Cryptocurrency is a digital alternative to using credit cards or cash to make daily payments in a variety of situations. It is growing as an effective alternative to the traditional payment system, but it needs to become more stable before it can be fully welcomed by the general public. Let’s take a look at some of the many benefits of using cryptocurrency:
Fraud – Any problem with fraud is kept to a minimum because cryptocurrency is digital which can prevent a reverse or counterfeit payment. Such a move could be a problem with other traditional payment options, such as credit cards, due to charge-backs.
Identity Theft – There is no need to provide personal information when using cryptocurrency which can lead to identity theft. If you use a credit card, the store provides a lot of information about your credit line, even for very small transactions. Also, credit card payments depend on a pool transaction where a certain amount is requested from an account. With a cryptocurrency payment, the transaction is made on a push basis, which gives the account holder the option to send only the exact amount without any additional information.
Versatile use – a payment by cryptocurrency can easily comply with certain terms. A digital contract may be created for payment subject to completion at a future date, subject to external information or approval of a third party. Even with a special contract, such payments are still very fast and effective.
Easy Access – The use of cryptocurrencies is widely available to anyone with access to the Internet. It is gaining popularity in some parts of the world, such as Kenya, where about 1/3 of the population uses digital wallets through local microfinance services.
Low Fees – It is possible to complete a cryptocurrency transaction without additional fees or charges. However, if a digital wallet or third party service is used to hold cryptocurrency, there may be a small charge.
International Trade – This type of payment is not subject to the country’s specific tariffs, transaction charges, interest rates or exchange rates, which makes it relatively easy to complete cross-border transfers.
Adaptability – With over 1200 unique cryptocurrency types on the world market, there are many opportunities to use a payment method that meets specific needs. While there are plenty of options for using coins for everyday use, there are also those for specific use or in a specific industry.