How to accept cryptocurrency: a US business setup guide
Accept cryptocurrency by setting up a wallet or processor, then record each payment's USD value for taxes. Check state rules and secure your account.
Vahe HakobyanEditor-in-chief
Updated Oct 5, 20264 min readFact-checked
On this page
- The IRS treats digital assets as property, not currency.
- Payment income is taxable, even when you are paid in crypto.
- Bitcoin payments cannot be reversed, so only the receiver can refund.
- A processor handles checkout and conversion for a fee.
- Do not share private keys or recovery phrases.
You have two main routes. A self-custody wallet puts the private keys in your hands, and you manage backups and conversions yourself. A third-party payment processor creates receiving addresses, runs checkout, and can convert crypto to dollars. Both routes rely on a blockchain to record transfers; the Bitcoin blockchain page shows live data and a profile of the network.
What do you need before you start?
State money transmitter rules usually cover transmitting money for others, not accepting payment for your own goods or services. Check your state regulator's guidance or ask a business attorney if your model might require a license. Then choose which coins to accept based on what your customers use and what your wallet or processor supports.
How do you set up crypto payments?
Set up your chosen method by creating an account and generating a receiving address. Use the same order even if the screens differ by provider.
- 1Create your account.Sign up with the processor, or install a self-custody wallet and write down its recovery phrase. Check that the provider supports the coins you chose.
- 2Generate a receiving address.Create an address for each coin you accept. Use a new address for each customer when your wallet allows it.
- 3Connect it to checkout.Add the processor button, payment link, or wallet address to your website or invoice.
- 4Test with a small payment.Send a small amount from a wallet you control. Confirm the funds arrive before you rely on the setup.
- 5Confirm each payment.Match the transaction ID on a block explorer, then wait for the confirmations your provider recommends before you release goods.
What should you do after accepting crypto?
After a payment arrives, your job shifts to records and account safety. The IRS treats digital assets as property, and payment for goods or services is taxable income. Record each transaction's USD value at the time of payment. Keep records of each receipt, sale, or exchange.
What mistakes and scams should you avoid?
Attackers often target account access and social engineering. Do not share private keys or recovery phrases with anyone. Fake payment confirmations and phishing emails may try to get you to log in or release goods. Verify a payment on a block explorer before you ship.
Frequently asked questions
Sales tax usually depends on what you sell, not how you are paid. If your state taxes that sale, charge it as you would for a card payment.
Processors set their own fees, often a percentage per transaction, a monthly fee, or both. Some add network fees. Check the provider's current schedule before you choose.
Many processors can convert to USD and deposit to your bank. You can also transfer crypto to an exchange and sell it there. Selling is a taxable event, so record the USD value at receipt and at sale.
