Bitcoin is not so much a currency as it is a payment system that uses the currency as the unit of payment. The best-known advantages of this system are the security and anonymity of the transactions. Before you start using this payment system, you should make sure that it is legal in your area. In Russia, the storage of this currency is not taxed, but starting from 2021, a lawsuit has been developed to prohibit the use of this technology as a means of payment.
Any major cryptocurrency payment system, like Bitcoin, is widely regarded as one of the most secure payment methods in the world. However, in addition to anonymity and security, there are other benefits to using Bitcoin as a means of payment.
Benefits to the user:
High transaction speed;
Low cost of fees for depositing or transferring funds;
Anonymity;
Stability of operation;
Inflation does not affect the value of cryptocurrencies;
Security of personal data.
If you provide any services on your website, consider accepting payment in Bitcoin because:
There is no verification by public and private organizations;
You will be able to accept payments from all over the world without the fear of losing money due to currency fluctuations;
The value of the cryptocurrency is fixed for the time of the transaction, which means that you will not be afraid of exchange rate jumps of Bitcoin;
You will get the national currency you need for your account immediately;
Your online shop will become more competitive. For some users, it is much more convenient to pay in cryptocurrency. Major online shops (and even payment systems like PayPal) in the US have long been working with Bitcoin payments.
In some countries, cryptocurrency is legally tax-free.
To begin with, it's worth saying that there are no coins as such on the network. There are only records of transfers of these 'coins' from one user to another. The payment system interprets these transaction records as the presence of a coin in the network.
One of the conditions for operation is that a special program is running on numerous computers, which connects devices all over the world into a considerable network.
New Bitcoins are distributed randomly among so-called "miners." These people use the processing power of their machines to validate (confirm) the transactions of other users on the network.
The release of new Bitcoins is strictly regulated and not subject to external interference. Even the almighty Pentagon in the US cannot change the total number of Bitcoins in the world. Nor can it confiscate existing cryptocurrencies without having a special private key. With this cryptographic key, the payment system encrypts every transaction record.
Bitcoins already received can be used in the same way as a regular digital currency. To do this, you start by opening your Bitcoin wallet. To start the transaction, you need to send your wallet address to the sender of the cryptocurrency.
The sender confirms the transaction. The details of the transaction are now distributed throughout the Bitcoin network. There, with the help of other users of the payment system, the transaction is confirmed in the system using blockchain technology. At the end of the confirmation transaction, your wallet will receive the required amount of funds.
Since transaction records are located in the system, namely on users' computers around the world, it is impossible to steal cryptocurrency without possessing additional information, such as a private encryption key.
Because transaction information is distributed throughout the network, transactions can sometimes take longer to process than desired. Funds are usually credited instantly. But sometimes, it takes 5-10 minutes or, in particularly busy environments, several days for funds to be credited to the recipient's account.
The Bitcoin payment system itself is a convenient and secure means for those constantly interested in scaling their business to the international arena.
In order to buy something with Bitcoin, you first need to buy Bitcoin itself. The easiest way is to visit a cryptocurrency exchange.
What are the good things about exchanges?
The service is always up and running; coins are available 24/7;
Users do not have to have their own wallets: assets can be stored directly on exchange servers;
No restrictions on transactions turnover;
Fixed low (about 1%) commission.
The other way is through crypto exchangers.
The exchange system is attractive because it requires neither registration nor identity confirmation. Be careful: the number of scammers on the exchangers is quite high.
In addition, users need to have their own wallets to receive the cryptocurrency.
However, if you want to get your first funds to withdraw in the real world, you will need to create your own wallet one way or another.
You can if you use so-called crypto payment gateways. These gateways make it easy to convert cryptocurrencies into local currencies and vice versa. And buying and selling can be done not only in Bitcoin. Most gateways also accept other coins as a means of payment.
A gateway is a technology that acts as an intermediary between you and your customer. The system itself accepts information about incoming transactions and even converts the payment into the national currency you want.
This method, of course, requires a fee for its operation. Without it, it is impossible to maintain this system. The validators of the transaction charge a commission. It turns out that the commission is not charged for the cost of the service but for the cost of transferring and validating the currency. However, the fee is on you as the beneficiary because you are the one using the gateway providers.
Yes, it is! Gateways are often only used to make things simpler. Cryptocurrency can be safely accepted on your own wallet.
Pros of involving a gateway intermediary:
Easier control over transactions. Using a gateway eliminates unpleasant events like misinformation or speculation;
More free time. You don't have to study Bitcoin and blockchain principles in depth. You will be able to concentrate on running your own business;
Being able to accept payments in Bitcoins, for example, opens up new horizons in developing your business because it partially solves the problem of transactions being made in several national currencies at once.
On the other hand, there are also a few downsides to using an intermediary gateway:
All transaction information is available to your intermediary gateway;
Your company's independence is eliminated: You have to fully trust the gateway of your choice;
Hacking or leaking data from a particular gateway will result in losses for all companies that have used its services;
Sometimes you may encounter unfriendly government policies toward cryptocurrencies;
Also, fees are noticeably higher than wallet fees.
Whichever option for securing transactions - with or without an intermediary - you choose, using Bitcoin as a payment option will help your company grow.
The payment system, as such, does not prohibit it. Bitcoin itself is decentralized, so there is no way to disable transactions, even by states. The only way states can influence the Bitcoin sphere is by regulating by law the rights to use the currency.
Bitcoin itself is fairly new, and therefore its use raises many questions and fears.
However, in Russia, Bitcoin is already accepted on some airline booking sites and even some online shops.
