The popularity of cryptocurrency has rapidly increased over the past few years but investors may have the question of why would anyone choose cryptocurrency over any other form of investment. Crypto is a new asset class that was founded in 2009 with the creation of the Bitcoin blockchain. Crypto is a digital and virtual currency that is used as a medium of exchange. At present, more than 2,300 US businesses accept bitcoin, as an increasing number of companies have now started using bitcoins to fulfill their purpose of investment, transactional and operational benefits. Therefore, let us look into some of the benefits of cryptocurrency.
If you are planning to get involved and be a part of cryptocurrency, then the first thing which you should be familiarized with is whether you will buy the digital assets or speculate on their prices.
“Mobile was Internet 2.0. It changed everything. Crypto is Internet 3.0.”
–
Gil Penchina
Benefits of Crypto Currency:
1.Faster Transactions:
Using a simple smartphone you can easily make transactions at a very low cost. The entire process is more private and confidential than most other transactions. Anyone can send and receive cryptocurrencies using a simple smartphone, hardware wallet, or exchange wallet. Transactions are also made easier using Bitcoin ATMs with cash which includes Bitcoin, Litecoin, and Ethereum. Also, cryptocurrency transactions take place on the blockchain ledger which reduces fraudulent transactions. Therefore, someone who has sent money can prove it.
2. Minimum Transaction Cost:
The cost of a transaction is low as compared to other financial transactions. However, you must note that demand on the blockchain can increase transaction expenses. For sending money internationally the transaction cost is higher. In traditional business dealings, they charge processing fees, convenience fees, maintenance fees, and annual fees. Whereas cryptocurrency transactions are one-to-one dealing or peer-to-peer network structure, the middle man is out of the equation. This states that the transaction fee is less or eliminated. But if you use a third-party website, then there might be some transaction fee although that would be minimal as compared to traditional systems.
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3. More Confidential Transactions:
With a traditional system, there are chances that your bank account details are made available to certain third parties during a transaction. For example, when you purchase something online, your bank account details are sometimes stored in transaction history. If you are a person who does not like sharing or storing financial details, then you must try cryptocurrency. This is of the great benefits of crypto is that any third party will not be involved in the transaction. Bitcoin is the most secure cryptocurrency and has the highest rate of any other network. Someone who has the private key of your crypto account only has the access to sign transactions or check your funds. However, if you lose your private key then there’s no way to recover your funds.
“As consumers adopt crypto, we hope that they’ll also be interested in trading equities and options.”
Baiju Bhatta
Anyone who owns a smartphone and internet can send and receive cryptocurrency. Consumers don’t need to have a bank account to use crypto. They can buy bitcoin at an ATM using cash and later can transfer the coins to their phone. This is one of the biggest benefits of using cryptocurrency for people who have no bank accounts and are not used to the traditional financial system. There are billions of people who do not hold a bank account and still are trading in crypto. This benefit of cryptocurrency can reach out to people who don’t have access to the traditional financial system. Due to its less permissive nature, anyone who wishes to participate can be a part of cryptocurrency.
5. International Boundaries:
Cryptocurrencies have access to national as well as international borders. A person who is a resident of one country can send coins to someone who is in a different country. Whereas, in traditional financial services exchanging funds across international countries can take a long time and come with expensive transaction bills. In some cases, there is no permission for doing so due to regulations, sanctions, or any personal tensions between specific countries.
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6. An Increased Market:
Crypto markets are open 24 hours 7 days a week. The only issues which a person can face trading crypto are power shortage, network issues, or centralized exchange outrage. Whereas, in the case of the New York Stock Exchange (NYSE) stock markets are open only on weekends during a particular shift of timing 9.30 am to 4.30 pm Eastern Time.
7. Freedom of Transaction:
One of the most important benefits of trading cryptocurrency is that consumers don’t have to take permission from any third party or governmental authority to use crypto. In some cases, the bank sometimes chooses to cut off services to anyone for any reason. This can be difficult for some people who need to use it in urgency. As there is no central authority governing bitcoin or other cryptocurrencies, it is quite difficult to stop someone from accessing it.
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One of the most important benefits of trading. These are mentioned as some of the benefits of cryptocurrency but there are some flaws in it as well. Therefore, someone who is interested in trading crypto must wisely do their research and get complete knowledge before being a part of the crypto market.
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