fbpx

+1 (954) 478-7714

info@npsbank.com

B2B Vault Episode 28: Top Ten Questions About Crypto Revisited

Written by Allen Kopelman

December 7, 2021

11 reasons to chooce npsbank for high risk businesses
merchant statement analysis

Video Transcription

Hey, Allen Kopelman here. And today, another episode of B2B Vault as part of our crypto series, we’re going to do the top 10 questions. We get asked about cryptocurrency because we’re signing up merchants to accept crypto at their business, getting a lot of questions. So we’re here to answer those questions today. So let’s get into it. What is cryptocurrency? So people may simply mostly know about Bitcoin and, you know, there are hundreds and hundreds of cryptocurrencies and the ones that we’re enabling people to accept that their business is Bitcoin Bitcoin cash, light coin, and the Ethereum and XRP. And the reason that we’re concentrating on those cryptos is that those are traded at a very rapid rate. And it’s easy to get them converted into cash because businesses want cash. So that’s the basic answer about what is cryptocurrency is also another definition would be, um, digital currency. And then you’ll hear other terms about the stable coin. A stable coin is a coin that would be worth, you know, one point is equal to $1 and there are companies out there that are trying to develop stable coins. Even some banks are trying to develop stable coins, but I think stable coins are probably quite a few years away from happening. Even if the government gets involved. Uh, I don’t think a stable coin is going to be something widely used, but I do think cryptocurrency is going to be widely used, especially for luxury and high dollar transactions and doing business internationally. Um, cryptocurrency is going to be the way to go with international transactions, especially for businesses. So how can I buy cryptocurrency? So there are several wallets out there. Gemini bid tans. Um, uh, Coinbase is one of the most popular ones traded under coin on the stock exchange now. Um, so, and there are other various ones. I would tell people to use a well-known cryptocurrency wallet and a well-known exchange if they’re going to purchase and store coins because that’s very important. There have been scams where people ask people to transfer crypto from one wallet to another wallet to do a transaction, I would say, do not do that. It’s not good. So if you’re going to buy cryptocurrency, the other thing you should understand is that it’s, you know, it’s a high, highly volatile asset and it’s not an asset class that I would call low risk. I would say it’s in a higher risk category, especially since it’s, it’s the kind of asset, you know, that it has a lot of volatility. And even if you look at some of the richest people, Elon Musk and others, um, that is talking about cryptocurrency all the time, I don’t think that they have a great percentage of their wealth in cryptocurrency. So how can I accept crypto at my business? Well, we have enabled a program that’s on our website and goes to NPS bank.com/cryptocurrency. You can find information about it. There can also go to another site. We have a, to our landing page N P S coin.com. And you can sign up for an account there and we’ll get you set up so that you can accept crypto at your business. You can take crypto in person, you can send somebody an invoice, or you can put it on your website with the invoicing and the website. We charge a 2% fee and you’re able to pass that fee onto your customers. So that’s a very popular way how to do it invoicing and, and through e-commerce. So we have e-commerce plugins and we can show you how those work and you can plug it right onto your WooCommerce shopping cart. We’re also compatible with a few other shopping cards. And even like non-profits taking crypto is a big thing. The average crypto donation is five, $10,000, especially since now’s a great time of the year. If you are a non-for-profit and you’re not taking crypto, you should contact us and we can get you set up. So you can take crypto because people are going to look to it, especially if there have been some changes in the laws about cryptocurrency and that. So when people are selling cryptocurrency and a lot of people that are trading cryptocurrency, they’re selling and buying and selling and buying and there are capital gains. So they’re going to try to escape paying some of that capital gains tax, the same way people do when they’re buying and selling stocks, they buy stocks and they sell them. And then there are the capital gains at the end, a capital gain at the end of the year. And they have to pay taxes on that. So a lot of people will try to avoid paying tax by making a charitable donation. Making a charitable donation with crypto is good because we converted to cash. So the charity has there, the charity, the nonprofits, and the God church gets the dollars in their bank account. And the, their donor, you know, the consumer is saving money on their taxes because they’re giving away some of their crypto and lowering how much tax they’re going to have to pay for capital gains. So getting set up for crypto at your business is quite easy. We get these fill out a short form, and then you upload a few documents and you’re ready to go. And we can walk you through the steps on how you can be accepting crypto and get you signage