Cryptocurrency, the digital or virtual form of currency employing cryptography for secure transactions and operating independently of a central bank, has witnessed a surge in popularity as a payment method in recent times. Crypto is used for trading, staking lending, investment, governing, or utility on crypto exchanges. An example is the WBT token launched on the WHiteBIT platform. It brings many benefits to its owners and holders, which you may read about on the WhiteBIT blog. As of May 23, 2023, the WBT crypto price is $4.64.
Delving into the realm of cryptocurrency as a means of payment, the subsequent discussion sheds light on various crucial aspects:
- Expedited and Borderless Transactions:
- Reduced Fees
- Anonymity and Privacy
- Growing Merchant Acceptance.
How to Accept Cryptocurrency as Payment?
To accept payments in cryptocurrency, you can pursue these general steps:
- Establish a wallet
- Acquire a receiving address
- Showcase payment details
- Employ QR codes
- Monitor transactions
- Contemplate payment processors
- Ensure security
Pros and Cons
Here are the advantages of payment via crypto:
- Security. By harnessing the power of cryptographic techniques, such payments ascend to unprecedented levels of protection. Embracing the decentralized nature of blockchain technology, they stand as formidable shields against the perils of fraud, hacking, and unauthorized access.
- Lower fees. Fees are diminished, particularly when compared to the conventional methods of payment.
- Fast and global transactions. Within mere minutes, crypto transactions traverse vast expanses, effortlessly defying geographical limitations.
- Financial inclusion. Cryptocurrencies present an avenue for extending financial services to the unbanked and underbanked populations who lack access to traditional banking systems.
- Privacy. While the degree of privacy afforded by various cryptos may differ, certain ones offer enhanced privacy features that cater to individuals who prioritize financial confidentiality.
Drawbacks of payment via crypto:
- Volatility. Cryptocurrencies are renowned for their inherent price volatility, characterized by substantial fluctuations within short time frames.
- Limited acceptance. Despite the growing acceptance of cryptocurrencies, they have yet to achieve universal recognition as a widely accepted payment method.
- Complexity. The intricacies surrounding cryptos and their underlying technology, like blockchain, can prove perplexing for the average user. Dealing with concepts such as private keys, wallets, and secure storage of cryptocurrencies demands technical proficiency, which acts as a barrier to entry for some individuals.
- Irreversibility. Once transactions are confirmed and recorded on the blockchain, they typically become irreversible. This characteristic presents difficulties in recovering funds or reversing transactions in cases of fraud or mistaken transfers.
- Regulatory uncertainty. The absence of clearly defined regulations and inconsistent treatment of cryptocurrencies gives rise to uncertainties for both businesses and individuals.
It is important to recognize that the merits and drawbacks of crypto payments can vary depending on the specific cryptocurrency, its implementation, and the perspective of the user.