A cryptocurrency is a digital or we say a virtual currency made up of blockchain technology using cryptography techniques. It started in 2009 by an individual or group of people under the name Satoshi Nakamoto. This cryptocurrency became popular in 2013 when the price of bitcoin is at its peak. This currency comprises of many special features which became benefits for many individuals and companies.
PROS To Trade In Cryptocurrency?
There are some general benefits of cryptocurrency which are as follows-
- Easy Transaction- In customary business dealings, specialists, operators, and legitimate delegates can add noteworthy complexity and cost to what should generally be a clear exchange. There’s administrative work, business expenses, commissions, and any number of other unique conditions that may apply. These all conditions are not applied to cryptocurrency so the transactions are generally fast in cryptocurrency.
- Security of confidential transactions- In bank transaction, your every transaction is recorded in bank ledgers which they used to analyze the financial status of their clients. The analysis of client data will help the bank informing their marketing strategies and to gather more clients for credit agencies who have a tie-up with these banks. In the case of cryptocurrency, there is no record of any transaction so no one can see your transaction records, this currency works on the peer-to-peer system so only the two parties involving in the transaction will know about the transaction.
- Low Transaction Fees- all transactions done through banks and financial institutes charge some transaction fees for each transaction done by them but in case of cryptocurrency, these transaction fees are not charged because these currencies are generated through miners and they don’t charge any transactional fees on it. There might be some outside expenses included on the off chance that you connect with the administrations of an outsider administration to keep up your cryptographic money wallet, however, another of the upsides of digital money is that they are still liable to be significantly less than the exchange charges brought about by conventional monetary frameworks.
- International trade- The major use of cryptocurrency is for international transactions because it is a much inexpensive way of doing the transaction in comparison to another traditional way of transactions. There is no centralized authority to control cryptocurrency so these currencies are tax-free which will help many individuals and companies to trade internationally.
- Single Ownership- In traditional bank accounts the banks can easily operate your account if they want and they can also record and analyze all your transactions without client permission. Despite these things, the banks can also close your account and can cease the amount store in it in certain circumstances, but in cryptocurrency, there is no second user involve as the cryptocurrency can only be accessed through a private key and the person having a private key will be the owner of that particular cryptocurrency.
- World Wide Acceptability- The cryptocurrency is accepted worldwide as a medium of exchange and because of this, there is approximately 1100 unique cryptocurrency introduced till now. These different currencies have a different role in the crypto market, for example, there is a coin named called privacy coins used to hide the identity of the user.