and all kinds of stuff, or crypto transactions and payments secure. Yes, they are secure transactions. Every time you do a crypto transaction, there’s either a string of numbers and letters, or there’s a QR code that gets scanned. And then those, that code is basically for that transaction only. And it’s going across the blockchain. That goes across five blockchains. So it’s completely recorded 100% secure. And then you see it. When you send somebody an invoice, they click on it and pay. Then you look back in your dashboard, through our system and you can see that that person, um, paid, paid. And then you’re going to get money in your bank account in 48 hours. And the same thing, if you’re buying crypto, you’re doing an ACH transaction or wiring funds into a wallet, a wallet company like Coinbase, and then you have the funds available and you can make your crypto purchase. Some of them once you’re approved, they’ll let you say you can initiate the transfer. You can initiate the transfer to buy. They essentially buy you the crypto. And then they get your money like a day or two later, but they’ve already purchased crypto on your behalf. Once you’re been approved cryptocurrency and taxes, okay. This is like a crazy thing. So I’ve been getting asked this question, you know, oh, so if I have crypto and then I want to give it to somebody else. So the same thing, like I’m going to take some crypto and I’m going to give it to Justin, but the website guy, my podcast, the helper. So if I give him crypto, I’m going to Phil. I’m going to the crypto company is going to say, oh, I sold some crypto. So I’m going to get a 10 99 that I sold it, right? So I’m going to get 10 99. And if there are any capital gains on that, I’m going to pay them. And then Justin is going to receive an asset and he’s going to have, now he’s going to own the crypto. He’s going to have to pay taxes because it’s like he got paid. So the same thing goes for businesses. That’s why you don’t want to accept crypto and then get crypto. There’s no sec. There’s only personal. Um, what they call custodial wallets. So your wallet, your crypto wallet is a custodial wallet. There are only custodial wallets for people with your FA with your, uh, social security number, because w the legitimate wallets, especially if they’re US-based, they all ask you for your social. And they verify it. If that, um, if it’s, if it’s a business, there’s no such thing, no one can transfer crypto from their wallet to a business. That’s why we developed our program. That basically the, our customer can, if you are a customer, you can invoice somebody a thousand dollars. They’re going to pay with crypto. You’re going to get a thousand dollars minus the 2% fee unless you added it on and your bank account in 48 hours. And if you want to look up, I tell anybody, Google, IRS, seizes cryptocurrency, and you’re going to see some, some articles all over the internet probably go two or three pages deep on Google. And there’s a story about people transferring crypto on the black, on the dark web, uh, people that tried to hide crypto transactions, trading, you know, paying people with crypto and the IRS seized. I don’t know. It’s something like 50, more than $50 billion recently. And this year, 2021 and the price of crypto went down recently, the price of Bitcoin went down because they seized all this Bitcoin. And then the government decided, oh, we got to liquidate the Bitcoin. So they started selling tons of Bitcoin that caused the price to go from the, it was up in the 60 something thousands. And now it’s down in the fifties. So it went down like $10,000 a coin. And a lot of that was caused because the government was just dumping it into the, you know, they were selling, they were selling, selling, selling a lot of Bitcoin. So taxes, you do have to pay taxes on Bitcoin. It’s treated the same as a stock. So if you bought the Bitcoin for 10,000 bucks, it went up to 20,000 bucks. You got a $10,000. Uh, you got a $10,000 capital gains. There’s a tax. You need to talk to your accountant because obviously when you bought the crypto, there was a fee when you sold the crypto, there was a fee. So when, so when you buy and sell crypto, you have to deduct the fees and then figure out what the actual capital gains are. So storing crypto in a wallet, this is very important that you select a well-known wallet, that your crypto is stored on. You have access to it. You know, what the passcodes are and all that. You don’t give the passcode to anybody. So have it secured on your computer or your phone. Most people secure them on their phone and that, you know what the password is and you print it out. Cause sometimes it’s a long, uh, address to your wallet. Okay. And there’s other stuff coming at NAB and reading about this thing, web three, you probably read about that. And it’s like this new internet for crypto. So you can have your private crypto wallet. I don’t know anything about it, yet reading about it, learning about it. Um, it’s not accessible through Google. You have to install some kind of Google extension, some kind of extension on your Google Chrome to access this web three. So it’s very, very new, not something I’m going to run over and do I own some crypto, uh, bok crypto soul crypto. So I know, you know, familiarize myself with all the processes. Is there a cryptocurrency