Despite cryptocurrency is a relatively new phenomenon for modern society (it is only a little more than 10 years old), it already has an impact on the global economy. More and more people are becoming interested in digital money and using it in everyday life.
With the help of virtual currency, anyone can perform any electronic operations, such as paying for purchases, making money transactions (transfers, exchanges), etc. In addition, cryptocurrency can be exchanged for cash. That is, a virtual currency is a kind of electronic exchange that allows you to buy any goods, as well as pay for services.
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What Is Cryptocurrency Used for?
Paper money and cryptocurrencies were designed for the goods and services barter. All currencies have their pros and cons. By-products of our modernized society are new ideas and technologies that help to improve and simplify people’s lives. Gradually, along with the real paper money, already familiar to an ordinary person, digital currencies begin to appear. The most famous and fast-growing, but still controversial, is Bitcoin (BTC).
A regular user knows little about the first virtual currency in the world, except that they have an expensive cost, they do not have a physical form and have a connection with video cards.
In the long term, digital coins are expected to gain even more popularity. This means that the crypto rate has all chances to grow in the near future. A regular user knows little about the first virtual currency in the world, except that they have an expensive cost, they do not have a physical form and have a connection with video cards. Some experts believe BTC may soon become the main currency and will participate in global currency exchanges of central and commercial banks, which will have their own crypto assets.
The main purpose of cryptocurrency is considered to be the ability to purchase goods and services anonymously, but so far this functionality is in little demand. According to the financial experts, at the moment cryptocurrencies are more likely to act as profitable long-term or short-term investments due to the instability of their exchange rate – volatility.
What Are the Benefits of Using Cryptocurrency
Digital or virtual currency is not like any other asset. Blockchain technology is applied here, which has made it a competitive alternative to bank transfers, and national money. Compared to existing financial instruments, cryptocurrencies have a number of advantages.
#1. User Autonomy
Generally, digital currency allows users to control their own currency more autonomously than fiat. Users are in control of what they do with their money without third-party approvals. Bitcoin’s biggest attraction for many people is autonomy which is an essential component of the crypto business.
#2. More Confidential Transactions
The anonymity of the payments and the issuance process makes cryptocurrency attractive for users from the point of taxation, going to the shadow sector of the economy. On the other hand, it increases the risks of losing the crypto coins for the holders due to bankruptcy of crypto exchanges or as a result of a hacker attack. The anonymity of payments also hinders state regulation of the economy and does not meet international standards for disclosure of information by participants in financial markets.
Bitcoin transaction is anonymous and can’t be traced back to a user. It is much less linked to private identity compared to the payment system. The anonymous Bitcoin address, generated for a transaction, changes with each purchase. This is not to say that Bitcoin transactions are fully anonymous or completely untraceable, but that the transactions are more readily linked.
#4. Peer-to-Peer Focus
One of the biggest advantages is the decentralization of digital assets. This means that there is no central authority in the cryptocurrency network, and a peer-to-peer procedure is also implied. A direct consequence of this is the lack of an institution that determines the rules for cryptocurrency holders, as well as the flow and value of cryptocurrency, which cannot be said about fiat currencies controlled by the state and central banks.
#5. Elimination of Banking Fees
The minimum commission for processing a transaction from one digital wallet to another is 0.0001 BTC, which is at the current exchange rate of approximately 4 USD. If we take into account the fact that you can transfer large amounts with such a commission, then it is insignificant. Even if you increase the commission to speed up the transfer, it will still be small compared to the transfer amount;
#6. Very Low Transaction Fees for International Payments
The transaction fees in the Bitcoin peer-to-peer network and the speed of their execution do not depend on the distance to which the asset transfers. If it may take several days to send funds when using the services of companies, such as Western Union, for example, then Bitcoin will cope with this task in an average of an hour. In this case, the commission will be incommensurable with the amount sent.
#7. Mobile Payments
It is possible for crypto enthusiasts to use their coins anywhere if they have an Internet connection. In other words, they never have to go to a financial institution or store to buy a product. Unlike online purchases made with American banks or credit cards, personal data is not necessary to conduct every transaction in a cryptocurrency network.
Bitcoin can potentially be accessible to users who do not have access to traditional banking systems, credit cards, and other payment methods. Users can send and receive digital assets on a smartphone or a PC.
Over 1,200 cryptocurrencies are in circulation globally. Many are ephemeral, but in particular, they have been created as a financial instrument for particular needs. This includes privacy — coins – tokens that mask your identity on the blockchain but are useful for supporting supply chain operations.
#10. Strong Security
Security is in the blockchain at the very core. The concept of blocks of chains was designed in 2008 by Satoshi Nakamoto. It was first implemented in 2009 as a part of the digital currency network – Bitcoin, where the blockchain plays the role of the main common list for all transactions with cryptocurrency. Due to blockchain technology, BTC has become the first digital currency that solves the problem of double-spending without using any legal representatives or third-parties as a middle man.
