By now you must have heard about cryptocurrencies and Bitcoin in particular. But, what is cryptocurrency and how is it different from traditional money?
What is Cryptocurrency?
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Several years ago cryptocurrencies, namely Bitcoin took the online world by storm and never looked back.
A cryptocurrency is a digital asset that exists solely on the internet. It’s assigned a value mostly due to demand and for exchange between peers.
The most famous cryptocurrency is undoubtedly Bitcoin. As such, it’s currently the most valuable among other tokens. However, there are other notable coins such as Ethereum, Litecoin and Ripple that are making waves in their own right.
Advantages and Benefits of Cryptocurrency
Complete Autonomy
The word ‘decentralized’ gets used a lot when it comes to describing blockchain and cryptocurrency, and it’s true. Compared to traditional fiat, crypto coins can be sent to and from one user to another without having to go through a middleman, such as a bank or government.
It’s easy to think of cryptocurrency as something you own. You have complete control over your asset and can exchange it for something of equal value any time. You can even grow it with the help of a crypto cash login and earn money on the side.
Offers a High Degree of Anonymity
Digital security and anonymity are considered priceless in today’s world. Web users who do not wish to be tracked often make use of a VPN or ad blocker, and those who wish to remain completely undetected use a browser that hides their every move.
Cryptocurrency is the same in this regard. Bitcoin owners are not restricted to any purchase as long as it’s available online. The seller or merchant may not know the identity, and the transaction is untraceable as well.
Faster Processing and Cheaper Rate
Cryptocurrency is not ‘held’ by a central authority and can be transferred from one physical location to another electronically. The beauty of this is that it usually reaches the other side just like an online message would- almost instantaneously, which gives it leverage in terms of convenience.
Not only is processing in cryptocurrency fast, it’s also relatively cheaper compared to having to send a payment by wire. There’s also fewer headaches, such as maintenance fees, minimum balance required and whatnot. Cryptocurrency clearly beats fiat currencies in this regard.
Readily Accessible To All
Cryptocurrency, even as an investment is readily available for those who are interested. Thanks to the internet and technology, one can exchange money in the form of a credit or debit card and purchase a corresponding amount of Bitcoin, for example.
This is usually done on crypto exchanges that are available everywhere. You just have to choose a reputable platform that has many users and good reviews, sign up for an account and make the trade. Afterwards, keep the cryptocurrency in a digital wallet or start trading to gain profit.
It’s worthy to note that cryptocurrencies are breaking the digital mold and becoming a part of the physical world. Some brands are now accepting Bitcoin as a form of payment in exchange for real life products, food and services.