Is using crypto safer when carrying out online money transfers?

Featured article by Henry Taylor, Independent Technology Author

Anyone with even a passing interest in tech or IT will be aware of the burgeoning cryptocurrency sector. Bitcoin is still the major player here and the coin that not only grabs headlines but also gives an indicator of the overall health that this sector may show. The great news for investors since the early 2010s is that the price of bitcoin has gone up overall until the present day. This saw it go from being worth a few hundred dollars per coin in 2013 to around $10,000 for each one by the close of 2019. Along the way, canny investors took advantage of some stellar runs such as the period in 2017 when bitcoin climbed to being worth almost $20,000 per coin!

This has led many people to begin investing in not only bitcoin but also other cryptocurrencies such as Rippler that they can trade for a profit. This is even possible for novice crypto traders due to innovative platforms and software that can help – the Crypto Group website is a good option in this regard for crypto traders. One other thing that attracts people to using cryptocurrency is its reputation for security when compared to standard fiat currencies.

Why is using digital money seen as safer when conducting money transfers online?

Crypto transfers are not reversible

Popular online transfer options such as PayPal have their place but allow those who have sent you money to claim what is known as a chargeback. This basically means that they can claim back the money they have sent via official channels for any number of spurious or untrue reasons. If this is accepted, then the money they sent (which you may now have spent) will be taken out of your online account or bank. Businesses can be hit hard by this especially as people can pay for goods, take delivery of them, and then get their money back. Crypto is much safer in this way as it does not allow chargebacks, and any payments made with digital currency are not reversible.

Less people involved

When you use a digital currency to transfer money, it is safer because you cut out the middleman. Traditional money transfers with fiat currency will involve either a bank or an online money transfer site. Using either of these is less safe as it trusts your money and personal details to other people who may lose them, be hacked into, or even have staff who steal them. Transferring money with crypto basically involves you and the person you are sending the money to, so it is much more secure. You simply buy the amount of digital currency you want at a reputable exchange and then send it direct to the person’s crypto wallet.

(Image from Pixabay)

 Crypto uses blockchain tech

You may have heard about blockchain as it is starting to crop up across the fintech sector as a means of making payments more secure for financial institutions. This technology was, however, first seen as what underpinned cryptocurrencies and what made them secure. In terms of making money transfers, crypto is safer as it uses this blockchain tech to record every transaction in a secure digital ledger. This ledger cannot be tampered with, and so the record of any transfers you make cannot be open to interference from outside sources.

Higher levels of privacy

One key aspect that has made crypto so popular as a payment method has been the high levels of security that coins have built into their design. Coins such as Monero are famous for being totally anonymous to use. It is this anonymity that is the major point when looking at why digital currency is seen as safer for money transfers. This anonymity means that you can send money without worrying about people being able to find out about it or your privacy being breached. When you also add in the fact that crypto wallets themselves are famously secure due to their design, it is easy to see why many people prefer this route when moving money.

Will crypto become the way to move money in the future?

As the whole cryptocurrency sector begins to gain more widespread acceptance, it seems likely that more people will turn to the security it offers when making money transfers. The only stumbling block could be world governments, which may fear the impact that more crypto money transfers could have. If you are looking for a safe way to move money for now though, it is certainly worth thinking about. As the above shows, it has a lot to recommend it when compared to carrying out money transfers in the usual way.