Over the last couple of years, the term cryptocurrency has been rapidly gaining ground and understanding of its use and value in the public eye. At first it seemed unfamiliar and somewhat scary like the credit card looked to users in its early days.
You might be more familiar with terms like Bitcoin, and Ether. These are all cryptocurrencies using the Blockchain Technology to keep this currency and technology safe.
Currently, there are many types of cryptocurrency. A simple google search of the popular trend shows you the start of the growth and where it is taking us.
1.No third party
Usually, trading with people in other countries often requires that one or several third-parties (central governments, banks or credit card companies) are involved in the transaction. While they help to track transactions and make sure they’re secure, their involvement in turn means that certain fees have to be paid.
With cryptocurrency, there is no need for a third party.
Here’s why: Cryptocurrencies like Bitcoin are decentralized, that is there’s no central government regulating it. Transfers of cryptocurrency funds are facilitated through the use of public and private keys for security purposes.
These transfers, done with little processing fees, allow users to avoid the high fees usually charged by banks and financial institutions for wire transfers.
2.It is more secure
If by now you’re wondering how secure the use of cryptocurrency like Bitcoin is, think no further. Your answer is Bitcoin mining.
Bitcoin mining is one of the three primary ways to obtain Bitcoins — the others being buying on an exchange or accepting them for goods and services. That’s how they go into circulation.
This mining, which requires a computer and special software, is also responsible for validating previous transactions. Bitcoin is given to miners as a reward for validating the previous transactions.
This means that the validation of transactions is dependent on whether or not new Bitcoins are “mined.” It also means that, with several miners the world over trying to solve a block that has the latest transaction data in it, it’s almost impossible to be defrauded.
Hence, completed transactions can be tracked, ensuring security at a level not experienced in the exchange of traditional currencies.
- Instant transfer that saves time
What’s the fastest time you’ve ever recorded while making an international transfer of traditional currency? Probably days, depending on which one you chose. But, with cryptocurrency, the story is different.
According to Amit Bhardwaj, the Managing Director of Gain Bitcoin, “The major purpose of cryptocurrencies like Bitcoin is to get around the disadvantages of trading in traditional currencies. And one way it does that is by making sure of instant and cheap transfer of funds to anyone and anywhere in the world”.
- Increased access
As said earlier, the number of people who have embraced the use of cryptocurrencies like Bitcoin is on the rise. And with this increase, more retailers, websites and online trading platforms are beginning to accept only these virtual “tokens.”
With your Bitcoin in your wallet, you can easily make transactions on these websites, something that would be impossible with traditional currencies.
- Easier to maintain your privacy
Because Bitcoins can be exchanged directly from person to person, privacy of transactions can be maintained.
Instead of going through a bank or financial institution before you make a transaction, you can use the advantage of transacting with cryptocurrency to ensure no one’s snooping in on your business.
Privacy? Check.
Time saver? Check.
Ease of use? Double check.
The use of cryptocurrency definitely ticks all the boxes of the basics of making quick and reliable transaction.
