The demand for cryptocurrency payment gateways is heating up. Unfortunately, many people confuse this payment gateway with a standard Bitcoin wallet . However, these are defined as payment executors for cryptocurrencies.
The notion of cryptocurrency payment gateways is similar to the standard payment gateway for bank transfers and credit card and debit card transactions. Suppose you have an interest in bitcoin trading. You might wonder how is a cryptocurrency payment entryway is different from a standard digital currency wallet.
You send and receive funds purely in cryptocurrencies in a digital currency wallet. However, one directly receives payments in a standard monetary system in cryptocurrency gateways. So, for example, a buyer buys a product from your website and processes a transaction of 0.001 BTC, you will receive fiat currency worth 0.001 directly in your account.
In short, cryptocurrency payment gateways are superior to eliminating the volatility risks associated with a digital currency. Cryptocurrency gateways are more of an option and are not mandatory. One can also use a standard cryptocurrency wallet to perform similar tasks. Since cryptocurrency gateways are in extreme demand, a detailed overview of this technology is provided.
- Businesses are highly accepting the digital coin payment method.
- These gateways promote between the buyer and seller to make cryptocurrency transactions safer and more accessible.
- The concept of payment gateways in cryptocurrencies is straightforward as you will be enabled to convert digital coins directly into fiat currencies using this technology.
Read Also: Leading Cryptocurrencies Having Potential to Outplay BTC!
The mechanism of cryptocurrency payment gateways!
Payment gateways usually refer to the service provider trying to facilitate these transactions by utilizing cryptocurrency wallets. In addition, payment gateways in digital coins help eliminate the volatility risks of cryptocurrencies as these services directly convert any amount of digital coins into fiat currencies.
The payment gateway service provider usually uses their cryptocurrency wallet to promote such exchange. If the digital coin comes up with such a payment mechanism, the company will undeniably include banking fees and transaction fees levied by the nodes of a cryptocurrency network. The concept of nodes and transaction fees in cryptocurrency networks is pretty usually as every other digital currency comes with such a concept.
Pros and Cons of Payment gateways!
The pros and cons of payment gateways are discussed below. Cryptocurrencies always try to display attributes of a decentralized monetary system. The notion of payment gateways turns executing transactions between sender and buyer merely a piece of cake. However, few businesses are still not ready to accept any money in digital coins.
- With the help of a payment gateway, the seller can diminish anonymity while executing an exchange.
- The cryptocurrency payment gateways usually take responsibility for any mishap regarding the exchange.
- The acceptance of digital coins with the assistance of such service providers is skyrocketing.
- If you use a payment gateway regarding cryptocurrency transactions, it is not mandatory to have any prior or technical knowledge of digital coins.
As discussed above, the utmost highlighting advantage of utilizing a payment gateway is eliminating volatility. Each day cryptocurrency experiences storming volatility, and if you have zero risk tolerance, you should always go with a digital coin payment gateway for executing the transactions. Furthermore, these service providers’ instant conversion into fiat currencies with barely nominal charges is phenomenal. In short, these service providers assist you in prevailing only the advantages of cryptocurrencies.
- With many advantages of cryptocurrencies, there are a few disadvantages of cryptocurrency payment gateways.
- Payment gateway usually diminishes the decentralized nature of cryptocurrencies.
- A seller and a buyer constantly rely on a third party to get a smooth service. But unfortunately, the payment gateways sometimes fails to execute the transactions with utter smoothness.
- Undeniably, the fees incurred by cryptocurrency payment gateways are less, but as a digital currency standard wallet, a digital coin payment gateway levies more fees. However, these service providers’ fees are almost similar even for executing small transactions.
- Implicating an unauthentic payment gateway can cost you a lot of money as you have chances to lose all your money.
In short, it is not mandatory to use a payment gateway, but yes, if you use these services, you can avail of the benefits as well.