For many years, the traditional way to pay was only through cash and credit cards. Nowadays, however, there is a new payment method, and it is cryptocurrency. More and more merchants are beginning to accept crypto payments on websites. This article will explain the difference between using credit card vs cryptocurrency when purchasing online or in person.
And while there are some benefits to using credit cards, they cannot compare with the freedom and anonymity of cryptocurrencies.
The following is a list of reasons you should use cryptocurrency instead of credit cards.
1. There are significant transaction fees involved when goods or services are purchased with a credit card. Every time a customer uses a credit card, it processes two transactions, one between the customer and the merchant and another between the merchant’s bank and the credit card company. This makes cryptocurrency significantly cheaper than both Visa and MasterCard. There are no fees to receive Bitcoin payments and a small fee to send them.
2. One of the main benefits is that your information cannot be stolen or hacked into by criminals. All transactions on the Bitcoin payment system are encrypted and not recorded anywhere, so even if someone were to hack into a third party that was processing your card, they would have nothing of significance.
3. There is no need for a bank account when cryptocurrency is used. The only fees involved when purchasing goods or services with cryptocurrency will be from paying miners to confirm your transaction on the blockchain.
4. Using cryptocurrency allows you to make payments without revealing personal information or through identity verification processes, as third-party financial institutions require. Even though some sellers request this information before allowing you to make purchases online, it should still give everyone pause about how much of their personal information is saved and possibly even sold to third-party companies.
5. Cryptocurrency also provides fast confirmation times that eliminate long wait periods. Credit card transactions have about a one- to three-day wait period, while Bitcoin transactions take an average of 10 minutes, making them significantly faster than both Visa and MasterCard.
6. When using cryptocurrency, no set standards or policies can be violated when making purchases. Since Bitcoin is not tied to any bank or government, you cannot have your account suspended or closed down for purchasing goods and services that the issuer deems inappropriate, which happens all of the time with credit card companies.
7. Cryptocurrency makes it easier to get out of debt, especially if you dump your digital currency into a coin that remains stable and has the potential for appreciation, such as Bitcoin. Credit card companies can raise interest rates at their discretion or place holds on accounts, making payments more difficult and expensive in some cases.
While credit cards have been the primary method for making online and in-person purchases, that is beginning to change. More merchants and service providers are asking themselves, “How do I accept Bitcoin?” Cryptocurrency provides people with a new way of doing business. It can be used anonymously without worrying about third-party financial institutions having the ability to suspend or close down accounts on a whim. While there are some benefits to using credit cards, they cannot compare with the freedom and anonymity of cryptocurrencies.
