Cryptocurrency

Advantages of Crypto Payment Methods Over Traditional Payment Methods?

The inherent features of cryptocurrencies backed by reliability have made cryptocurrencies to gain high momentum in the financial world. As new payment methods emerge, online marketers who hire freelancers need to adapt them to meet the growing demands of the industries. Like only a few years back, payments through credit cards almost became obsolete and PayPal took its place by becoming the most preferred online transaction method.

Freelancing allows you to earn from anywhere and everywhere, where you can control your own time, and therefore it demands such a payment system that is devoid of scam and are relatively faster. But the present payment systems are not so innovative, and in most of the cases, they are inundated with mammoth disadvantages like high fees for employers and long waits for workers that add to the freelancers’ discomfort while receiving payments. So, most of the freelancers nowadays prefer receiving their payments in cryptos, rather than through any other traditional payment methods like bank transfer or PayPal. To know more about the market caps of various cryptocurrencies, you can visit coinlib.io.

Why is Cryptocurrency the Best Payment Option for Freelancers?

Freelancers prefer crypto payments due to the following reasons.

  • Saves Time and Money

Digital currencies allow both freelancers and employers to save time and money. However, there are costs associated with crypto payments that involve the cost of transferring and converting digital currencies, but then these costs are considerably less than the high transaction fees that are charged by the traditional payment options available.

  • Faster processing

In traditional payment methods, the speed of processing depends on the amount of money that needs to be sent; the bigger the amount, the slower will be the processing, because it needs more time to meet the formalities associated with larger amounts. But in the case of crypto payments, the processing speed depends upon the computer resources that store the data. Therefore, even the larger amount can be sent across in just a few minutes.

  • Preparing Invoices made easier

In case of online marketing, both the freelancers as well as the businesses need to prepare their respective invoices at some point in time. Now there are a number of payment platforms coming up that offer services to successfully meet the growing accounting needs of those who use cryptocurrencies as their payment options. From creating invoices to sending recurring invoices or tracking their payments, these platforms ease out the entire invoicing process by making them smoother and faster.

  • Relief from runaway clients

60% of the freelancers at some point of their working career have had this experience with unscrupulous clients that don’t pay for their work. Also, some clients delay up the payment for so long, that by the time the freelancer receives their payment, the value reduces significantly than what it was when they had submitted their work. This mostly happens due to centralization. This is the reason why nowadays, many freelancers are opting for regulated platforms like the decentralized cryptocurrency payments that help them getting their payment instantly.

  • No risk of identity thefts

In the case of traditional payments method like credit cards, when you give its details to any merchant, you are, in a way granting him full access to your credit line. He can any time withdraw the amount from your card without even taking your consent. But in case of crypto wallets, only the holder is allowed to send the amount that he is entitled to, without revealing any further information.

How Freelancers And Small Businesses Are Benefiting from Bitcoin?

Freelancers and small businesses are immensely benefitting from Bitcoin and other cryptos. Here is how.

  • Easy transmission

In this era of globalization, where clients are not restricted to a single country, cryptocurrencies are immensely contributing to the growth of small businesses and freelancers who work from clients from all across the world. Sending bitcoins or any other digital currencies is very easy as they are not regulated by any third party. It is just instantaneous money for businesses.

  • No chargeback frauds

If you want to skip the hurdle of chargeback frauds, then bitcoin is the best solution, as bitcoin transactions cannot be reversed once they are already processed.

  • Transparent tracking

All businesses, irrespective of their varying sizes and growth volume, need to keep track of their sales volume or keep track on their day-to-day operations. What can be better than bitcoin transactions that allow a legit and easy-to-use system for tracking payments.

  • Quick setup

For conducting online services, as in the case of freelancers, it takes a considerable amount of time in setting up an API payment infrastructure and then linking up your bank account to it. But when using a crypto payment network, setting up a QR code is enough to enable people to use their digital devices to transfer their payment to your crypto wallet.

  • No overhead costs

Bitcoins and other cryptos allow a lot of savings that would be otherwise wasted in paying those unnecessary overhead fees when dealing with credit cards or other forms of payments.

Conclusion:

Trading in Bitcoin is fun and, in the same way, very profitable, provided you are ready to accept some obvious market risks that are associated with the volatile nature of bitcoin. There is a software named Bitcoin Trader that can help you learn market conditions and basic strategies to trade profitably. Go through the bitcoin trader review if you have any queries related to the crypto trading.

Therefore, it is clear that because of the myriads of benefits that crypto payments offer, all the three most preferred options for companies to pay freelancers, that is remittance platforms (like Western Union, MoneyGram), bank transfers and web-based services (like Paypal, Transferwise, skrill, etc.) are being replaced by crypto payments. Crypto payments allow a single bridge between all currencies on one single platform, thereby removing the middlemen and also eliminating the volatility factor that is inherent of any digital currencies.

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Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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