Today, it is convenient to use debit and credit cards to replace cash to pay for our purchases. However, fee hikes often spark debates about the costs of using these cards. Although, cryptocurrency still won’t render debit and credit cards obsolete, here are the benefits of cryptocurrency you should know if you plan to use it as an alternative form of payment:
No signup process and waiting period
It takes paperwork, time, and lengthy verification before your cards are usable for transactions. If you want to switch to a different card provider, it is not possible to complete the process quickly. With cryptocurrency, you can download an app on your smartphone to start purchasing and making transactions with cryptocurrency.
Your personal identity cannot be traced
When you apply for a debit or credit card, you will need to divulge your personal identity. It is very easy to trace the card to your details and people can track your financial activities. When starting a cryptocurrency account, there’s no requirement for paperwork. If you lack the necessary paperwork, you can start making payments immediately. When you have lost important documents recently due to an unexpected situation, such as theft or natural disasters, cryptocurrency can be a very convenient alternative.
No records of your past financial activities
It can be a serious breach of your personal privacy if people can access logs or records of your past financial activities. There were cases of major data theft that exposed thousands of users because their financial records were stolen. Because your cryptocurrency account doesn’t include any personal detail, it will be much harder to trace your identity. You can cover tracks by transferring funds between multiple cryptocurrency platforms and accounts. While it’s possible to trace the flow of funds from your savings account to a cryptocurrency account, it is very difficult to trace transactions or transfers between cryptocurrency accounts.
Your permission is always needed
It takes full permission from users before any payment can be made. If you have some amount of money as cryptocurrency, you will have complete control of what should be paid. It’s a different matter with debit and credit cards. Merchants may keep the numbers of your cards and they may charge you at will. If you have agreed to start automatic payments, funds can be removed from your accounts automatically without your consent. Gyms, video streaming, and other subscription services will not only secure automatic payments but also apply additional fees.
Far less susceptible to thefts
It is a fact that debit and credit cards are relatively insecure, especially if users are not being vigilant. Not only that you need to give the merchant your debit card number, but your entire balance is accessible to merchants. You could only hope that these merchants are being honest, so they won’t misuse or compromise your account. Card skimming and other illegal methods may cause you to lose a significant amount of money. It’s more complicated for criminals to steal from your cryptocurrency account because the blockchain structure has much stronger authorization.
There are obviously more benefits of using cryptocurrency as a payment method but the 5 we have listed is the most important.