What is crypto-invoicing?

Crypto-invoicing has the potential to revolutionize the global payment process for businesses. As digital currencies become more mainstream, understanding how to craft crypto invoices is essential for companies looking to unlock new opportunities.

Join us in this blog as we provide an introduction to crypto invoicing and walk through the key steps to creating and verifying crypto payments securely. Let’s start by understanding crypto invoices.

Crypto invoices allow businesses to issue invoices denominated in digital currencies like Bitcoin and stablecoins like EURK. Rather than receiving fiat currency payments, crypto invoices specify that payments should be made in a supported cryptocurrency.

This opens up new payment rails for international trade that circumvent traditional banking barriers. As cross-border payments via crypto grow significantly faster than traditional options, crypto invoicing enables sellers to more easily be paid in the currency of their choice.

Using stablecoins, such as EURK, for your payments opens up new ways for fast and secure transaction options in the world of decentralized finance. EURK is the euro stablecoin, which is 1:1 backed by euros in trusted bank reserves in Switzerland, offering transparent transactions for its users.

The other benefits of invoicing in a stablecoin like EURK include mitigating price volatility concerns associated with native cryptos while still unlocking the efficiencies of digital currency settlement.

Can I create my invoice?

Yes, creating your own crypto invoices is straightforward, even for non-technical users. A number of crypto invoicing apps are available that provide customizable invoice templates along with generating valid crypto addresses or QR codes for payment submission.

Popular options allow you to brand invoices with your business details. Alternatively, you can design invoices from scratch in a PDF editor and manually add crypto payment addresses. Be sure to test transactions by sending small amounts first to verify the address works as intended.

Many crypto wallets also have invoicing tools built-in, so you can create, send, and track invoices directly from your crypto wallet interface. The process is very similar to traditional invoicing, removing barriers for easy adoption of crypto payments.

How do I create an invoice for crypto?

Let's go through the basic steps to create an invoice for crypto:

• Sign up for an account on the chosen platform and add your business or personal information.
• Select 'New Invoice' and enter invoice details like customer name, items sold, dates, etc.
• Choose the cryptocurrency to invoice in, such as EURK stablecoin.
• Input the amount due in the selected crypto and set payment terms.
• Preview and generate the invoice, which provides a payment address or QR code.
• Email the invoice to your customer for crypto payment submission.
• Track the status of your invoice list and wallet until it is marked as paid. Funds are deposited instantly upon confirmation. The whole process takes just a few minutes.

What is proof of payment in cryptocurrency?

After generating the crypto invoice and submitting funds, both parties need assurances that the transaction was successfully confirmed on the blockchain.

This confirmation is known as proof of payment in cryptocurrency. Unlike traditional wires or online payment systems, crypto transactions occur in a decentralized peer-to-peer manner and take time to settle definitively.

The proof serves as a receipt, documenting that the funds were sent by the customer at the invoice amount and received by the merchant's wallet as intended. It provides irreversible evidence that the debt has been paid, which is important for accounting and tax purposes.

Popular methods of verifying settlements include checking transaction hashes or blocking explorer lookups online. Many wallets and platforms automatically mark invoices as paid and provide exportable transaction records. The transparency of blockchains gives each party confidence in crypto payments.

How are crypto transactions verified?

All cryptocurrency transactions are recorded on an immutable public ledger known as a blockchain. Transactions go through a verification process carried out by network nodes before being confirmed and finalized on the chain.

For major protocols like Bitcoin, transactions average 30–60 minute settlement times, though others can settle in just 5 seconds. The verification process works as follows:

• A user signs a transaction with their private key, transferring coins to a new address.
• Network nodes receive and validate that the signature is correct.
• Valid blockchain nodes bundle transactions into candidate blocks to add to the chain.
• Through the network consensus mechanism protocol, like proof-of-work, one node finds a "valid block" to add to the chain.
• As each new block is added, it reinforces prior transactions, finalizing confirmations depth by depth.
• After 6+ blocks, a transaction can be considered completely “settled” into the blockchain.
• Public, verifiable confirmations address the challenge of double-spending vs. centralized systems and provide an immutable audit trail that all can rely on.

How do I get a crypto statement?

While crypto transactions are transparent on block explorers, it is also convenient to download organized statements for tax, accounting, or personal record-keeping. Crypto-accounting platforms facilitate this by tracking your portfolio activity across exchanges and wallets in one place.

Popular options import transaction histories to generate automated periodic statements like annual capital gains and losses reports. You can also request individual transaction crypto statements directly from custodians.

Likewise, crypto invoicing platforms provide full crypto invoices and payment ledgers that capture all relevant transaction data. Downloading and retaining periodic statements helps organize your cryptocurrency finances.

How do I confirm a crypto transaction?

With most crypto payments, you can track crypto transaction statusin a few ways:

• Check your crypto wallet. Look for updated balances reflecting the received amount. Most wallets notify you when receiving funds.
• Review transactions on a blockchain explorer. Paste the transaction ID onto a site like etherscan.io to see its current number of confirmations.
• Check the invoice status on the crypto invoicing platform. Some platforms automatically update invoices to mark them as paid upon completion of settlement.
• Contact the payer for confirmation. Have them provide the transaction ID or block explorer link as proof of payment.
• Wait for the minimum confirmations. Major networks recommend waiting for 6+ confirmations before considering the transaction fully "settled.".
• Download the wallet and account statements. Regularly downloaded records, like monthly reports, verify all completed transactions.

With the transparency of the underlying blockchain, buyers and sellers have convenient tools at their disposal to validate crypto payments. Public confirmation builds assurance for all involved.

The bottom line

Crypto-invoicing provides a seamless way for businesses and individuals to facilitate payments using digital currencies. By streamlining the billing process around growing cryptocurrency usage, it lowers adoption barriers and transactional friction.

As crypto adoption increases globally, invoicing can drive further real-world utility by turning virtual monies into a spent medium with tangible economic effects.

Over a three trillion dollar market, cryptocurrencies and stablecoins are clearly here to stay and develop into a new paradigm of money powering the future.

A euro stablecoin like EURK offers transparent transactions that are fast and secure, as well as being reliably pegged 1:1 to the euro and securely issued and audited. EURK is a robust euro stablecoin platform that you can trust. All you need is a secure euro stablecoin wallet.

If you want to benefit from stablecoin payment privileges with EURK the best euro stablecoin, become a partner today and experience security in your transactions!