Growing cryptocurrency adoption pushes merchants worldwide to introduce new payment methods. According to Coinmap, almost 30,000 venues use various cryptocurrencies as a method of payment around the globe. The list of such venues includes cafes, groceries, shopping, e-commerce shops, transport, lodging and nightlife.
Honestly speaking, the question of how to start accepting cryptocurrency as a means of payment has already ceased to be difficult for any, even halfway, tech-savvy merchant. Thousands of merchants know that it is sufficient to integrate a crypto processing service and install appropriate plugins. Crypto regulation worldwide also offers more clarity. Many jurisdictions have already decided on the approach to cryptocurrencies and their taxation.
What to do with cryptocurrencies received as payment is a different pair of shoes. This issue is especially relevant now, given that the situation in the crypto market causes coin holders to fear a further decline.
Strategy #1. Instant sales
Cryptocurrency rates are unstable and fluctuations sometimes reach tens of percent in a matter of minutes. Therefore, if the price for services or goods is initially calculated in fiat money, and cryptocurrencies are used simply as a payment instrument, then the integrated crypto gateway helps to calculate the number of coins payable taking into account the current exchange rate, then generating a wallet address to which a payer needs to send crypto. The user is given 15 to 30 minutes to pay the bill.
The “instant sale” strategy allows merchants to avoid the risks associated with the high volatility of coins. After all, few people like to sell a service whose price is $100 and get $80 due to the cryptocurrency market crash.
There are several ways to follow such a strategy. The optimal one is:
- set up an automatic regular exchange of received cryptocurrencies into some stablecoin,
- and then once a month or a quarter, withdraw these stablecoins, converting them into fiat.
However, a merchant should remember that cryptocurrencies can go not only down, but also up. And this is an opportunity to quickly turn $100 received in cryptocurrencies into $150. An instant exit from cryptocurrencies to stablecoins or fiat takes the speculation away, which can be both bad and good.
Strategy #2. Accumulation of coins and their recurrent sale
Despite the growing popularity, payments in cryptocurrencies remain an additional alternative method. The main cash flow most often comes through traditional channels, such as payment systems, credit cards, or bank transfers. This means that a merchant can easily cover current operating expenses from other sources, and keep receiving cryptocurrencies, waiting for a more favorable price.
Merchants can set up automatic withdrawals of certain amounts quarterly or once a year to a third-party wallet, and convert them into fiat.
Strategy #3. Move part of operating expenses into cryptocurrencies
Many merchants would like to stop selling cryptocurrencies received as payment during periods of downturn. But the need to repay operating expenses requires them to take this disadvantageous step. However, there is a way to solve this problem – to move part of operating expenses into cryptocurrencies.
This applies, for example, to salaries of employees or settlements with contractors. What used to seem rare and unclaimed is now becoming more common. According to a global poll by financial consultancy deVere Group, more than a third of millennials (those aged between 26 and 42) and half of Generation Z (25 and below) would be happy to receive half their salary in bitcoin or other forms of cryptocurrencies.
Stretegy #4. Saving
Stablecoins can serve as fiat currencies that are more malleable and easier to transfer than cash on a traditional financial bank account. Instead of having to wait days for transactions, stablecoin transactions can be processed in as little as a few minutes.
Instant finality can be extremely useful, especially at a time in which supply chains are constrained. Stablecoins also allow for self-custody, meaning funds can be available at any time,from anywhere.
On Alfacash Store, the users can buy and sell over 19 cryptocurrencies with EUR. This is the fastest and safest way to trade digital currencies in the European Union, and we’re constantly improving our services. The platform offers SEPA transfers for incoming and outgoing payments with cryptocurrencies in a fully non-custodial, regulated, and automatic process. And while the platform might not be as popular as Binance and the likes, it supports most of the popular cryptocurrencies like Bitcoin, Ethereum, Ripple, USDC, USDT, DOGE, etc. Alfacash Store has set out to become the most convenient way for providing financial services to everyone regardless of their location.
To experience their advantages and more nice surprises for yourself, visit Alfacash Store now!
Important information: This is a sponsored story. Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.