You would have to be living under a rock to be unaware of cryptocurrencies. Bitcoin price is a hot topic in the investing world, but there is more to investing in cryptocurrencies. The first thing you should be asking yourself is, “Why invest in cryptocurrency?”
Before you begin investing, take the time to learn about the litany of benefits that come with the territory. When you have finished reading this, you will be more informed and ready to make the next move.
The single most important reason to invest in cryptocurrency is safety. Backed by blockchain technology, cryptocurrency can be bought, sold, or traded with complete anonymity and security. There is no financial institution acting as the middleman and the blockchain cannot be altered after the transaction has been processed.
The blockchain is also distributed over a network of computers, which provides a layer of protection from network outages and other issues. Moreover, it provides the computing power required to not only make transactions happen but to keep them safe as well. An attack that attempts to take one device offline will be mitigated because there are other devices supporting this technology.
With traditional investing, there are always going to be costs. Whether through a brokerage or a per-transaction fee from a trading website, those fees will add up over time. The beauty of cryptocurrency is that there are much lower transaction fees involved. Even if it seems like a small savings, that will add up before you know it.
For things like international wire transfers, you could be spending dozens for each transaction. Crypto transactions are a lot less expensive though higher demand on the blockchain can lead to an increase. Even still, the average fee is going to be much lower than what you would have to deal with from another investment method.
One of the major complaints about sending money through another method is the processing times. Even the good ones can have 24-hour processing times. With cryptocurrency, that time is cut down to a matter of minutes. Something like a wire transfer, considered one of the fastest methods, takes 24 hours. Bank transfers can take 3-5 business days.
We would all prefer to get our funds sooner rather than later. When processing transactions with cryptocurrency, you can send or receive funds in no time at all. Once the block has been confirmed, it is considered settled and the funds will be ready to use.
If there is one complaint about traditional investment types, it is that it doesn’t necessarily feel welcoming to “common” investors. The beauty of cryptocurrency is that it is accessible to everyone. Anyone can start using cryptocurrency so long as you have a smartphone or computer and an internet connection. Setting up a crypto wallet is very fast, especially for something like opening a bank account. Plus, there’s no background or credit check, nor is there the need to verify your identification.
Those who don’t have a bank account can access financial services without having to set up an account through a centralized financial service. Not everyone feels comfortable using a traditional bank account. By using cryptocurrency, anyone can gain access to their money and make online transactions effortless.
More importantly, everything remains anonymous. There is no need to share personal information, so it will stay safe and protected from financial institutions and strangers. The anonymous aspect of the blockchain system is a major selling point. Even if you have used traditional banking methods, branching into cryptocurrency can unlock a new world.