In recent years, cryptocurrencies have become not only an efficient replacement for traditional banking systems, but also as the best tool for online donations. To monetize a blog, make money on online streams, or raise funds to help those in need, sometimes it’s enough just to ask for financial support. NOWPayments is here to tell you how to ensure safe, convenient, and effective fundraising.
Key Points
- Crypto donations are the most effective tool to raise funds for your Great Goal.
- Streamers, bloggers, and other non-profit organizations can significantly benefit from crypto donations, but you should approach the choice of a donation service with caution.
- NOWPayments is a safe, convenient, and reliable service with which you can accept donations in more than 100 cryptocurrencies and choose exactly the tool that suits you perfectly.
1. Service security
Recently, crypto donations have been gaining more and more popularity, largely due to the security of cryptocurrency transactions, their speed, and low fees. As a result, there are more and more platforms for crypto donations. Be extremely careful when choosing such a service. Since if you run into scammers, not only will the donated funds be lost, but you also risk losing the trust of the public. Carefully study the reviews on the service on independent sources, such as Trustpilot, analyze the information provided. Keep in mind that the statement about the absence of fees is a direct sign of fraud, because no one will work for free. At NOWPayments, we take security issues very seriously, which is why such well-known companies as OKEX, Travala, Guarda, and others cooperate with us.
2. Choose the best way to receive crypto donations
To date, there are many ways you can receive online crypto donations. Each of these platforms has its own pros and cons. So, for example, you can accept donations via credit cards with support for crypto payments, but it is worth noting that these cards support a limited selection of cryptocurrencies. It is worth paying attention not only to which cryptocurrencies the service supports, but also what are the minimum amounts of donations, as well as for residents of which countries this function is possible. In addition to the fact that NOWPayments supports more than 100 cryptocurrencies, it also stands out favorably for the ability to make micro-donations.
3. Custodial or not?
Pay attention to the type of service with which you will accept donations. Users who accept donations through custodial platforms should understand that they do not have 100% control over their own funds. In addition, such platforms are less secure, as hacking and other technical malfunctions are possible. NOWPayments is a non-custodial service, that is, we do not store donated funds, and transactions occur wallet-to-wallet. Moreover, since the service is free of custody, you will receive your funds immediately after the transaction is completed. There is no need to withdraw them from your account and even pay an additional withdrawal fee.
4. Service fees
Pay attention to the amount of the fee that the service charges. When it comes to crypto donations, every Satoshi counts. For example, it is crucially important for charity organizations to collect as much money as possible, and indeed, it is more pleasant for anyone who collects donations to receive the maximum amount of payment. Therefore, it is highly recommended to study the size of the service fee. NOWPayments offers competitive fees that start from 0.4%. In addition, donations of any size are possible with our service, starting from $1 and up to infinity.
5. Taxes
Carefully study the tax code of your country. The issue of regulating cryptocurrencies in different countries of the world remains quite controversial and has many nuances. In order not to be in trouble with the law, we recommend you to study the tax issue before accepting crypto donations. Remember that donations are provided free of charge, so if you decide to provide something material for a donation, the tax service may regard this as a fraudulent operation. However, this does not deprive streamers or bloggers of the opportunity to give priority to those who have made a donation. Furthermore, in some countries, donations paid to registered non-profit organizations are tax-deductible.
6. Don’t beg – but justify
Crypto donations are a great way to attract the global community to your Great Goal. In addition, targeting a new segment of potential donors is a great way for bloggers and streamers to monetize their efforts. With the help of crypto donations, you can become closer to the public, moreover, some donors become a kind of “patrons” and make donations on a regular basis. Therefore, before asking your audience about crypto donations, it is important to justify this step. For example, a video blogger may save up for a new camera to shoot high-quality content. If donors know that they are investing in a big deal, they will spare no expense.
7. The functionality of the donation service
Versatility, ease of use, ease of integration are some of the main criteria that you need to pay attention to when choosing a service. You should not have any questions when installing the donation tool. In addition, you should pay attention to the efficiency of the support service. At NOWPayments we provide different donation solutions for our clients. You can use the Donation Widget that you can place on almost any platform, the Donation Button that is especially convenient for Twitch users, as well as the Donation Link with which you can accept donations on such well-known platforms as YouTube, Twitter, Instagram, and others.
8. Pay attention to the supported cryptocurrencies
Crypto donations open up new opportunities for all kinds of non-profit organizations and individuals. Whether you are a blogger, a streamer, or an employee of a charity foundation, you can accept donations from all over the world. Therefore, it is extremely important not to limit your donors to only a few cryptocurrencies for donation. The goal of crypto donations is to raise as many funds as possible for your Great Cause. And the more different cryptocurrencies you can accept, the more audience, and accordingly funds you will be able to attract. That is why in NOWPayments we provide more than 100 cryptocurrencies to donate with.
9. Invest wisely
Accepting donations in cryptocurrencies, for example, in Bitcoin, charities, bloggers, and streamers actually accept a highly profitable investment asset, which, by the way, has noticeably overtaken traditional instruments in profitability in recent years. The idea of investing the donated funds to make money on the growth of the cryptocurrency exchange rate is extremely tempting. However, remember that crypto investment is a risky step. Your audience will not appreciate it if you raised funds to buy the same game, but did not buy it because you failed with the investment.
10. Use the full capabilities of the services
Although cryptocurrency is currently accepted by a large number of companies as a means of payment, there are still exceptions. Not every purchase can be paid with cryptocurrency, some companies accept only fiat. For example, you are a streamer and are raising funds to buy a new game, but what if this game is sold only for fiat currency? NOWPayments offers a convenient solution with which you can quickly convert the received donations into fiat. With us, you do not need to contact third parties and lose money on exchange and service fees. We charge only 0.5% for crypto-on-fiat cash-out.
Conclusion
Nowadays, crypto holders are one of the most desirable donors for charities, bloggers, streamers, and other non-profit organizations. Cryptocurrencies are becoming mainstream, and it would be an unfortunate mistake to neglect the possibility of collecting donations with their help. NOWPayments offers a range of easily integrated tools to ensure you secure, fast, and efficient fundraising.