If you’ve been disillusioned with traditional banking for its bureaucracy and security breaches, you’ve likely at least thought about a desire to invest in an alternative type of currency. Cryptocurrency is a digital or virtual currency that started with the creation of Bitcoin in 2009. Although Bitcoin still remains the most well known and most successful of these currencies, many alternatives have popped up since its inception. Some have had successes where others have floundered. The reviews on this somewhat new technology are in, though, and most it is positive. As with anything, if you’re thinking of partaking, you should weigh the pros vs. the cons. Read on for five benefits of investing in cryptocurrency.
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1. It Provides a Secure Transaction
It offers a simple and secure transfer of funds between two people or businesses. Private and public keys are used to ensure the security, and the bonus is that the fees for said transfer are extremely minimal. In this day and age when we need to protect ourselves from hackers more than ever, this is a crucial benefit.
2. It Offers Transparency
Transactions are kept transparent and are verified through an online ledger called a blockchain. This can be transferred to all computers and keeps everyone honest throughout the process.
3. The Future is Bright
Even skeptics have begun to realize that cryptocurrency is not going away. As this article by Medium.com notes, “On the one hand, the entire global financial system is becoming increasingly digitized; on another, minting paper and coins is an expensive process that may one day become obsolete.” With the ever-rising rate of Internet transactions, there will be an increasing need for ways of transferring money for retail purchases.
As long as you are an investor that not only understands the need for some risk but also thrives on it, this could very well be the perfect investment for you. As the Nasdaq notes in this article, “The unknown variables to this industry include the increasing number of coins flooding the market and the future of government regulation. However, this market space has already grown over 500% in the past year, and it shows no clear signs of slowing down.”
4. It Keeps Fraud and Identity Theft to a Minimum
Credit card charge-backs can be counterfeited and/or reversed in sometimes frivolous fashion by the sender. This is not the case with individual cryptocurrencies. What you might not have also considered is the fact that when you hand over your credit card to a merchant, you’re essentially giving that person or business access to your full credit line. As this Huffington Post article explains it:
“Credit cards operate on a ‘pull’ basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency uses a ‘push’ mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the merchant or recipient with no further information.”
While this still might be thought of as a nontraditional form of currency, all signs point to it being the safest option.
5. It Offers Decentralization
It opens up the world of what many have referred to as “mass collaboration”. In other words, because these cryptocurrencies are managed by their own networks, there is no one central authority. The previously mentioned blockchain technology means that a global network of computers jointly manages the database that stores the records of these transactions. The implications are huge.
Along these same lines, cryptocurrency also offers ease of use on an international level. Being free from interest rates, transaction charges, and exchanges rates, this type of currency makes international use uncomplicated. The benefit of the time and money saved transferring money between countries cannot be overstated.
While it might seem overwhelming to those who have only used and/or considered using mainstream investment resources, a bit of research can send you on a long and prosperous road of investing in this arena. There are ways to find out where to buy cryptocurrency. Weigh these benefits of doing so vs. any associated risks and you’ll likely find that there is a reason this form of currency isn’t going anywhere—it provides a promising alternative to traditional banking.