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.