Greetings, inquisitive individuals venturing into the world of cryptocurrency. Today, let’s explore the intricate processes involved in acquiring crypto. Unlike traditional transactions that involve a user and their bank, crypto acquiring introduces a paradigm shift with new parties in the mix. Join us as we dive into the world of deposits, holds, and withdrawals, uncovering the unique aspects that differentiate traditional and crypto acquiring. Secure your digital key and join us on a journey into the heart of the crypto landscape.
Let’s begin with the general business logic of the crypto acquiring process and examine how it differs from traditional fiat money transactions:
Stage 1. Deposit: Users receive unique payment details including wallet information, memo ID (if supported by the blockchain), and payment amount. The acquiring platform waits for confirmations or ‘block height’ before crediting funds to the seller’s wallet.
Stage 2. Holding: Coins are held until a withdrawal request is initiated by the seller. It’s important to note that what the seller sees on the platform may differ from the actual blockchain process.
Stage 3. Withdrawal: Sellers request withdrawals, which are then deducted from their account and sent to the blockchain mempool for processing.
Now, let’s delve into the specifics of different blockchains – BTC, ETH, and XRP:
– Account-Based Networks: Ethereum-like native and non-native implementations differ in how payments are tracked and processed.
– XRP: An account-based system with Memo IDs for payment differentiation.
– BTC-Like UTXO: Each payment generates a new wallet, requiring comprehensive wallet management for security.
As you explore these different methods, consider your specific needs, preferences, and desired outcomes to choose the best approach. Your choice may also be influenced by the history and familiarity your company or buyers have with cryptocurrencies. Remember, not your keys, not your coins, and always do your own research before making financial decisions.
Join us on this fascinating journey through the world of cryptocurrency acquisition.