Small businesses that accept cryptocurrency can stand out from their competitors. However, it comes with risks and a steep learning curve that can be challenging for small-sized businesses to overcome.
Contrary to traditional fiat currency which is managed and issued by central governments, cryptocurrency is decentralized and operates without an authority central to them. Blockchain technology is used to record transactions onto an immutable and secure ledger. This lack of central authority allows businesses to lower transaction costs, which could range from 2 to 5 percent, compared to up to 4 percent when using credit cards. It also eliminates the requirement for a bank to click to read verify each transaction, which helps cut down on fraudulent chargebacks.
Demand and scarcity increase the value of cryptocurrency. The number of people who mine Bitcoin for instance increases its value due to the fact that it reduces how much is available to spend. Certain coins also utilize the process of burning to increase their value by destroying an element of the supply.
The cryptocurrency market is rife with scams and fraud, and it’s essential for business and consumers to be aware of the dangers. No legitimate business will ever ask for money via text message, email or social media in exchange for products or services. Beware of clicking on links in unsolicited emails. These are typically phishing attacks designed to steal your computer or personal information, like a username and password.