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We are living in a modern world where everything is going digital by justifying the technological revolution so far. We don’t know what will be the exact metre of development in the next ten years, and that’s the efficiency of technology.
Innovation through technology has become a general practice of our society, and that has brought the evolution of Blockchain. Blockchain is probably the most effective innovation in our society.
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This is because Blockchain is the master technology behind the invention of Cryptocurrency. The decentralised process of Blockchain has helped a lot to make the first digital currency in our society.
People are accepting this innovation as they gain huge profits out of it. You can also consider trading through BitAlpha AI to experience Cryptocurrency.
It has also been seen that the transaction fees of Crypto are lower than traditional transaction processes. But do we know much about this transaction process of Cryptocurrency?
Importance Of Digital Transaction
In today’s era, we only want to rely on digital processes. The river of change is flowing towards digitalisation, and that is a good and efficient fact for us.
Think about the things that you use every day, and you will understand the importance of digitalisation. We know nothing but development and advancement, and digitalisation is the key to 21st-century modern developments.
Digitalisation is everywhere, and you cannot ignore it if you want to cope with your daily work. People these days are very busy, and most of us are failing to keep the balance between work and life!
Despite being digital, we are still unable to maintain a work-life balance, and that is the main reason why we need a digital transaction process. The digital transaction process is related to an electronic transaction through the help of the internet.
Now it’s time to save our time, and it’s time to be safe as well.
Let’s focus on the key digital factors that can smoothen your transaction process.
1. Increases Security
Many years back, would you be able to send money from your account to another account instantly? No!
Because then you had to take the hard cash and go to the bank, and they helped you to send your money to another bank account. This type of approach was highly risky and also very dangerous if you carry a heavy amount of hard cash.
The money could be stolen, you would have been injured, and there is no chance of getting your money back once it is robbed. But with digitalisation, will it be possible to consider such an approach?
This is because, with digital transactions, you are not carrying any hard cash, and you are using a secure way of sending your money to another account through the help of secure bank pins and apps.
2. Convenient And Fast Pay
On the other hand, it is also very fast and convenient as well. We have discussed how dangerous it could be to carry cash on your own. It is also very time-consuming and irritating with the traditional non-digital banking process.
Not everyone is living near a bank and thinking about the process of going to the bank with money and providing them and filling out the form, and then waiting for the money sending process and confirmation.
In contrast, with the help of a fast and secure digital payment process, you just use your app, type the amount and type the pin and click to pay and it’s done! Yes! Like instantly! So, the importance lies within the convenience and fast payment and secure payment of digital processes.
Now let’s understand which is the better transaction process.
Crypto or other digital transactions?
Crypto Is Better Than Other Digital Transactions.
Crypto is nothing but a part of digital currency. But one thing is clear: cryptocurrency transactions are better than any other digital transaction. Why! There are so many reasons, and we can choose a few to help you understand the efficiency of Crypto.
The transparency of Crypto is far better than any other digital transaction process, and that signifies the essence of this translation process. You, sitting in your room, can transact money from any corner of the world to any currency without any obstacles, and that much transparency is Crypto.
Digital transactions are encrypted, but smart hackers are many times able to trace your transaction activity and take all your money in seconds.
On the other hand, crypto transactions are not traceable, and thus the chance of getting hacked is very low. Blockchain encryption is very highly secured, and the anonymous nature of crypto transactions makes it way ahead of other digital transactions.
We all know that digital transactions are centralised, and all your data and information are stored in the authority or provider which you choose. But that is not the truth for Cryptocurrency.
Because cryptos are not centralised and thus are anonymous and untraceable to any authority, with crypto transactions, you are on your own while transacting, and that is a big benefit to prefer it over other digital transactions.
These key features of Crypto make it flexible and recognisable to the people, and they accept it with pride. But the concern lies within the transaction fees of crypto transactions.
We all know that Crypto is a significant digital transaction process, but there are some transaction fees that lie with these transactions. Let’s know about the transaction fees of Cryptocurrency.
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Different Types Of Crypto Transaction Fees
Crypto transactions are easier than any other traditional transaction process, and it fully depends on the Blockchain process. It does not matter how far you are sending money or in which currency; Crypto is there for you.
Blockchain does not allow any third party to be involved in your transaction process. So you will get the chance to be anonymous and secure.
Let’s focus on the different types of Crypto transaction fees. Generally, the Crypto transaction fees are low, but in time it rises like skyrockets.
- Exchange Fees
This is a particular amount charged by the Cryptocurrency exchange when you go to buy or sell products. These transaction fees that you deliver are the primary source of revenue for the exchange platforms.
- Wallet Fees
Now comes the wallet fees. You have to pay this type of fee when you are considering your Crypto wallet to transact. Different Crypto wallets have different transaction fees, and that will also deliver the
- Network Fees
This goes to the Crypto miners and the core Blockchain process, which regulates the speed of your transaction process. Your network fees differ according to the different situations like traffic. A Blockchain considers only 4MB of data, and if you consider a high value, your transaction needs more data, and there will be a rise in the network fees.
How Does It Work?
We have already discussed that the transaction fees may fluctuate according to the situation of your payments. This depends on the Blockchain process and the miner who is responsible for validating your transaction so far.
Yeah! It is way easier than traditional transactions, but there are some conditions applicable to it.
Suppose you are considering a Crypto wallet to transact your balance! How does it work? It’s simple! You consider a Crypto platform and its particular wallet, which will help you to go through the transaction process. In return, they will charge you a particular amount which will be very low compared to any traditional wallet.
After that, the Crypto miners come into action. Crypto miners are the only network that is responsible for validating your transaction at the final stage. In fact, they play the main role in transcending your digital currency smoothly to your desired destination.
Here come the charges!
The charges may fluctuate according to the size of your transaction and the traffic within!
If you are considering a high-value transaction, then you have to pay more to proceed with your transactions faster through the limited storage of Blockchain. On the other hand, if there is very high traffic, you will have to pay more to be their first preference regarding the transaction done process.
Institutional Transaction Fees
This is also a process where Bitcoin exchanges work and calculate your transaction fees in two different ways-
- A flat fee for every transaction, or
- A particular percentage of the total transactions happened in 30 days.
The second option is valuable for people who consider too many Crypto transactions. In such cases, the Crypto exchanges incentivise frequent transaction fees.
Speed Up Your Transaction!
After reading this article, how do you think you can speed up your transaction process?
Depending on your transaction fees, you can speed up your transaction of Cryptocurrency, but you can also consider the bypass ways to limit your transaction fees. For instance, you can wait for the right time when traffic goes down or consider the wallets which have low fees.
So what are you waiting for? Are you ready to proceed with your next transaction?