Prior to the introduction of Bitcoin in 2009, all transactions around the world required fiat currency to be completed. This caused some form of difficulty in terms of how fast dealings could be, as well as in international transactions between individuals and businesses.
When Bitcoin came along, being unregulated, it became the solution to problems posed by legal tender. The general acceptance that followed Bitcoin spurred the creation of other cryptocurrency coins. Other popular cryptos for payments include Litecoin; check our guide on everything you need to know about it.
Although no coins have reached the value of Bitcoin, they are still commonly used in daily transactions by individuals. In this concise guide, we have considered some ways by which transacting with cryptocurrency coins has simplified dealings domestically and between borders.
Under the conventional banking system, the bank is involved in all transactions you make. Therefore, each money sent or received is monitored and is recorded by the banks you use. In certain instances where dealings are more complex, your financial records may even be further investigated before your transactions are approved.
Crypto trades have helped to do away with these third parties when transacting. So, your dealings take place between you and the other party. This ensures your financial history is private, with only the individual having access.
There are countless cases of identity or account theft involved with traditional banking systems. Therefore, many have argued crypto transactions are safer. This is because when transacting, you do not provide the details of your bank account or your debit or credit card details. All that is required is your wallet which will receive the payments made.
3. International transactions
Rather than go through the hassle of converting funds into a foreign currency, crypto payments can be made directly peer-to-peer…
So, in a situation where a buyer resides in India and the seller lives in the United Kingdom (U.K). The buyer in India can send the value of Ethereum of the goods purchased to the seller in the U.K. This eliminates the need for the buyer to firstly convert their Indian Rupees to Pounds before making payment.
When transacting on international websites, crypto has its advantages compared to traditional banking. Moreover, more and more merchants are accepting Bitcoin and other cryptos as payment. For example, major US retailer Overstock accepts crypto as payment and in certain countries so does KFC. Furthermore, globally, but particularly in Asia, crypto is quickly becoming one of the most popular online gambling payment methods in India. Using comparison sites will help to see what cryptocurrencies are accepted as well as traditional banking methods. On the portal, there are guides on how to deposit successfully. Nonetheless for most online casinos/sportsbooks transactions are still in fiat currency.
4. Transaction fees
For each transaction made, the conventional banking system has certain fees charged. This is quite discouraging when you carry out transactions monthly, as the bank charges can be significant.
However, you’ll have to pay when there is a 3rd party responsible for managing your crypto wallet. Such fees would still be far less than what the banks charge though.
The advantages you get with crypto include speed, being able to move large amounts of money, and privacy. Even though crypto has these advantages, it is necessary to take note of some of its weak points. These include:
- High volatility level
The truth about cryptocurrency is that it is very volatile. It is possible for you to buy a crypto coin early in the year at a high value and such a coin could lose half the value by the end of the year. For instance, in June 2021, Bitcoin was at $32,000, but by November 2021, it had risen to an all-time high of $65,000. Therefore, when you wish to transact with crypto, you must take the high level of volatility into consideration.
- Irreversible transactions
You must always exercise care when making a transfer. Each time you wish to make a transaction, ensure you cross-check the details of the wallet you are about to transfer into. Confirm the numbers and letters match that of the recipient, it is always best to copy and paste.