Bitcoin is a digital and decentralized currency that people use to complete online transactions, especially globally. Also, this digital currency is one of the most successful cryptocurrencies in the world. It's also an asset that people trade the most on digital platforms or crypto exchanges. Bitcoin Profit can help you in your trading with bitcoin. Bitcoin transactions are peer-to-peer. 

A credit card helps the holder to build credit and make convenient transactions. The credit card holder can complete transactions for goods and services based on the cardholder's credit limit. So, if you are planning to trade Bitcoin, you can use a reputable trading platform like bitcointrader2

Bitcoin Transactions

Bitcoin does not have a regulatory body to control its transactions but has the blockchain technology that helps to validate them. As a result, this digital currency is for peer-to-peer transactions, which helps eliminate intermediaries. As a result, only the Bitcoin sender and receiver are highly involved with the transaction process. 

On top of that, when you create a Bitcoin account with a reputable exchange, you will have to set up a digital wallet that helps to secure your digital assets safely. Therefore, you do not have to store your Bitcoin at a financial institution like a bank. Banks offer a lot of inconveniences when one wants to transact because they are not accessible 24/7. However, with Bitcoin, you can use this digital money to make transactions at any time and any day of the week. 

After completing a Bitcoin transaction, miners record it on a public ledger known as the blockchain. With blockchain, this digital money's transactions are transparent, and nobody can alter them. More so, when making a Bitcoin transaction, it is not an essential requirement that you provide personal identification information such as your name and address. Nevertheless, these digital money users enjoy the advantage of remaining anonymous. 

Credit Card Transactions

Unlike a Bitcoin transaction, credit card transactions involve financial institutions like the bank, which act as intermediaries. For example, when completing a visa transaction, the transaction will go through five parties. Each party in a credit card transaction pays fees, which go down to the cardholder. On top of that, credit cards are physical cards that people should keep safely. However, as technology is growing to prevent card numbers from getting hacked, hackers and cybercriminals are finding ways of hacking cardholder card numbers. 

Distinguishing Differences between Bitcoin and Credit Card Transactions

There are common issues of chargebacks, especially with credit card transactions. A chargeback occurs when a client feels that the product they paid for was not good enough and requests a refund or a chargeback. Chargebacks are expensive and can lead to business owners experiencing losses. On the contrary, Bitcoin transactions are equivalent to no chargebacks. Once a Bitcoin transaction has gone through, no entity can reverse it. The only option that senders have is to request the receiver of this digital money to send back the currency. Nevertheless, not everyone is honest enough to reverse. 

Credit card transactions involve a lot of third parties, which can be either five parties or six parties. Each party charges a certain fee which goes to the cardholder. So, credit card transactions are costly. However, Bitcoin transactions are cheaper and charge minimal to zero costs. No intermediaries are involved with Bitcoin transactions because any central body does not regulate this digital currency. 

Therefore, business owners can accept these digital currency payments without worrying about the high transaction fees. In the end, Bitcoin transactions are more convenient than credit card transactions.

The Bottom Line

Bitcoin transactions are not similar to credit card transactions. That is because digital money transactions offer many advantages to users compared to credit card transactions, where users have to suffer from costly transactions.