The Bitcoin eCommerce trick is basically when you accept “crypto” money in an eCommerce store (for real world goods). While the payment you receive will be 100% “crypto”, you are able to exchange the “cost” of goods sold (COGS) out through an exchange, and keep profits as “crypto”.
The goal is to increase any price increases on the underlying “crypto” assets, which should amplify your profits. Obviously, this works the other way around – in that it can also lead to a loss of profits due to a drop in the price of the “crypto” tokens you are paid. However, in general, if you play the game properly – you should be able to increase your winnings quite significantly with this method.
This guide will briefly explain the various points about how this works. To do this means you need to make sure you fully understand what you are doing, and how the process will grow …
First, if you have an eCommerce store, you will need to accept payment.
With the abundance of services online today (including types such as Stripe and PayPal), you have many ways to “receive” payments without the need for a traditional “merchant account”.
One of the newest ways to do this is with a service called BitGo. This is a “bill payment” system for “crypto” tokens. Basically, this allows businesses to accept cryptocurrency for their products or services, allowing users to take full advantage of them like Bitcoin, Ethereum etc. without fear of any security issues (BitGo is very focused on implementing security).
This means that if you get any money through “crypto” tokens, while their price will often be in line with the various “fiat” currencies – they will usually be quite volatile. For this reason, it often happens that many eCommerce store owners simply “exchange” their “crypto” tokens with 100% fiat currency either at the end of the month, or after an order has been received.
The “trick” used by a large number of store owners is to actually keep them EARNINGS in the “crypto” ecosystem. This means they pay for everything else – including their COGS types, storage and administrative costs – while keeping net profit in their exchange accounts.
In doing so, they have nothing to lose (and everything to gain) by letting their holdings soar into BTC price waves and other “crypto” tokens – multiplying their holdings faster than any account saving could sometimes do.