Topic: Taking bit coin in payment (Read 220 times)
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Thanks to all for the advice and info-I think the idea of taking the crypto and changing to fiat straight away sounds like a plan.
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The answer is simple.
If you don't want to be open for bitcoin fluctuations, it means that you are not interested to keep bitcoin and you need to convert the bitcoin into fiat at the point of purchase.
There are several way to do that.
The cheaper one would be to code a payment system that is connected to bitstamp( with bitstamp api, it shouldn't be so hard to do), and instantly sells bitcoin after receiving it, all you would need to pay is bitstamp fees which is not a big deal.
On the other hand, you can use a ready system such as BitPay, the customer pays bitpay in bitcoins and you receive your funds in fiat at one of large amount of payment methods.
If you don't want to be open for bitcoin fluctuations, it means that you are not interested to keep bitcoin and you need to convert the bitcoin into fiat at the point of purchase.
There are several way to do that.
The cheaper one would be to code a payment system that is connected to bitstamp( with bitstamp api, it shouldn't be so hard to do), and instantly sells bitcoin after receiving it, all you would need to pay is bitstamp fees which is not a big deal.
On the other hand, you can use a ready system such as BitPay, the customer pays bitpay in bitcoins and you receive your funds in fiat at one of large amount of payment methods.
I am considering taking a proportion of my business turnover in BTC-my main question is really, suppose I have a product that I want to sell it's retail is $10k, assume that 1 BTC is worth $10k so it's simple I take 1 BTC, now suppose BTC shoots up overnight to $15K per BTC OR falls to $5k per BTC, how do I hedge against these swings in BTC;s value?
Very few will be willing to pay a fixed price of bitcoin for anything if it does not benefit them, there are services that will update the price of your products automatically as the price of bitcoin changes, or you could create a script to do it for you, but the simplest solution will be to simply add a disclaimer which says you accept bitcoin but they have to contact you first, that way you tell your customers the exact price you are charging and they decide to accept it or not.
Thanks to all for the advice and info-I think the idea of taking the crypto and changing to fiat straight away sounds like a plan.
It will be a risk involved decision for the seller to take bitcoin price in a fixed value, sometimes you may gain enough profits from a single product but oftentimes you may end up loosing your base price of the product while applying bitcoin profitsayment method. Also some clients will not prefer fixed payment in digital currency, it is only good if payments are made in fiat
I am considering taking a proportion of my business turnover in BTC-my main question is really, suppose I have a product that I want to sell it's retail is $10k, assume that 1 BTC is worth $10k so it's simple I take 1 BTC, now suppose BTC shoots up overnight to $15K per BTC OR falls to $5k per BTC, how do I hedge against these swings in BTC;s value?
Bitcoin is volatile so don't expect that it will stay on a single price and the time that you posted this the price moved to $6,000 now.If you're planning for a product to have fix price what if that product today is worth $10,000 and let's say bitcoin will go back at $10,000 so that's a fair pricing.
But the question is what if bitcoin reached $100,000? You have to adjust or your sales will plummet.
I am considering taking a proportion of my business turnover in BTC-my main question is really, suppose I have a product that I want to sell it's retail is $10k, assume that 1 BTC is worth $10k so it's simple I take 1 BTC, now suppose BTC shoots up overnight to $15K per BTC OR falls to $5k per BTC, how do I hedge against these swings in BTC;s value?
Make sure the buyer used a decent fee on the transaction, so it will be confirmed relatively fast. Receive the payment on your exchange account, right after receiving the payment in BTCs, convert it to fiat and cashout to your bank account or keep it on the exchange to trade if you wish...
I'm used to do this by using a trusted local exchange, from my country.
There are companies in usa who handle websites or buisness who take bitcoin.
This. It doesn't necessarily have to be strictly in USA, but payment gateways are readily available to take away the risk of losing sales value due to the heavy volatility this market very frequently experiences.If someone ends up buying something, the payment gateway (BitPay in most cases) will liquidate all your sales and make sure you get the exact fiat value, minus the 1% deduction of their fee, which is very reasonable.
If there comes a point where you have interest in keeping a certain percentage of your sales in Bitcoin, they offer you that option as well. BitPay has a fantastic track record ~ https://bitpay.com/pricing
I am considering taking a proportion of my business turnover in BTC-my main question is really, suppose I have a product that I want to sell it's retail is $10k, assume that 1 BTC is worth $10k so it's simple I take 1 BTC, now suppose BTC shoots up overnight to $15K per BTC OR falls to $5k per BTC, how do I hedge against these swings in BTC;s value?
I highly suggest staying away from bitcoin as a payment form for products that are significantly priced. Right now, it's too much of a risk, and bitcoin has always experienced volatility in the past. It's really tough to get around. I guess one thing you could do is make the payment scale with bitcoin so that it stays at a fixed USD price. That's the only real option that I see for you. This will cover everything you want to, but it'll drive customers away because of the volatility. Obviously, they don't want to pay more for something they can get for less if they wait.
I just think that you should use other forms of currency especially right now, as bitcoin is not in the best spot.
Not good to take the risk in fixed price in bitcoin if you selling something because sometimes the price of bitcoin is low and sometimes the price is high..
So better to always use the current price of bitcoin and use if what worth the price of your product or service..
Try to check other services that accept bitcoin like namecheap if what the price is you should sell your product in the same value..
Your business will be lose if you use only fix amount of bitcoin and if the price of bitcoin is keep increasing people will not use your service or even buying your product because for them its too high than selling their bitcoin into usd..
So better to always use the current price of bitcoin and use if what worth the price of your product or service..
Try to check other services that accept bitcoin like namecheap if what the price is you should sell your product in the same value..
Your business will be lose if you use only fix amount of bitcoin and if the price of bitcoin is keep increasing people will not use your service or even buying your product because for them its too high than selling their bitcoin into usd..
I am considering taking a proportion of my business turnover in BTC-my main question is really, suppose I have a product that I want to sell it's retail is $10k, assume that 1 BTC is worth $10k so it's simple I take 1 BTC, now suppose BTC shoots up overnight to $15K per BTC OR falls to $5k per BTC, how do I hedge against these swings in BTC;s value?
There are companies in usa who handle websites or buisness who take bitcoin. They give you a daily exchange rate to fiat.
I am considering taking a proportion of my business turnover in BTC-my main question is really, suppose I have a product that I want to sell it's retail is $10k, assume that 1 BTC is worth $10k so it's simple I take 1 BTC, now suppose BTC shoots up overnight to $15K per BTC OR falls to $5k per BTC, how do I hedge against these swings in BTC;s value?
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