Whenever there’s a debate about cryptocurrency’s fortunes, you will most likely hear the names of crypto billionaires, including the Winklevoss twins of Gemini, Changpeng Zhao of Binance, and Brian Armstrong of Coinbase. These are among the investors enjoying high investment returns in cryptocurrency as the return they could get from NFL picks against the spread.
Additionally, the list of companies accepting cryptocurrency as payment has recently grown. Using cryptocurrency, you can now transact with big organizations like Starbucks, PayPal, and Microsoft.
As cryptocurrency continues to gain prominence in the financial industry, you need to know its benefits to grow.
Here’s a highlight of the seven benefits of cryptocurrency.
1. Low Transaction Fees
You enjoy relatively low transaction costs using cryptocurrencies to make payments online than using other payment platforms, such as Payoneer, Square, and PayPal.
Several cryptocurrency exchanges compete for cryptocurrency users, offering competitive transaction fees to attract them.
Besides competition among crypto exchanges, transaction fees are also based on individual coins. For instance, exchanges charge higher transaction fees on cryptocurrencies that are high in demand, such as Bitcoin and Ether, than on altcoins, like XRP, Dogecoin, and Litecoin.
I don’t know about you, but many other people like to save money. These low transaction fees give exchanges a competitive advantage over banks and other wire transfer platforms, thus converting more users daily.
2. No Inflation
Creators of cryptocurrencies put a hard cap on the maximum number of coins that can be minted to protect them from inflation. Consequently, as the demand for the limited number of tokens in circulation rises, so does their value.
For instance, Bitcoin’s hard cap is 21 million coins. Bitcoin is also the most demanded cryptocurrency. Its scarcity has caused it to increase in value from barely $0 back in 2009 to $16,845 per coin today.
Again, looking at cryptocurrencies from this lens also helps investors seize it as an investment opportunity. Some of the Bitcoin millionaires, for instance, bought them when they were cheaper and held. They’re now enjoying returns on investment of several thousand over.
3. Portfolio Diversification
Over the years, investors’ portfolios comprised mostly property, shares, and fixed interests. With the introduction of cryptocurrency, many have identified an additional investment to add to their portfolio.
While some investors have committed their money to the simple buy-and-hold strategy, others have had different approaches to investing in cryptocurrency. For instance, most cryptocurrency billionaires highlighted in the introduction, including Winklevoss twins of Gemini, Changpeng Zhao of Binance, and Brian Armstrong of Coinbase, do more than just buy and hold digital coins.
The richest among them, Changpeng Zhao, makes his fortune out of Binance, the world’s leading cryptocurrency exchange.
4. Security
One of the most attractive features of cryptocurrency is security. Technologies behind the development of cryptocurrencies, such as Bitcoin and Ethereum, offer them higher security levels than banks and the military combined. Such integrity makes it impossible for hackers to attack individual coins.
However, cryptocurrency exchanges can be hacked, while cryptocurrencies are almost impossible. Consequently, they have lost users’ cryptocurrencies in the past.
5. Speed
Of all transaction options available in fintech, cryptocurrency is probably the fastest. The days of waiting for an eCheck to mature or banks requesting you to wait for 3 business days or more to process your transaction are now in the past.
6. Ease of Access
Since cryptocurrencies are digital, all transactions are done online. As such, all you need is your device, access to the internet, and a crypto exchange to complete a transaction. You can also use a hardware wallet to send and receive virtual currencies if you’re using a non-custodial crypto wallet.
Therefore, if you’re looking for a way to conduct fast and secure transactions from any place, any time, then crypto is the answer you’re looking for.
7. Cryptocurrency’s Future Prospects
There’s almost no doubt that the cryptocurrency industry will grow exponentially. With the digital shift in most sectors today, it seems logical that the financial world also transitions to digital currency. The future of transactions is digital, and cryptocurrency will be at the core of this major shift.
Conclusion
The pros of cryptocurrencies are vast and worth looking into if you wish to move with the trend. Getting insights into these benefits will inform your decisions to invest in cryptocurrency and reap its ever-growing value.
Besides investing, you can enjoy incredible speeds, ease of access, and low transaction fees when you opt for crypto to make payments.
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