Crypto to Fiat Payments: How Do They Work and Why Are They So Important
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At the end of 2020 and the beginning of 2021, amidst the growth of Bitcoin (BTC), the most capitalized cryptocurrency, the digital currency market attracted a fair number of new users. For the crypto community, another spark of interest in this new financial instrument serves as an opportunity to solidify crypto’s positions in the traditional financial system.
The developers of technical solutions and instruments, who helped integrate digital assets into the world of traditional money, played a key role in this process. CoinsPaid is among such companies. The developer of the processing service Cryptoprocessing.com brought crypto to fiat payments into a new level of efficiency and security. Let’s explore how startup tools became a driver of the digital assets market development.
Why Do Efficient Crypto to Fiat Payments Are So Important
Since the beginning of 2020, the number of active bitcoin wallets has risen by 56% from 475 455 wallets on January 1, 2020, to 744 476 on January 23, 2021. The number has even risen to 940 633 addresses on January 7, 2021. A day before, on January 6, 2021, the number of active bitcoin addresses exceeded 1.3 million. For comparison, at the beginning of 2020, this metric was half as high.
The capitalization of digital assets has grown as well. At the beginning of January 2021, the capitalization exceeded $1 trillion for the first time. In December 2020, it was half as high yet. For your information, the capitalization of the American businessmen Elon Musk Tesla company -, a blue-chip club member, has reached only $700 billion in January 2021.
In these seemingly boring statistics, one might observe a significant detail that is crucial for understanding the situation. The digital assets market is growing very fast. As a result, the competition between cryptocurrencies and traditional money increases.
To continue the trend, the crypto community needs convenient and effective tools to work with two types of assets. Currently, the complete rejection of fiat is hardly feasible.
Such solutions have already been presented to the market. Unfortunately, most current solutions have such downsides as high transaction cost, slow transaction speed, lack of timely technical support, and lack of security guarantees. The range of products presented by CoinsPaid is an exception from this rule.
It is Time to Act
CoinsPaid created the ecosystem for crypto to fiat payments. Thanks to its products, cryptocurrencies became as convenient as traditional money tools for purchases. There is a chance that thanks to the company's tools, digital assets might outperform fiat in terms of efficiency in the future.
As of January 2021, CoinsPaidecosystem is proud to offer the following projects: exchange, OTC-platform, hot wallet service, and crypto processing service CryptoProcessing.com that deserves particular attention.
How Did CoinsPaid Team Build a Bridge for Crypto to Fiat Payments
The CoinsPaid company has been operating in the cryptocurrency market since 2020 under Dream Finance (license №FVR001183, FRK001102) business entity. During this time, developers have found solutions for the problems that stayed to develop digital asset payments. For example, the project team has established universal payment gateways for crypto to fiat transactions for use in e-commerce and other sectors.
As of January 2021, crypto processing service CryptoProcessing.com supports over 30 cryptocurrencies and ERC20 tokens, including the leaders by capitalization - bitcoin, ethereum, litecoin, stablecoin tether. Also, the service supports more than 20 national currencies. All these currencies can be stored in the wallet within the CoinsPaid ecosystem.
The wide listing of cryptocurrencies is necessary for efficient conversation. The control and execution of transactions are provided by CoinsPaid exchange. The trading platform automatically picks the best exchange rate for conversion to fiat and vice versa.
How Does It Work
Cryptoprocessing by CoinsPaid developers provided their clients with tools to execute different kinds of transactions. Among such tools, there are two popular means of payments that are widely used in e-commerce:
1. Payments by an invoice. It assumes the fixed amount of the funds received. It is suitable for businesses with fixed prices.
The process is the following:
- A client N wants to purchase sneakers that cost $399 and pay with bitcoins. To execute this transaction, he/she needs an instant conversion that is available on Cryptoprocessing by CoinsPaid.
- The platform chooses the best exchange rate to convert the client’s bitcoins to dollars and transfers money to the shop.
To determine the exact amount in the cryptocurrency that a client needs to deposit to pay in a different currency, the system fixes the exchange rate for 15 minutes. During this time, a client should execute the transaction. Should the client miss the deadline, the system recalculates the amount.
2. Asynchronous deposit process. In this case, the sum is not determined by the salesperson. It is more suitable for recharging mobile phone accounts, internet payments, and staking services. To perform the asynchronous deposit process, a client is offered to deposit cryptocurrencies to the account, which will be settled after determining the exact sum.
The asynchronous process goes in the way:
- A client N wants to bet on sports. She/He deposits funds on his/her account using any currency supported by Cryptoprocessing by CoinsPaid.
- At the moment of settlement, the funds from the client’s account are transferred in an amount that resulted from betting.
A full range of tools on Cryptoprocessing by CoinsPaid allow clients to use this service in e-commerce and other business segments, such as the settling transactions among individuals.
How Did Cryptoprocessing by CoinsPaid Become One of the Best Among сrypto processing Services
One of the Cryptoprocessing by CoinsPaid advantages is that it passed the security audit by the “Kaspersky Lab” within the company project Kaspersky Enterprise Blockchain Security. According to the company representatives, this full-scale assessment serves as an alternative to the outdated audit process named Service Organization Control 2 (SOC2).
https://t.co/A5nnb0vjM6 is now the first crypto payment system to pass a security audit by Kaspersky Labs. It's the most comprehensive security assessment on the market. They concluded that our products don't contain any vulnerabilities that could lead to financial losses. pic.twitter.com/XoEIWJJKur— Cryptoprocessing.com (@processing_com) February 28, 2020
The CoinsPaid representatives state that their crypto processing service was the first one in the world that passed such an assessment.
Passing the security audit is necessary for projects that want to work with big financial organizations.
Besides that, crypto processing service Cryptoprocessing.com provides clients with the following benefits:
- High-speed transaction processing. Depending on the asset, the transaction takes a few seconds to an hour. For your information, it may take 24 hours for Mastercard and Visa to settle a transaction.
- Anonymity option. At the beginning of January 2021, during the online forum Reuters Next, Christin Lagarde, the President of the European Central Bank, yet another time criticized bitcoin and called out for immediate regulation of the digital assets market. The pressure from governments and the increase of control over the crypto community make CoinsPaid’s instruments even more relevant for confidential transactions.
- Money-saving. There are no hidden commissions on Cryptoprocessing by CoinsPaid. Clients of the processing service are saving money because all types of transactions are available on one platform, and there is no need for third-party services with their commissions.
- In 2020, these technological solutions allowed CoinsPaid to grow revenue fivefold compared to the financial results of 2019.
In 2020, these technological solutions allowed CoinsPaid to grow revenue fivefold compared to the financial results of 2019.
Also, CoinsPaid team made sure the users of the ecosystem to receive answers to their questions in a convenient way. The company launched communities on social media, including Twitter, Facebook and Instagram. Also, users can get the most recent project news on Telegram.
Cryptoprocessing by CoinsPaid is a package of up-to-date solutions that bridge cryptocurrencies and traditional payments. The ecosystem provides businesses with a tool to receive payments in digital currencies and users to pay in the most convenient way.
Therefore, CoinsPaidproducts, including its crypto processing service CryptoProcessing.com, are an important contribution to developing the cryptocurrency market and adopting this new financial instrument.