In the last few years, the term cryptocurrency has become widespread and it has been gaining ground in the public eye. Initially, it was unfamiliar and similar to what the credit card had looked like to people in its early days. But, as people are understanding the use and value associated with the different cryptocurrencies available, the instrument’s popularity is rising. Bitcoin, Ether, and Litecoin amongst others are some of the renowned cryptocurrencies available and they are based on blockchain technology for ensuring safety. The rapid growth in Bitcoin has prompted a lot of interested and people want to know how to buy cryptocurrency to take advantage of this trend.
It has become a popular form of investment due to some incredible benefits it can offer. What are they? Some of the top ones are outlined below:
Eliminating Fraud
Cryptocurrencies are digital, which means they cannot be counterfeited or arbitrarily reversed by the sender like in the case of credit card charge-backs. Thus, it is not possible for cyber-criminals to commit fraud where a cryptocurrency is involved.
Immediate Settlement
When you purchase property, there are some third parties involved such as notary, lawyers etc., which means there can be delays and some fee payment is also involved. Cryptocurrency contracts can be designed and enforced for adding or eliminating approval of third parties, referencing external facts or complete at a time or date for a fraction of the cost and time needed in traditional asset transfers.
Reduced Fees
Typically, no transaction fee is charged for an exchange of cryptocurrency because the network compensates the miners. While there is no transaction fee for exchanging cryptocurrency, using a third-party service such as Coinbase for creating and maintain wallets may involve some cost. However, this is still considerably less than what you have to pay when using other methods like PayPal for making cash or credit card transfers.
Identity Theft
When you are providing a merchant with your credit card details, you are giving them access to a full credit line, even if the transaction involves only a small amount. The payment is initiated by the store and the designated amount is pulled from your account. In the case of cryptocurrency, the holder will only send the merchant or recipient information that’s absolutely necessary and nothing more.
Decentralization
Blockchain technology is used by a global network of computers for jointly managing the database that records cryptocurrency transactions. This means that cryptocurrencies like Bitcoin are managed by the network and not governed by a central authority. Decentralization means that the network is operating on a peer-to-peer or user-to-user basis. This can pave the way for mass collaboration.
Accessibility
Nearly 2.2 billion people have access to mobile phones or internet, but they don’t have access to a traditional exchange. These people can participate in the cryptocurrency market because you can make money transfers through your cell phones.
These are some great reasons for investing in the cryptocurrency market because they can offer you various benefits.
