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Nov 11, 2021

How To Solve the Volatility Problem in Crypto Payments?

Crypto payments are making a big splash as businesses realize the rapidly rising potential of digital assets. As of now, more than 20 000 businesses globally accept Bitcoin payments, including such behemoths as Microsoft, Starbucks, Tesla, and Xiaomi. Corporations recruit professionals to join the trend, but there is a limiting factor that holds the industry at a standstill. Crypto volatility is one of the most common concerns of new businesses entering the industry.

Crypto payments are making a big splash as businesses realize the rapidly rising potential of digital assets. As of now, more than 20 000 businesses globally accept Bitcoin payments, including such behemoths as Microsoft, Starbucks, Tesla, and Xiaomi. Corporations recruit professionals to join the trend, but there is a limiting factor that holds the industry at a standstill. Crypto volatility is one of the most common concerns of new businesses entering the industry.

When comparing BTC/USD volatility to the most traded fiat pair, the USD/EUR 30-day volatility has never exceeded 1%. What are the potential solutions to the Bitcoin volatility problem?

There are two options: accept stablecoins or have digital assets instantly converted into fiat currencies. Let's have a look at both of them.

Stablecoins will help to brighten the future of crypto payments.

Since the bitcoin volatility issue called the future of crypto-payments into doubt, the market began exploring for non-volatile solutions. Tether, the first stablecoin, debuted in 2015, ushering in a new era of crypto payments.

Stablecoins are backed by fiat currencies in a 1:1 ratio, which ensures that holders' funds are adequately safeguarded. At the same time, stablecoins enjoy all of the benefits associated with digital currencies as a class. The importance of such coins is growing, and two major stablecoins (USDT and USDC) are featured in the top-10 crypto ranking based on market capitalization. USDT leads the crypto industry in terms of 24-hour trading volumes.

As a result, shops can either accept stablecoins or swap received digital currencies for stablecoins at a low cost. For example, USDTs are equivalent to fiat dollars, and if a bearer receives 100 USDTs, he or she may interpret them as $100, because each token is backed by one currency USD.

Transfer fiat money to your bank accounts.

The ability to convert received digital currency into fiat currencies is the second technique to accept crypto payments without risk. Some reputable cryptocurrency payment gateways such as COINQVEST, provide merchants with this opportunity.

When a consumer uses digital assets to pay for a certain commodity or service, a provider automatically translates cryptocurrencies into the chosen fiat currency and transfers funds to the specified banking account. This is why a supplier safeguards business owners from all threats. The processing cost is determined by the provider. COINQVEST, for example, allows merchants with zero fees per checkout transaction.

Get Started Accepting Cryptocurrencies Today

If you would like to start getting paid, please sign up for a merchant account and have a look out our guides for non-developers and programmers.

COINQVEST is also available for WordPress, WooCommerce, Shopify and Magento.

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Martin Dominic Banguis Head of Marketing