Advantages of Crypto-Currency
With its advent in the global market, cryptocurrency has revolutionized the universal payment system. It is now deemed much more than just a financial instrument, it is considered a ‘technology’ now. There is no doubt about the fact that the govt. authorities are trying to curb the rise of this new sun essentially because the whole of the working of this financial instrument is based on ‘Decentralization’.
The regulation of cryptocurrencies would mean losing centralized control over the financial system. Some people think that decentralization would make it risky and unauthentic but that doesn’t look like the case for most people, which include traders and entrepreneurs in a great number.
Nevertheless, the crypto craze in the market is on a surge, and here we have listed some points which might encourage you to join the crypto league.
- Confidentiality – When it comes to the traditional financial system, any transaction you make is recorded with the central governing authority and your financial history becomes an open book for the banking institutions. But, this is not the case when you trade using cryptocurrency. Only your current transaction is recorded, leaving behind no trace of your financial data. Hence, your information is guarded and private and the problems like identity theft or account theft are easily escaped from.
- Secure to the Core – The cryptocurrency is based on ‘blockchain technology’, which is encrypted and contains complex mathematical problems that are quite hard to decode. Cryptography is used and making modifications in the nodes/connective system is nearly impossible. Any interference with a single network or transaction would immediately notify all the connected networks and put them on alert. Hence, we can say that the cryptocurrency is pretty much ‘hackproof’.
- The money is saved – The middlemen are removed from the system when you trade with cryptocurrencies. Transactions are one-on-one and take place on peer-to-peer networks. For example, if you had to traditionally wire money abroad, you would need to verify the transactions using third parties and pay their fees or commission etc. but when you do the same thing using the cryptocurrency, the fees or commission is usually between negligible to zero because the third party is removed from the hierarchy. Hence it is economical or cost-effective.
- Flexibility – Many cryptocurrencies are created for one particular use, such as some ‘privacy coins or tokens’ are especially created to guard your private information and some ‘supply chain tokens’ are created to facilitate supply chain operations etc. In this sense, we can say that some cryptocurrencies last for a very short period. In a way, these become quite flexible. Use for the purpose it is specifically designed for and then you can just move on. If we talk about the numbers, there are roughly 4000 cryptocurrencies in circulation in the world as of 2021.
- Lightning fast transfer of funds – Cryptocurrencies are widely accepted and loved and most of the people in the trading world are aware of this fact. One main reason behind this success is the speed at which the transfer of funds and the exchange of currency take place. And of course, with negligible or minimal fees. Most of the cryptocurrencies can be bought using a wide range of currencies like- Indian Rupee, Japanese Yen, US Dollar, British Pounds, and Euro etc. One crypto-currency can be very easily converted and traded with other cryptocurrency using secure crypto-wallets.
- Timings – The market for trading cryptocurrencies is available 24*7 all through the year. You can easily trade most of the cryptocurrencies against Fiat currencies like the US Dollar, Indian Rupee and Japanese Yen etc. Many exchanges or the trading platforms like the United Exchange provide great Liquidity and ease of trading at all times. Another reason, why the cryptocurrency market is active 24 hours is because it is fully decentralized and uniform, which makes it unique and available throughout the world at all times
- Ease of operation – Cryptocurrency saves you from the hassle of tedious paperwork that is required in traditional banking. You have to go through a lot of paperwork and somehow a single mistake pushes you to do it all over again, but this is not the case with cryptocurrency. All you need is an electronic device (computer, mobile and tab etc) with an internet connection and you are all ready to trade. The KYC is done in the blink of an eye and you can trade from wherever you are and whenever you want to.
- Expanding Market Size – The market size of cryptocurrencies has expanded continuously ever since the inception of the very first cryptocurrency called- ‘Bitcoin’ in 2008. Many cryptocurrencies have risen since then and we can say it is a profitable market because the overall market cap of all the cryptocurrencies combined reached over 1.8 trillion US$ at the time of writing. Therefore, investing in this relatively new market would bring prosperity and boom for the traders.
Some words of advice:
The cryptocurrency market is highly volatile in nature, and this exactly what makes it exciting and fun. The ups-and-downs are inevitable, but with proper planning, anyone can minimize the extent of risks and losses and gain magnificent profits. Cryptocurrency is a futuristic currency. It is a booming market with many opportunities hidden in its every nook and corner. Discussed in the article are just a few advantages out of many advantages of cryptocurrency. The time is exactly right to invest in the cryptocurrency market and the investments would prove to be advantageous. We recommend taking decisions after sincere research and follow-ups. Seek the advice of the expert when required. We wish you great luck and prosperity.
The United Exchange welcomes you with open arms and warm regards.
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