If you’re considering selling your business for cryptocurrency, you may be wondering if you should be concerned about the buyer wanting to pay first. After all, it’s not the traditional way of doing business.
The truth is, there are both pros and cons to accepting cryptocurrency as payment for your business. On the one hand, it can be a great way to diversify your income and take advantage of the potential for cryptocurrency to increase in value. On the other hand, there are some risks associated with accepting cryptocurrency as payment.
The first thing to consider is the volatility of cryptocurrency. Cryptocurrency prices can fluctuate wildly, so you need to be aware of the risks associated with accepting it as payment. If the price of the cryptocurrency drops significantly after you’ve accepted it as payment, you could end up losing money.
Another thing to consider is the security of the transaction. Cryptocurrency transactions are not reversible, so if the buyer sends you the wrong amount or sends it to the wrong address, you won’t be able to get your money back. It’s important to make sure you’re dealing with a reputable buyer and that you have a secure way to receive the payment.
Finally, you should also be aware of the tax implications of accepting cryptocurrency as payment. Depending on your jurisdiction, you may be required to pay taxes on any profits you make from the sale. Make sure you understand the tax implications before you accept cryptocurrency as payment.
Overall, accepting cryptocurrency as payment for your business can be a great way to diversify your income and take advantage of the potential for cryptocurrency to increase in value. However, it’s important to be aware of the risks associated with accepting cryptocurrency as payment and to make sure you’re dealing with a reputable buyer. If you do your due diligence and understand the risks, you should be able to make an informed decision about whether or not to accept cryptocurrency as payment for your business.
•Be careful about ‘ Too good to be true ‘ instances
•The Crypto could have been obtained illegally so do your research about the guy
Hopefully you have a legal team involved. There should be an official contract of sale and an agreement to be paid via cryptocurrency. If you’re just transferring the business on a “promise” of payment…I would not be so sure of this whole thing.
If you have to ask..
Is there no contract? Maybe have an official contract written up and notarized then you both sign it, that seems like the way to do it.
Crypto is a very broad term.
If you use Bitcoin, there’s no reversing the transaction, unless it’s done using a centralized Exchange and they freeze your account before you move the funds to cold storage or another wallet.
Are you thinking about stablecoins? If yes, then be careful. Not only they can depeg, I think I can remember a case where the company issuing USDC froze funds before.
Just be careful!
It sounds like he has more crypto than cash on hand. If you are seriously not comfortable with such a transaction, then do it the way you are more comfortable with. Tell him to sell his crypto and transfer you the money.
I remember one time a guy try to buy something from me online by offering some rubies. (Yes rubies) I called it off since I was not comfortable with it.
If I was going to do such a transaction for such a high dollar amount I would make sure I would have his ID and other information before proceeding. Good luck.
If you are worried you could have him pay, wait a while to trust everything is fine, then sell your business to someone elsep
Tell the guy to convert his crypto to dollars, and let his bank do the money transfer.
You mentioned your client is willing to pay you in crypto, but you forgot the juicy deets: which coin or token is he offering? If it’s good ol’ BTC or ETH, then it’s all good, but if it’s some sketchy, meme-y or questionable shitcoin, then it’s time to hit the pause button and think twice about it.
To be honest, I’d rather sell a business cash (fiat)
Prices are more stable, banks can check for fraud.
You can also re convert to crypto afterwards
Why not just make him pay in cash?
You could try asking him to just sell the crypto and pay you in fiat