How does crypto differ from other forms of payment?

Cryptocurrency boom looks to be unbroken in 2022: new coins keep coming to market and trends like NFTs ensure that crypto has a more diverse use. In general, digital coins are much more than an investment these days.

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For many places, they are already on the list of digital payment methods. But what makes cryptocurrencies so special? And how do they differ from other payment methods?

Why so many payment methods at all?

Who needs so many different payment methods anyway? After all, online stores already offer the option of paying with credit cards or digital payment providers such as PayPal, Skrill and the like.

payment methods

Offering many different payment methods is positive for both the provider and the customer. Different users prefer different payment methods and choose them according to their personal preferences.

This is clearly evident in industries such as e-commerce, but also in the world of virtual gambling. Most Online casino Providers have a long list of deposit and withdrawal methods. Users decide for themselves what is best for them. Some feel most secure with credit card payments, while others appreciate the speed of the Skrill transaction. By offering as many different methods as possible, a casino site fulfills the wishes of many users at the same time.

Online casino Mr Green

Advantages of cryptocurrencies

Users expect some benefits from the crypto coins. These include in particular the following:

  • High level of security for online payments: Cryptocurrency payments are 100% anonymous. Transactions cannot be reversed or traced.
  • Velocity: A transaction with Bitcoin and Co. completed within seconds. Unlike bank transfers, this is a strong step forward.
  • Internationality: Transactions abroad are usually easier to make with cryptos than with other payment methods. On the one hand, this is due to the fact that these are digital international currencies, but on the other hand, low fees also play a role.

Pay with cryptocurrencies

Slowly but surely, cryptos are becoming more and more popular as a payment method. Germany is still lagging behind in this trend – in other countries cafes or tourist businesses often already accept payment with Bitcoin. Other coins are also accepted less often – for example in some Gucci branches in the US. Customers can use the trend coins there Buy Shiba Inu and DOGE.

A big difference to currencies like Euro and Dollar: Cryptocurrencies are not official currencies. Their value is therefore always linked to other currencies. For example, a price cannot be stated in Bitcoin, but must always be converted to an official currency. This is mainly because cryptocurrencies are very volatile. If a product costs one Bitcoin today, it may be worth EUR 40,000 today and fall to EUR 20,000 tomorrow.

Cryptos in your wallet?

CRYPTOCURRENCY WALLET Cryptocurrencies differ significantly from traditional fiat money in one respect: they are not really “tangible”. And even if they’re not tucked away like bills or coins in a real wallet, they’re still there. Cryptocurrencies are stored in so-called e-wallets.

Only those who have the password have access to this wallet. The digital coins can simply stay in this digital wallet or be transferred from there, for example when the coins are sold or when payments are to be made with the cryptos.

Will Bitcoin and Co. legal tender in the future?

In general, a distinction must be made between the terms “accepted means of payment” and “legal means of payment”. Bitcoins, for example, can already be accepted as a means of payment in many countries around the world. Legal means of payment, on the other hand, must be accepted by merchants in the country – at Bitcoin and Co. is this only in the case in very few countries.

Bitcoin accepted here

Nevertheless, the acceptance of cryptos as means of payment and in general as digital currency is slowly but surely increasing. For example, there is already button 80 Bitcoin ATMs in Germany. There, users can buy Bitcoins or Ethereum directly with Euros and store them on their wallet. On some machines, it is even possible to sell the coins.

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Cryptocurrencies are a highly volatile, unregulated investment product. Your capital is at risk.

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