Cryptocurrency has become the new normal in the financial field. It can also be the future of e-commerce sites and cryptocurrency future. Cryptocurrencies have enabled limitless transactions with zero identity leak issues.
Here, we will talk about how you can utilize cryptocurrencies for your e-commerce business. Let’s try to understand the meaning of cryptocurrency.
What is Cryptocurrency?
A cryptocurrency is a digital or virtual currency that is secured by cryptography. This makes it nearly impossible to counterfeit. Cryptocurrencies are decentralized networks based on blockchain technology.
Blockchain technology is basically a database of information which makes it nearly impossible to read. Blockchain technology is one of the good things about cryptocurrencies. There isn’t any involvement of middlemen or third-party dealers and there is only interaction between the seller and the buyer.
Importance of Cryptocurrency in Ecommerce
As you all know, e-commerce is one of the fastest-growing markets in the world. It reached $2.3 trillion US in sales in 2017. The entire revenue of the market is expected to grow to $10 trillion by 2025. So, it would be evident that e-commerce would start bringing cryptocurrency in the future.
Let’s talk about the importance of cryptocurrency finance in e-commerce.
1. The direct relation between the Seller and the Customer
When you are about to buy a product, you have to transact the required amount through third-party sources such as banks. Cryptocurrencies have blockchain technology which has completely eradicated the role of middlemen (banks and others) in our transactions.
2. Quicker transactions
As you already know that transactions right now require quite a lot of time. And with the ever-growing need for speed in the digital segment, cryptocurrency can ensure this speediness through its transactions.
3. Much safer
We know that banks and other services serve as third-party operators and these don’t use blockchain technology. The thing is that these can be vulnerable. Hackers can get all of your information regarding your location, your transaction history, and who knows what else! Cryptocurrency, by blockchain technology, makes transactions easier and safer by changing the database every second!
Impact of Cryptocurrency in Ecommerce
1. Cryptocurrency is the future
Even though it may sound far-fetched right now due to several reasons like trust issues, legal issues, and many others. But heed these words ‘Financial Cryptocurrency is going to be the future in e-commerce.
Some apps like Google Pay and Samsung Pay have made cryptocurrency, especially bitcoin viable for transactions. So, the future’s looking good for cryptocurrencies.
2. Boost sales
Due to the implementation of cryptocurrency in the future, more people will be able to purchase products without even having the headache of creating a bank account. If we try to understand the psychology of people, they often tend to have emotional backlashes due to physical currency. Even though the current digitalization is tackling it, cryptocurrency makes it even easier.
3. Ease to the consumer
Consumers will have fewer transaction costs and increased security regarding their payments more than ever before.
4. Exit intent popup will become the next big thing
When you are on a website, especially e-commerce ones, you might have stumbled upon a popup asking you to sign up or subscribe to a newsletter and so on. This popup is called an exit intent popup. Exit intent popup is a great way to go for an e-commerce website as it can highly convert your visitors into your permanent subscriber or a consumer. Due to the rise in cryptocurrency finances, the exit-intent popup will basically be on most of the websites. Exit intent popup in many websites has resulted in more than 53% conversion rates.
5. Fluctuation of value
This is one of the downsides of cryptocurrency. Cryptocurrency financial values fluctuate every time. If today, the value is say, $25 of crypto, the other day it might be $30 or even $15. So, it isn’t really reliable when it comes to this. It can even impact the e-commerce markets. It can raise the profit or raise the loss. Hence, companies need to think twice before moving on to crypto. At least, for now.
Most Famous and Reliable Cryptocurrencies Right Now
New digital currencies come into demand almost every month. Let’s jump right into the detailed list.
Bitcoin is the most known cryptocurrency in the world. Almost everybody knows it. Satoshi Nakamoto is the one who invented it. He wanted to create a currency that would not be needing any banks for transactions and was much safer and secure. As of Feb 2021, the value of 1 bitcoin is estimated at $51000.
Its creator is Vitalik Buterin. He wanted to develop a platform that would revolutionize the internet. The Ethereum platform is now a place for developers to create decentralized applications such as codes without using third-party applications.
Ripple, originally known as XRP, is an independent asset. Ripple was designed for users to send money digitally and not be subjected to high transaction costs. Ripple can be bought and sold and allows people to send money all over the world.
Originating from the Doge meme, the dogecoin is pretty strange. It is not exactly popular but is worth mentioning. It’s gaining value since Elon Musk has mentioned it. The value of 1 dogecoin is about $1.50, but it’s uncertain as to if it will increase or decrease in value. Since Elon Musk has mentioned it, dogecoin is going to sustain for a while and might even blow up.
Cryptocurrencies or digital currencies are going to be the future of e-commerce transactions. Even though there are some negative points in these currencies currently, we shouldn’t deny the fact that they are much more secure and safer than the methods we use today.