Cryptocurrency can offer many advantages to your business. With quick processing times, low transaction fees, and access to an international customer base, it’s hard to deny that cryptocurrency may be the way of the future. Follow these steps to start accepting cryptocurrency from your customers and clients.
Find a Payment Processor
Before you can start taking cryptocurrency payments, you’ll need access to a merchant account. Cryptocurrency is stored in secure digital wallets that protect the integrity of your funds. Although standard wallets are easy to come by, you’ll need a merchant wallet if you want to accept and receive payments.
Look for a payment processor who can easily transfer your cryptocurrency funds into real cash value. This will protect your funds from market swings and ensure that your capital is available when you need it. Other features to look for include a high level of security and low processing fees.
Offer Payment Options
Once you’ve set up a merchant wallet, start adding cryptocurrency payment options to your normal points of sale. Your payment processor will be able to help you implement a payment method in your store and on your website. If you work with larger clients, discuss how you can incorporate cryptocurrency into your current invoicing system.
Report Changes in Value
The IRS sees cryptocurrency as an asset and not as a form of capital. This means that you’ll need to take special steps when reporting cryptocurrency on your taxes.
In particular, you’ll need to note any changes in value that occur due to swings in the cryptocurrency market. If you have $20 of cryptocurrency that becomes worth $30, this will need to be reported as a gain; losses must also be reported. For this reason, it’s often smart to transfer cryptocurrency funds to real dollars as soon as you receive them.
Seek Legal Support
Because cryptocurrency is still a relatively new form of currency, you may come across several legal and accounting issues after you start accepting payments. The easiest way to avoid problems is to form a relationship with a security token offerings (STO) attorney. STO attorneys can help ensure that you are accepting and reporting your funds in a legal manner. They’ll also be prepared to resolve any potential payment disputes.
Accepting cryptocurrency is a great way to broaden your customer base and bring your business into the modern age. As long as you implement your payment method correctly, you should find it easy to start accepting and using cryptocurrency funds.
Guest author, Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. @LizzieWeakley