Looking for ways to handle the crypto transactions of your business? Do you need a payment gateway? Read this article to learn more.
The industry is booming and there are good reasons behind it. The purpose of this article is to describe the many payment gateways for crypto exchanges and the ways to approach them right.
What Is a Cryptocurrency Exchange?
While there are various ways of using cryptocurrencies, we have segregated them into a couple of major ones: personal purchases and currency trading (or exchanging). The former is similar to using a debit or credit card in a local store. You use the currency exactly like regular money and make or receive payments accordingly. The latter is where the real challenge lies.
Many organizations and sometimes a few passionate individuals, use the cryptocurrency they have in online payments as trades and exchanges depending on its value on various markets. The idea behind this is simple: after buying crypto from one platform, you would need to identify others where the price is higher than your purchased price. Selling the crypto on these platforms would thus generate you profit.
Exchange rates vary from one place to another and remain highly unpredictable - making it a risky business venture. However, with more risk comes more revenue, thus making it quite a topic of interest among many entrepreneurs these days.
Make no mistake: crypto mining and crypto trading are two different things altogether, despite the use of cryptocurrencies in both. Make sure you have a firm understanding of both and avoid wasting time on one while you should be focusing on the other.
What Is a Crypto Payment Gateway?
A crypto payment gateway is a simple application that organizations can use to perform business transactions involving cryptocurrency. For a crypto exchange to take place, payment processors are needed to convert the cryptocurrencies to fiat currency.
Merchants can simply make their payments and the rest are taken care of by these processors. Modern-day payment processors openly promote the use of popular cryptocurrencies like Bitcoin, Ethereum, Litecoin, Ripple, and so on, to increase their business. Choosing a crypto payment gateway not only enables fast transactions but also ensures top-notch security.
Advantages of Using a Crypto Payment Gateway
Now that you know what a crypto payment gateway is, let us take a look at some benefits of using one.
● Swift conversion from crypto to fiat, and vice versa.
● Involves some of the most incredible pieces of technology available.
● The overall transaction occurs very rapidly.
● The transactional steps remain transparent to the public.
● Easy app navigation and usage.
● Integrates well with other similar solutions.
● It can be customized as per the requirements of the user.
How Does the Crypto Payment Gateway Work?
There are no definite guidelines to follow when implementing a cryptocurrency payment gateway. It functions in the same way as traditional payment gateways. The only significant distinction is that crypto payment gateways only accept digital wallets and not debit or credit cards. These wallets can either be single or multi-currency wallets.
Overall, the crypto payment gateway's job is to handle the essential information from merchants and users who are willing to perform crypto exchanges on the platform. Let us take a look at how the system operates in general.
● At the checkout, the user needs to hit the Place the Order button (or a button with other relevant text, depending on the platform's brand). This makes the platform encrypt the details of the payment or crypto exchange. The information is then transferred to the dedicated web server of the merchant through a secure SSL connection.
● Upon receiving the encrypted data, the merchant uses an encrypted SSL to transfer it to the admin or owner of the gateway.
● This is further transferred to the payment processor for doing the necessary intermediary work on it.
● The payment processor then needs to send an acknowledgment code that would contain all the details of the payment request.
● This code is forwarded to the application or website being implemented by the user.
● After all that, the transaction can be deemed as completed, and the user can see it on the platform's page.
What Are Some of the Most Popular Crypto Payment Gateways?
Now that you know how the system works, as well as the many associated benefits, let us take a look at some of the most popular ones out there.
The Coingate app is user-friendly and enables merchants to take part in transactions directly from a smartphone. It can support over 40 cryptocurrencies, including the popular ones like Bitcoin, Dash, Bitcoin Cash, Ethereum, Ripple, and many more.
Furthermore, Coingate offers a variety of unique plugins that help businesses to customize the application as they desire. It merely charges 1% on each transaction, and the process takes approximately an hour.
Bitpay is regarded as one of the finest and most user-friendly payment gateway processors available. It is a fully accessible crypto wallet that enables you to conduct crypto transactions internationally while maintaining the highest level of security. It accepts a variety of cryptocurrencies and enables the conversion of Bitcoin to US dollars with instant withdrawals.
This is among the most secure and rapid crypto payment gateways - available both on mobile and online platforms. Bitpay levies a 1% fee on all transactions, similar to Coingate as mentioned above.
Coinbase is one of the biggest and most influential cryptocurrency payment gateways available in the United States. Boasting a massive user base, Coinbase can develop some unconventional services to assist in making the existing user's access significantly easier. Coinbase, which has all the latest security mechanisms, functions as both a payment gateway and a crypto exchange platform.
The Coinbase payment gateway is only available in a few regions across the world. It enables immediate conversion of currency from crypto to fiat money without the merchant having to request a refund. Coinbase provides this service free of charge for the first million US dollars worth of transactions. After that, a 1% fee is taken per transaction.
Investing in cryptocurrencies is a major decision for a business - something which investors and company owners need to get right. To deal with incoming and outgoing cryptocurrencies, payment gateways are needed. Thus, it is ideal to implement the best one so that all the transactions can be done efficiently and correctly.