#11. Greater Access to Credit
The digital data transfer and Internet facilitate this exchange of cryptocurrencies. It’s estimated that today about 2.2 billion individuals worldwide use mobile phones or the Internet, but no traditional systems of banking and exchanges. When the required infrastructure (digital and regulatory) is created cryptocurrencies appear.
Benefits of Cryptocurrency Investment
When it comes to the most profitable investment tools, cryptocurrencies are always mentioned. Why are they so attractive?
- Modern technologies. The creation of digital money is based on unique technologies. You can use cryptocurrency in almost any country. Therefore, you can get money in a convenient way and at any time.
- The growth of the cost. Bitcoin and other cryptocurrencies are growing in price. It happens when the cost drops sharply, but after a while it increases significantly. This can be seen by looking at the ups and downs of BTC coins over all the years of their existence. If you approach investing correctly, you can easily get income by playing only on the exchange rate difference. Or in the long term, by buying Bitcoin now and waiting for a couple of years.
- Expansion. New cryptocurrencies appear regularly, which can become an investment object. Forecasting the cost growth makes it possible to improve your financial situation with minimum efforts.
The trend for cryptocurrency investing is only gaining momentum. It is very simple, accessible to everyone and quite profitable. At the same time, it is necessary to follow simple security rules, study the appropriate information concerning the crypto world, and choose trusted cryptocurrency exchanges, like Changelly. Our platform always provides you with the best crypto rates along with a variety of payment methods (credit/debit card, bank transfers, Apple Pay). Our Customer Support is always ready to help you in case of any questions!
Benefits of Cryptocurrency Trading
Crypto trading has a large number of positive aspects that make it one of the most attractive types of earnings.
- You are the boss
If you start trading on the cryptocurrency market, it will give you more freedom. After all, here, unlike the option with a job for hire, you are your own boss, and you can decide how, where and when to work.
- The ability to work at any time
A crypto trader does not have a standard working day. He can trade at any time convenient for him – both in the morning and in the evening or even at night, taking breaks for lunch and leaving time for personal affairs and needs.
- Work anywhere
You can trade on the cryptocurrency market from anywhere in the world – under a palm tree on the beach or in a house in a village. It is enough to have a laptop or even just a smartphone with Internet access.
- A high income that depends only on you
Cryptocurrency trading is a profitable activity, if you know how to deal with it. The exchange rate of digital currencies can fluctuate by tens of percent per day, and therefore your capital can increase daily as a result of successful transactions.
- There is no need to communicate with unpleasant people
The entire process of trading on the cryptocurrency market takes place completely remotely – the trader does not need to personally communicate with anyone, everything is done through the trading platform. Isn’t it a paradise for an introvert?!
Benefits of Cryptocurrency over Fiat
Cryptocurrencies are significantly more anonymous than traditional money. The fact is that it is almost impossible to determine the owner of the wallet conducting the transaction.
Unlike a regular currency, crypto coins have a number of features in circulation. For instance, it is impossible to return funds after confirming the transaction. In addition, the system of transfers, payments and other operations does not provide any connection with accounts. The main ‘feature’ of cryptocurrency is that it is impossible to fake it.
You can make a fake wallet to receive them, steal, taking advantage of a flaw in the company’s protection – also yes. However, to create exactly the same monetary unit – no. Another advantage of digital currency (unlike a regular currency) is the lack of restrictions and controls. While you are using a bank card, the bank saves data about your money on the account, i.e. a full record is kept of how much, when, from where, and where the transfers were made, while writing off a commission per person for these actions for a year.
Read also the article of the Changelly Essay Competition participant: Crypto vs. Fiat: Will Cryptocurrencies Ever Oust Traditional Finance?
What Are the Pros and Cons of Cryptocurrency?
We have already found out and discussed the main pluses of implementing crypto into our everyday life:
- fast and cheap money transfers that do not depend on the recipient’s location, even if it is another country;
- transparency of operations, the ability to track all transactions in the blockchain;
- investment potential.
However, like almost everything around us has a double nature, cryptocurrency usage has its flip side of the coin, too.
- a large number of dishonest projects really created by hackers and spoiling the overall reputation of the industry;
- price instability, the inability to accurately predict the growth or fall of the cryptocurrency exchange rate;
- a little number of sales markets;
- for an ordinary person it is quite a complicated technology for understanding and using without prior study of the materials.
Cryptocurrencies are a new technology that gave an impetus to the modernization of the entire economy. Already, a huge number of people use crypto coins for payment, participate in their mining and earn money on market volatility.
To date, cryptocurrencies are at the stage of formation and improved versions are released annually, which try to eliminate the shortcomings in the technology. But it is already obvious to many experts that cryptocurrencies are the money of the future with a huge potential for development.