The cryptocurrency market is very unpredictable. The factual nature of this statement is further evident by the unsteady changes in the price of Bitcoin from 2013 to 2021. These changes are not always in favour of crypto investors.
So, if you are a crypto enthusiast and want to avoid any misfortune during the gradual decline of its price, you must be well acknowledged with the crypto payment gateway. Crypto payment gateways like Coingate are probably the most reliable and fast crypto-to-fiat exchange methods.
Here is a comprehensive guide to crypto payment gateways for people who want to know more about it. Here you will find the answer to four basic questions:
- What is a crypto payment gateway?
- What is the difference between crypto payment and traditional payment?
- How does it work?
- What are its benefits?
Crypto Payment Gateway
Crypto payment gateways allow investors to transact their cryptos. With the help of payment processors, they can immediately transfer their digital money to fiat money. These gateways provide a necessary set of tools, which makes the transaction effortless for merchants.
Why do you even need a payment gateway for crypto? The answer is simple. With the worldwide expansion of crypto usage around the globe, the need for a medium for the transaction of this currency is more than ever.
A crypto payment gateway enables a merchant to accept payments in the form of crypto. Recently Elon Musk announced that Tesla would be accepting payments in the form of Bitcoin. This kind of initiative opens a new horizon for any eCommerce business.
Moreover, these gateways allow the conversion of crypto into fiat very conveniently. To avoid the repercussions of the sudden decline of your crypto market value, exchange it for fiat money as soon as possible. The more steady the exchange, the less loss you will have to endure.
Crypto Payment Processing and Traditional Payment Processing! What is the Difference?
Crypto payment gateway works like traditional payment processing systems. However, there are two significant differences between a crypto payment gateway and traditional payment processing (which includes the transaction of fiat money).
- While using a crypto payment gateway, the investor pays through a digital wallet rather than a credit card.
- Secondly, the payment is processed in digital currency (the specific cryptocurrency you have), not in US dollars or AU dollars.
You might be wondering about digital wallets’ working. They work just like your bank accounts. However, they don’t feature a centralised base like bank accounts. Also, there are two types of digital wallets.
- Single currency wallets: These support the transaction and maintenance of only one type of crypto. If you opt for them, you have to limit your dealings to single crypto.
- Multi-currency wallets: They can support different cryptos. It is a suitable option for business investors.
According to recent statistics, the number of cryptocurrencies introduced in the market has reached nearly 6000. So, multi-currency wallets have become an acceptable option.
How Does Crypto Payment Gateway Work?
Many stores and merchants accept payments in crypto. Crypto payment gateways are a great help for such merchants and stores. They allow them to accept payments in crypto and conversions between different fiat and cryptocurrencies.
When you pay with crypto, your crypto details, which are necessary for the transaction, are passed to the gateway admin. The admin further transfers the information to the payment processor. The payment processor confirms the details and provides the required information related to your transaction.
The processor sends a code to the crypto payment gateway. This code is then forwarded to the app/website to which you have paid your crypto. As a result, the website/store marks the payment as complete.
What are The Benefits of Crypto Payment Gateway?
Crypto payment gateways have established a reputable and reliable market position over the past few years. And it is because of the benefits it has to offer.
For example, Coingate lists these perks for businesses who are considering integrating crypto payment gateway:
Instant Transfer: The crypto-to-fiat exchange is immediate. You will not have to wait for days or months; it is just a few clicks away.
Crypto payment gateways operate on the latest high-tech methods to provide you with the fastest solution to your crypto transaction problems.
Transparency: These gateways offer transparent transactions. They have no hidden rules or policies; all the prerequisites of the transaction are clearly foretold.
Cost-Effective: The transaction fee is low, and the setup is effortless.
Privacy: A reliable crypto payment gateway never compromises the privacy of its customers.
Security: Crypto payment gateways are considered secure. When the payment is being processed, the details of crypto are encrypted. These details are not vulnerable to hackers or viruses and are decrypted only for the transaction. Also, they are verified by Blockchain.
Versatility: You can use a crypto payment gateway to exchange multiple cryptocurrencies for different fiat currencies. These platforms are not limited to any particular crypto or fiat.
If you are a crypto investor or enthusiast, you will find crypto payment gateways quite helpful. However, all the crypto payment gateways are not characterized by the benefits mentioned above.
If you want to enjoy a seamless, simple, and secure crypto transaction experience, you need to opt for a reliable crypto payment gateway. Choosing the right gateway would make the process hassle-free for you.