Using crypto: Transactions

Transactions

CAN I USE CRYPTOCURRENCY TO PURCHASE GOODS?

Growing popularity and familiarity means it is now easier than ever to use cryptocurrency to buy products and services.
Having cryptocurrency safely stored and secured in a wallet does not mean it must be transferred to a new wallet in order to receive goods in return.

There are several more user-friendly ways in which cryptocurrency can be spent without having to undergo the usual wallet-to-wallet process of transfer, including regular online payments and debit cards.

The adaption with debit cards are a real-world crossover making cryptocurrency much more prevalent in everyday transactions.
Visa and Mastercard are among several major credit card companies offering a cryptocurrency connection, enabling holders to use their cryptocurrency like cash.
Anywhere a Visa or Mastercard can be used for a transaction, so can cryptocurrency.
However, certain credit card companies are aligned with certain types of cryptocurrency, so research is required before adapting cryptocurrency to a debit card.

Using debit cards incorporates third-party reliance back into the use of currency and the prospect of having to pay fees every time a transaction is made.
But while they are less accessible, there are alternatives if this is an issue.
Online retailers are beginning to adopt cryptocurrency as a form of payment.
These retailers often rely on third-party processors too, and while they are not banking institutions or credit card companies, they often impose fees.
It should be noted that the growing popularity and familiarity of cryptocurrency may see a growing accessibility in direct payment.

HOW DOES USING CRYPTOCURRENCY COMPARE TO FIAT?

But while cryptocurrencies provide more accessible options for regular use and application in real-world applications, the ease of regular transactions depends on the type of cryptocurrency.
Some cryptocurrencies like Bitcoin have characteristics making it a widely backed and popular currency, offerings more opportunities for holders to spend their coins.
How the cryptocurrency is designed to be used, its blockchain’s performance and regularity of increased supply all play a role in ease of access, as well as price fluctuation.

While there are obvious differences between cryptocurrency and fiat currency, there are fundamental similarities influencing their values too.
Both types of currency are influenced by supply and demand, both can be offered in exchange for goods and services, and both have store of method functions meaning they can be put away and used later without risk of total loss.
However, some of cryptocurrency’s most attractive benefits of everyday use are in their contrasts to fiat currency, and how they influence value.

store of methodstore of methodA function of a commodity that enables it to be stored away in the hope of its value rising over a long period of time.

The fiat currency system determines the value of most currencies used all over the world from day to day through government intervention in the form of a central authority.
The lack of a similar central authority is what forms the backbone of cryptocurrency DNA, and its popularity with a fast-growing user base knowing prices are less likely to be influenced by a larger third party.
Fiat currency is also in unlimited supply and the amount of money being printed at any time can influence its value, while cryptocurrencies have a fixed supply.

WHAT DETERMINES MY CRYPTOCURRENCY’S WORTH?

Supply and demand is generally regarded as the most influential factor determining cryptocurrency prices and the value of using it as everyday currency.
A limited supply of cryptocurrency means the basic supply and demand principle has an enhanced influence on cryptocurrency price.
It also means positive and negative media coverage trigger investors’ sentiment on a more drastic scale compared to fiat currency.

Supply and demandSupply and demandThe amount of a cryptocurrency available and the desire of buyers for it, which are usually the main factors in dictating a cryptocurrency’s price.

Cryptocurrencies overall have a reputation of volatile fluctuation in value, which can be attributed to the relative infancy of its concept and the markets.
Cryptocurrency is still an unknown entity compared to fiat currencies, which is reflected when comparing the relative amounts of investments in the markets.
There around $14 billion (US) in cryptocurrency trades per day on global markets, a fraction of the $5 trillion traded daily for fiat currency.
This comparatively low number of buyers and sellers in the cryptocurrency market compared to established markets means prices often move quickly and can be a hotbed of price manipulation.
Though the fast-growing popularity of cryptocurrency means value fluctuation will likely be less of a factor going forward.

FAQ

How do I sell/use cryptocurrency?
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Growing popularity and familiarity means it is now easier than ever to use cryptocurrency to buy products and services. Having cryptocurrency safely stored and secured in a wallet does not mean it must be transferred to a new wallet in order to receive goods in return. There are several more user-friendly ways in which cryptocurrency can be spent without having to undergo the usual wallet-to-wallet process of transfer, including regular online payments and debit cards.

Where can cryptocurrency be used?
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Anywhere a Visa or Mastercard can be used for a transaction, so can cryptocurrency. However, certain credit card companies are aligned with certain types of cryptocurrency, so research is required before adapting cryptocurrency to a debit card.

Which cryptocurrencies are easiest to use?
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But while cryptocurrencies provide more accessible options for regular use and use in real-world applications, the ease of regular transactions depends on the type of cryptocurrency. Some cryptocurrencies like Bitcoin have characteristics making it a widely backed and popular currency for regular use, offering more opportunities for holders to spend their coins.

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