The digital world is quickly changing, and many businesses now accept payment in crypto. Bitcoin and Ethereum are often the first cryptocurrencies that come to mind when we think of digital currencies. However, these cryptocurrencies are highly volatile, which may pose a big risk for business owners accepting them. Therefore, many of them consider stablecoins for accepting payments. Let us understand why stablecoins are the safest option for accepting cryptocurrency payments.
What Are Stablecoins?
Stablecoins are a type of cryptocurrency that is free from volatility risks. They are pegged to assets like the US Dollar, the Euro, or Gold, and their prices do not fluctuate frequently. The value of one stablecoin remains nearly equal to the linked asset (e.g., 1 USDT ~ 1 USD).
Stablecoins are considered a safe option for payments and investments. Therefore, we can easily find a stablecoin option in almost every reputable cryptocurrency payment gateway.
Some of the most popular stablecoins are:
- USDT (Tether)
- USDC (USD Coin)
- DAI
- BUSD (Binance USD)
Why Stablecoins are Safest for Businesses
Price Stability
As discussed earlier, the prices of many cryptocurrencies (not stablecoins) change frequently. A business might lose a significant amount if a coin witnesses a considerable price drop after a sale. On the other hand, stablecoins maintain a stable price. This helps businesses feel safe when they accept crypto payments.
Easy to Use
Stablecoins function similarly to other cryptocurrencies, but they are simpler and more stable in nature. When they are issued on quick networks like Tron, you can receive them quickly in your wallet. You can also store them safely in a secure cryptocurrency wallet—many reputable crypto payment gateways, such as CoinRemitter, support stablecoins, primarily USDT.
Lower Fees
Traditional banks charge high fees to process transactions, especially cross-border ones. On the other hand, stablecoin payments charge fewer fees, just like other cryptocurrency payments. Currencies like USDT can offer quite affordable transaction costs with the TRC20 token. This saves money for businesses that accept crypto payments from different countries.
Faster Transactions
Traditional payments may take some days or weeks to complete. On the other hand, stablecoin payments are faster compared to conventional payments. You can quickly receive stablecoin payments in your cryptocurrency wallet. However, transaction speed may vary based on the network. For example, USDT-TRC20 payments can be slightly faster than USDT-ERC20 payments because Tron offers faster transactions.
Stablecoin payments solve major issues with traditional payments, such as slow payments, high charges, exchange rate issues, and payment delays. It also solves the volatility issues, which may result in a significant fund loss.
Things to Remember Before Accepting Stablecoin Payments
1. Educate Yourself About Cryptocurrencies
Before accepting stablecoins, you need to know how they work. Explore available stablecoins in the market along with the real-world assets they are tied to. If a stablecoin is tied to USD, its value will almost always be nearly equal to USD.
For example:
- 1 USDT ~ 1 USD
- 1 USDC ~ 1 USD
2. Choose a Reliable Crypto Payment Gateway
To accept stablecoin payments, you will need a cryptocurrency payment gateway.
- Check the Stablecoin Support: Check if the selected crypto payment gateway supports your preferred stablecoin.
- Look for the Lowest Fee: Most crypto gateways charge processing fees of 0.5% to 1%. However, when you rely on a crypto payment processor like CoinRemitter, you have to pay just 0.23% processing fees.
- Check for a Less Complex Process: You may have to go through a complex crypto payment integration to accept crypto payments on your website. Our crypto payment gateway offers a comparatively easier integration process, featuring plugins, crypto APIs, and crypto payment widgets.
- Security and Privacy: Your cryptocurrency payment gateway must let you control your account and funds. Check for a No-KYC crypto gateway that has a clear privacy policy and terms of service.
3. Fund Settlements
When you accept payment in crypto, you must think about getting control over your funds as soon as possible.
- If You’re Using CoinRemitter: You can keep the ‘Auto-Withdrawal’ feature enabled to settle your funds every 30 minutes. Our crypto payment gateway keeps transferring funds to an external wallet with this feature.
Apart from that, you can exchange your funds to your preferred fiat currency. Unauthorized account access may cause fund loss, and you can partially prevent it by settling your funds promptly.
4. Maintain Records
Though blockchain networks record stablecoin transactions, you must maintain a record as a business owner.
Make sure to:
- Record each payment with date and amount
- Note the customer’s name or order number
- Save your transaction IDs
This helps for:
- Taxes
- Refunds
- Customer support
Use a crypto payment gateway that displays a complete transaction history within its dashboard.
Conclusion
Stablecoins have emerged as the safest way to accept crypto payments because they keep a steady value and avoid big price changes. Stablecoins are fast, affordable, and easy to use with trusted crypto payment processors like CoinRemitter. However, it is important to understand how they work before accepting stablecoins. You have to select a secure payment gateway before you get started. Clean records and quick settlements can improve your stablecoin payment experience. With the right setup, stablecoins can help your business accept global payments in a safe and simple way.