Cryptocurrency has moved from being just a new-age tech jargon to becoming an important part of the modern economy. As a result, integrating crypto payments into existing checkout options is now crucial for businesses of all sizes. This widespread growth means accepting cryptocurrency can help you expand your customer base and open up new revenue streams from a new payment method widely accepted by millennials and younger generations.
However, with so many options out there, which cryptocurrency is better as a payment option for merchants, the popular Bitcoin or Ethereum?
This article will demystify the top two most popular cryptocurrencies, exploring their pros and cons and which one is best as a payment option for you as a merchant.
But before we dive in, let's get a quick understanding of Bitcoin and Ethereum.
Understanding Bitcoin and Ethereum
With a combined market share of over 60%, Bitcoin and Ethereum are two of the most popular cryptocurrencies in the market. Bitcoin, the first cryptocurrency, is often referred to as "digital gold," as it was mainly created to facilitate digital transactions with blockchain technology.
However, Ethereum was created mainly to facilitate smart contract capabilities, which allows developers to build new decentralized applications. Hence, it is safe to say that Bitcoin is primarily designed as a store of value and a medium of exchange, like regular currencies, while Ethereum is used to make the entire blockchain technology better.
Despite having different primary purposes, Bitcoin and Ethereum can both be accepted as payment for goods and services. To determine which cryptocurrency is better for merchants, we'll compare them based on various factors below.
- Transaction Speed and Fees:
Although they are both established as proof-of-Work blockchains, Bitcoin transactions could be slightly more expensive than Ethereum as the latter can be processed more quickly. Ethereum transactions are typically completed within 15 seconds to 5 minutes (depending on network congestion); however, Bitcoin transactions will take 10 minutes. Ethereum's switch to a Proof-of-Stake mechanism could even be better news, as transactions could be even faster and cheaper.
Proof-of-Work blockchains are considered very secure; hence, there is no doubt about Bitcoin’s security. Ethereum is also considered to be extremely secure, despite facing some security issues in the past. Nevertheless, these issues have been addressed, and Ethereum, alongside Bitcoin, boasts of the best security infrastructure in blockchain technology.
- Adoption rate:
Given that Bitcoin was originally created for transactions and is the first cryptocurrency to launch, it has a higher adoption rate than Ethereum, with many merchants and businesses already accepting it as a payment method. Regardless, both are popular and accepted globally.
Based on these factors, it's clear that both Ethereum and Bitcoin have a few advantages over the other, and based on individual merchant preferences, both are suitable for accepting crypto payments.
Thankfully, with a crypto payment gateway, merchants don't have to choose between Bitcoin or Ethereum. Within a single window, crypto payment gateways can accept several cryptocurrencies, including Bitcoin and Ethereum, allowing merchants to tap into a broader customer base.
Benefits and Challenges of Accepting Bitcoin and Ethereum as Payments
Accepting cryptocurrency for your business has several advantages. First, and most obviously, it opens you up to a new and growing market of customers who prefer to use digital currencies for payments, allowing you to expand your business.
Additionally, cryptocurrency transactions are faster and cheaper than traditional payment methods, with smaller gas fees, as they run on decentralized peer-to-peer networks, hence, eliminating the need for central intermediaries like banks.
The biggest challenge to accepting cryptocurrency as a merchant is volatility - crypto asset prices can fluctuate wildly in a short amount of time, making it difficult to set prices and reconcile accounts.
Cryptocurrency transactions can also be irreversible, which means that if a customer sends the wrong amount or makes a mistake, it must be manually rectified.
How To Easily Accept Bitcoin and Ethereum on Your E-Commerce Website
Crypto payment processors make it easy to accept Bitcoin, Ethereum, and other cryptocurrencies as payment for goods and services. However, to mitigate the challenges involved in accepting these cryptocurrencies, it is important to carefully select a crypto payment gateway/processor.
CCpayment is a unique payment processor that makes the entire process of accepting Bitcoin or Ethereum as easy as 1,2,3. You don’t need to worry about the fluctuating prices of Bitcoin, all you need to do is set the dollar amount (or other preferred currencies) of your item, and CCpayment will charge the crypto equivalent, helping you to receive the present value of your merchandise. Moreso, you can easily swap your tokens to stablecoins, helping you hedge against volatile price movements.
Indeed, blockchain payments are irreversible; however, CCPayment allows you to issue refunds to customers in case of an error with a simple button. You don’t have to go through the long process of requesting customers’ details; you can easily issue refunds, and their wallets will be automatically credited.
In addition to Bitcoin and Ethereum, CCPayment allows you to accept 45+ cryptocurrencies at an industry low 0.03% service fee and is compatible with 70+ wallet types, so your customers can make payments from anywhere.
Accepting Bitcoin and Ethereum can benefit merchants in diverse ways, most particularly by opening up new revenue streams and expanding their customer base. Indeed, each one has a few advantages over the other. However, with CCPayment, you don't have to choose between Bitcoin or Ethereum, as you can accept both alongside 45+ cryptocurrencies.
CCPayment effectively addresses volatility and other concerns that could deter you from trying out crypto payments. So, you have no excuse; try out CCPayment and accept crypto payments with ease!