11 REAL ADVANTAGES OF USING CRYPTOCURRENCIES.
The cryptocurrencies have shown that they are more than a simple boom or a fad, and that is here definitely to stay. Everyday people acquire digital currencies with more frequency and more businesses accept them as payment methods. But, in addition to that, there are so many benefits that the fiat currencies offer to the population.
After “the fall of the bitcoin prices” in the first half of 2018, some people continued to bet on this type of digital currency even though they knew the high risk. On the other hand, for the majority of the population, it is still not very clear what cryptocurrencies are, the different types of cryptocurrencies, how to buy or use them. In general, the real advantages of digital cryptocurrencies compared to fiat money and the traditional financial institutions (e.g. banks, cash, stocks in the stock market) are still a big gap.
However, This new century brought with it the mobile applications, making the possession of smartphones practically indispensable, and with it the use of the blockchain technology (the technology on which the cryptocurrencies are based) became more viable in a world where people connect daily through their phones to carry out day-life actions such as; latest news, online shopping, connecting with other people, education, or even medical consultations through mobile applications without the need to go to a physical location.
In Cryptobuyer we believe that cryptocurrencies were born to change the way our finances move, they are the evolution of fiat money, and for many people, digital currencies are the solution they have been waiting for all their life. For this reason, we will introduce you below 11 real advantages of using cryptocurrencies.
1- Cryptocurrencies avoid fraud:
There are still many questions about cryptocurrencies, wrong information could lead to believe they are used for money laundry or even for fraudulent businesses. The reality is that cryptocurrencies are legal money, and because of their nature, they can not be falsified. A transaction cannot be revoked once it enters the chain of blocks and the authenticity is verified.
2- Immediate and economic liquidity:
When we acquire or sell an asset (whatever nature is) it involves third parties in bureaucratic processes to verify the property rights of those involved, causing an overall delay and high fees. The blockchain is a huge database of property rights online, which reduces time and costs, meaning that transfers of digital assets are immediate and the administrative costs involved are much lower compared to the traditional financial services.
3- Access to money without the need of traditional financial institutions:
Not all people have access to bank accounts, at least 2 billion people do not meet the banking requirements, and cannot access the bank services. Digital currencies are the ideal method that offers ownership available to all people in the legal exchange of money.
4- Lower costs:
As it is not necessary to sign contracts, fill out forms, generate checkbooks, plastic cards and various physical devices for the exchange of money, the transactional and use cost, is only a fraction of what the traditional institution charges for the equal service.
5- Cryptocurrencies are 100% owned by the user:
Cryptocurrencies not being own by a third party cannot be frozen at the discretion of a third party, as is often the case with traditional financial institutions, avoiding the bad moments of submitting to scrutiny to demonstrate the use of our money. Cryptocurrencies have a public and private key corresponding to the wallet where it is stored.
6- Global transactions:
Payments in cryptocurrencies can be made from anywhere in the world with internet access. Transactions of FIAT currencies are complicated if you do not have a bank account of the same currency, it entails high administrative expenses and not even 1% of the world population has bank accounts in all fiat currencies. Compared to that, cryptocurrencies facilitate not only the transaction of sending money internationally, but the trade of goods and services breaking down the barrier of currency changes. If you are a person who works with companies or clients abroad, cryptocurrencies can be as viable as a Paypal Payment, but often with even lower commission fees.
7- Simple process:
general, monetary transactions with traditional financial institutions involve many steps prior to the settlement of funds in the destination account. You need to give a lot of personal information that many people for protection would prefer not to provide. However, with cryptocurrencies the process of transferring funds is very simple, you only need to scan a QR code ( unique graphics code that is scanned with the camera of any device) or enter the destination wallet address, and click on send. The destination address will, in fact, take a matter of seconds to receive the funds
8- Guarantee users privacy:
with cryptocurrencies protect the identity of the user. Anyone can see the funds and transactions of an address. However, the identity of that user is protected unless it is revealed during a purchase process. This is one of the reasons why good practices should be adopted, such as the one use of addresses (in some portfolios, HD calls, there are several addresses for the same user). The process of transactions with cryptocurrencies, contrary to what is believed, is quite transparent.
9- Remittances are faster to send:
The important technological and telecommunications advances transformed the way of sending remittances, from a market that used money orders, to another current market dominated by electronic transfers, which reduce costs and time to reach remote areas that are difficult to access. The process of sending international remittances by traditional means can have a time of liquidation of funds of up to a week depending on the country. Usually the traditional process is as follows: Who sends the remittance goes to a foreign exchange agent, where he undergoes different exchange rates and high costs for administrative expenses, then who sends the remittance must wait for the exchange agent’s confirmation of having transferred the funds (there are exchange agents who have a period of up to 72 hours to settle the funds to the destination bank account), then whoever is going to receive must wait a period of up to 72 more hours for the funds of the remittance to be settled in their bank account (this varies according to the country), so if the shipment of the remittance is an emergency it could not be solved immediately, because they would have to wait up to a week in the liquidation of the funds. The cryptocurrencies allow access to the network to 4 billion people who have no possibility of operating with banks, credit cards or other means of payment and need to make remittances, export and import goods, etc. Thus, they can operate through the internet or a mobile application to make those electronic payments and other operations, and they would avoid waiting for the liquidation of the funds. Cryptocurrencies are a fast and secure option for online funds transfer immediately
10- Anyone with internet access can be part of the mining process:
Mining is the process of adding transaction records to the ledger of past transactions. The blockchain serves to confirm transactions to the rest of the network as having taken place. The primary purpose of mining is to set the history of transactions in a way that is computationally impractical to modify by any one entity. By downloading and verifying the blockchain, the nodes are able to reach consensus about the ordering of events in bitcoin. The software that is used, forces the system to complete complicated calculations and if everything goes according to the plan, the miners are rewarded with cryptocurrencies at the end of each process completed by the miner.
11- Cryptocurrencies preserve the purchasing power of inflation:
The main cryptocurrencies have a definite total supply that cannot be altered by any central bank or authority of any country, which promotes its value to increase over time, unlike the FIAT currencies which are controlled by central country banks, which can produce inorganic money at its sole discretion, triggering inflation rates. Cryptocurrencies in countries with high levels of inflation are a stable reserve of value and a hedge against sustained increases in prices in the local fiduciary currency, since the value of cryptocurrencies is calculated in stable fiduciary currencies, such as the dollar, and this value is referred to the last amount, which is negotiated in one of the main exchange houses or an averaged amount among several of them. Users should look for the following aspects: Secure platforms where they can protect their fiat money by buying or selling cryptocurrencies, and secure wallet services where they can guarantee the proper management of their digital assets.
The truth is that cryptocurrencies were born to satisfy the needs of those who cannot or do not want to use traditional financial services.
Finally, we recommend you to look for platforms that offer the greatest security against financial fraud, that have stability and recognition of their users, that verifies transactions within the broader international legal framework, and that protect your money.
Look for platforms that have the best rate of change in price — value, not always the best is what it costs less. Search for platforms that take care of your data.
When making a transaction with someone to verify your business history, it is preferable to be cautious than sorry.
Did you know that the thefts that have been documented in the cryptocurrencies industry have never been related to the source that generates them but to the third parties that manage these digital assets? For that reason, it is important to find wallets with good reputation and high-security controls to protect your digital assets.
