Crypto Payments Revealed. 5 crypto questions, answered!

Cryptocurrencies are gaining ground as a reliable, easy, and fast payment method, and have started to be accepted by a continuously growing number of big brands and famous online businesses. And as it becomes a more and more popular method of paying for goods and services, we should start to get a better understanding of what this whole virtual coin really means and how the entire cryptocurrency payment system works.

So, here are some answers we’ve gathered for your, from specialists in the field, to the questions you may have regarding cryptocurrencies and how to use them in your daily escorting activity.

1. Why are cryptocurrencies different from other fiat currencies?

Unlike fiat currencies such as EUR, USD or GBP, cryptocurrencies are decentralized, that means that there’s no need for an intermediary like a central bank. This allows its users to have full control over their money and how they choose to send, receive or store these funds. Cryptocurrencies come with the advantage of the blockchain technology that records all crypto transactions and are making them traceable, while keeping the person doing the transaction anonymous.

2. What are digital assets?

There are three types of digital assets: cryptocurrencies such as Bitcoin, Ethereum, XRP; stable coins that are backed by fiat, for a lower fluctuation; token - units representative within an organization, used to buy different services and goods within that particular organization.

3. What are crypto wallets?

Cryptocurrency wallets can be hardware wallets, that look like a USB stick, or mobile apps. Either way, crypto wallets are the ones allowing you to send, receive, store, and pay with cryptocurrencies. The crypto wallet keeps your private keys (the passwords) safe and easily reachable.

4. What crypto wallets are recommended in 2021?

When choosing a crypto wallet, you must have a clear idea of the difference between a hot wallet, that is internet connected and is a less secure way to store and make crypto transactions, and cold wallets that are safer and better for longer storage.

For crypto beginners, using a crypto wallet such as Exodus is a good idea, while for the more advanced users Electrum is a better option. If you are a mobile user you can go for Mycelium, while for hardware wallets you can choose Ledger Nano X. And if you have a large amount of crypto to store and use, Trezor Model T is a very good and safe option.

5. What are the best crypto exchange options at the moment?

If you plan on changing fiat currency such as USD or EUR into digital currency, or sell cryptocurrency to fiat, the best crypto exchange websites you can use now are Coinbase, Binance and Bitstamp. Use them for your crypto transactions, but keep in mind that if you intend to store cryptocurrency, the best and safest option is still an offline wallet, a.k.a a cold wallet.

We hope that our information has proven useful to you, crypto fans, or future crypto users. More and more big brands have started to implement crypto payments on their websites, so don’t be afraid to try it yourself and see the level of privacy it offers to your online payment habits.

Are you a crypto user? What’s your feedback regarding this payment method? We can’t wait to hear your input on this matter!