5 Important Factors to Consider When Accepting Altcoin Payments On Your E-commerce Website

Cryptocurrencies were introduced to disrupt the landscape of traditional finance as a means of payment. Although the adoption took a few years, Bitcoin, the first and most popular cryptocurrency, was the common choice for businesses as Alternative coins or “Altcoins” weren’t so common.

However, with the increasing diversity of cryptocurrency, altcoin transactions have become commonplace; with over 20,000 active altcoins, it’s no surprise that many businesses now accept them for payments. However, not all Altcoins are optimal for business transactions. Before choosing to accept any altcoin, there are some vital factors to consider to ensure that you are making a good financial decision.

In this article, we will discuss the five of the most important factors that you should consider before choosing to accept Altcoin payments on your e-commerce websites.

Factor 1: Associated Blockchain

The blockchain associated with a crypto token gives a lot of information about the crypto token. With this information, you can get insights into the consensus mechanism used to validate transactions for that token, which gives further insights into transaction speed and fees.

For example, Proof-of-Work blockchains, such as Ethereum, take longer times to process and charge higher fees than Proof-of-Stake blockchains, such as Solana.

While Ethereum blockchain transactions may require a few minutes to process transactions for a few dollars, Solana may require milliseconds while charging cents to process a similar amount.

Factor 2: Liquidity

Liquidity refers to the ability of a digital currency to be easily bought or sold. In other words, a coin with high demand and supply, which is readily available on several exchanges and wallet service providers, is liquid, while coins with limited access are less liquid.

Liquidity is an important factor to consider when accepting Altcoin payments for business purposes because a business may need to sell or convert crypto to fiat currency at any time. Low liquidity could delay important business and cause cash flow problems in real-time, especially as businesses need to pay their suppliers and other bills promptly; hence, when choosing an Altcoin, it is advisable to go for ones with high trading volumes as they are typically very liquid.

Factor 3: Reputation and Adoption Rate

When choosing an altcoin for your business, it is crucial to consider the coin’s reputation and adoption rate. A coin with high repute and adoption rate signifies healthy liquidity and a reliable market for the coin. This reduces the risk of volatility and uncertainty for the business.

Also, choosing an altcoin with a high adoption rate also helps to ensure that you have a large pool of potential shoppers that can make purchases on your e-commerce website using that Altcoin; this increases the likelihood of making a sale.

Checking coin market cap rankings, trading volume, and social media trendiness is a good way to know popular Altcoins. Some examples are Dogecoin, Shiba Inu, Ethereum, Binance Coin, etc.

Factor 4: Volatility

Generally, cryptocurrencies are highly volatile; however, some are even more volatile than others. Volatility refers to the level of price fluctuations associated with a cryptocurrency. Volatility is a significant concern when accepting altcoin payments on an e-commerce website, as it can create losses, uncertainty, and risks for businesses.

Typically higher market-cap Altcoins such as Ethereum and Binance coin are less volatile. However, the best way to avoid volatility-related issues is to accept stablecoins, which are pegged in a 1:1 ratio with the Dollar, Euro, or other fiat currencies. Additionally, businesses can consider using crypto payment processors that instantly convert the altcoin payments into fiat currency to reduce the risk of holding volatile cryptocurrencies.

Factor 5: Regulatory Compliance

Regulatory compliance is essential when accepting altcoin payments as a business. Many countries have banned privacy coins such as Z-cash and Monero, which may cause greater difficulty in getting and spending. Hence it is advisable to stay aware of cryptocurrencies you can legally receive. If you are unsure, consider using a crypto payment processor for your business as they conduct due diligence on your behalf to reduce or outrightly eliminate the risk of non-compliance.

Accepting Altcoin Payments On Your E-commerce Website With CCPayment

CCPayment is a leading crypto payment gateway service that enables businesses to accept both Bitcoin and Altcoin payments. With a range of unique features, CCPayment is the ideal choice for businesses looking to accept crypto payments.

CCpayment processes 45+ cryptocurrencies, particularly trendy ones with high trading volume and high liquidity; hence, with CCpayment, you have the perfect pool to pick from while your transactions are processed at an industry-low 0.03%; hence, you can process $1,000 worth of transactions with as little as 30 cents.

Other advantages of using CCPayment include:

• Easy API integration with existing e-commerce platforms
• Compatibility with 70+ wallet service providers, including all major ones.
• Real-time transaction processing
• Security-audited payment gateway.
  

To begin accepting crypto payments on your website with popular Altcoins, all you need to do is to create an account with CCPayment, set up your preferences, copy API keys, and plug in to your E-commerce website integration, and voila!

Conclusion

In conclusion, accepting Altcoin payments for businesses is a great way to facilitate expansion and attract new customers, but before proceeding, it is important to be aware of these important factors and a lot more.

More importantly, it is ideal to use a crypto payment gateway such as CCPayment to process your business transactions to facilitate ease, automated processing, and a clear balance sheet for all crypto transactions, automatically generated for free! Learn More