Ecommerce and Cryptocurrency: Pros and Cons to Consider
Cryptocurrency is gaining traction as a popular digital or virtual currency secured by cryptography. It is a decentralised network based on blockchain technology, which is a distributed ledger enforced by a disparate network of computers.[0] For ecommerce businesses, accepting cryptocurrency as payment is becoming an increasingly attractive option, but there are a few things to consider before taking the plunge.
Buying crypto with fiat currency, such as GBP, is the first step in trading. Some of the most popular cryptocurrencies include Bitcoin and Bitcoin Cash. After the payment is made, the cryptocurrency is moved from your personal Paxful wallet to the trade’s secure escrow.[1] Transferring crypto between your own wallets is also possible, but it is important to understand the tax implications of accepting cryptocurrency in ecommerce transactions.
Any income received from cryptocurrency is taxable, so businesses must report it on their taxes and may need to pay capital gains taxes.[2] Additionally, there are several activities associated with cryptocurrency that need to be taken into consideration.
Cryptocurrency can be a great payment option for ecommerce businesses, but it is important to be aware of the warning signs of crypto scams. The Denver office of the FBI warns that about 46,000 people have reported losing more than $1 billion to cryptocurrency scams. They advise people to be alert to the ways fraudsters try to reel them in.[3]
0. “Yachts Invest partners with Bitcashier to accept Cryptocurrency …” yachtsinvest.com, 6 Feb. 2023, https://yachtsinvest.com/blog/yachts-invest-partners-with-bitcashier-to-accept-cryptocurrency-payments/
1. “Selling Cryptocurrency – Paxful Help Center” paxful.zendesk.com, 6 Feb. 2023, https://paxful.zendesk.com/hc/en-us/articles/360014078533-Selling-Cryptocurrency
2. “The Future of Ecommerce: What Role Will Cryptocurrency Play?” www.corecommerce.com, 6 Feb. 2023, https://www.corecommerce.com/blog/cryptocurrency/
3. “Coloradans lose about $25M in cryptocurrency scams, FBI says …” insurancenewsnet.com, 6 Feb. 2023, https://insurancenewsnet.com/oarticle/coloradans-lose-about-25m-in-cryptocurrency-scams-fbi-says
