Cryptocurrency offers numerous benefits to both its users and investors. As part of our knowledge impacting the Zealy contest, let's take a brief look at some benefits of investing in some crypto tokens like Bitcoin and Ethereum, and even at that, let's look at the level of benefits attached to being an investor in the crypto world.
Tokens like Bitcoin (BTC) and Ethereum (ETH) are automatically going mainstream, but the complexity of the world, especially when it comes to price volatility, can be shocking, and this is indeed intimidating newcomers.
In today's world, crypto has gone globally, and plenty of people are already into it, investing in it, and carrying out various transactions via it. But why?
What are the benefits of cryptocurrency, especially when it comes to enlightening those who are outside, hoping to be part of the initiative.
I'm definitely going to be taking us through two sections, where I will be providing some insight about the importance of digital currencies. Furthermore, I will be talking about the benefits of cryptocurrency and why investing in it is vital.
What's Cryptocurrency.
Cryptocurrency is a digital currency, in which the most talked about are Bitcoin (BTC) and Ethereum (ETH), though there are thousands of tokens regarded as crypto coins.
For me, a crypto token is just like every other currency out there, but the only difference is that it is decentralized, which means it is not controlled by any governing body or whatever; it's managed by individuals who make use of the underlying technology and not by any governing body.
One thing about using crypto today is that transactions are faster because of its decentralized system. Its security is top-notch, and the fact that transactions can be sent anywhere in the world without any third-party authorization makes it more interesting.
Even at that, countless individuals are beginning to see crypto as the perfect means of paying bills, irrespective of the volatility that comes with its price at times.
Benefits attached to using cryptocurrency
Let's take a brief look at some benefits of using cryptocurrency. Some of these benefits include a high level of security, privacy, easy cross-border payments, and fast transactions.
High level of security
Its network is secured by what is known as cryptography. Its decentralized system indeed makes every transaction well secured because it goes through some independent participants, and in case there is a mistake, such transaction is flagged too. With this, it is very hard for anyone to steal someone's crypto account or manipulate other transactions unless such user gives out their wallet or transaction keys.
Privacy
Most Cryptocurrency transactions on the network are always anonymous. Users who are into crypto are assigned a unique ID, which automatically shows up as their name and also appears on each transaction. In cryptocurrency, usernames are secured, which means that only the user's ID and token address are important.
Its level of privacy is one reason why the government is always chasing after it so that they can start regulating it.
Fast Transaction
On many crypto networks, transactions are fast and smooth; a crypto transaction gets completed immediately after initiating it, unlike a traditional bank transfer that could take forever on most occasions. The level of delay encounter in bank transactions is not experienced in cryptocurrency.
Cross-border payment
Unlike the level of charge's incurred while sending money to another country via bank's, in cryptocurrency, the same level of charge's incurred while sending tokens to people in another country is the same thing incurred while sending them to someone in your country. There is no use of a third party in sending tokens to another country, but people have to go through Western Union when sending money to another country.
There are many reasons why newcomers or intending investors need to invest in cryptocurrency these days. Even with the level of volatility that occurs in pricing, crypto investment is still very reliable as it is free from inflation.
Investing in cryptocurrency offers numerous potential benefits to investors, which makes it easier to access on most occasions, but even at that, it comes with some risk. Some key advantages of investing in cryptocurrency include diversification, potential high returns, and 24/7 liquidity.
Diversification
Diversification is the process of spreading out your investment across different asset classes, which means you can invest in so many tokens depending on how the market trends move. Cryptocurrency investment is not all about Bitcoin and Ethereum alone; today in the crypto world, we have well over 1000 thousand tokens. Which investors can invest in to have a robust portfolio.
Most crypto projects tend to be more profitable when they have a long-term investment plan. Just as we have plenty of individuals investing in Hive and Leo tokens too, it is significant that users get to understand that investment in cryptocurrency can be diversified across all tokens and even to tokens whose prices move independently of one another.
Potential Outsized Returns
Investing in cryptocurrency comes with considerable returns at times, though numerous individuals have argued recently that the level of risk involved is higher than the level of profit gotten from it. Based on statistics, crypto tokens have indeed shaped the lives of individuals, giving investors the ability to buy at a minimal price and end up selling at a high cost. The price of Bitcoin 10 years ago is not what it used to be, and regardless of the volatility in price, investors always have high returns from crypto projects.
24/7 Liquidity
Cryptocurrencies are highly liquid, which implies that they can be exchanged for dollars or other tokens instantly. Even with that, cryptocurrency operates every minute, which means transactions can be done at any moment of the day.
Unlike cryptocurrency, other assets are less liquid. Taking stocks as an example, which only trade 5 days a week during normal working hours, other assets like real estate are not liquid at all and could take up to weeks or months before you can sell, but cryptocurrency can be exchanged into anything in any minute.
Note
Regardless of the level of price volatility that crypto faces at times, I will always advise that you take investing in cryptocurrency very seriously and also engage in long-term investment. Take your time to evaluate some tokens like the hive and Leo too and understand how solid this project are.
Thanks for reading.
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this information was valuable. thanks