4 tips on how to start a crypto ecommerce website?
Crypto Ecommerce is a new way of selling products and services online which disrupting the existing Ecommerce solutions by removing borders and cutting unnecessary fees. In this article we will cover a few tips on how to accept cryptocurrency payments on your website and manage the risks of market and theft.
Privacy of you and your customers is the first priority you should care about. Credit card payment gateways such as Paypal and Stripe achieve the privacy requirements using sophisticated procedures which is not feasible on public blockchains such as Bitcoin. So taking certain measures to privately handle crypto payments is essential.
The best solution to obtain this is to use HD wallets as payment solution. By using HD wallet you can generate unlimited addresses for a single wallet and use each of those addresses for a single payment. By doing so that wouldn’t be easy to achieve extra information on identity of your customers, your sales stats and how you spend your revenue. Lincoin merchant solution will address all you need in terms of securing your privacy while accepting bitcoin and other cryptocurrency payments.
There exist solution out there that will help you accept bitcoin payments for selling your products and services. These services can be classified into two groups.
First is the solutions that will convert crypt to fiat and send you payments in your bank account. These solutions although convenient, in addition to service fee charge huge margins on the exchange rate which is hidden at the first sight. Generally speaking you lose something between 3 to 5 percent on each payment. This will affect your competitiveness significantly.
The second group of solution will send you payment in crypto however they charge you by deducting a portion of the payment or by asking you charging the balance a wallet with them where the fees will be deducted from. The cost of using these solution is roughly 1% which competitive however does not make sense in large payments. Also your access to your money can take long relatively. You may point output these solution to your Exchange wallet address so that you can convert the payments to fiat or stable coins immediately.
Lincoin offers a smart HD solution that will directly send the incoming payment to your wallet and you will have immediate access to your funds. Lincoin service fee is 1% which is capped at $100/month which makes Lincoin the most competitive solution in the market.
Crypto markets are so volatile and they can have significant variations during the day. In order to manage the risk of accepting payments in crypto the merchants should take certain measures and use special tools to maximize their profit margins. The best practice to accept payments in Bitcoin and other cryptocurrencies to have a payment forwarding service integrated with your payment gateway to send your income to an exchange automatically. Thus minimum time is wasted . Lincoin is also adding a quick convert service that will convert your payments to stable coins instantly.
Securing crypto wallets and payment channels has been concern for merchants since first days of cryptocurrency. Several thefts valued over millions of dollar take place every year which adds to the importance of taking preventive measures. There are two layers that merchants can secure their cryptowallets that theu use for receiving payments. The first way which is most common is to keep their private keys secure so that it is not accessible to intermediaries or anybody else in their organization. Another method of securing payments is to use secure custom derivation path for their HD wallets which will improve the security of wallets significantly.
Lincoin provides merchants enhanced security solutions to implement an effective crypto
Ecommerce strategy. Lincoin will not require your private key to manage our HD payment gateway and we support custom derivation path for those who care about extra security.