Cryptocurrency is a digital alternative to using credit cards or cash for everyday payments in various situations. It continues to grow as a viable alternative to traditional payment methods, but needs to become more stable before it is fully welcomed by the general public. Let’s take a look at some of the many benefits of using cryptocurrency:
Fraud – Any issues with fraud are kept to a minimum as cryptocurrency is digital which can prevent a reverse or fake payment. Such actions can be problematic for other traditional payment options such as credit cards due to charge-backs.
Identity Theft – No need to provide personal information when using cryptocurrency that could 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 rely on a pull transaction where a fixed amount is requested from an account. With a cryptocurrency payment, the transaction is done on a push basis, giving the account holder the option to send only the exact amount without any additional information.
Versatile Uses – A payment by cryptocurrency can easily meet certain conditions. A digital contract can be made to be completed at a future date, refer to external information or make payments subject to third party approval. Even with a special contract, this type of payment is still very fast and effective.
Easy Access – The use of cryptocurrencies is widely available to anyone with access to the Internet. It is becoming very popular 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 paying additional fees or charges. However, if a digital wallet or third-party service is used to hold the cryptocurrency, there is likely to be a small charge.
International Trade – This type of payment is not subject to country-specific tariffs, transaction charges, interest rates, or exchange rates, making it possible to complete cross-border transfers with relative ease.
Adaptability – With nearly 1200 unique cryptocurrency types on the global market, there are plenty of opportunities to use a payment method that matches specific needs. While there are plenty of options for using coins for everyday use, there are also those for specific uses or in a specific industry.