Bitcoin, a type of cryptocurrency, has been a buzzword in the online community for the last few years. While the term has become popular, very few people understand what it is and what benefits it can give.
What is Cryptocurrency?
Essentially, cryptocurrency is similar to any legal tender. It can be used to purchase products and services wherever it is accepted. However, what sets it apart is the fact that it is digital and decentralized. This means that it doesn’t take any tangible form and no government or organization regulates it.
Because of the popularity of Bitcoin, cryptocurrency has almost become synonymous with this particular type. However, cryptocurrency is not limited to Bitcoin. Amongst the most popular are Litecoin and Ethereum.
What are the Benefits of Using Cryptocurrencies?
Using cryptocurrencies carry a number of benefits. It can be beneficial for both the buying and selling parties.
Ease of Use
There are about two billion people with internet access. With that said, cryptocurrencies are available to anyone with an internet connection. This means that you can transact with your choice of cryptocurrency to anyone of the 2 billion people that have access to the internet.
Moreover, buying cryptocurrency has never been easier. In fact, you can buy Bitcoin with a credit card! There is a slew of companies that offer Bitcoin in exchange for your legal tender.
Easier Payments, Faster Settlements
Another reason to invest in virtual currencies is the fact that using cryptocurrencies make transactions easier and faster. You can send any amount to another person with just a few clicks. You do not need to enter a long list of information. Imagine, you can buy Ethereum with credit card, transfer your coins to your receiver’s wallet – literally a two-step process!
Cryptocurrencies also shorten the amount of time that you have to wait for your transaction. With Bitcoin, Litecoin, or Ethereum, you can have any amount within a matter of minutes. Cryptocurrency is designed to be instantaneous. Because it is decentralized, the process of receiving and accepting money through cryptocurrency is also streamlined.
No More Exorbitant Fees
Banks charge a hefty amount of fees because their services require manpower. When you send or receive money, the transaction has to go through several checks and balances. The more people that handle your transactions, the heftier the fees would be. That is just the sad reality.
Cryptocurrencies do away with unnecessary manpower. Moreover, reputable companies charge only a small amount if you want to buy Litecoin with a credit card. They do the same for any other virtual currency.
With that said, transferring cryptocurrency from one person to another also costs a minimal amount. It depends on what wallet the sender and receiver will use for the transaction.
Cryptocurrencies Put Prime on Anonymity
Dealing with traditional currencies require you to surrender basic information about yourself. When you open a bank account, you need a slew of documents in order to be approved.
When you transact with cryptocurrencies like Bitcoin or Litecoin, you do not have to relay any personal information to anyone. You don’t have to share your identity or location to the person you are transacting with.
It is, however, important to note that not all cryptocurrencies are anonymous. For instance, the most famous one, Bitcoin, is pseudonymous. This means that while people won’t know who you are, they can still extract information from the transaction.
Bitcoin, Ethereum, and Litecoin Protect You From Identity Fraud
When you purchase a product or a service with your credit card, you are exposing yourself to fraud and identity theft.
Credit cards have created a system of checks to ensure that fraud doesn’t happen. However, this method still operates by pulling personal information to verify a transaction. This means that current exchange systems access information before they can debit your account. Cryptocurrencies operate on a “push” basis. Unlike traditional means, the sender gets to decide the information that they give out.
Cryptocurrencies ensure that your identity and any other sensitive data remain confidential.
Cryptocurrencies seem to be the wave of the future. In looking at its benefits, there is no denying that investing in Litecoin, Ethereum, or Bitcoin is a smart financial move. Nevertheless, it is essential to find a partner that would facilitate your cryptocurrency transactions. Negotiating your transactions with reputable companies such as Paybis to ensure the security of your transactions.