Since the advent of cryptocurrency in 2009, it has revolutionized how we deal with money. The emergence of cryptocurrency happened in 2009, and since then, it has revolutionized how we deal with money. Cryptocurrency payments are irreversible and do not, by themselves, include all the consumer protections buyers are accustomed to.
Cryptocurrency has come a long way, from being just another investment tool to being considered an alternative to fiat currency. There are many reasons why cryptocurrencies have started replacing fiat currencies. This blog discusses the main reasons that make cryptocurrencies a practical option for carrying out payments. So let’s dive right in.
Cryptocurrencies are a secure form of payment compared to credit and debit cards. This is because cryptocurrencies do not require any third-party verification. In addition, no hubs store your transaction data, which leaves no room for data theft in a cryptocurrency transaction. Instead, the Crypto wallet will keep all your information safe. You alone have access to your crypto wallet, sealing all possible routes for data breaches.
Besides, the blockchain ledger verifies transactions when you make a cryptocurrency transaction. This process makes it impossible to steal your identity.
Nodes (decentralized network of devices) verify every cryptocurrency transaction on the blockchain. Each transaction has a time stamp, and they form a chronological sequence. The record of each of these transactions is constantly updated on all devices within the blockchain.
Moreover, everyone can verify if the transaction happened. Some tools let anyone view these transactions anonymously. For example, the crypto transferred each second, when and where the transaction took place, and other data related to the transaction are transparent for the members involved in the transaction.
Since these records are irreversible and transparent, there is no chance for a third party to reverse or manipulate the payment. This makes it possible to prove someone sent or received the cryptocurrency.
Low Transaction Fees
In traditional transactions, third-party merchants like PayPal charge a huge chunk of money (4%) on each transaction. For someone with a high transaction volume, this is a lot of money. However, cryptocurrency transactions charge much lower fees for transactions. Many crypto exchanges charge lower than 1%.
Another hurdle in traditional money transactions is the overseas transfer fee, which is the fee charged when you send money to another country. In cryptocurrency transactions, you don’t have to pay international transfer fees. Cryptocurrencies are not based in one country or a specific national bank. So it doesn’t have to wait for bank clearances or fee payments.
Instant Worldwide Transactions
Regardless of where you are in the world, cryptocurrency transactions take place instantly. The network takes just a few minutes to confirm your transaction. Usually, traditional overseas money transfers take up to 1-5 working days, wire transfers take at least 24 hours, and stock trade settlements take three days. But as you can see, that is not the case with crypto transactions.
All you need is a computer or a smartphone with an internet connection to make cryptocurrency payments. Further, opening a crypto wallet takes just a few minutes, compared to opening a bank account which takes hours or days. Above all, cryptocurrencies allow you to make transactions without passing through a central authority.
A chargeback happens when the central authority managing your money, such as banks, decides to reverse your transactions. Banks have the power to reverse your transactions if needed. This is a dangerous power resting in the hands of banks and, if misused, could be bad for customers.
Cryptocurrency payments can never undergo a chargeback. This is because transactions are instantly recorded on the blockchain and made public. Once noted, the record is permanent, and there is no scope for any changes; this rules out the possibility of a chargeback.
When it comes to money in your bank account, you are a creditor. Once you deposit money, the bank manages your money. And you have to completely trust and rely on the bank to perform your transactions.
On the other hand, if you have the secret phrase of your crypto wallet, you are in control of your own money. No one else can see it, use it, or transfer it. You can instantly transact without anyone’s permission or intervention when in need.
Digital Wallets keep your Cryptocurrency safe
A cryptocurrency wallet lets users send and receive cryptocurrencies while acting as safe storage for the same. Keep your secret phrase safe and you shall be the owner of your cryptocurrencies.
This is unlike a bank account, where the bank has certain powers over your account. As a result, you can never call it your own.
Cryptocurrency as a reliable payment option
The convenience offered by cryptocurrency over fiat currency is hard to ignore anymore. With technological advancements everywhere, the whole world is slowly edging toward accepting cryptocurrency as mainstream payment. Cryptocurrency is the new universal currency of the future, with its benefits of fast, cheap, secure, trustworthy transactions,
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