves.
Through the blockchain, cryptocurrencies are transparent and thus, in turn, secure.
The use is anonymous (only by ID code) and worldwide barrier-free.
What options does Payrexx offer for cryptocurrencies?
These are all advantages that your customers have when using cryptocurrencies as a payment method. And what advantages do you offer when you use Payrexx in this context? We cooperate with the external payment providers Coinbase and Utrust, through which users can integrate cryptocurrencies. Through Coinbase, the volatility risk can be circumvented by directly accepting stable coins as payment. With Utrust, cryptocurrencies received can be converted directly into e.g. CHF in the wallet, thus also avoiding the volatility risk.
So all in all, it's a worthwhile package for everyone involved!
The parallel connection of Coinbase, Utrust, as well as 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 meeting to show you all your options and opportunities for your business.
