Like most things tech, the realm of cryptocurrency can be a bit complex to master and is still new to many. But the advantage of purchasing this currency is surely worth your investment in both time and money. Experts have also predicted that it may be the next big thing in finance.
As a digital asset that serves users online, Cryptocurrency has many appealing benefits.
Some of this is thanks to the Blockchain Technology previously mentioned. It is a strictly monitored process with encrypted transaction and control thus, making this online money a thing for the future.
So in this chapter, we will cover the top 4 benefits of Cryptocurrency. The most well-known benefit of this investment is its “No Third-Party Involvement”.
There”s always a pattern when using traditional money to buy yourself a new property, setting up your own business, or buying a new car.
One way or another, the process requires a third-party involvement. We are talking lawyers, owners and some others external factors such as, delays, documentations and extra fees. This in general will consume unnecessary time, money and energy to the point of giving up.
A good example of this scenario would be you buying a new house. You need to pay the Financial Advisor who in general, advises your financial statement to ensure you have a stable income.
Some property requires you to pay for a booking fee to “lock” your house of choice and many other add-ons. In short, there”s a lot of third-involvement and it charges you even before you own the property.
But that is not the case with Cryptocurrency. As mentioned previously, the blockchain system is similar to a self-rights database.
It means, the contract is capable of being design and enforces to remove any involvement of the third-party mentioned before. Moreover, the contract can be customized to complete a certain transaction at a set date at a fraction of any expenses. Yes, you can eliminate any third-party involvement options, in fact, you don”t even need one. In short, you are in control of your own money using Cryptocurrency. This is what we call the “Decentralized” system, which means there”s no “Central or Federal Government” regulating it for you.
Your transaction is practically immune to any influence from your government and its distinct manipulation.
So, it is possible to be able to pay and receive money anywhere in the world at any given time.
That transaction is done with minimum processing fees, thus preventing users from having to pay extra charges from banks or any financial institutions.
Next advantage would be the risk it holds is lower than traditional currencies. In this era, most people rarely have their cash in their possession now. Instead, they have an array of credit cards, debit cards and other payment cards available as their nations” method of payment.
Nothing”s wrong with that, except however if the store”s connection to the server is disconnected or their machine is out of service, and you who do not possess any cash just ended up holding the line. The thing about these cards are, any purchase you are making, you are giving the end-receiver access to your full-credit line. No matter how small the amount of the transaction is, the fact that you are giving someone your card to gain access to your account is already a form of “breach”.
Most of this “breach” is considered secure nowadays using differing safety measures like “PIN enabled” or “Pay wave” methods.
Then, the store initiates payment by “pulling” the designated amount from your account using the information provided within your card.
Cryptocurrency doesn”t work that way. Instead of a “pulling” mechanisms, it “pushes” the amount that needed to be pay or receive to other cryptocurrency holder without any further information needed.
Payments are possible without your personal information being tied to you the transaction. Your account can be backed up and encrypted to ensure the safety of your money.
By allowing users to be in control of their transactions helps keep Bitcoin, Ether or other distinguish Cryptocurrency safe for the network.
Another benefit of using Cryptocurrency would be its protection from fraud. We often heard cases where one”s payment card is being used by other users but not the owner. When contacting his card”s service issuer, it is found that the card has made certain transactions without his consent. This is what we call a fraud case.
Most of the time these fraud cases get away with the crime because it is not easy to trace the fraud back to the perpetrator. What”s more it is even difficult to get the attention of law enforcer to launch an investigation with only a single instance of crime the perpetrator commits.
However, Cryptocurrency is not viable to fraud act. Because your personal information is kept hidden under unnecessary prying eyes, this protects you against identity theft.
Remember, Cryptocurrency is a form of digital money, created from code. Individual cryptocurrencies are as mentioned, digital, and cannot be counterfeited by senders.
Because the transactions cannot be reversed, they do not carry with them any personal information. This ensures security and the merchants are protected from any potential losses that might occur from fraud cases. It is very hard to cheat or making false pose on anyone using these Cryptocurrencies due to its decentralized system and the existing block chain system. It cannot be manipulated by anyone or organization thanks to it being cryptographically secure.
Lastly would be its Universality.
Over the course of payment history, nations worldwide have their differing methods of payments implemented. We have money-goods exchange system and even bartering trade. It is not until traders visited other countries that they found out how to trade items to one another. Thanks to various innovations and developments, we now have multiple methods to trade and exchange moneys worldwide.
But even with all the upgrades, we are still experiencing problems doing transactions across the globe. There are always currency issues, bank authorizations, unacceptable payment method and some other varying issues experienced by business owners or travelers out there.
Fact is, not all country has similar financial processions. Your card or currency may not be accepted by other countries and that is a major setback to your account.
For example, most online banking, payment or cash system requires additional processing fees for their service even if that account is yours.
However, Cryptocurrencies are not bound by any of those exchange rates, transaction charges, the interest rates or any other fees applied on any countries.
They can be used at any time at any international standard without experiencing any problems.
It also saves a lot of your time and money by reducing additional spending over transferring money from multiple countries to another.
Which means cryptocurrency operates at an international platform which in turns, make transaction easier than your average telegraphic transfer. To recap, there are 4 major advantages concerning Cryptocurrencies. It has “No Third-Party Involvement”, “Lower Risk compared to Traditional Currencies”, “Protection from Fraud” and “Universality”.
Despite the amazing advantages that come with Cryptocurrencies, there are also some setbacks to this investment.