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How To Properly Accept Payments In Crypto

The cryptocurrency market has been growing fast, accelerated by both Bitcoin halving this year as well as the ongoing global pandemic that actually benefits the crypto space. Bitcoin market cap alone has surpassed both Intel and Coca Cola. If you combine all market cap from the entire crypto space, it has become enormous.

Cryptocurrency growth this year has been directly influenced by the popularity of DeFi (decentralized finance). The growth of DeFi has been insane, from below $1 billion to above $4 billion within just three months. As a result, everybody starts to take cryptocurrencies seriously again. Many companies are seeing a big increase in crypto demand in recent months.

As a result of all these, more and more people start thinking to accept and send payments in the form of cryptocurrency. While previously they always ignored crypto as a medium of payment, now they understand they have to start caring. Nobody wants to be left behind.

So, how to properly accept and send payments in crypto without sacrificing too much convenience? Let’s learn about it together.

Accept Crypto Payment Through Payment Processing Service

People can use cryptocurrencies for a lot of various things, but payment is not as simple as it seems. Price stability is the most important thing when it comes to payments. You don’t want to receive 1 BTC, and suddenly Bitcoin price goes down by 10% in the next 5 hours. You want to be able to receive them and convert them to fiat at the same valuation. 

This is where things get more complicated, especially for less technical users. Not everybody wants to be bothered with guarding their own private keys or 12-word mnemonic phrase. For people who are looking to take advantage of crypto payment technology but don’t want to deal with any price volatility, they need a payment processing service to get the best of both worlds.

One of these payment processing services is DAOWallet. It is intended specifically to help companies receive/send payment and invoices through cryptocurrency as the bridge. You can create an invoice and specify the fiat amount or crypto asset of your choice. As for recipients, you can easily receive payment in fiat upon receipt of crypto payment from your client.

DAOWallet is pretty flexible when it comes to processing payments. They support fiat transactions via SWIFT and SEPA, and they support all major cryptocurrency payments. The settlements are done on a daily basis or upon request. You don’t have to worry about which cryptocurrencies would become more popular in the future, DAOWallet would support them. Having the option to generate an invoice in fiat currency, and paying for it with cryptocurrency without having to worry about market volatility, sets DAOWallet apart from the rest. 

It’s highly recommended to use services like DAOWallet or similar applications if you are the kind of company or user who wants to take advantage of crypto superior’s cross-border payment technology but you don’t want to deal with crypto price volatility. These services are usually very reliable and they can help you a lot if you receive payments or need to create invoices regularly.

Stablecoin And Exchange Account As The Alternatives

If you don’t want to use a third-party service to process crypto-to-fiat payment, you might want to use stablecoins and your own crypto exchange accounts. However, using these methods will require a little bit of learning curve, as it’s not meant for less technical users. Not only that, but you also need to take responsibility for your own passwords and other sensitive info if you decide to take this path.

Basically, there are these things called stablecoins. USDC, TUSD, or PAX are able to process crypto-to-fiat payments directly wired to your bank account. Their valuations are also stable 1-to-1 to the US dollar. So, whenever you receive some crypto payments, convert them directly to stablecoin in a crypto exchange, and you don’t have to worry about price volatility anymore.

You can then redeem the stablecoins through the stablecoin issuers and wait for a couple of business days to receive the dollars in your bank account directly. Stablecoin adoption has been growing by 800% in a year. This is definitely much safer rather than accepting traditional cryptocurrencies like BTC or ETH.

While it might be a bit slow to receive fiat withdrawal through stablecoin redeem method, it is still a good alternative to properly accept payments in cryptocurrency.

Which One Is Better?

Payment processing services and stablecoins are both great products. Both of them have their own advantages. If you are looking for stable and fast conversion from crypto payment to fiat withdrawal, you might want to prioritize payment processing services. These services are literally built for this purpose. You don’t want to wait for a couple of business days, especially if the payment is meant to be regular.

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