Are cryptocurrencies the way of the future? It seems like it, at least for the time being. For now, it’s very important that you branch out with how you monetize your goods and services. As well as how you’re willing to receive donations. Bitcoin donations are increasingly popular in many countries.
Can you accept Bitcoin? How about other cryptocurrencies? The answer is a resounding YES. Allowing people to donate crypto directly from your website can be done in many different ways. As long as you have a Bitcoin wallet (or a multi-currency wallet) ready to receive from generous donors.
Here are some things you need to know about Bitcoin donations and holding and withdrawing cryptocurrencies. And, how to integrate this type of donation system on your website.
Benefits of Adding a Bitcoin Donation Button
Let’s start by addressing some of the benefits involved in accepting Bitcoin donations. First of all, it invites a new category of donors. There are more and more people and organizations that use Bitcoin.
Many of whom prefer donating cryptocurrency instead of fiat money. This can help maximize donations.
Bitcoin and other cryptocurrency transactions are safe and transparent. It’s easy to check the legality of such transactions, whether by your organization or whichever interested authority.
Blockchain technology and peer-to-peer transactions are viewed as innovative technologies. Accepting cryptocurrency donations will help your website stand out. Implementing a Bitcoin donation button may set you apart, which can work for a charity, a company, or even a political campaign.
Why set yourself apart? There are more crypto philanthropists and investors out there than you realize. Making your website accessible to them is very important, if you want to attract their donations, of course.
Another reason to add a donation button is to provide alternatives. In some countries, crypto holders pay capital taxes on any realized profits. Some look for the same tax deductions that fiat money donations enjoy. You can provide a solution. One that may draw in substantial donations from multiple sources.
Preparing for the Future
The crypto market is highly volatile. There’s no denying that. Yet, it’s also highly lucrative. Especially when you’re not the one doing any investing but just on the receiving end.
One of the biggest advantages of getting donations in Bitcoins? You can hold on to those funds until they’re worth a lot more.
If you take donations in both fiat currency and cryptocurrencies, you can use fiat money for supporting your cause on a day-to-day basis. And, you can hold onto your crypto funds until they’re worth more.
Of course, you can also use crypto directly to buy a variety of goods and services for your organization. That said, there’s still more that you can get with fiat money.
At the end of the day, you can think of your Bitcoin donations as investments into the future of your organization.
Accept Bitcoin Donations in More Ways Than One
There’s more than one way to ensure that your potential donors can share some of their wealth with you.
Use Payment Processors
Payment processors not only offer fast ways of accepting donations, they’re also very secure. Yet, there are some things you need to know.
Such platforms rarely offer blockchain traceability. Donors that want to trace their funds may not appreciate this. However, those who wish to remain anonymous will likely appreciate the option.
Payment processors also offer other benefits. For example, automatically converting cryptocurrencies into local fiat currency – pounds, dollars, euros, etc.
Just because you want to accept crypto donations doesn’t mean you have to hold crypto funds too. Any of the top payment processors allows immediate conversion from crypto to fiat money.
A transaction fee is usually charged of course, along with the usual skimming off the conversion rate. This means that you won’t always receive the maximum amount. That said, implementing crypto donations already expands the donor base. And, it should increase the amount of money received on a yearly basis.
Note that different payment processors will require some documents from your organization to ascertain the legality of your website. These documents are required for verifying your identity and for anti-money-laundering (AML) screening.
Here are some examples of trustworthy payment gateways.
BitPay
BitPay is a true crypto payment gateway. It operates on a 1% withdrawal fee and is a leading payment processor for some of the world’s biggest ecommerce platforms.
It’s a very good merchant processor for accepting payments, donations, and even creating subscription programs. BitPay also offers invoicing services, keeps records, and allows withdrawals to UK bank accounts.
Another nice perk is that BitPay allows you to use whatever Bitcoin wallet you want for crypto storage. The only downside is that you will have to use third-party exchanges to convert your crypto into fiat currency.
Coinbase
Coinbase is without a doubt one of the top crypto exchanges. It’s also one of the oldest and has had a long time to solidify its trustworthy reputation. Compared to BitPay, Coinbase offers some additional benefits.
Coinbase’s merchant service allows sales and donations through its secure payment gateway. The company exercises the same 1% fee on withdrawals. Should you choose to keep your donated Bitcoins, Coinbase won’t charge any fees.
Another interesting feature is the ability to easily split your funds between crypto and fiat currency.
Of course, the biggest advantage of using Coinbase is that it has its own exchange. Therefore, you will have immediate access to other cryptocurrencies and a variety of fiat currencies. Coinbase implementation is easy on all major platforms.
Coingate
Coingate caters to a select list of countries. However, the UK enjoys full support. Oddly enough, not so lucky for US users, for example.
Coingate is a service that allows instant conversion from Bitcoin, and other cryptos, into fiat currency. It’s a payment processor with proven security features and good stability. Implementing the service on your website should be very easy.
It also supports donations and payments in a variety of popular and less popular alt coins.
