We all know how a particular digital currency has taken over the market in the last few months. And yes, we are talking about cryptocurrencies that are now slowly being introduced in our daily lives. From gift cards on online platforms to working as an asset – cryptocurrencies are becoming a massive part of our lives.
And recently, the online shopping sphere has also started accepting cryptocurrency as a legal form of payment, thanks to its popularity. First, read more about how the online shopping world works with cryptocurrency. Then read on about these concepts and more.
How Does The Online Shopping Industry Work?
Before we move on to the advantages and disadvantages of shopping online with cryptocurrency, let us first elaborate on how the online shopping industry works.
Online shopping industries work through various steps after using third-party applications like payment gateways and payment processors. They also use multiple website databases and codes to ensure their website works well.
Here’s how an online shopping website typically works –
- A potential customer or a visitor lands on the website through referral traffic, paid advertisements, or search engines.
- Next, the website will connect its database to display various information like images, content, articles, products, categories, etc.
- Once the customer has browsed through the website, they will now add some products to their shopping cart and then check out.
- Once the checkout process is done, the customer will finalize their transaction.
- They will put their credit or debit card details over the payment gateway. And for those websites accepting cryptocurrencies, they will allow you to put in your crypto wallet details. Then, the website will go through with the processing remotely and securely.
- Once the order is placed, the online website will give you your postal tracking number, estimated shipping time, and other details.
Almost every one of us is shopping online thanks to the plethora of goods available here. And once these websites start accepting cryptocurrencies as an acceptable form of payment, it becomes easier for many to keep buying things online.
Now let us look into the advantages and disadvantages of using cryptocurrency for online shopping.
Advantages And Disadvantages Of Shopping Online With Crypto
- Cryptocurrency Has User Autonomy
Traditional currencies are always under the thumb of the government, banks, and volatility. You can keep shopping online with your crypto-money without any worries as they still have the same worth as the day before.
- Pseudonymous Transactions
Cryptocurrency transactions are referred to as pseudonymous transactions. That means there is no identifying information like IP address during your transaction. However, one can identify them if one finds out the blockchain address.
- Low International Transaction Fee
Cryptocurrency transactions do not fall under any government or banks. And so, any foreign purchase with crypto will cost you much less as compared to those done through these institutions. Thus, even if you purchase something from an International online store like Etsy, you won’t have to pay exorbitant charges.
- No Banking Fees
As we know, crypto doesn’t fall under any government or bank. And so, when you purchase online, you won’t have to pay any banking fees. There won’t be any banking charges like minimum balance fee or withdrawal fee, or anything!
- Easy Transactions
It is so much easier buying things with cryptocurrencies! They are more private than other transactions, and all you need is a good exchange or hardware wallet to shop online!
- Mobile Transactions
Lastly, crypto users can use their coins to pay anywhere with internet access. Thus, they won’t need to go to the bank or buy something. Instead, they can log onto online websites like Coingate and buy gift cards of various products whenever they want!
- Scalability Issues
The cryptocurrency concept is still relatively new. And so, scalability is still a huge problem for those using these coins. However, researchers are slowly developing new, faster staking and sharding networks to ensure faster and more seamless transactions.
- Cybersecurity Problems
Cryptocurrencies are still prone to cyber security problems like any other digital technology. They can fall into the hands of hackers and get stolen. Already several investors have lost their money due to this cyber problem.
However, new and more robust security measures are being adopted to ensure safer transactions and wallets. Thus, we suggest keeping your cryptocurrencies in a safe place to save yourself from such issues.
Online shopping with cryptocurrency has both advantages and disadvantages, but the pros outweigh the cons, and virtual currency will soon become a primary part of our online shopping experience. So get on a reliable platform and start trading cryptocurrency today.