Cryptos in E-commerce Can Secure Financial Freedom

  • February 23, 2024
  • Jennifer Moore
Cryptos in E-commerce Can Secure Financial Freedom

E-commerce platforms minimize financial inequality and provide ample opportunities for small businesses to grow. Therefore, these invariably help in financial freedom. These platforms have revolutionized world trade and have helped in bridging financial gaps to a large extent. It is also true that poverty levels have gone down and per capita income has gone up after the advent of these platforms. Their importance is no longer restricted to fiat currencies since many P2P exchanges now facilitate transactions in cryptocurrencies too.

Parallel Growth of E-Commerce and Cryptocurrencies

E-commerce and cryptocurrencies are experiencing unprecedented growth levels in recent times. During the 2020-21 lockdown period, the e-commerce market’s growth accelerated from $3.354 trillion in 2019 to $4.981 trillion in 2021. Since people were stuck in their homes, online shopping skyrocketed. Even after lockdowns were over, this trend continues to date. 

Similarly, the cryptocurrency market is experiencing a major boom as it has reached $51.5 billion in 2024. The global crypto adoption rate in 2023 was an average of 4.2%. This translates to over 420 million crypto users in the world. Both these sectors hold the key to financial freedom and are already collaborating to ensure faster market growth. 

Role of E-commerce in Financial Freedom

Several advantages of e-commerce have led to the improvement of financial freedom. In some instances, because of its advantages, e-commerce may provide the shortest and fastest route to business expansion. These include:

Faster Business Expansion

The e-commerce websites such as Shopify, Amazon, and eBay help in creating virtual online stores on platforms. Therefore, they reduce the physical barrier limitation of traditional brick-and-mortar stores. Traditional brick-and-mortar stores unintentionally play a role in stifling financial freedom by limiting their geographical reach. E-commerce websites do just the opposite. 

Better Consumer Insight

Financial freedom faces limitations when there is inadequate exposure. However, due to e-commerce websites, this limitation is being neutralized. Consumers and businesses can view tools to create new clients by using proper web analysis software. They can also study market patterns and judge consumer behavior better.

Loyal Customer Base

Although traditional business enterprises were capable of creating and nurturing a loyal customer base, they did and continue to face many challenges. The most common challenges continue to exist because of economic, linguistic, and cultural barriers. These challenges still exist in e-commerce platforms but the magnitude has decreased. This is because consumers can post their feedback in their preferred language and give ratings accordingly. Thus, it helps businesses to evaluate their products faster and make decisions accordingly. Brand building is one of the most tried and tested strategies to nurture a loyal customer base. E-commerce is also advantageous while brand building because it is faster and cheaper. 

Role of Cryptos in E-Commerce

The cryptos are playing a positive role in expanding the reach of e-commerce. The cryptos in the future may break the shackles of fiat monopoly and push the agenda of decentralization further. This may consequently lead to more financial freedom and equality. 

Reduce Transaction Costs

Blockchain technology is an integral part of cryptocurrencies. Due to this, the cost is lower than most traditional e-commerce platforms. Moreover, e-commerce sites having cryptocurrencies can increase profit margins, as they can accommodate many new crypto users too.

Superior Security

Blockchain technology’s smart contracts, traceability, and transparency features make transactions more secure. Crypto exchanges offer a high level of security features like firewall implementation, robust KYC verification systems, and 3 types of wallets such as cold, warm, and hot wallets. It also has anti-phishing features, database encryption, and geo-targeting capabilities to detect Tor and VPN. Therefore, online transactions are safer because of cryptocurrencies.

Market Expansion

Market expansion can protect the financial freedom of many businesses. When circumstances are favorable, expansion can resolve the problem of stagnation and lead to more profits. Cryptos in this regard play a positive role because the number of crypto users continues to rise. Once, an e-commerce platform allows people to make crypto transactions using wallets, it naturally widens the market base and increases customer traffic. It is also true that early adoption of crypto payments can beat competition.

Also Read- Importance of Financial Literacy in Financial Freedom

Bottom Line

The cryptos in e-commerce can help in protecting financial freedom. The advantages of including crypto transactions in e-commerce are essential for quicker market expansion, superior security, and lower transaction costs. E-commerce and cryptos are currently experiencing a significant rate of growth and acceptance. Therefore, more collaborations are going to become a norm in the future for faster decentralization, and better financial equality. 

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