Cryptocurrencies have become the new norm in society today. As more companies and governments appreciate that cryptos are here to stay, you now have more benefits to expect from using them. The most notable is the ability to send money across the globe instantly. It only takes a few seconds to send money to any country across the globe. So, why use a bank transfer which takes days or weeks?
This post takes a closer look at cryptocurrencies to determine how they work and outline the main benefits to expect for using them.
What is a Cryptocurrency?
This is digital money that is designed to only work in the respective blockchain networks. The first cryptocurrency, Bitcoin (BTC), was released in 2009 and has grown to become the most revered crypto coin to date. Between 2009 and 2012, BTC was worth about one dollar. However, that value rose with time and almost hit US$ 20,000 by the close of 2020.
Now, a lot more cryptocurrencies have been released into the market. By mid-2020, there were more than 6,000 cryptocurrencies on the globe. So, you now have a lot more options. Some of the leading cryptos today include:
- Ethereum (ETH)
- Cardano (ADA)
- Aave (AAVE)
- Solana (SOL)
Special Benefits of Using Cryptocurrencies
- You can Send Funds without Involving Third Parties
Today, the commonest method of sending funds, whether within your country or abroad is through a bank account or credit card. However, these methods involve third parties, who are left with a lot of senders’ details. There is no privacy at all. Take the example of a person who sends funds through the bank. In such a situation, the manager, cashiers, and entire lineup of organization management will be able to access his details.
The only way to send funds and maintain personal details and transaction information confidential is by using cryptocurrencies. When you initiate a transaction, it is picked and processed by the nodes that are spread on the network. However, the nodes only confirm the balance in your account and cannot know the details of the sender. No one other than you can know about the details of the transactions.
- You Help Secure the Selected Blockchain’s Network
When people hear of blockchain technology, what rings in their minds is a complex system that connects the globe to facilitate payments. Well, this is true, but you have an opportunity to own it by purchasing a few cryptocurrencies. To operate, cryptocurrency networks rely on coin holders and users spread on the network. Buying crypto coins, especially those using proof of stake (PoS) protocol, allows you to vote when key decisions are made. See: your contribution is needed to help run and take the blockchain to the next level.
- You can Use the Coins to Buy and Trade Services
You are probably used to paying for services with your credit cards or cash. Now, cryptocurrencies add another option that you can use. The lovely thing about cryptocurrencies is that transactions are cheap and processing is fast.
Today, there are traders who are only supporting crypto coins. If you want to buy non-fungible tokens (NFTs), the only way is to use crypto coins. So, whether you want to be the new owner of a unique piece of art or media that has been transformed into an NFT, you need to have some coins. You could also trade the NFTs on the market.
We have only scratched the surface to expose the benefits that you can expect from cryptocurrencies. There is a lot more. For example, you can use the coins to borrow loans and pay for taxes in jurisdictions that support them. Note that to buy cryptocurrencies, you will require a good crypto wallet. Visit hi.com to learn more about cryptocurrencies, crypto wallets, and optimizing their benefits.
Author Bio – Mashum Mollah is a Fintech entrepreneur, and passionate blogger. He is on a mission to help small businesses grow online. He shares his journey, insights and experiences at Finance Team. If you are an entrepreneur, marketing professional, or simply an info-holic, then this blog is for you.