Cryptocurrency is the digital version of money used in several countries worldwide. These currencies are usually based on cryptography or distributed ledger technology. Moreover, they take the form of ‘coins’ or tokens. This new asset class was introduced to the world back in 2009 with the creation of Bitcoin. Currently, crypto owners can sell or buy goods or services from companies or individuals who accept payments in crypto.
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Surprisingly, cryptocurrency is just over a decade old, but it wasn’t until recently that people started regarding it as a legitimate investment. Today, many people across the world are using cryptocurrency for fast, lucrative, and anonymous trade. With the advent of comparison sites like CryptoRunner, investors and speculators are clamoring to be part of the boom. If you’re still skeptical about the benefits of investing in cryptocurrency, check out what experts are saying below.
Robust Security
Since cryptocurrencies are decentralized and based on blockchain security, they are much more secure. Notably, the level of security varies from one cryptocurrency to another. Hash rates largely determine the security of crypto. The lower the hash rate, the lesser the dangers of theft and fraud. Hence, secured transactions.
In addition, crypto markets require sellers and buyers to make specific agreements in terms of return policies should mistakes happen. Once you authorize a cryptocurrency transfer, it cannot be reversed, as with credit cards. Also, the security of crypto highly depends on the crypto exchange itself. This is because lots of incidents involving attacks on cryptos are usually tied to the hacking of cryptocurrency exchanges.
Generally, cryptocurrencies are the most secure payment gateways to use. And for this reason, some big businesses, especially in the online casino gaming industry, accept crypto payments.
Ease of Transactions
Transactions done in crypto are relatively simple and more private. Moreover, they cost a lot less compared to other forms of trade. With the use of an application, exchange wallet, or hardware wallet, you can receive money and make payments in crypto.
Interestingly, you do not need a bank account to use crypto. Some more established kinds of cryptocurrencies such as Ethereum, Litecoin, and Bitcoin can be purchased with ease from any Bitcoin ATM using cash. You can then transfer the coins to your smartphone.
For people who do not have access to the traditional forms of trade, dealing in crypto could be a more accessible alternative. And as mentioned earlier, cryptocurrencies are not legal tenders on national levels. So, they are not subject to transactional charges, interest rates, levies, and exchange rates set by central banks.
Furthermore, the peer-to-peer mechanism of blockchain technology allows cross-border transactions. That way, you can do transfers easily without restrictions brought about by fluctuations in exchange rates. All these result in fast and easy transactions.
High Returns
High volatility and cryptocurrencies are synonymous. They change quickly and can be very unpredictable. The first time Bitcoin entered the market, it practically had no value. However, since its inception in 2009, it has grown from strength to strength.
Since then, Bitcoin has risen in value. In today’s world, it’s hard to believe that Bitcoin is thousands of dollars in value. Moreover, it has also outperformed other popular financial assets such as Gold. This rise in value represents millions of percentage points worth in gains. If we compare this to the S&P 500 stocks index, it’s evident that the S&P 500 returns approximately 8% annually.
Altcoins have stood strong against Bitcoin and have sometimes outperformed it substantially. However, Altcoins suffer huge losses from time to time too. As such, investors need to think wisely about this cryptocurrency and build their portfolios accordingly.
Bitcoin has also suffered many huge losses, which can at times be discouraging. Also, its outsized returns are impossible to ignore, making Bitcoin is a justifiable reserve asset. The rise of cryptocurrencies is surprising, and their ever-growing value is pleasant news for investors. Bitcoin has experienced a substantial dip, but its future looks bright even with that.
Lower Fees and Shorter Settlement Periods
Even though many people view cryptocurrencies as investment opportunities, some may benefit from the ability to use them for most of their transactions. For the most part, payments made in cryptocurrency take minutes or seconds. And depending on the size of the transaction, Ethereum, Litecoin, and Bitcoin transaction fees may be anywhere between nickels to a couple of dollars. XRP, Litecoin and others, could cost you a penny or less.
This is advantageous considering the higher fees you would pay if you chose Wire transfer as your preferred payment gateway. Wire transfers take anywhere between three to seven days to settle a single payment. This could significantly affect the growth of a business.
More Private and Confidential Transactions
Under credit and cash systems, a person’s entire history of a transaction can be easily traced. This information may be used as a reference for the credit agency or bank involved every time they transact. These systems even have access to information such as account balances. This makes sense since they must ensure you have sufficient funds to complete the transaction. Other complex business-critical transactions usually require an examination of a person’s financial history.
This is where cryptocurrency becomes beneficial. Each transaction done in crypto involves a unique exchange between people. The two parties also negotiate and agree on various terms in each case. Moreover, the involved parties exchange information on a push basis. This means that the information you transmit will be the exact information you wanted to share – nothing more.
With this, trading in cryptocurrencies safeguards your information, such as your financial history. This, in turn, protects you from threats like identity and account theft. And by the way, these problems are pretty common in traditional systems that may expose someone’s information at any point.
Our Takeaway
We believe our review has provided everything you need to know on the benefits of cryptocurrency in 2022. However, the benefits discussed above are just a few upsides of buying cryptocurrencies. With the robust encryption techniques used throughout blockchain technology, all cryptocurrency transactions are usually safe from third-party intrusions and fraudulent activities.
For anyone looking to join the crypto market, it would be wise to conduct extensive research into the various cryptocurrencies before buying. There are several of them, and each one has its own perks that you can benefit from, while others have various letdowns that you may want to avoid.
Overall, cryptocurrencies have become one of the most efficient payment systems worldwide. In fact, some online businesses are crypto-only, which means that you can’t pay using any other currency.
