Using cryptocurrencies offers several compelling benefits that make them an attractive option for modern financial transactions. First, they provide enhanced security, thanks to advanced cryptographic techniques that protect your transactions from fraud and unauthorized access. Additionally, cryptocurrencies often come with lower transaction fees, especially for cross-border payments, making them cost-effective for international transfers. The speed of transactions is another advantage, as cryptocurrencies can be transferred quickly, often within minutes, regardless of geographical boundaries. Their decentralized nature ensures that no central authority can interfere with or manipulate the currency, offering greater financial autonomy.
Moreover, cryptocurrencies are accessible to anyone with an internet connection, making them a powerful tool for those in regions with limited access to traditional banking services. Lastly, the transparency of blockchain technology ensures that all transactions are publicly recorded and verifiable, enhancing trust and accountability in financial dealings.
Three key benefits are as follows:
1. Cryptocurrency grants you pseudo-anonymity
Why is it called 'pseudo' anonymity? Simply put, it is because anyone and everyone can see all the transactions on the blockchain, except the who's who. On the blockchain, you are represented by the wallet you control, which often looks like 0x1234abcd... or bc1abc123... Before you claim and confirm that you own the wallet, nobody can tell who is behind it, and you can stay anonymous.
2. Cryptocurrency is cheaper and faster than FIAT
Cheap: you refer to banks to open your savings account to keep your money safe or to receive your salary. A different payment system like Visa, Mastercard, or PayPal helps you shop online or pay bills. You might even need a different payment system like SWIFT or Western Union to send money abroad. All of these things cost money to maintain, secure and operate. Banks and financial institutions like the ones we've just mentioned must hire staff and pay for servers, office rent, and security. When you use cryptocurrency, there's no staff salary to pay, no buildings to rent, and the cost savings are passed on to you.
Fast: ever paid for a bill online only to get a message like 'payment will be reflected in 2 to 3 working days'? Or maybe log into an online wallet to get the dreaded 'account blocked' or 'pending' alert? There's no such issue with cryptocurrency. As long as you've made the right payment with the correct fees, you'll always get your bills paid or your money sent in minutes, if not seconds.
3. Cryptocurrency is borderless and always available
Cryptocurrency can be bought, sold, and accepted by people anywhere in the world. Sure, some governments restrict their trading or commercial activities with it, but there isn't a single place on the planet where you wouldn't be able to use cryptocurrency independently.
You can access your funds and move them around whenever you want, to whomever you want.