Cryptocurrencies are decentralized. Traditional payment systems often take a significant percentage of a customer’s money for themselves. Cryptocurrencies have a significantly lower barrier to entry. Unlike conventional payment systems, cryptocurrencies can be used to purchase goods and services from anyone in the world. Cryptocurrencies don’t charge transaction fees like traditional currencies do, which means the buyer gets to keep more of their money.
4 reasons to use cryptocurrency instead of traditional payment systems
Traditional payment systems are based on the use of banks. Cryptocurrency is digital currency that uses encryption techniques to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Cryptocurrency is a much more efficient system, simply because it is cheaper to make transactions.
1. Cryptocurrency can be transferred much faster than traditional payment systems
A major disadvantage of traditional payment systems is that transactions are not always processed quickly. With cryptocurrency, transactions are processed immediately.
2. Cryptocurrency is much cheaper
One of the biggest benefits of using cryptocurrency is that it is much cheaper to make transactions. This is because there are no third-party processors taking a percentage of the transaction amount, which means all the fees are charged by the sender and receiver of the transaction.
3. Security
People are always looking for ways to make transactions more secure. Today, the average user isn’t positive they are making transactions in a secure manner with traditional payment systems. However, new technologies are being developed to help increase security in traditional transactions. One of the new technologies is cryptocurrency.
The merchant never takes the risk of losing money on chargebacks. This is because the customer’s credit card is linked to their cryptocurrency account with a secret key that cannot be accessed by the merchant.
Fraudulent activities are not possible with cryptocurrency because it is not possible to make transactions
4. Payment is still traceable
Cryptocurrency is quickly becoming a popular alternative to fiat currency and we’ve compiled some of the best reasons to use it instead of traditional payment systems:
No middleman: No matter if you’re selling something online or not, the existence of a middleman will always translate into higher fees.
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No bank account needed: Cryptocurrency requires no bank account; simply get a wallet and get started!
Payments are still traceable: This fact has been often criticized by some who believe that cryptocurrency is anonymous and untraceable, but it’s quite the opposite. Transactions are public and the whole transaction history can be viewed.
Conclusion
Cryptocurrency offers many advantages over traditional payment systems. One of the biggest benefits is that transactions are much cheaper. This is because there are no third-party processors taking a percentage of the transaction amount, which means all the fees are charged by the sender and receiver of the transaction.