for wallet, a wallet for businesses? The answer is no, that doesn’t exist right now. Are there companies working on that? Yes, but right now such a thing, a crypto wallet for business does not exist. So if you’re a business and someone says, oh, I want to pay you with crypto. And you’re not using a service like ours. And you’re accepting crypto into your wallet. You’re going to have a PR, you’re going to have a major problem with taxes because that you now received an asset. So I would be talking to my accountant before I even started messing around with this, um, with, with messing around doing that our service eliminates all that. We eliminate the volatility of the market. We evolve. We eliminate the learning curve. So you don’t need to know how to buy, sell, trade cash out. Crypto. It’s all done for you. Your customer wants to give you a thousand. We’re going to give you a thousand dollars. You don’t need to understand anything about cryptocurrency to use our, our product. The very, very simple there’s crypto usable. Yes, there are. We have a system that can do it. There are other systems I don’t particularly, I’m not going to, um, say they’re good or they’re bad. From the tax standpoint, like I said, getting asking somebody to pay you a thousand bucks, they use crypto. The crypto is sold and you receive dollars in your bank account. This is going to alleviate anything, having to do with market volatility, set the learning curve of buying and selling crypto. Some people have told me, oh, well, if people give me crypto, what if it goes up in value? And I hold onto it for a year. And now someone gave me 10 grand of crypto. And then a year from now, it could be worth 20 orients. Okay. It could also be worth 5,000. It could be worth $1 because he is worth nothing. Um, nobody knows. So why not just take the cash in hand right now? But if you take crypto from, if you’re taking crypto, someone is transferring crypto from their wallet to your wallet, there’s going to be tax implications. And I would be very careful. And if you read the stories about the IRS sees in crypto, uh, I would say more than half, the stories are about people transferring crypto and then not paying taxes. And so the IRS went and said, oh, you owe us money. The people, I don’t have any money. I have been going great. We’ll take your Bitcoin. And that’s what they did. They seize them, they seized their Bitcoin, just the way the IRS can seize money out of somebody’s bank account. They went in there and snatched it out of their crypto wallet. So it’s, uh, it’s real. So I would not, you know, recommend using a program like ours. So you’re, you’re in the safe zone. So in the crypto market is very volatile. What I suggest is if you don’t know anything about crypto, you download an app called Coinbase or some other kind of that, and sure there are other crypto tracker apps. And then you can see the prices of the crypto going up and down. I mean, it goes up and down like a yo-yo. It’s not like the stock market crypto’s traded 24, 7, 365 days a year. It’s trading. You go to sleep. Crypto is worth X. You wake up in the morning. It’s either up or down because they’re trading it all over the world are being traded 24 7 stock markets don’t work that way. They’re closed on holidays. They’re closed at night. They’re closed on the weekend. There’s limited after-hours trading, you know, there, you know, crypto is like the wild, wild, wild west. And also what is, it’s not backed by anything. So crypto is only worth what somebody is willing to pay for it. It’s not like a dollar, a dollar is worth a dollar, $20 is worth $20, you know, but it’s not worth, you know, it’s not the, you know, cryptos doesn’t work like that. Uh, how do I sign up for crypto? You can go to our site, NPS coin.com. You can sign up there or you can contact us at nationwide payment systems, NPS bank.com, and we can help you out. Should send you some information about crypto set up a phone call, explain how the program works, and be ready to go. It’s pretty simple. It’s about the same as taking a credit card. You’re going to take crypto, get money in your bank account. Just like you take a credit card and batches out, and then boom, you get the money in your bank account. It’s the same as a Merck. We’ve got it down to where it works pretty similar to a merchant again. So this is Alan Kopelman with the B2B vault. You can follow us on all kinds of different places on social media, uh, YouTube, Spotify, Google Podcasts, Apple Podcasts, iHeart Podcasts. I saw it listed on a whole bunch of other podcasts networks I’d never heard of before because people are picking up the podcast. So check out our podcast and follow us. And thank you very much for listening today. This is Allen Kopelman from B2B Vault, Carpe diem. Let’s seize the day.

Merchant Statement Analysis | Merchant Services Statement Analysis
Merchant Statement Analysis | Merchant Services Statement Analysis
Merchant Statement Analysis | Merchant Services Statement Analysis
Merchant Statement Analysis | Merchant Services Statement Analysis

SUBSCRIBE TO OUR NEWSLETTER

Related Articles

No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.

Subscribe To The Payment Technology Newsletter

Join our mailing list to receive the latest news and updates from the NPSBANK team.

You have Successfully Subscribed!

Share This