Cryptocurrency payments have revolutionized financial transactions across the globe. Someone from the comfort of their home can send any amount of money to anyone anywhere in the world; often in seconds! This can take place anytime without dependency on any established banking system and with little or zero transaction fees. But traditional payment systems are not as exciting.
What are Cryptocurrency Payments?
Cryptocurrencies are digital currencies with records on a Blockchain. Cryptography secures these records and makes them immutable.
Cryptocurrency Payments occur over the blockchain with no intermediaries or government control. They involve sending cryptocurrencies from one person to another as a means of settling financial transactions. This transactions are peer-to-peer in nature.
The transactions are not hidden, but can be viewed on the blockchain by the public. However, identities of the parties involved remain anonymous.
What are Traditional Payment Systems?
To put it in simple terms, these are payments involving government regulated intermediaries. These middlemen control when to send, how much you can send, and where you can send money to. Thus, you need permission to send anyone your own money anytime you want to. At some point, you may lose this permission for reasons not peculiar to you!
Unlike cryptocurrency payments, using traditional payment systems to send money can be really difficult. Moreover, we can mention the fact that majority of the people in the world have no access to the banking system. Moreso, they rules are often too many.
Why Cryptocurrency Payments are better
There are many differences between the two ways of sending money across the globe. This reveals the advantages of cryptocurrency payments over the traditional methods. Here’s a few in no specific order:
Cryptocurrency Payments grants access to means of payment to anyone anywhere in the world. This is not the case with the traditional payment systems; most people do not even have bank accounts. For a lot, this is not possible even if they want to have one.
Traditional Payment Systems have single points of failure – the banks and financial institutions. Meanwhile, cryptocurrency payments occur over the blockchain with no middlemen.
With cryptocurrency payments, there is no limit to how much one can send, when to send or where to send. But banks and Fintechs can limit any of these due to local regulations.
Large sums of money can be sent across the blockchain with very low fees or none. On the contrary, moving large sums of money via traditional payment systems is even hard. If allowed, very huge fees can be paid to let this go through.
Cryptocurrency payments give the users full control over their money. Traditional payment systems do not. You can even lose access to your own money anytime.
This list is not exhaustive though. Other distinctions abound between the two, but we may look at more of those in a later piece. The cool thing is that cryptocurrency payments are here to stay. Not only that, they will also continue to make financial transactions something more accessible to all. Single points of failure will soon be out of the equation and people can send money anytime they want and to any part of the world. And this can be done at zero cost too!
TATSpace: a cryptocurrency payment gateway
Before we wrap it up here, we want to let you know we have a payment gateway that gives you control over your funds: the TATSpace app. With this, you do not only have the freedom to send anyone anywhere in the world funds, you can do a whole lot of other things. Some of these include settling some daily utility bills, taking and giving out loans for profit as well as having your cryptocurrency assets stored where you can easily reach them.
We have also recently added a crypto auto trader bot: TAT-Trader BOT. This bot helps you to trade crypto handsfree.
Do you already use the tatspace app? Let us know in the comment section what you think of the app and cryptocurrency payments in general. Will be looking to read your awesome takes!