Cryptocurrency is real and it is here to stay. What seemed like a strange concept about a decade ago has now made its mark on all the major financial institutions. The sector has started to realize the potential digital currency holds and how it can give the boost to our financial industry.
Even though all the major financial entities realize its importance, the concept is somewhat ambiguous to many individual users. Understanding how digital money works and what it can do for you is extremely important for those who wish to enter the sector or get involved in cryptocurrency trade.
To give you an idea about the potential cryptocurrency holds here are some of the major benefits it can offer.
Major benefits of cryptocurrency
Cryptocurrency is decentralized
The blockchain technology that is used to maintain a blockchain or a digital ledger is decentralized, which means the information contained in the blockchain is not stored in a central hub. This decentralization makes cryptocurrency safe.
Since the information is kept on multiple servers and hard drives across the world, therefore, any major hack or robbery attempt will cause minimum damage. How? The information stolen will only be a fraction of the entire database, which will not cause the entire database to collapse.
Blockchain or the digital ledger that stores the information of all the transactions can be accessed by anyone, which makes the entire process transparent.
All the cryptocurrency traders can see and keep a track of how much wealth gets transferred on a daily basis from user to user. This limits the chances of fraud or theft.
There is nothing more frustrating than waiting for a large transaction to be completed. From calling the back or depositing the check to the number of days it takes for the money to become available for withdrawal, the entire process can be taxing. Cryptocurrency does not cause any such delays; the wealth can be transferred directly from one digital wallet to another in a matter of a few clicks. This swiftness is extremely useful for making large digital payments.
With the power the internet and social media now holds, you leave your digital footprints almost every time you log on to a website or any other online platform. This makes it extremely easy for servers and developers to track your information. Cryptocurrency works differently!
Even though blockchain can be publically accessed and the transactions can be tracked but not everyone gets all your information; your wallet remains private. The receiver of wealth only gets the information you choose to share with him/her, this gives you control over your own privacy.
No huge transaction fees
One of the biggest disadvantages of conventional monetary transactions is the fee the banks or other institutions charge. Cryptocurrency transactions, on the other hand, do not charge any gigantic transaction fee. Whatever little fee there is, is usually paid by the buyer.
Secure against identity theft
With the help of a proxy ID you can secure your identity against theft or cyber bullying. Even though your transactions will be added to the public digital ledger but your identity will remain anonymous. You do not have to provide any social or credit card numbers; all your transactions are protected by cryptography.
No third party owners
When you put your money in a bank or other organizations, you indirectly hand over the ownership to a third party. If your bank or account gets closed due to any legal reason, you will have to go through an intricate legal process to get your wealth back. With cryptocurrency, you remain the sole owner of your own wallet, unless you willingly get a third party involved for wallet management.
Due to the above mentioned and many other benefits, cryptocurrency has caught the eyes of investors and financial experts all over the world. The entire sector is now trying to explore new avenues to use the power of digital currency to strengthen the financial industry.