Cryptocurrencies or they have become commonly known “digital money” are based on the blockchain technology. This technology in simple terms creates a digital ledger of all assets, whether money, tangible properties, vehicles or stocks. The Bitcoin is the most widely used cryptocurrency but is one of many as listed below and trade is made on various digital platforms. As these platforms increase daily and are becoming more accessible, it is important to know some of the benefits of this currency.

Some of the major benefits of using cryptocurrencies are:

Cryptocurrencies cannot be transferred to third parties without the user. Therefore with cryptocurrency transactions, there is no risk of fraud or cheating. The user has complete control of the transaction and currency which is hosted on a centralized technology.

With cryptocurrencies, there is no possibility of any third party manipulating the payment or the sender reversing the payment and therefore requires less trust than in traditional banking.

Traditional banking systems require senders or receivers to track their payments via bank systems over periods of three days or more. This creates uncertainty for the sender and receiver of funds. With cryptocurrency transactions can be tracked on a second to the second basis and the exact time of delivery of payment can be gathered with more certainty. This creates security for the sender and receiver.

Blockchain delivers more safety and security for money and assets in the digital form with its defined financial rules and a clear process for verifying transactions. That's exactly why many banks are adopting the technology.

Our world is filled with instances of credit card fraud and theft, especially in the online shopping sphere. Instead of being afraid to purchase online in case your credit card details are misused, cryptocurrencies are currently the safest and easiest means of shopping online without risk or loss.

Instead of securing and saving your funds in banks, investments and brokerage houses, where you are subject to their terms and conditions and pay enormous fees for them to store your money simply, cryptocurrency allows you to keep what is yours at no additional fee.

Whereas banks require full knowledge of all your personal details and that of the beneficiary of your payment, cryptocurrency does not require more information than you are willing to provide. Your payment is between you and your beneficiary. For people who require privacy and anonymity, this is one of the greatest benefits of cryptocurrency. Different coins have different levels of anonymity, and you will need to research these before purchasing them.

Since all cryptocurrencies are easily accessed on a decentralized network, anyone can earn cryptocurrencies.

Surveys show that more than 2 billion people around the world have access to mobile phones and internet services, this opens the cryptocurrency market to all these people. The variety of Blockchain applications currently developed and being developed are designed to alleviate the problems of access to banks, high bank charges, high-interest private loans and various factors affected the large majority of people. Cryptocurrency is designed to be available, accessible and valuable to everyone in the marketplace.

When purchasing property or vehicles, the costs of lawyers, time with bank approvals and drawing up contracts is tedious. Cryptocurrency allows you to make immediate payments and settlements on property and asset transactions.

These transactions do not require middle-men, and since the whole blockchain is decentralized, it is based on a peer-to-peer system that also avoids the currency exchange difficulties in cross-border transactions. The smart contract process also ensures the transactions are recorded and legitimate, without incurring legal and broker costs.

Particularly with cross-border transactions, cryptocurrency overcomes barriers of duties, exchange rates and levies that often burden companies.

Cryptocurrency transactions can also be used to tokenize any asset or property, regardless of their monetary value. These are done user-to-user, and there is no need for brokers or middlemen to intervene. It is an efficient means of transferring assets without incurring huge costs.

For general transacting on cryptocurrency, a minimal fee is charged to confirm transactions on the digital platform. Unlike with banks were you pay for every part of the process of transacting.

More importantly, cross-border transactions and transfers incur very high costs because banks and formal institutions use various providers for the movement of funds and exchange of currency. Globally over $540 billion is remitted annually. There are minimal charges for cross-border cryptocurrency transactions, but on the overall, they are significantly lower than banks.

Further, the peer-to-peer system of transacting reduces the transactional cost of third parties in the transaction.

In a nutshell, you will see cryptocurrency is not just of benefit to the wealthy and privileged, it is something that can enhance and simplify the lives of even ordinary people doing ordinary things. It is the way of the future.

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