Cannabis, CBD Oil, and Bitcoin go a long way back.
- Following the legalization of cannabis for medical and recreational use by governments around the world, there has been a positive spike in its demand.
- Although marijuana is now legal in several countries, including the US, UK, and Canada, it has not been fully decriminalized.
- Cannabis traders are starting to use bitcoin for payments since banks are not legally permitted to conduct cannabis-related business.
- Vendors can save on transaction fees when customers make payments with assets such as BCH instead of other e-payment systems and credit cards.
In 2018, cryptocurrency which was once frowned upon as the currency of the dark web experienced a massive influx of blue-collar investors and individuals making a profit from trading Crypto, such as Bitcoin within the CBD world.
That said, if you want to use Bitcoin to sell cannabis or CBD oil products, continue reading.
What Is BitCoin? The Pros and Cons
Bitcoin is the most popular and widely used cryptocurrency, and this can be attributed to it being the closest cryptocurrency equivalent to conventional currencies. The versatility of Bitcoins has also earned it some bragging rights because it can be used as a secured means of payment for goods and services.
An essential element of Bitcoin is its decentralized nature which protects it from the influence and control of central authorities and their regulations. For the most part, this is what differentiates it from fiat currencies. Each Bitcoin payment is recorded on a blockchain that serves as a distributive ledger and eliminates the involvement of central authorities in the maintenance of such records.
Now that we have an understanding of Bitcoin, here are the benefits its users stand to enjoy.
- Bitcoins can be used all over the world, including areas with no banking system.
- International transfer fees are less and sometimes faster with the use of Bitcoins instead of other fiat currencies.
- When compared with other cryptocurrencies, Bitcoins are the most liquid and acceptable by retailers and companies.
The cons of Bitcoin include:
- Even though there have been efforts to enable offline Bitcoin payments, its use is still largely dependent on the availability of the internet.
- Bitcoins are not immune to theft despite the inability to duplicate them as sophisticated hackers have found ways to exploit its weak points such as its immutable nature
- While Bitcoins can be used anywhere in the world, not all stores or service providers accept it as a means of payment.
As with everything in life that has an advantage, there will always be a disadvantage, but despite that, Bitcoin is a system that is continuously changing and actively seeking ways to provide improved solutions.
How Bitcoins Can Be Used to Facilitate Payments for Cannabis and CBD Products
Sellers of Cannabis and CBD oil are generally turning to Bitcoins as their preferred choice of payment because it is safe, and there are no third-party fees involved, which helps to keep the prices low. Here are the steps to take if you want to start accepting Bitcoins as a means of payment.
1. Open a Bitcoin Account and Choose Your Payment Processing Provider (PSP)
Several websites offer bitcoin management services like Coingate, Coinbase, and Bitpay and they all charge different fees. It would help if you did your research on what features they provide and their charges so you can make an informed decision on which company to sign up with.
2. Choose Your Currency
Now that you have created a Bitcoin, you will be asked to choose the currency you want your bitcoin to be converted to. You’ll also be asked who gets to bear the charge for the transaction fees.
3. Accept Payment on Your Website
Many eCommerce platforms are now able to integrate bitcoin payments to their websites using Bitcoin API systems. The good thing is that you don’t need to know how to code to take advantage of this payment method. Dedicated plugins like WooCommerce, opencart, Prestashop, and magneto make it relatively easy.
4. Module Integration
One way to integrate Bitcoin as a means of payment is by using plugins. Many eCommerce shops like WooCommerce and Prestashop provide their users with plugins to enable them to accept Bitcoin payments. Setting up a plugin is easy. You can download it from the official website or your eCommerce platform’s back office.
5. Connect with API
Payment API is the most customizable option when it comes to accepting Bitcoin payments for Cannabis and CBD oil. This is because API is designed to accept payments from any website. Also, Merchants who use an API can easily track and manage their orders.
Just like other integration methods, you will need to provide a bitcoin address and QR code for payment to be finalized. However, the downside to the use of APIs is that you will need to have little technical knowledge to be able to install it successfully on your own.
6. Set Up Bitcoin POS
As a merchant, you can also integrate Bitcoin payments using a Point of Sale app, and it’s great that they can work on any device that is connected to the internet; androids, IOS, and web browsers.
This is a flexible way of integrating Bitcoin payment as Cannabis, and CBD oil merchants can receive payments anywhere and at any time, be it face to face or on-the-go. You can equally connect as many devices as you like to the POS system. The downside to using POS is the high transaction confirmation time required and the fees, which range from $2- $3.
How to Integrate Bitcoin With WordPress
Accepting Bitcoin payments on your website comes with benefits such as reduced cost, promotion of Bitcoin adoption, and the ability to expand your audience. This is especially true if your demographic is interested in technology as a significant number of cannabis users prefer using cryptocurrency as a means of payment.
Here are three ways you can accept Bitcoin payments on your website and their limitations.
Coinbase for Woocommerce
Coinbase is one of the most popular bitcoin exchanges as it offers services to merchants and permits individuals to buy and sell bitcoin through their bank accounts and credit cards.
You can sign up on coinbase as an individual or business entity and use their services to accept payment into your coinbase wallet.
If you want to convert your coins and withdraw payments to your bank, you will be charged a 1% fee. The services rendered by coinbase can also be customized to suit your needs. For instance, you can instruct them to hold part of your earnings in Bitcoin and convert the rest into fiat currency.
How to set up Coinbase for Woocommerce
- Step 1: You will need to search for coinbase from your plugins page and activate it.
- Step 2:Once coinbase has been activated, go to Woocommerce and configure the plugin to your store from the payments page. If you are running an older version of Woocommerce, the coinbase commerce tab will be located underneath the Woocommerce.
- Step 3: Click on the coinbase commerce tab, visit the setting and checkout.
Limitations of Coinbase
- There is a daily withdrawal limit of $10,000 per day, and this applies to all currencies.
Bitpay for Woocommerce
Bitpay has grown to become one of the top Bitcoin payment processors for many platforms. It is equally the fastest and most secure way to accept cryptocurrency. Using it, you can accept cash payment from payment protocol wallets and support integration on various platforms. Bitpay can also be used to set up subscriptions, accept one time payments, and receive donations.
Another key advantage of Bitpay is that it takes care of invoicing which promotes bookkeeping for businesses.
How to set up Bitpay for Woocommerce
- Step 1: Sign up for a Bitpay merchant account
- Step 2:From your WordPress panel, visit plugins, select add new, then, type BitPay in the search box.
- Step 3: Select Bitpay for WooCommerce and Install
- Step 4: Activate the Plugin. You will know it has been successfully activated when BitPay appears in the WooCommerce payment section.
Limitations of Bitpay
- Unlike Coinbase, Bitpay does not act as a double-duty exchange as it is strictly for processing payments.
Coingate for Woocommerce
Coingate accepts various cryptocurrencies including Bitcoin, Litecoin, and Ethereum in a fast and easy way. The gateway is automatic, and payment is calculated in real-time exchange rates. The good thing about Coingate is that it is simple to use and provides flexibility for your customers as they get to choose whatever cryptocurrency they want to make payments with while you payout remains in Bitcoin or EUR.
How to set up Coingate for Woocommerce
- Step 1: Install the module
- Step 2: To activate the plugin, visit the plugins menu on WordPress.
- Step 3:Create your API details and enter the details into Coingate plugin settings on WooCommerce.
- Step 4: Select enable Cryptocurrency payments in WooCommerce-Coingate Plugin settings.
Limitations of Coingate
- There is a flat rate of a 3% fee, which is higher than Coinbase and Bitpay’s fee of 1%.