Skip to main content

Bitcoin "eCommerce" Trick

The Bitcoin eCommerce" trick is basically where you accept "crypto" money in an eCommerce store (for real world goods). Whilst the payment you receive will be 100% "crypto", you're able to exchange the "cost" of goods sold (COGS) out via an exchange, and keep the profits as "crypto".

The aim is to ride any price increases in the underlying "crypto" assets, which should amplify your profits. Obviously, this works the other way - in that it could also lead to a loss of profits due to a drop in the price of the "crypto" tokens you were paid. However, generally, if you play the game properly - you should be able to increase your profits quite substantially with this method.

This tutorial is going to briefly explain the various points about the way this works. To do so means that you have to ensure that you understand fully what you're doing, and how the process will grow...

Firstly, if you run an "eCommerce" store, you will need to accept payments.

With the plethora of services online today (including the likes of Stripe and PayPal), you have many ways to "receive" payments without the need for a traditional "merchant account".

One of the newer ways to do this is with a service called BitGo. This is a "payment receipts" system for "crypto" tokens. Basically, it allows businesses to accept "crypto" currency for their products or services, allowing users to take full advantage of the likes of Bitcoin, Ethereum etc without fearing any security issues (BitGo is heavily focused on security implementation).

This means that if you receive any money via "crypto" tokens, whilst their price will often be line with the various "fiat" currencies - they will typically be quite volatile. For this reason, it's often the case that many eCommerce store owners will simply "exchange" their "crypto" tokens for 100% fiat currency either at the end of the month, or after an order is received.

The "trick" employed by a large number of store owners is to actually keep their profits in the "crypto" ecosystem. This means they pay for everything else - including the likes of their COGS, warehousing and administrative costs - whilst retaining the pure profit in their exchange accounts.

By doing this, they have nothing to lose (and everything to gain) by letting their holdings ride the price waves of BTC and the other "crypto" tokens - multiplying their holdings faster than any savings account could ever do.




Source by Richard Peck

Popular posts from this blog

Commoditizing the world

Let's discuss commodities; With the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. This comes from the Latin word "commoditas" meaning roughly advantage, convenience. So then what is a commodity? Well we consider Gold, Silver, wheat, corn, pork bellies, coffee, etc all commodities. If you look in the back of the WSJ or Investors Business Daily you will see a listing of all the commodities traded on the commodities exchange. Enron made some errors no doubt, but let's not judge all commodity markets in haste. Commodity trading works best when there is a stable instrument of trade. Sometimes the instrument of trade is actually the commodity. If you looked most countries of the world today you would find that there are three basic instruments of trade; money, as in currency, precious metals and gems, drugs; like cocaine, opium, and

6 Incredible Benefits Of the Cryptocurrency

Over the past few years, people have been talking a lot about cryptocurrency. At first, this business sounded scary but people started developing trust in it. You may have heard of Ether and Bitcoin. They both are crypto currencies and use the Blockchain Technology for highest security possible. Nowadays, these currencies are available in several types. Let's know more about it. How Can cryptocurrency help you? As far as fraud is concerned, this type of currency can't be faked as it's in digital form and can't be reversed or counterfeited unlike the credit cards. Immediate settlement Buying real property involves third parties, such as lawyers and notary. So, delays can occur and extra costs may incur. On the other hand, Bitcoin contracts are designed and enforced in order to include or exclude third parties. The transactions are quick and settlements can be made instantly. Lower fees Typically, there is no transaction fee if you want to exchange Bitcoin or any other cu

Combining Forex Trading With Gold Trading

Combining forex trading with gold trading can be highly lucrative. If you have been following gold prices, you must know that gold prices have reached their historical peak in the recent times. Gold prices recently broke the historical barrier of $ 1,000 per ounce and now hovering around $ 1,150 per ounce. Market is anticipating a US Dollar depreciation. Whenever, the markets become jittery, investors start buying gold as a hedge against the US Dollar. Last year, after the stock market crash, many investors started investing in gold as a safe haven against the turmoil in the financial markets. Gold and US Dollar have an inverse correlation relationship. Gold and US Dollar are almost near perfect mirror image of each other. US Dollar depreciation during the global financial uncertainty has been the primary reason for the gold appreciation as it is viewed as the ultimate form of money. Gold is also seen as the primary safe haven commodity. Countries like China, Russia and I