It connects the customer and sellers by this payment gateway that enables them to receive or give payments in the form of cryptocurrencies such as bitcoin. Security is their priority and they don’t share the data of their customers with strangers or third parties. By using this gateway user can easily move money from one wallet to the other.
How does a crypto payment gateway work?
If you want to know the best crypto trading script, firstly, you should know how this payment gateway works? This payment gateway is powered by blockchain technology. The mechanism of traditional payment gateways is similar to that of crypto payment gateways. So, if you know the mechanism of the payment gateway, then it’s not difficult for you to understand the mechanism of crypto payment gateway. The merchants replace the credit card with a digital wallet for that purpose merchants just have to open a merchant account in which they have to receive payments in cryptocurrencies.
- First of all, a transaction occurs on a decentralized peer-to-peer network where nodes exchange payment data, perform validation, and send them to the distributed ledger.
- The wallet address is used as an identity for both parties that are involved in the transaction of the business.
Best crypto payment gateways:
Many kinds of crypto payment gateways are used but the top 5 crypto payment gateways are as follows:
- Coinbase Commerce
- Cryptoprocessing by CoinsPaid
- BitPay
- Gocoin
- NOWPayments
Details, working as well as pros and cons of these crypto payment gateways are described below:
Coinbase commerce:
It is the largest bitcoin and cryptocurrency exchange in the United States and one of the largest in the world. It provides amazing features to its users that makes their routine transactions easier. This company is situated in united states, so it follows all the exchange laws of the cryptocurrency.
Following are the some advantages and disadvantages of using this payment gateway:
—Pros of coinbase commerce are:
- Trusted, big brand
- Integrates with Shopify and WooCommerce
- Easy conversion to fiat
—Cons of coinbase commerce are:
- Availability around the world following are the disadvantages of of using this payment gateway.
- Not complete control over private keys.
Cryptoprocessing by CoinsPaid:
It was established in 2014 as an internal application for bitcoin payments. It is not only a payment gateway but also has a large ecosystem with features such as business wallet, personal crypto wallet, exchange & OTC and even a SaaS solution. This company is growing and becoming popular day by day. It offers new services and the growth of transaction volume by 354% and the number of transactions by 175% in 2021 which shows that the business is growing because a lot of users enjoy to use this company. Some pros and cons of this company are described below:
—Pros of this company:
- Security
- Low fees (from 0.8%)
- Supports 50+ crypto and fiat currencies
- Fee discounts while using CPD token
- Anti-volatility features
- EU regulated company that follows the latest compliance standards.
—Cons of this company:
- Your company’s activity should comply with EU AML laws
- Not complete control over private keys
Bitpay:
Bitpay is a crypto payment gateway whose headquarter is in Atlanta, Georgia. It was founded in 2011. Some pros and cons of this company are:
CONS:
- Anti-volatility features
- Respected and prooved
PROS:
- Market volatility shielding can cut both ways
- Minimum balances required before payouts (20$)
Role of cryptocurrency in everyday life:
As crypto in general and crypto payments, in particular, are an important part of everyday life, these two processes occur:
—-More people start to view crypto payments as something ‘normal’.
—-Governments start to regulate the market.
