If you are considering entering the crypto universe or if you’ve only recently made your first investment, you might still be exploring the benefits of bitcoin as opposed to your credit card, online bank account or digital wallet you are used to. In an abstract sense, cryptocurrencies represent financial evolution which manifests itself in unique and tangible ways compared to fiat money.
Fast and Easy Payments
If there’s one thing cryptocurrency deserves credit for, besides that it makes you a true owner of your money, it’s the ease it brings to electronic payments and transfers. Bitcoin has been around for over a decade now and it is not a tool only for the tech savvy anymore. A myriad of crypto platforms have made it simple to keep and send digital coins. It takes just a few steps to purchase your first cryptos and start spending.
All you need to have initially is a bitcoin wallet and plenty of free options are available. For beginners, a software wallet is probably the best choice and you can download and install a number of mobile applications or desktop programs. If you don’t plan to spend coins on a daily basis and in case you need a higher level of security for your crypto holdings, you’ll be better off with a hardware wallet – getting one is easy too.
With cryptocurrencies, sending money is quick, easy and inexpensive. You just need to have the recipient’s address, which you can either copy and paste in your wallet, making sure the first and the last few digits are the same, or obtain it through a simple QR scan as most wallet apps allow you to do so. After entering an amount, hitting the ‘Send’ button initiates an irreversible transaction; it’s a good idea to set up a spending PIN on your wallet as well.
Low Cost Transactions
Generally, crypto transactions are fast and cheap but the speed and the cost depend on various factors such as the number of transactions a network has to process at a given time and the fee you are willing to pay to the miners. Bear in mind that not all cryptocurrencies are made equal, so to speak. In the case with coins such as bitcoin cash (BCH), transfers are almost instant and often cost less than a penny. That’s regardless of the amount sent or distance covered. With crypto, payments, transactions, and international transfers are faster, easier and safer and you don’t have to worry about progressive fees or bank holidays.
People sending remittances home and companies working with remote contractors abroad often take advantage of that. Besides, bitcoin has another useful feature – you can always check if and when the money has arrived. You can do so with a block explorer. Small businesses should also appreciate the lack of chargebacks with crypto transactions, in contrast with traditional payment methods.
Profitable Saving, Accessible Credit
If you join the crypto space in search of a better store of value than what the fiat system offers for your money, it’s worth noting that by design cryptocurrencies don’t suffer from significant inflation. Digital assets based on the original principles of Bitcoin have a limited supply, setting them apart from fiat currencies, which can be constantly inflated when governments create more money through quantitative easing or by manipulating benchmark interest rates. Historically, long term investments in many major cryptos have appreciated.
Using peer-to-peer digital cash does not require involvement of third parties, which is another strong point. Everyone is free to transact directly with anybody else. But if you need specialized financial services, a thriving ecosystem growing around cryptocurrencies can provide you with such. Platforms like Cred, for instance, let you earn up to 10% interest on your BTC and BCH holdings, much more than any regular savings account these days, or get a sub-10% APR crypto-backed loan without the credit checks and hidden fees employed by banks and credit card companies.
What other advantages of cryptocurrencies would you add to this list? Let us know in the comments section below.
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