Cryptocurrency is a digital alternative to using credit cards or cash to make daily payments in a variety of situations. It continues to grow as a viable 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. This type of action can be problematic for other traditional payment options, such as credit cards, due to charge-back.
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.