Cryptocurrency and e-commerce are two aspects of the digital economy that have made 2020 survivable for many. With the mass shutdowns and pandemic problems of traditional commerce and banking, these virtual options meant that businesses could continue with any degree of functionality.
Now, e-commerce businesses ask themselves if accepting cryptocurrencies might be a way to further ease and secure digital transactions for a population shopping online more than ever.
Cryptocurrency can mean a smoother, safer process for virtual business. With the advantages of cryptocurrency and a growing need for its alternatives, e-commerce companies are right to consider accepting cryptocurrency.
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The Advantages of Accepting Crypto
The cryptocurrency market is much larger than just Bitcoin, although Bitcoin certainly dominates a majority of the sector. Thousands of altcoin options make for a diverse and flourishing digital economy with an aggregate market capitalization of $260 billion. E-commerce businesses will undoubtedly want a piece of this wealth.
But the wealth and breadth of the crypto market is only one small advantage in the host of benefits accepting cryptocurrencies can bring to any business. With everything from security improvements to cost-cutting potential possible through crypto, the advantages far outweigh the problems when it comes to adopting alternative currencies in an e-commerce marketplace.
The Security Benefits
One of the most alluring innovations of cryptocurrencies and the blockchain systems on which they operate is the added security these systems bring to financial information.
Cryptocurrency data is stored within a cryptographically protected database known as a blockchain. Blockchains link information through encrypted hash functions that require the deciphering of every node of data in the chain to make changes to any single piece of information. As a result, crypto data is exceptionally hard to steal or tamper with.
This isn’t to say that cryptocurrencies are also perfectly safe. With e-commerce making up the most vulnerable individual sector of the digital economy as it faces 32.4% of direct attacks, no system can guarantee perfect protection.
However, cryptocurrencies can better shield vulnerable transaction data than the average credit or debit card. As a result, customers will feel better about committing to an online purchase rather than abandoning their cart due to safety concerns without risking their privacy.
Greater Privacy and Flexibility
Additionally, cryptocurrencies offer greater privacy and flexibility overall than their traditional counterparts. This is a benefit granted by the underlying blockchain system, which operates as a decentralized platform away from a single regulatory government or financial institution. The result is a currency that plays by the rules without kowtowing to certain nations or agendas.
This means that the average consumer has unprecedented levels of control and confidentiality when using a cryptocurrency. International business, a staple of e-commerce, can then operate without regulatory concerns that plague many legitimate businesses in national markets.
For industries like kratom that face a high-risk merchant status, cryptocurrencies are especially vital. Since regulatory questions make this legal market a source of disdain for many traditional financial institutions, consumers can use crypto to circumvent payment holdings and truly support their preferred vendors.
Security and flexibility are only the tip of the iceberg when it comes to all the benefits crypto offers e-commerce. These decentralized and immutable payment methods mean cut costs and broader audiences across the web and the global economy that it fuels.
The following are only a sampling of these additional advantages:
- Cutting out the middleman. Crypto payments no longer need to be processed through a third-party service. This means faster, easier, and safer transactions without any of the associated fees.
- Democratizing financial accessibility. Millions of people in underprivileged regions have limited access to traditional banking and commerce. Cryptocurrency helps level the playing field. With only a smartphone, anyone can begin to accrue and invest in decentralized wealth. In turn, businesses that accept crypto make e-commerce accessible to a much broader audience.
- Building tax incentive potential. Cryptocurrencies are not taxed as a currency but rather as a property or an asset. This means that with the right understanding of cryptocurrency and accounting services, businesses can potentially defer tax burdens and appreciate asset value at greater rates.
- Easing global transactions. The coronavirus pandemic caused significant problems with navigating goods and services over various regulations and lockdown procedures. Crypto by nature circumvents international payment issues so that that aspect of e-commerce can at least remain smooth and secure despite global circumstances.
These advantages and more make crypto in e-commerce a beneficial move for any business looking to reduce their costs while broadening their audience. By cutting out the middleman, increasing accessibility, and creating tax benefits, you have the potential to thrive in e-commerce. However, reaping these benefits will require proper practices.
Keep a meticulous record of your crypto assets as a business, protect your crypto wallet holdings with simple safety tips, and follow protocols for securing your website and consumer data. These practices can help ensure successful crypto integration for all your e-commerce needs.
In turn, proper implementation of cryptocurrencies as a payment method will broaden the possibilities of your digital marketplace, opening up avenues for greater revenues and customer bases. With the pandemic quickening the need for such breadth and flexibility, businesses that accept crypto payments now can be better prepared for the future of e-commerce.
A Future of Widespread Cryptocurrency Usage
Now more than ever the call for alternative payment methods in the digital marketplace is being heard. As the new normal of at-home workers and global trade complications change the e-commerce landscape, crypto offers security and flexibility that will smooth our transactions while minimizing the risks of cybercrime.
Shortly, a host of innovations will make widespread cryptocurrency adoption all the more feasible. As governments resolve regulatory issues, major players embrace crypto, and blockchain secures IoT devices, e-commerce companies that fail to adopt these systems will find themselves behind the times and at a distinct disadvantage.
Cryptocurrencies will without a doubt be an increasingly common standard of future digital commerce. Now that you understand all the advantages of accepting these payments for your online store, you can prepare your e-commerce business for greater success.