If you are a newbie to the world of cryptocurrency, it can be tough to differentiate between crypto payment gateways and crypto exchanges. In the post below, we give you a quick rundown of what both terms mean and what they offer.
What is a Crypto Payment Gateway?
Payment gateways or payment processors are tools that help you send or receive funds in the currencies that are acceptable by the builders of the tool.
A good example for naira or cedis is Flutterwave and Paystack that help businesses to receive or send payment in these local currencies.
Others like PayPal and Stripe allow individuals and businesses to make payments in USD, pounds, and other currencies.
A crypto payment gateway allows businesses and individuals to make payments in cryptocurrencies such as Bitcoin, Ethereum, and stablecoins such as USDT, BUSD, DAI, and many more.
What is a Crypto Exchange?
A crypto exchange is a business or platform that allows users to trade cryptocurrencies for other assets. This may be trading Bitcoin for Ethereum or USDT or Dogecoin for Solana.
A crypto exchange acts as the middleman between a seller and a buyer and you are provided with wallets to store your different cryptocurrencies.
A crypto payment gateway does not:
- Does not allow trading of crypto
- Does not provide P2P services
- Keep your crypto in its default state
- Does not have specific countries of operation
A crypto payment gateway:
- Can be used by any business worldwide
- Keeps your crypto in USDT to maintain value until you’re ready to transact
- Handles payment support so businesses can focus on development
- Typically charges only 1% for all transactions