In the space of only ten years, cryptocurrencies have gone from looking like a joke currency to an official currency of states. It’s a digital tour de force that has made many people rich beyond their wildest dreams. Also, the blockchain technology it’s based on has changed many aspects of our life for the better.
However, it’s still just over a decade old (or young), which means there are still lots of people unaware of what crypto is. Or how it all works, and the benefits it can bring to those who own it. After all, why would someone opt for a digital coin like Bitcoin or Ether when they can carry on living their lives using fiat currency like the USD and GBP?
Well, the truth is that cryptocurrency brings with it a whole host of benefits and advantages that a traditional fiat currency could never bring. By the end of this fun-to-read article, you’ll know exactly what’s what as we break down the 8 benefits of owning cryptocurrency.
And if you wish to invest in cryptocurrency by the end of this guide? Don’t worry; we won’t leave you hanging! For beginners, we recommend opting for a well-established and easy-to-use platform to find your feet in the world of crypto. You can start through expert-recommended apps and platforms like eToro, Binance, or Immediate Edge.
Now, without further ado, let’s begin! Here are 8 great benefits you get from owning crypto.
Fast Transaction Speeds
Despite numerous advances in modern technology, the task of sending money to another person can be long, drawn out, and tedious. For example, if you want to send funds to someone who lives in North America, you might be waiting for a while.
On average, you can expect an everyday transaction to a U.S. bank account to clear somewhere between three and five days. Wire transfers are often quicker but usually more expensive.
But with crypto, you can expect eye-watering transaction speeds that leave traditional fiat currencies behind in their dust. With most major cryptocurrencies, you can expect to wait anywhere from minutes to mere seconds for your transaction to complete. The moment your transaction confirms on the blockchain network, it’s done and dusted.
Of course, some cryptocurrencies are much faster than others. Some class their transaction speeds as their main selling point, such as:
Solana (SOL) started in 2017 and has since developed a formidable reputation of being one of the fastest cryptocurrencies on the market today with wild average transaction speeds of 3,000 TPS.
Ripple’s (XRP) goal is to provide a decentralized alternative to conventional cross-border payment systems like SWIFT, which have traditionally been both slow and expensive. Ripple can offer its users an extremely fast transaction speed of 1,500 TPS. In addition, many believe that this can potentially scale up to 50,000 TPS.
Lower Transaction Fees
As well as taking a long time to complete, conventional fiat currencies can be costly. For example, if you opt for a wire transfer to cut down transaction time, you can pay anywhere north of $25. If you’re sending regular transfers, this can seriously add up.
In contrast, using cryptocurrency can result in far cheaper transaction fees. The only issue is when there is a lot of traffic and demand on the blockchain during busy periods. When this happens, transaction fees for cryptocurrencies can rise. But overall, in the long run, even the busiest blockchains still work out cheaper than conventional transfer methods such as wire transfer.
High Levels of Accessibility
We don’t think about this in ‘the West’, but the ability to open and hold a bank account is a privilege. In various countries, especially the third world, large swathes of people are unbanked. Their social status makes it almost impossible for them to access the global banking system like people in western countries.
With cryptocurrency, anybody can access it and take advantage of its benefits. A potential crypto user only needs a device like a laptop or a smartphone and access to the internet. Compared to opening a traditional bank account, opening a crypto account is much quicker and easier.
You Can Expect Serious Security Levels With Crypto If You Use It Right!
The truth is, a mainstream bank account is far from secure in the face of persistent threats that plague the world of conventional finance. In contrast, cryptocurrency is far more secure thanks to its decentralized state. When you care for your coins properly, that is.
There’s no way for a malicious person to gain access to your crypto and execute transactions unless they have access to your private keys to access your cryptocurrency wallet. Similarly, if you misplace your private keys, you can say goodbye to your cryptocurrency as it’ll be virtually lost forever.
Another aspect of security crypto has is the nature of blockchain technology. The blockchain works through a distributed network of computers that works to verify transactions. The security of this decentralized technology gets stronger with each piece of computing power that comes online.
The reason for this is that any malicious attacker needs to summon more computing power than the blockchain itself in order to confirm multiple transactions before the rest of the network can verify the attacker’s legitimacy. For the likes of Bitcoin and Ethereum, the sheer cost and effort outweigh the potential reward.
When hacked accounts and stolen crypto happens, the reason is usually that they’ve neglected crucial security practices to keep their crypto safe.
Crypto Offers Unrivaled Levels Of Privacy
You don’t need to be a financial expert to know that conventional banks are far from private. It’s not uncommon for bank records to get lost, stolen, exposed, or used for other illicit goals. In contrast, crypto is far more private.
Usually, when you sign up for an account to buy, trade, and sell crypto, you’re not required to supply a form of ID. This provides a foundation of serious privacy for your decentralized finances to begin with. Then, there’s the act of making transactions.
