What are cryptocurrencies?

Let's start with the simplest and most fundamental question: What are cryptocurrencies actually? The term encompasses a variety of digital currencies like Bitcoin, Ethereum, or Ripple, which are limited in their number and — just like traditional currency made of metal and paper — can be exchanged. However, there is one crucial difference from classical currencies that makes them so interesting — also for your customers: cryptocurrencies are not yet under 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. Only that theoretically you couldn't withdraw any of it from a bank machine. Trading cryptocurrencies takes place exclusively virtually. It is very convenient and always and everywhere possible for your clientele!

Cryptocurrency does not exist physically at a bank, but trading doesn't require one either. Transactions are carried out solely in the blockchain. This is the name of the system of the financial service provider of the same name, on which virtual trading with cryptocurrencies is based — comparable to the online banking of a credit institution, where customers can transfer money.

The interplay of cryptocurrencies and blockchain

In the blockchain, digital cryptocurrencies are stored, assigned to users, and transactions are documented there. One of the top arguments for users of cryptocurrencies: Everything is visible and can always be easily traced. So it's also a top argument for you vis-à-vis your clientele. Anyone who wants to participate must first flush 'real' money into the crypto system at a coin exchange to exchange it for, say, BTC or ETH.

The personal crypto wallet

Anyone who has taken this step will find the first units of the chosen cryptocurrency in their personal crypto wallet (= wallet) and can trade with it. The wallet is comparable to a bank account. It is basically a code that is individually assigned and corresponds to an account number, so to speak. In the wallet, one can overlook their digital currencies and trade with cryptocurrencies. All one needs to send cryptocurrencies anywhere in the world within seconds is the wallet address of the recipient.

Who uses cryptocurrencies?

If you are now wondering which of your clientele you can offer this concept of trading virtual online currency: nowadays, all who are interested in progressive financial solutions or want to have a part of their wealth outside the banking system. While cryptocurrencies were initially more of a playground for speculators with online affinity and a lot of 'play money', which could also grow significantly, a broader mass has gradually discovered this method of trading and investing for itself.

Digital currencies can be interesting for everyone

Which industry they come from makes hardly any difference today. Thus, you can also consider cryptocurrencies as part of your services as an attractive idea, because a lot of 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 securely invested or whether the system has security loopholes, will certainly find good answers here:

The disadvantages of cryptocurrencies:

• Cryptocurrencies don't have the very best reputation, although they actually rely on a completely transparent system.

• The methodology is still in development — which also promises a lot of progress.

• Bitcoin and Co. may be subject to significant exchange rate fluctuations and are not yet a generally accepted means of payment.

The advantages of cryptocurrencies:

• The greatest advantage for your clientele is the independence of cryptocurrencies from financial institutions.

• Sellers and buyers enter a business relationship directly with each other — this saves 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. So no bank can mint more currency, and the exchange rate is stabilized by the users themselves.

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

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

What opportunities does Payrexx offer for cryptocurrencies?

All these are advantages that present themselves to your customers when using cryptocurrencies as a payment method. And what advantages do you get 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 circumvented by accepting Stable Coins directly as payment. With Utrust, received cryptocurrencies can be converted directly into, for example, EUR in the wallet, thus also avoiding the volatility risk.

A worthwhile overall package for all parties involved!

Parallel integration of Coinbase, Utrust, and over 45 payment providers is possible with Payrexx with a few clicks. We are happy to advise you in a free, personal conversation to show you all your possibilities and opportunities for your business.