For so long, digital wallets like Venmo and PayPal ruled the online world and continued to be a popular payment method for buying services and goods. However, Bitcoin had a staggering rise in the last decade and has become a mainstream medium of exchange. In fact, this rise in popularity and price is a major difference between Bitcoin and Ripple coin or other cryptocurrencies on the market.
In terms of operation, Bitcoin and Venmo are pretty different. The first one is a digital currency, but the second one is a payment system like PayPal where users can send or receive money using an online account. However, when it comes to making payments, people care about speed, convenience, and fees more than they do about the method itself.
In this article, we are about to find out the difference between Venmo and Bitcoin to see which is the best option all around. But first, let’s see how Venmo and Bitcoin actually work.
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Venmo and Bitcoin: An Overlook
“I’ll Venmo you for it”, that’s what you hear people say these days. Venmo has become a trendy option in the last couple of years. It also operates similarly to its competitor, PayPal. Users can download the Venmo app on their phones or sign up on their website for free.
You can even add your debit cards to your account. There’s no need to use cash or cheque to make payments, all transactions are recorded, and users can easily review the history of their transactions.
Bitcoin, however, is a kind of currency that fulfills purposes other than making payments. People can trade or invest in Bitcoin as an asset from all around the globe. That’s why many have been asking themselves how much does it cost to invest in Bitcoin. It operates on an infrastructure known as the blockchain that records and validates all Bitcoin transactions. You can easily purchase from a Bitcoin OTC desk or crypto exchanges and it to your portfolio.
The Difference Between Venmo and Bitcoin
While you can judge Venmo and Bitcoin by many standards, the following four can provide an accurate measure on which is better.
The Fees
Venmo, from time to time, claims to charge no fees for handling transfers. However, it is well known that users have to pay between 3 to 4 percent of the total transfer amount as fees. Many customers have also said that Venmo charges additional fees for transfers that surpass certain limits. Also, Venmo clients need to pay an extra 1.5% to have the money sent via express transfer.
A stark difference between Venmo and Bitcoin is that Bitcoin is fully decentralized, and there’s no singular authority controlling the fees. When transferring bitcoin, you can set the appropriate fee to speed up the transfer. However, the fees are considerably lower than Venmo’s.
Plus, all Bitcoin fees are fed back into the members who validate the transactions. So, it’s no surprise that there’s a staggering demand for Bitcoin in OTC desks and crypto exchanges.
Transaction Speed
Similar to PayPal, most Venmo transfers should take no longer than a couple of minutes. But the fastest option is between 10 to 30 minutes. The problem is that external parties such as banks are often involved in the process, introducing delays and complications. In most cases, the speed depends on how much you’re paying on the fees.
If you want to send money from a bank account into your Venmo, it might take three to five business days. Also, sending money from your Venmo into the bank account will take at least two to three business days.
With Bitcoin, most transfers are validated and handled within 20 minutes without paying additional fees. Of course, some users can pay more to get in front of the line, but they don’t have to.
Security
Similar to PayPal, many Venmo users complain about the platform’s excessive sensitivity. You may have seen many cases where accounts were limited or completely shut down due to slight info discrepancies during the process.
The real issue is that such extreme measures don’t help much with security. Today, hackers have a wide range of tools and methods at their disposal to compromise the user’s financial and even personal information.
However, Bitcoin is well known for its ultra-secure transactions that cannot be hacked under the blockchain. All coins are encrypted with private addresses that are safely stored in software or hardware wallets.
International Support
A fundamental difference between Venmo and Bitcoin is that Venmo is of no use outside the U.S borders. Venmo does not provide any services for countries other than the U.S, which is why it has been lagging behind PayPal for so long.
That issue is almost nonexistent with Bitcoin because there are a number of platforms out there that let you trade and invest in Bitcoin no matter where you are. Since Bitcoin is not under the control of the government, no geographical border can stop people from using it.
Bitcoin Can Be the Future
There’s no denying that new technologies like cryptocurrency will likely replace older forms of digital wallets. However, it doesn’t mean that Venmo or PayPal will go away any time soon.
But, if history is any indication, it seems that Bitcoin will be the future of online shopping and international remittance. So, it might be better to act quickly and invest in Bitcoin to reap the rewards for tomorrow.There’s no need to worry about getting started! Here at Secure Digital Markets we provide the expertise and tools to put individuals and businesses on a fast track to stay ahead of the curve. Don’t hesitate to contact us as our team of experts is ready and waiting to help you.