Thanks to Cryptoprocessing.com, millions of users can make online payments in 30+ different crypto coins. Many customers prefer to pay in Bitcoin. But is this the optimal choice? And if not, which coin should you choose to pay online?
Each and every of the 220+ merchants we work with can activate up to 30 cryptocurrencies on their site. So when you register on any of those websites — for example, on an iGaming platform like mBit or Playamo — you’ll be spoilt for choice.
Perhaps your first inclination will be to pay with Bitcoin — simply because so many people do it. At this point, you should stop and ask yourself — is Bitcoin really so useful for everyday crypto transactions? Or perhaps there are much better options?
There are 3 factors you need to consider: processing speed, missed gains and fees. Let’s look at them both in turn.
1) Blockchain transaction speed: a comparison
If you just need to send crypto to a friend, it probably doesn’t matter if they’ll have to wait 5 minutes or 15. But if you are an iGamer, deposit and withdrawal speed can be essential. Gamers want to play and win, not sit there staring into their screen, waiting for the deposit to materialize in your account.
Bitcoin transaction speed is comparatively low: it takes from 10 minutes to 1 hour to receive money, depending on how many blockchain confirmations are required. BCH transaction speed is roughly the same.
Luckily, Cryptoprocessing.com supports instant transactions in BTC, Bitcoin Cash and Ethereum. We can process your payment in under 2 seconds — before a single confirmation arrives from the network.
The choice of these 3 coins is based on the crypto security requirements. For a minor coin with few blockchain nodes, cryptocurrency security risks can be too high.
Does this mean that BTC is your fastest option? No. (XRP) and Stellar (XLM) take the prize for the fastest transaction time of any cryptocurrency — under 5 seconds. They achieve this by using resource-efficient consensus protocols that are completely different from the slow, wasteful Proof-of-Work. (You should remember, though, that is the same PoW that ensures Bitcoin security).
Most major coins come somewhere in between. For example, the average Litcoin transaction speed is 2 min 30s.
2) Missed gains
This is probably the strongest argument against paying for goods and services in Bitcoin. If you store your satoshis instead of spending them, you can make a good profit as the coin appreciates. True, BTC price is nowhere near as high as it once was, but it has a very good potential for growth this year. So when you deposit, say, $20 in BTC on an iGaming site, remember that by the end of the year it could have turned into $30 or even $40.
Important! If you use crypto to deposit money in an iGaming site, compare the bonus sizes for different coins. Often a casino will offer a much larger bonus for a deposit in Bitcoin. Try to calculate how much you’ll gain from the bonus in USD equivalent. It can turn out that paying in BTC is better, after all.
But if there’s no bonus difference and if you do have a choice (we support 30+ coins, remember?), it’s better to pick a coin that isn’t likely to appreciate. In other words, the lower the cryptocurrency volatility, the better a coin is suited for payments.
Stablecoins are the best here. For example, Tether stablecoin (USDT) is pegged to the US dollar, so 1 USDT is always roughly equal to 1 USD. You won’t miss out on any future gains if you pay in Tether. The same goes for EURS, the new euro stablecoin launched by Statis, which we’ve just integrated.
More and more experts come to think that stablecoins are the future of crypto payments, not Bitcoin or ether. It’s like cash and gold: you wouldn’t cut a tiny piece off a gold bar to pay for your Starbucks coffee, would you?
As for non-stablecoin currencies, some are less likely to appreciate than others. For example, XLM (Stellar), NEO, and ETC (Ethereum Classic) have been stuck in price limbo for many months. So if you still have some of those in your wallet, you might consider spending them.
Bitcoin transaction fees are unpredictable and constantly change. On average, you’ll need to pay between $0.3 and $1. With Ethereum, you’ll pay around $0.10.
On the other hand, there are coins that charge almost or no fees. Examples include EOS, Ripple, and Stellar.
Of course, if you’re making a large deposit or purchase, a difference of $1 in fees won’t mean much. But if you make a lot of small transactions, fees can accumulate fast.
The bottom line
In which situations should you really pay in Bitcoin? There are 3 important cases:
- When the site doesn’t support any other coins and you can’t pay with a card;
- When you have to pay urgently and BTC is the only coin you have in your wallet;
- When you get a serious gain from paying with BTC — such as a casino bonus.
In all other cases, we suggest you use a stablecoins like EURS or USDT — or a fast, low-fee currency like Ripple.
Remember that very soon we’ll be releasing our multicurrency CoinsPaid wallet. It will support over 30 coins and several fiat currencies. Finally you’ll be able to deposit money with a credit card and convert it into any crypto you like. CoinsPaid wallet will also integrate the latest innovations in crypto security. Follow the news on Facebook so that you don’t miss the release!