Business • Money
Cryptocurrency vs. Credit cards – 2020 Comparison Guide
Both cryptocurrency and credit cards are the effective modes of making payment. But every person prefers to make transactions differently. What makes them do such a thing? Such people know the difference, and they know what to choose while making any payment. The main aim is to transfer funds from one account to another. There are plenty of platforms where' the use of digital currencies has become quite common.
It is often beneficial to use cryptocurrencies because they are more secure, and you can get that idea from cryptorunner.com. But it is a digital process, and one must understand how the process is done. On the other hand, you can keep the credit card in your pocket and make transactions whenever you want by swiping it or entering the information digitally. Everyone looks for an easy and safe method for transacting money.
In the following write-up, we will discuss a comparison guide between- cryptocurrency and credit cards. After comparison, you may find which method is more effective and secure. You must check out certain factors and decide which one is better and how. Now, let us start with a detailed comparison.
1. Permission at the Time of Transaction
If we consider cryptocurrencies, then while making any transaction, your permission is quite necessary. A user has to submit all the details to access his digital wallet. It is possible to connect your mobile number with your account, and you may have to provide an OTP number. In this way, you can send money to any person by granting permission.
On the other hand, if anyone knows the PIN, it is easy for him to make the transaction. There is no need for any permission from the card owner. If you somehow lost your card, you have to inform your bank to disable the card and stop all the transactions.
2. Hacking or Thefts
It is quite complicated to hack the blockchain network and get information about your digital wallet. Cryptocurrencies are less prone to hacking or thefts. No one can steal your details and make transactions. Therefore, there is complete security if you use digital currencies to make payments.
Whereas, there is a high risk of theft in the case of credit cards. Anyone can steal your card and misuse it. If we talk about hacking, it is easy to hack your account and send money to a hacker’s account.
When you want to own a credit card, then you have to take care of the paperwork. You have to submit all the details and personal documents to get the card legally. Your account will be well-connected with the bank, and you can ask for any queries from the authorities.
In comparison, there is no need to take care of the paperwork in owning cryptocurrencies. It is a digital process, and therefore, you have to log in and make relevant actions to access your digital wallet. You will not be connected with the authorities, and hence, you will be responsible in case of any loss.
Credit card companies get information about the consumers from Google ads, and therefore, they violate user privacy. They track all the user’s purchases, and it causes too much risk on the identity. Everyone is concerned about privacy, and no one wants to make things complicated for their life.
Whereas, cryptocurrency does not need any identity. There is no leaking of any personal details, and therefore, it is easy to handle the digital wallet. It is one of the primary reasons that many credit card people switch to virtual currencies.
It is challenging to reapply the card and get it within a few minutes in the case of any failure. You have to visit the bank and complete the entire application process. After verifying all your data, you will get a new credit card. In an emergency, you have to pay by cash, and imagine if you do not have any cash, then what will you do.
On the other hand, you can transact cryptocurrencies through a digital wallet. If you do not own any, you can apply for the other within a minute. Therefore, you can handle any failure and continue making transactions with virtual currencies.
6. Extra Charges
You need to pay an additional amount when you use a credit card for the transaction. The extra charges will be automatically added that you have to pay to your bank later. In comparison, there are no extra fees when you are using cryptocurrencies to make any payment. There is no unnecessary deduction before or after the transaction.
It is easy to block your credit card whenever you want. If you are not using your card and prevent any theft, it is better to block and eliminate it. No one can misuse the card and make transactions without your permission. It is useless for thieves and hackers.
Whereas, in cryptocurrencies, there is no blocking. If you get into trouble, you cannot block your digital wallet, and you have to handle everything by yourself. No authorities are involved in the process that can help you to get rid of the problem.
8. Purchases Worldwide
It is easy to purchase anything by using cryptocurrencies because, in many countries, it is legal to use them. You cannot use your credit card everywhere', and therefore you need relative currency to survive there. If you want to purchase anything, it is better to use cryptocurrencies because they are entirely secure and safe.
The Bottom Line
After comparison, it is found that cryptocurrencies are more effective than credit cards in terms of security, privacy, no additional charges, and much more. But it does not mean that owning a credit card is bad. You will be connected with the authorities to get all the information about your accounts.
Nowadays, most people are switching to digital currencies and hence, look for the option that ensures their wallet’s security and safety. You can pick any payment mode as per your preference.