Which cryptocurrency to accept in your own shop?
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Which cryptocurrency to accept as a means of payment?
You have decided that you want to accept Bitcoin and cryptocurrency in your shop, then you are faced with the question:“Which cryptocurrency should you accept?”
Which cryptocurrency do your potential customers own and would they pay for it?
This article explains which cryptocurrencies are suitable as a means of payment and which cryptocurrencies are acceptable.
Satoshi Nakamoto described Bitcoin as a “peer-to-peer electronic cash system”.
A digital payment system (Electronic Cash System) with the help of which payments can be made directly among each other (Peer-to-Peer).
There are now thousands of different cryptocurrencies, coins, currencies and tokens for a wide variety of applications.
But which cryptocurrencies are specifically suited for payment? Which cryptocurrencies can be used like digital money, or even better, how to use digital cash?
You have decided to be a trader and want to accept one or more cryptocurrencies in addition to Bitcoin?
But which of the numerous currencies should be offered in your own shop?
As a trader, you also face the question, “Which cryptocurrency is used by your own customer for payment?”
End customers, on the other hand, are faced with the question of which cryptocurrency is accepted by most traders? Which cryptocurrency meets the requirements for fast, cheap secure and convenient payment?
There are 160 fiat currencies worldwide and Coinmarketkap lists over 5,000 different cryptocurrencies.
Which cryptocurrency does it make sense to accept? Which of these cryptocurrencies are relevant and are predestined for payment processing between end customers and merchants?
Which of these crypto-currencies have a corresponding distribution, so that numerous end customers can also pay with them in my shop.
It is advisable for the dealer to make a specific selection. A too large selection of different crypto currencies can confuse a customer and lead to a purchase abort. When choosing the crypto currencies offered, the motto should be, less is more.
In any case, Bitcoin must be offered as the mother of all cryptocurrencies. Bitcoin must be accepted as a cryptocurrency.
Then it should be carefully weighed up whether one wants to accept and offer more cryptocurrency.
After all, end customers who have cryptocurrencies definitely own Bitcoin and can pay with it.
So does other cryptocurrencies make sense or does it become confusing and confusing my customers?
If you decide to offer more cryptocurrencies for payment, the question arises which of the cryptocurrencies have a relevance with the target group to be addressed.
Main cryptocurrency as a means of payment according to Coinmarketcap
The market capitalisation of the various coins provides an initial guide. At Coinmarketcap you will find all coins sorted by market capitalization.
The cryptocurrencies play a real relevance in the top 20. Accepting as a cryptocurrency, you can exclude the coins in the places behind it.
All post-listed cryptocurrencies are for speculators or enthusiasts, but have no relevance for payment processing.
However, the market capitalisation only indicates the total value of the coins in circulation. No statement is made about the distribution and acceptance as a payment method.
Major cryptocurrencies as a means of payment by transaction
A better orientation can be the number of transactions or the transfer volume that a coin is transferred per day.
On the day of the analysis on 4 October 2019, the following transactions were carried out worldwide:
However, even this presentation only shows which amounts have been transferred and does not allow any conclusions to be drawn about the use for payment.
What cryptocurrency do my client pay with?
When I, as a merchant, have to decide which cryptocurrency should my shop accept, it is essentially about how strong the respective cryptocurrency is distributed among my target group.
A user who wants to use his cryptocurrency for payment will be guided by the following considerations when selecting:
- Is the cryptocurrency supported by the main wallets?
- At which exchanges, exchange offices and Bitcoin ATM can I buy the corresponding cryptocurrency quickly and easily?
- Does the payment processor support the corresponding cryptocurrency for payment processing?
- Which merchants can I pay with which cryptocurrency?
Based on the entries listed on Coinpages and the crypto currencies offered, it can be said that Bitcoin is the undisputed crypto currency for the German speaking countries.
Second and third place is shared by Ethereum and Litecoin. Dash is spreading more and more in German-speaking countries and has now replaced Bitcoin Cash.
In contrast, the Bitcoin SV solution plays an insignificant role. Only one merchant actively supports this payment method.
Lightning, a payment method based on Bitcoin, has also been developing more and more recently.
The listed cryptocurrency only indicate how often the respective cryptocurrency is offered as an option for payment.
No statement is made as to how often the respective cryptocurrency is actually used as a means of payment by the user for payment.
The mail order company ShopinBit has published an analysis of the ordering and payment behaviour in its shop.
ShopinBit offers a range of more than 5000 items and only accepts crypto currencies such as Bitcoin, Lightning, Dash, Monero, Bitcoin Cash and Litecoin.
The analysis entitled „König von Deutschland” from August 2019 ranked Dash first in terms of number of orders and order volume. More than 60 of all orders were paid with Dash. With about a quarter (25.42%) of all orders, Bitcoin came in second place, followed by Lightning and Litecoin in the next two places. Bitcoin Cash and Monero played almost no role as they were below 1%.
For high-priced products, the first choice of payment method is again Bitcoin.
The payment service provider Cryptopanel also publishes the monthly usage of the crypto currencies Bitcoin, Litecoin, Bitcoin Cash and Dash.
In terms of sales, Dash and Bitcoin regularly compete for the top two positions.
Third place goes to Bitcoin Cash and then, with a decreasing trend, comes Litecoin.
Looking at the various analyses, it becomes clear that Dash is becoming increasingly important for payment in the German-speaking world.
The use of Bitcoin also depends on the price development. If the Bitcoin price falls, less bitcoin is issued. If, on the other hand, the price rises, buyers become more spend-friendly.
However, these analyses should not yet be given general validity. The fluctuations in the use of crypto-payment methods are at least as volatile as the exchange rates of these currencies.
Summary: Accept cryptocurrency
The most important message from merchants to their customers should be to accept crypto currencies. This message should be clearly communicated on the website alongside the other payment methods.
At least Bitcoin must be offered as the main crypto currency. Especially when it comes to high-priced products, buyers opt for Bitcoin.
If the amounts involved are very small, it is recommended that the acceptance of Lightning.
If the shop offer is aimed at crypto fans with an affinity for technology who also appreciate privacy, the payment methods Dash and Monero should be offered.
The integration of additional crypto currencies does not necessarily increase the number of potential new customers. However, gives a positive signal to some crypto-communities and as a merchant you profit from corresponding inclusion in blog posts and directories.
The following are the most important cryptocurrencies for payment processing. The respective link behind the currencies refers to the traders in the German-speaking countries who accept the respective cryptocurrency.
- Bitcoin (BTC)
- Bitcoin Lightning
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- XRP Ripple
- Bitcoin SV (BSV)
In the following article, the cryptocurrencies relevant for payment processing are presented in more detail.
Read the article now: “The most important cryptocurrencies as a means of payment”
This post is also available in: German