Risks and Dangers for Small Businesses Accepting Cryptocurrency

https://www.minexxo.com/2021/07/14/generated-post-2/

Cryptocurrency has emerged as an instant, low-cost and secure payment option for small businesses, and those that accept it be different from their competitors. However, it comes with risks and a steep learning curve that can be difficult for small-sized businesses to conquer.

Cryptocurrencies operate decentralised, meaning that they operate without an authority central to them. They use blockchain technology to keep records of transactions in an unchangeable, secure ledger. This lack of central authority allows businesses to cut the cost of transactions, which can vary from 2 to 5 percent as opposed to up to 4% when using credit cards. Also, it helps prevent fraudulent chargebacks by eliminating the need for banks to verify every transaction.

Demand and scarcity increase the value of cryptocurrencies. For instance, the quantity of people mining Bitcoin increases the value of the coin because it reduces the amount that can be spent. Some coins also use a mechanism called burning to increase their value by eliminating a portion of the total supply.

The cryptocurrency industry is filled with scams and fraud and it’s important for business and consumers to be aware of the dangers. No legitimate business will ever ask you to pay via email, text message or social media to purchase products or services. Beware of clicking on links in unwelcome emails. These are usually phishing scams designed to steal your computer or personal information such as username and password.


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