Crypto is an asset class that is relatively new which was first introduced with the invention of the Bitcoin blockchain in 2009. The main advantage of Bitcoin and other Cryptocurrency based in blockchain tech is that they do not have any central authority, processor of payments, or company’s owner.
However, cryptocurrency networks are peer to peer, which means users can directly transact with each other. The other advantages of cryptocurrency come from their decentralized and peer-to peer nature. Let’s take a look at the positives of cryptocurrency in this guide.
5 Benefits of Owning Cryptocurrency in 2022
1. Easy Transactions
Transactions in cryptocurrency can be completed quickly, for a low cost and more secure than other transactions. With a simple smartphone application or hardware wallet an exchange wallet, anybody can transfer and receive many different cryptocurrency.
Certain types of cryptocurrency such as Bitcoin, Litecoin, and Ethereum are available to purchase using cash through an ATM. Bitcoin ATM. Bank accounts aren’t necessarily necessary to be able to use cryptocurrency. You can buy bitcoin from an ATM with cash and then transfer those bitcoins to their mobile. For those who aren’t able to access to traditional financial systems it could be one of the major advantages of cryptocurrency.
2. Incredible Security
Since they are based on blockchain security and cryptography Decentralized cryptocurrency tends to provide secure means of payment. This is one of the greatest advantages of cryptocurrency.
The security of cryptography is determined largely by the hash rate. The higher the rate of hashing the greater computing power it takes to breach the security of the network. Bitcoin, the cryptocurrency with the highest security having the highest hash rates of any network.
Utilizing a cryptocurrency exchange is just so secure that the transaction itself however. The majority of instances of hacking crypto involves hacking of exchanges or making mistakes.
3. Short Settlement Times and Low Fees
Some people are only looking to invest in cryptocurrency to gain price appreciation, others may be able to benefit from the ability to use cryptocurrency as a means of exchange.
Bitcoin as well as Ether transactions can cost anything between dimes and nickels up to many thousand dollars. Other cryptos such as Litecoin, XRP, and others are available at just pennies, or even less. Most crypto transactions are settled in minutes or seconds. Transfers to banks via wire transfer are more expensive and typically take up to five days in order to process.
4. Exponential Industry Growth
The cryptocurrency industry is one of the fastest-growing industries that we have experienced in our lifetimes. It is possible to be compared with companies that were on the leading technological edge back in the 90s and the early 2000s.
The market capitalization that the market had in 2013 was around $1.6 billion. In June 2021, it increased to more than $1.4 trillion.
5. Outsized Returns
It’s not a secret that Bitcoin has been the most profitable asset in the last 12 years. At the time it was first introduced in 2009, Bitcoin essentially had no value. The following years, it would increase to just a fraction of a cent, and eventually, to the tens in thousands. This is thousands of points of gains. Comparatively for instance, the S&P 500 index of stocks yields an average of 8 percent per year.
Certain altcoins have outperformed Bitcoin in large margins at times, but they have seen their prices plummet. These gains could be among the most widely-known advantages of cryptocurrency. (The losses however could be one of the most widely-known negatives.) The volatility of prices has been a major factor in the cryptocurrency market and is one of the major advantages of crypto for day traders as well as speculators.
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