Bitcoin is one of the most popular cryptocurrencies out there. If you run a small ecommerce site, chances are you want to start accepting it too. But how do you actually go about doing that? This article will show you everything you need to know about setting up Bitcoin payments in your shop.
How to accept Bitcoin in my store? A guide to getting paid in BTC
Bitcoin is the world’s largest cryptocurrency, and today it’s being used more frequently than ever. In fact, there are now over 2 million merchants who accept Bitcoin payments worldwide. This number is growing every day, and while Bitcoin isn’t going anywhere anytime soon, it’s still important to understand where you stand in terms of crypto adoption.
The best way to think about this is to compare yourself to someone who lives in another part of the world. If you’re living in London, chances are that person is probably much better off financially than you are. Why? Because they live in a place where banks are more likely to give out loans, and because they can access a wider variety of goods and services.
If you want to start accepting Bitcoin, you’ll need to ask yourself some questions. First, what do I already sell? If you already run a store, you’ve got a lot of options. You could set up a merchant account with a credit card processor like Stripe or Square, or you could use something like BitPay to process transactions directly without having to pay fees to a bank.
You might even consider selling digital goods like games or eBooks. For example, you could offer a game download for $10, and then take 10% of each sale. Or maybe you make a few bucks per eBook sold. Either way, once you know what you’re selling, you’ll know whether or not Bitcoin makes sense for you.
Now that we’ve covered the basics, let’s talk about how to actually go about accepting Bitcoin. There are three main ways:
1. Use a third party wallet – These wallets are just fancy apps that allow you to send and receive Bitcoins. They’re easy to install, but they require a little more technical knowledge.
2. Set up your own exchange – An exchange is basically a marketplace where you buy and sell different cryptocurrencies. They’re more complicated than a third party wallet, but they’re perfect for those looking to trade larger amounts of money.
The essentials to accept Bitcoin
A Bitcoin wallet is a place where you keep your money. You use it to send and receive Bitcoins. There are many reasons why you might want to buy Bitcoins. Maybe you’re looking to invest in cryptocurrency, maybe you just love the idea of owning something without having to go through banks. Whatever your reason, there are plenty of ways to do it. But how exactly does one go about buying bitcoin? And what are the best places to buy bitcoins? Let’s take a look.
Your Bitcoin Wallet
First things first: What is a Bitcoin wallet? A Bitcoin wallet is software that allows you to hold, transfer, and spend your coins. Your wallet generates a unique address for each transaction. These addresses are public and visible to anyone watching over your shoulder. When you purchase something online, you’ll see a pop up asking for your wallet address. If you don’t know what a wallet is, you probably won’t give out your address.
Bitcoin Wallets
There are lots of wallets out there, but we recommend Coinbase because it’s easy to set up and offers great security. Once you’ve got your wallet set up, here’s how to add some bitcoin to it.
Add Funds
To start off, you’ll need to sign into Coinbase.com and log in. In the upper left hand corner of the homepage, click “Sign Up.” Next, click “Create Account,” fill out the required fields, and select either Individual or Business. Then, choose whether you’d like to pay with credit card or bank account. Finally, enter your payment information. Once you’ve done that, you’ll be taken to the dashboard. Here, you can view your balance, make purchases, and manage your transactions. To add funds, simply click “+ Add Funds.” Enter the amount you wish to deposit and confirm the transaction.
All you need to accept Bitcoin
After getting familiar with the basics of how Bitcoin works, there are some additional steps that must be taken to properly set up a business for taking Bitcoin payments. One of the best practices to follow is to do your own homework and identify the platforms and solutions that best meet your business needs. You want to make sure that you understand what you are doing, because accepting Bitcoin could come with risks.
Look out for local regulations — If you plan on accepting Bitcoin, it would be prudent to look into the laws and regulations in your jurisdiction. This way, you know exactly what you are dealing with.
Accepting Bitcoin in disputable jurisdictions may incur serious legal charges. In fact, some countries like China, India, Iran, North Korea, Syria, Venezuela, and Zimbabwe ban Bitcoin completely.
Wallet options — There are many different types of Bitcoin wallets. Each one serves a certain purpose depending on what type of use case you have. For example, web wallets offer convenience and ease of access, while mobile wallets provide increased security.
Some popular examples of Bitcoin wallets include Coinbase, Blockchain, BitPay, Circle, Xapo, Coinomi, etc.
What to be aware of
Bitcoin’s price volatility makes it difficult to calculate taxes. In fact, many people don’t even know how much money they’ve earned or spent in Bitcoin.
For example, consider the following scenario: A person buys $100 worth of Bitcoin for $10,000. After one month, the value of Bitcoin increases to $11,000. However, the person sells his coins for $12,500.
The total amount of Bitcoin sold is $1,500 ($12,500 – $11,000). But because Bitcoin’s price is volatile, the person actually earns less than $1,000 ($12,500 x 0.9 $11,250).
This is why it is important to keep track of invoices. If you do not, you might miss out on some tax deductions — especially if you’re doing freelance work.
In addition to keeping track of invoices, it is advisable to use a tool like CoinTracker to calculate taxes based on the current exchange rate.
