Cryptocurrency – also known as crypto-currency or crypto – is a currency used online to act as a medium of exchange to buy or sell goods and services. Now this form of exchange has been around for a while and as with fiat currency, it’s subject to fluctuations in value in the open market.
But with so many options out there as an alternative to transacting online, can we say that cryptocurrency could possibly be the best way to handle online transactions? If you are keen on finding out, then remain glued to your screen for more.
The Most Common Cryptocurrencies Used Globally
It’s important to establish that cryptocurrency is not a single form of exchange. The medium comes in different forms and those keen on investing in it can choose to transact using one of several different forms of it. Cryptocurrencies that are commonly used globally include:
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Litecoin (LTC)
- Stellar (XLM)
- Cardano (ADA)
- Polkadot (DOT)
- Binance Coin (BNB)
- Tether (USDT)
- Monero (XMR)
The Advantages and Disadvantages of Using Cryptocurrency
Let’s take a look at some of the pros and cons to using cryptocurrency as a form of exchange for online transactions.
When it comes to transacting, using a cryptocurrency means that you won’t need any third party intervention. A good example would be like needing a debit or credit card issued by a bank to get the job done. It’s a direct transaction between you and the other party.
Online transactions can be relatively expensive. Review articles like the ones you’d find to offer insight on, for example, online casino NetBet site can provide a detailed comparison between all the various payment options so you can see the fees associated with transacting online. Cryptocurrencies tend to charge reasonable and affordable fees in this aspect.
Providing your personal details online can be very risky. Some sites are legally licensed and regulated, which means safety with your personal details and data. But this isn’t always the case with every site.
If you’re uncomfortable at the idea of sharing your personal details online, then cryptocurrencies would be an excellent choice. This is because you can transact online while remaining anonymous.
When transacting online with this medium of exchange, you have to be 100% sure of the details because you cannot reverse a payment once it’s been confirmed.
Limited in Acceptance and a Bad Rep
Cryptocurrencies are not accepted and recognized everywhere which means that they are limited in where you can use them. They also have an infamous reputation to them for being associated with scams and large activity in the black market and on the ‘Silk Road’ for example.
High Volatility and Losses
Cryptocurrencies are known to gain and lose value rapidly. There are many who have been known to have made large profits from this fact, however, there have also been many reports of massive losses when the markets have fallen
How can this affect my transacting online? Well, if you are in the business of buying and selling online, using cryptocurrency as a means of exchange, this could mean massive fluctuations in the pricing of products and services in rapid time.
The pros to using cryptocurrency can be beneficial, however, its limited means and infamous nature can restrict you from interacting freely online. So, would we regard cryptocurrency as the best way to handle transactions? Not really. But, it’s worth a shot to areas that don’t mind using and accepting it.