Cryptocurrency gateways have been instrumental in bringing crypto closer to the general public. Bitcoin has increasingly established itself as a reliable transaction currency with a universal following.
Many governments, corporations, businesses, and individuals today use Bitcoin as payment for various goods and services worldwide. While companies and individuals can process Bitcoin payments independently via their wallets, not all usually have the time and know-how to transact crypto.
That is where a Bitcoin gateway comes in. A crypto payment gateway is a virtual currencies’ payment processor. Let’s start with what a bitcoin payment gateway is all about.
What is a Bitcoin Payment Gateway
A bitcoin payment gateway is a technology used by businesses or merchants to receive money from their customers. For the general public, the gateway facilitates direct payment from one crypto wallet to another.
The payment could be done through bitcoin wallets as well as payment processing portals connected with online/offline stores.
Like traditional banks and money processors, a Bitcoin gateway offers you more alternatives for obtaining, spending, and keeping crypto at a fee.
Bitcoin payment gateway mainly removes any uncertainties you may have with Bitcoin payments, facilitating seamless transactions at your convenience.
How to Use a Bitcoin Payment Gateway
The benefit of bitcoin payment gateways is essentially taking on the perceived risks of cryptocurrency transactions, often using their wallets to facilitate payments between merchants and their customers.
Established Bitcoin payment gateways such as the bitcoin loophole also provide additional virtual asset management services. Nevertheless, here’s how you can use a typical Bitcoin payment gateway explained in easy steps.
#1. Choosing a Bitcoin Gateway
Several crypto payment gateways like Coinbase, Coingate exist today that anyone can use to process Bitcoin payments.
However, there are specific attributes of a good Bitcoin gateway that you must consider to choose the right service provider.
For instance, you should select a reputable gateway with many years of experience in the industry. Also, an ideal service provider is licensed to offer Bitcoin payment services in your country, state, or region.
You should also consider a crypto gateway with lower transaction fees to save money.
#2. Setting up an Account
All crypto payment gateways will require you to set up an account on their platform to access the services. They provide guidelines on creating an account on their websites and even mobile apps.
The process mainly involves filling out a form online. The essential requirements include your name and address and your business and bank account details.
Also read – Binance vs Crypto.com
#3. Payment Flow
The process mainly starts with your customer making payment in Bitcoin during checkout. The amount is equivalent to Bitcoin’s fair market value at the transaction time.
Eventually, the service provider instantly converts the funds into the currency of your choice.
As stipulated in your contract, the payment gateway finally deposits the money into your designated bank account. The process is transparent and quick as you do not have to worry about dealing with crypto, thanks to blockchain technology.
Check out – What is a Bitcoin dust attack
#4. Transaction Fees
Bitcoin payment gateways use their crypto wallets to facilitate money transfers worldwide. The service provider incurs fees levied by the currency network’s transaction validators if it has a payment system.
The Bitcoin network has thousands of miners that verify and validate transactions on the blockchain.
Bitcoin miners use sophisticated computational hardware and software to validate transactions. Thus, the network pays them a designated amount of Bitcoin for their services.
While payment gateways incur the costs, they usually pass them along to their customers in transaction fees.
However, the fees often vary across platforms, mainly based on transaction volumes and frequency. Nevertheless, Bitcoin guarantees relatively lower transaction costs than fiat currencies.
#5. Jurisdiction
Crypto payment gateways can operate from anywhere globally since transactions are exclusively online.
However, they are subject to various government regulations that may limit their operations to specific countries, states, or regions.
Therefore, it’s essential to check whether a particular Bitcoin gateway is licensed to operate in your area before setting up an account with them.
Check out – Best crypto investment strategies in 2022
Final Thoughts
Bitcoin is undoubtedly the most popular cryptocurrency, but it is still a new concept with various unforeseen complexities. Using a trusted Bitcoin payment gateway will enable you to avoid most of the challenges and risks involved in transacting crypto.
