Since the dawn of civilization and human evolution, the medium of exchange, whether in the form of the object, gesture, feeling, money, or barter, has always been an indispensable part of the history of humanity. As humans started understanding the significance of currency and its practical application as a medium of exchange, many currencies lived in the world. However, few initial currencies like coins are still in the application worldwide. In contrast, few currencies and modes of payments, such as the popular barter system, are almost nonexistent or are used very rarely in just a tiny proportion of areas.
Just a few years ago, the concept of digital currency, such as debit cards and credit card facilities, was introduced in the financial sector, which changed the notion of people towards the currency. Visit the auto trading app to know what cryptocurrency trading looks like and how it works. This transformation towards digitalisation has led to tremendous benefits for people worldwide. It helped people in making transactions more easily and quickly.
But all the financial tools, whether cash, credit cards, debit cards, cheques, were all regulated either by the country’s government or a financial institution. Although the regulation of a currency is a mandate, it brings along several drawbacks with it, such as corruption in the system, delayed payments, frauds, incomplete or incorrect documentation, high transaction fee, etc.
Even though the existing digital currencies were improving day by day, people needed a much more robust currency that was more convenient to manage, secure, and easy to transact globally.
In 2009, an anonymous inventor named Satoshi Nakamoto launched the very first cryptocurrency named Bitcoin. It revolutionised the entire financial industry and the people’s notion of currency and investments.
Cryptocurrency can be understood as a digital coin or Digital token used as the medium of exchange of currency and money. It is based on blockchain technology which is decentralised and is not operated by any government or financial institution. Blockchain technology provides validation to the cryptocurrency and is secured by the principles of cryptography.
However, every new institution, investigation, or discovery needs to prove itself to society to get accepted by the people as reliable. As a result, cryptocurrency gained its popularity worldwide, which led to its total capitalization of over 3 Trillion US Dollars, which is unprecedented. The massive transformation of cryptocurrency as an indispensable investment option into every investor’s portfolio is due to its several advantages in the world.
Here are a few other advantages of cryptocurrency
Crypto is based on a decentralized blockchain technology which means any government does not regulate it, Regime, or organisation; This captivates investors towards cryptocurrency. Moreover, it provides investors with an upper hand over other investors and traders as they don’t have to go through tedious complications and compliances that the governments or banks guide. For example, suppose you want to do significant or numerous transactions.
In that case, it becomes difficult for you as the banking systems may take a lot of time for you and may even lead to an incorrect transaction or delayed transactions as they have to go through various procedures. Whereas in cryptocurrency, you are the owner and controller of your transactions. The procedures to transact money from one account to another are straightforward without other comps; actions.
Low transaction fee
In the traditional modes of transaction like debit cards, credit cards, or net banking, the service providers may even charge up to 3-5% for each transaction which is a significant proportion of the real money. On the other hand, cryptocurrency transaction fees vary between 1% or less only. Therefore, it is the cheapest mode of transaction, making crypto an ideal investment.
Suppose a person wants to transfer money from one country to another. In that case, he has to go through tedious procedures to make a single transaction successfully if he uses traditional methods of money transactions. The traditional procedures may take an ample amount of time, whereas cryptocurrency transactions around the globe can be live and countless times without any barriers or tedious procedures.
The cryptocurrency has several other benefits, and virtual coins worldwide are increasing daily due to its numerous advantages.