Bitcoin, Ethereum, Ripple, Bitcoin Cash, Litecoin. These are just a few of the names that have been popping up in conversations about cryptocurrency for the last couple of years. They are all digital currencies that you can trade with other users on online cryptocurrency trading platforms quickly and anonymously without dealing with banks or any other financial institution. What makes these so appealing? And how does cryptocurrency make the online payment easier than ever before?
As cryptocurrencies like Bitcoin gain more popularity and increase in value each day, people are starting to notice them as an investment opportunity.
Factors that make online payment from cryptocurrency easy
1. Bitcoin payments are final, unlike credit card payments
Bitcoin payments are non-reversible, which means that once the payment has been sent, it cannot be undone by a third party. The recipient can't dispute the payment and ask for their money back. This is unlike credit card transactions which can be disputed after the merchant approves it.
2. There are no transaction fees on Bitcoin transactions
Unlike credit card processing, you don't have to pay a ton of fees when going through the cryptocurrency trading platform payment process. You simply send your Bitcoin to a recipient, and that's it. No 2nd party takes a cut of the transaction, which you never see.
Pros of using Bitcoin instead of traditional payment methods
1. Withdrawing money from cryptocurrency has an anonymity advantage
Bitcoin transactions are not tied to any one address, so you can go through a suitable cryptocurrency trading platform. So if you want to cash out some of your profits, it is pretty easy compared to withdrawing money from conventional banking methods such as credit cards or banks.
2. The process of transferring money is very fast
If you are in the business of getting paid in Bitcoin, the transaction time is almost instantaneous. You can confirm that you've received the money in your account quickly and then move it into another account or cash out with no hassle.
3. No waiting for 3-5 business days for the money to clear
While some traditional payment methods like wire transfer will take longer than cryptocurrencies, many people still have to wait up to a week or more for their money from their banks or credit card companies. This can cause a lot of issues with planning and budgeting. The fact that cryptocurrency transactions are final makes it a much better solution if you're looking for faster ways to get paid.
4. Fees are much lower on credit card transactions
When you sell items or services on the internet, the more money you can walk away with after deducting transaction fees, the better. There are generally lower fees involved when using Bitcoin or some other cryptocurrency, so you immediately have more money to put towards your business.
5. Transaction time is much faster
While some larger companies can process credit card transactions within less than 5 seconds, most merchant accounts take 2-5 minutes to complete each card processing transaction. This means that if your business sells something for $100, you may only get $97 of that payment because of the transaction fees and processing time involved.