Opening Wallets
Say you don’t want to get involved with payment processors. After all, they all charge some transaction fees (also called payment discounts). If you want to receive funds directly to your wallet, you can do that without a middleman.
It’s easy to send Bitcoins and other crypto coins to anyone with a wallet and a valid address. You just need to know that address.
So, how can you do this on your website? The easiest way is to list the address somewhere on the website. Preferably on the donations page. In that way, interested donors can copy the address and then send you donations directly.
In today’s increasingly digital world you can do even better. You should probably have a mobile-friendly website by now. This means that you can make the donation process even simpler. The answer? – A QR code.
There is a wide range of free QR code generators for Bitcoin addresses. Generating a QR code is as simple as typing in your wallet’s address. You’ll then get a QR code image that’s unique to your address.
Download the picture and then put it on your website. With the QR code, you can also open your website to receive payments for any physical merchandise you might be selling.
The only thing you really have to worry about? Some donors want invoices. You have to keep your own records. Keep track of all donations and have the necessary materials ready for delivery.
That’s just in case your donors ask for them.
Integrate Crypto Donation Management Platforms
Are you running a charity? If so, there are dedicated crypto donation management platforms. These offer services for non-profits.
They come with simple integration and user-friendly interfaces. They also offer centralized management. This means that you don’t have to worry about a thing.
What’s also great is that they go a step further than most crypto payment processors like BitPay and Coinbase.
These platforms put emphasis on the traceability of all crypto transactions. This means that your donors stand to get even more detailed invoices and reports. All without you having to do anything.
Two of these platforms stand out from the rest: Helperbit and Binance Charity. The former supports donations in 30 cryptocurrencies while the later supports only four.
As is the case with standard payment processors, you have to provide documentation (for AML scanning and verifying your organization’s identity and non-profit status).
Some Platforms May Have Different Requirements
Depending on where your website is hosted, you may have to use one method over the other. Listing the actual address or uploading a QR code is easy to do no matter what.
But things can get more complicated once you want to integrate Bitcoin and crypto donations onto a WordPress website. That’s just an example.
The idea is that some hosting platforms work best with unique combinations of plugins and gateways. If you haven’t set up a website already, inform yourself on what crypto payment gateways have support. Otherwise, you may have to make serious modifications to your website to accommodate crypto donations.
For all intents and purposes, offering the address of your Bitcoin wallet is the easiest way to go about it. It may not be the most secure and it may imply additional work on your part. But it is the fastest way to get your funds.
Branching Out Beyond Bitcoin
While Bitcoin is still cryptocurrency royalty, other crypto coins enjoy their own success. Ethereum and XRP (formerly Ripple) are quite popular among crypto users and investors. Even Litecoin has reached a certain market stability.
It’s important to not get too hung up on Bitcoin as the only crypto coin you should accept. Some philanthropists own large amounts of alt coins. And they’re always looking for ways to donate.
As an example, Ashton Kutcher donated around US$4 million worth of XRP. That’s Ripple’s XRP tokens to a wildlife charity. This move didn’t just provide substantial financial support but it also raised more awareness in the benefits of cryptocurrencies.
It’s true that Bitcoin is very valuable. It’s miles ahead of the competition and has a huge market share. But you would be surprised how many millionaires are sitting on fortunes in alt coins, many of whom are eager to help various causes. And to do it using the decentralized crypto financial system.
That’s why picking a payment processor with multi-currency support is very important. If you really want to get more people or organizations involved, this is the only way to give everyone a chance to contribute.
It’s also the reason it’s preferable to have more than one crypto wallet.
Are There Downsides to Taking Bitcoin Donations?
One of the downsides is market volatility. What you get today in Bitcoin may not be worth the same tomorrow. Or two weeks from now. It can be worth more too, but people may be more inclined to pay with Bitcoin after a surge in price too (when a pullback is more likely in the near future). Something to keep in mind.
How you accept Bitcoin donations also matters. For example, if you use a payment processor, transaction fees will follow. Keep in mind that Coinbase makes you use their wallet to store your funds.
Although those funds are instantly accessible and transferable, any action comes at a cost. That includes moving your funds from your Coinbase wallet to your other Bitcoin wallet.
Governments all over the world are still trying to regulate cryptocurrencies. It’s possible that this will eventually affect whether you can accept donations in crypto coins. Especially if you’re a non-profit. That’s because blockchain technology can offer great anonymity to donors and remaining transparent is only a choice.
Start Taking Crypto Seriously
No one says you should switch from fiat currency to crypto anytime soon. There’s no reason to as long as you can accept donations in both forms. Implementing a Bitcoin or alt coin donation system on your website is a good move any way you slice it.
It can make your organization known to philanthropists in different fields. People that hold wealth in more than just traditional currency. And there’s always the possibility that a small crypto donation now will be worth a lot more in the future.
It doesn’t hurt to try and it’s a risk-free way of exploring the world of crypto without becoming an investor or risking your own money.