How to accept crypto donations (updated for 2022)
Need funding for your project? We can help with that!
However there is another world of payment related systems and technologies that you can use to get your project funded.
We’re talking about crypto.
Specifically, we are talking about modern, low cost, low energy crypto systems.
(Forget legacy crypto systems like Ethereum or Bitcoin though. We are in an energy crisis and a climate crisis. They are not fit for purpose. If a project has Ethereum in its supply chain then it’s a “no”.)
To decide which to use, there are a few big questions.
First, do your customers, users and fans use crypto? For example, if all your users are familiar with Tezos, that’s the one to use.
On the other hand, if your customers dislike crypto, maybe think again about using it at all. A lot of brands and projects have suffered reputational damage as a result of using crypto where it wasn’t wanted, or by using the wrong technology.
How will you be able to use it? Can you cash it in at an exchange, or will your suppliers and partners accept the crypto that you have received?
Are you tech savvy and information secure to manage all of this? Each crypto comes with its own ecosystem of wallets and tools, and all will need passwords. If you lose your password (or if someone else gets it) then in a lot of cases you can lose your crypto for good.
Here are a couple of cryptocurrencies, and how to get started with them.
Your wallet address begins with tz… and looks something like this:
Create a wallet using Hashpack or one of the many Hedera wallet apps. Again, keep the information in a password manager or another secure location!
Your wallet address begins with 0.0… and looks something like this:
Your wallet may have tools to share your address and make it easy to get paid. And you can post your wallet addresses on your website, blog, socials and more.
Time to get some donations!
Back to real money
Now that you have some crypto, what are you going to do with it? If you can’t spend it as it is, you’ll need to turn it back into cash.
That means using an online exchange. We can’t recommend any in particular, but make sure that any that you use are legitimate and secure.
The next way to accept donations is using a payment widget. These generate unique wallet addresses and invoices for you, and are easier to manage than direct donations.
There are lots of crypto payment tools, choose one that is legitimate, secure and reliable.
Make sure that if they offer multiple crypto currencies that you only enable the ones that you want to accept.
We used to recommend Coinbase Commerce but don’t any more - as they don’t support modern "clean" currencies. If someone has a different currency and wants to donate, they can use one of the many online exchanges to convert it into a modern, low cost and low energy cryptocurrency.
Some payment services will even automatically convert the crypto to GBP for you - this is ideal as you can use it straight away.
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