Cryptocurrency is getting more and more popular by the day, but there are still many people out there who do not get the hype around it.
Whether average consumers or actual investors, they tend to wonder why crypto is gaining so much attention when the local currency they are so used to works perfectly fine in almost any situation.
For many of them, it’s still rather unclear why they should ever invest in cryptocurrency but in reality, there are many benefits of investing in cryptocurrency.
With that being said, here are some of them:
- It’s Accessible
That’s right! Crypto is easily accessible for anyone to use. All you need are things you already own, like your smartphone or your computer, as well as an internet connection.
Furthermore, setting up a cryptocurrency wallet is super quick as opposed to opening up a traditional financial account.
The next step is using a trusty app like BitcoinStorm and you’re all set!
You’ll also find that there is no credit or background check either, which offers you a lot of freedom to invest immediately.
Basically, what this means is that crypto gives investors and clients a way to access financial services without the need for any centralized authority, allowing people to make online transactions easily.
- It’s Private
As mentioned before, when setting up a cryptocurrency wallet you don’t need to open an account with any traditional financial institution and this offers people a higher level of privacy when it comes to their financial details.
Transactions are pseudonymous and the wallet includes no actual information about you.
Just keep in mind, however, that when connecting a wallet address with a certain identity, all transaction data becomes public.
Still, there are other ways in which you can mask transactions, as well as a few coins that specifically focus on your financial privacy.
- It Protects against Inflation
Since Bitcoin has a hard cap on the number of coins that can be minted in total, this means that the money supply growth will eventually outspace the Bitcoin supply’s growth, leading to the increase of Bitcoin’s value.
Many other cryptocurrencies use the same cap mechanism as a way to protect against the effects of inflation.
- Transaction Costs are Low
For instance, it is quite common to cost you $25 to $30 to transfer money to someone through traditional methods, international transactions being even more costly!
But cryptocurrency transactions tend to be less expensive.
Even though the demand on the blockchain can increase transaction costs, the fees still remain significantly lower when compared to the ones of traditional financial institutions.
- Transaction Speed is High
Most transactions managed by financial institutions take between 3 and 5 work days.
Stock trades usually settle in about 3 days as well, while a wire transfer takes over 24 hours.
With that being said, one of the main advantages of cryptocurrency is that transactions take only minutes!
The funds are available as soon as the block with your transaction gets confirmed by the network.
