Cryptocurrency is a type of digital currency, created and held electronically. No one controls it. Bitcoins, Dogecoins and other forms of cryptocurrency are used all over the world.
Bitcoin was the first cryptocurrency, invented in 2009. Today, there are more than 800 different types of cryptocurrencies in existence.
How Does Crypto Work?
Cryptocurrencies work with blockchain technology. Blockchain is a decentralized public ledger that records all transactions made on its network. Every time one cryptocurrency is traded for another, its transaction is recorded on the blockchain ledger. Because this record is public, you can easily track any cryptocurrency payment you’ve ever made or received — no matter how small.
Cryptocurrency can also be used to do things like making purchases online, at brick-and-mortar stores or paying bills with a few clicks. In order to make these transactions, you need a digital wallet where you can store and trade your cryptocurrencies.
Digital wallets can be software programs installed on your computer or mobile device or they can be online accounts that store your money in cloud storage systems. You can purchase a physical hardware wallet to protect your digital wallet’s private keys from hackers or malware programs.
The Benefits of Crypto Payments to an eCommerce
Cryptocurrency provides many benefits to both business owners and individuals. Here are some reasons for businesses to start accepting cryptocurrencies:
1. No chargebacks
This is one of the biggest advantages of using cryptocurrencies over credit cards when running online businesses. When using credit cards, you run the risk of chargebacks which will cost you extra money because the bank or credit card company takes its cut from each transaction.
2. Faster transaction times
Cryptocurrency transactions are processed faster than other forms of payment, so it’s perfect for e-commerce businesses that need to process payments quickly.
3. No limits in payment amounts:
There is no limit on how much you can accept in a transaction when you use cryptocurrency since it’s decentralized and not controlled by any government.
4. Low fees
The transaction fees for cryptocurrency are generally much lower than those charged by banks or credit card companies. This can be especially beneficial for merchants who are selling low-cost items such as digital products or physical items that don’t require international shipping.
While cryptocurrency was initially designed as an alternative payment method to bank transfers and credit cards, there has been significant interest from both merchants and consumers in its potential adoption as a mainstream payment system.
Hopefully, retailers will adopt this new payment method as more customers embrace digital currencies.
Author Bio:- Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of best payment providers. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.