To store cryptocurrency and use online cryptocurrency transactions, a digital wallet must be created. Both buyers and sellers must do this in order to send and receive digital payments.
Hot wallets have a direct connection to the network. This makes them more accessible, easy to use and fast. However, it makes them a little less secure. They are countered by cold wallets. These wallets store all data on a hardware medium offline, which increases their security but reduces their usability. Wallets are locked and keys must be stored securely. There are two types of keys: public and private. The public key is nothing more than the wallet address, while the private key is the unique identity of the user.
Therefore, instead of using their personal details, cryptocurrency holders verify themselves with these keys. Typically, they do not need to disclose their names, phone numbers, addresses or emails. This reduces the possibility of identity theft while providing customers with privacy.
Cryptocurrencies are known to be decentralised. This means that banks have no control over transactions and the state can only impose limited restrictions on procedures. The pros of this satiety are that, in this way, transfer fees are lower than in a bank and transaction speeds are higher. In addition, by not being subject to traditional customs regulations, cross-border cryptocurrency transactions are not regulated. This makes the process much cheaper and faster.
Because digital assets have no tangible embodiment, they cannot be tampered with. Blockchain data cannot be easily tampered with or copied because it is encrypted using cryptography. Consequently, any change in the chain will be noticed, which means that virtual funds are even more difficult to manipulate than those in online banks. Stealing them or hacking into the wallet is not easy either, mostly possible due to the inattention of the customers themselves.
There are also advantages for the merchant in accepting payments in digital funds. Crypto-security implies irreversibility of all transactions made and, from a certain point of view, this can be advantageous. For example, if the merchant's company or business operates in some area with high financial risk, where there are few guarantees on either or both sides. In such cases, there is an opportunity for fraud, and cryptopayments can prevent fraudsters from demanding a refund for the service provided.
In addition, there are already around 100 million people worldwide using cryptocurrencies for ordinary purchases, and that figure is growing every day. Therefore, by allowing customers to pay in this way, the company is meeting consumer demand and attracting new customers to its pool.
So, after covering the general benefits of digital currency payments in the article, including protection against identity theft and counterfeiting, we will focus on their security.
To counter various types of fraud, every transaction leaves an indelible trace in a public registry in the form of metadata. As a result, it is possible to trace where and from where a transaction took place at any time without revealing the personal information of the parties. This capability facilitates suspicious undercover transactions and prevents fraud.
involves checking customer credentials and comparing them against anti-terrorism and anti-money laundering lists
it allows verifying the merchant's information before paying him or her
validation of wallet credentials against sanctions lists
Potential security problems can arise from hacking into your digital wallet and revealing your private key to others. If someone else has obtained your private key, your funds are in their possession. You should also do your research before choosing a crypto-wallet or crypto-exchange to make sure they are trustworthy and meet security standards. Don't forget about criminals: phishing sites where you mistakenly give your details to attackers, using public Wi-Fi for crypto transactions or encrypting your files in exchange for giving away your key.
Most reputable cryptocurrency wallets offer two types of passwords: in addition to your own password, there is an additional one-time password, which is a set of numbers that you receive in a text message to your phone. It can also be in the form of biometric identification, such as fingerprints. In this case, even if fraudsters get hold of the wallet itself, they won't be able to access it without also hacking into your messaging database.
Secure multilateral computing is another method of protecting personal data. In this, the customer key is divided into several parts, denying attackers access to the entire sequence.
Apart from general personal countermeasures, such as being careful with passwords and keys, being wary of phishing sites and apps, using malware protection for your gadget, etc., there are some recommendations for business solutions you can use:
Before introducing cryptopayment practices, organise, if necessary, educational courses to make sure that all staff responsible for transactions in the new format know how it works. This is a good way to prevent situations where your own staff member accidentally compromises your wallet credentials or mixes something up.
Beware of refund requests. Cryptocurrencies do not provide for refunds, so if you receive such a request, check this information with your payment processing service.
Do some research and choose the cryptocurrency payment service that is most convenient and suitable for you. At MEEG, we offer the most common cryptocurrencies, low fees and fast transactions.
Cryptoprocessing services thus offer technology that enables merchants to create a new source of income for themselves without worrying about the security of their funds. Not only does this facilitate an influx of new potential customers opting for digital payments, but it also opens the door to lower transaction fees than traditional banks.
The first thing you do is start a cryptocurrency wallet in MEEG, if you don't have one. As mentioned, a digital currency wallet is an application that allows you to store cryptocurrency tokens in it and retrieve them if you need them. However, keep in mind that cryptocurrency wallets don't provide conversion services, so you'll either have to buy the most popular coins or convert what you already have using cryptocurrency exchanges.
Cryptoprocessing tools, such as one of the MEEG tools, are services that assist the buyer and seller with cryptopayment transactions. They record the payer's details, accept the payment, make a record in the blockchain and transfer the payment to the seller. Sometimes, on request, it can convert the cryptocurrency into regular currency.
Selecting goods or services on the website;
Navigating to the online payment;
Selecting the option "pay with cryptocurrency";
The cryptocurrency payment page will provide a selection of cryptocurrencies for payment;
Obtaining the merchant's crypto wallet address (public key) by the user;
Execution of payment;
Obtaining of mutual confirmation about payment processing.
If you choose our trustworthy processor, and follow all of the security recommendations above, cryptocurrency payments will prove to be a much more secure method of payment than traditional cash.