It’s true that crypto transactions aren’t 100% anonymous. Instead, the term is pseudonymous. The reason for this is that you are identifiable on the blockchain through your crypto wallet address. However, this address doesn’t actually reveal any information about you per se.
The level of privacy crypto offers is often used as ammunition to attack it by crypto critics. Of course, this level of privacy is desirable by criminals and they take advantage of it. But in an age of increasing snooping and lack of privacy, the level of privacy crypto offers is equally desirable to well-intentioned people too.
Although crypto is private by nature, there is another step further for those who really value their privacy. The crypto market is home to a wide range of privacy-focused cryptocurrencies that have made it their mission to further bolster the private nature of crypto, such as:
Monero (XMR) is an increasingly popular crypto that works to help users maintain their anonymity. Thanks to the use of ring signatures and stealth addresses, it’s exceptionally difficult to track and trace Monero transactions.
Zcash (ZEC) is one of the most private cryptocurrencies on the market today. The best way it can be explained is as an https security certificate for cryptocurrency. The most popular privacy feature of Zcash is its unique cryptographic tool called Zero-Knowledge Proof which allows its users to shield their transactions.
Crypto Can Be Equally As Transparent As It Is Private
Ok, now we’ve delved into crypto’s privacy features, let’s look at how it can equally be transparent in its own special way. As all crypto transactions occur on the blockchain, which is a publicly distributed ledger, it’s actually very transparent.
For example, if someone wishes to look up transaction data, such as where, when, and how much of a particular crypto a person sent from a wallet address, they can do so. In addition, people can also see how much crypto is stored in a particular wallet, if they have access to the wallet address.
In turn, this exceptional level of transparency plays a significant role in combating any fraudulent transactions because people are easily able to verify that they sent the digital currency, that it was received on the other end, and that they are in possession of sufficient funds to make a particular transaction.
Diversification Of Investment Portfolios
Have you ever heard the phrase “don’t keep all your eggs in one basket”? It applies to finance too. If you have an investment portfolio, it’s important not to rely heavily on one asset. If it crashes, then you’re in trouble. Diversification is key to withstand any financial storms which often come out of nowhere.
Traditionally, most investment portfolios are made up of things like stocks and bonds. However, crypto can provide a phenomenal way to diversify from these traditional assets. Whilst the latter are relatively more stable, crypto is volatile and prices can surge and fall regularly.
Plus, the price of crypto is largely disconnected from that of the stocks and shares market, making for a marriage made in heaven when it comes to creating a diversified portfolio.
If you wish to generate a more steady stream of income from an investment portfolio, then combining assets with a minimal price correlation such as stocks and crypto is a great way to do it. For example, if your crypto portfolio dips, your stocks and bonds may go up and vice versa.
But of course, it’s worth remembering that crypto is inherently volatile. Regardless of how you invest, adding crypto to your portfolio adds a level of volatility to it overall. Many pros advise only using 10% of your overall portfolio for cryptocurrency.
Protection Against Inflation
In 2022 alone, global inflation has surged almost 10% and most aren’t expecting it to get any better. The war in Ukraine, the aftereffects of the pandemic, and the surging prices of everything from gas to groceries are all playing a significant role in the surging inflation we’re living through.
Often referred to as digital gold, the total amount of Bitcoin is 21 million. Once all of these coins are gone, they’re gone. This makes Bitcoin a scarce asset, just like gold. Conventional currencies like the British Pound and the US Dollar, on the other hand, have no cap. There’s no limit to the amount of GBP or USD the central banks can mint, so there’s no limit to its inflation.
As the wild output of fiat currencies continues to outpace the total supply of cryptocurrencies with a hard cap like Bitcoin, the value of such cryptocurrencies is naturally expected to increase dramatically. Thus forming a formidable level of protection against global inflation.
In Summary, There are a ton of Benefits That Come With Owning Crypto!
And there we have it! From safeguarding yourself against rising inflation to reaping the benefits of fast transaction speeds and much more, this article shows you eight benefits of owning cryptocurrency.
If you’re planning to invest in crypto, don’t fall at the first hurdle and get sucked in by one of the many scam platforms that sadly plague the crypto space seeking to take advantage of newcomers. Instead, listen to the experts who recommend the likes of reputable platforms like Bitcoin 360, eToro, or Binance as a surefire and secure way to invest in crypto.
And, of course, although crypto may have many benefits, it’s not all roses. Decentralized currencies are volatile by nature. Sure, their price can skyrocket overnight and make you a tonne of profit, but it can also drop suddenly and cause major losses. So invest sensibly and never invest more than you can afford to lose in the crypto world. It’s always a good idea to consult with a licensed financial advisor prior to investing in crypto for the first time.
⬆️For more cryptocurrency news, check out the Altcoin Buzz YouTube channel.
⬆️ Check out our most up-to-date research, NFT and Metaverse buy, and how to protect your portfolio in this market by checking out our Altcoin Buzz Access group. And for a limited time, it’s FREE. Just click the link and Try it today.