Benefits of Using Cryptocurrencies

WhiteBIT
Published 10 March 2021

Digitalization is the main engine of progress in our time. It took only a few decades to find ourselves in the future science fiction writers described in their books. The financial sector is also developing along with other areas, but its modernization is proceeding at a slow pace under pressure from states that hold a monopoly on printing money.

However, since 2008, humanity has created a decentralized alternative to fiat currencies — cryptocurrencies.

Of course, the forums are still full of sceptical statements regarding the volatile nature of digital assets, their complex architecture, and even their harm, since they are often chosen for illegal activities (let’s just say that this is a myth, in the entire Darknet, only 1% of users accept crypto).

In this article, we will not talk about the technical aspects of cryptography and blockchain. However, we will draw your attention to the advantages of using cryptocurrencies and their benefits for everyday use as a means of payment.

Всегда под рукой
Весь мир криптовалют в вашем кармане

Transactions are carried out without intermediaries. 

The main advantage of using cryptocurrencies is the simplicity of transactions. At the moment, partner companies are faced with a vast number of intermediaries (in the form of banks) and bureaucratic problems when doing business with each other. Thus, a simple transaction takes a long time, and high fees are a must. In traditional business relationships, brokers, agents, and legal representatives can significantly complicate and increase the cost of what would otherwise be a simple transaction. 

The integration of cryptocurrencies can significantly simplify this process since when using digital assets, there is no need to introduce an intermediary into the transaction.

Crypto relationships are becoming an ideal ally in the fight for clear and transparent transactions. You don’t have to pay considerable fees and wait weeks for decisions from financial institutions. 

Availability of financial services.

According to Citi Group analytics, in 2020, more than 1.7 billion people worldwide didn’t have access to standard financial services. They cannot get a loan or insurance due to their distant location from the organization.

In turn, when using cryptocurrencies, your location is not a priority since you can make a transaction, take a loan, make an exchange, or pay for any other services 24/7 without leaving your home.

There are already many services that provide everyone with an instant loan or the ability to make a deposit in a matter of minutes without paperwork. 

Globalization.

One of the important aspects of globalization is the ease of making cross-border transfers. 

As you already understood, cryptocurrencies are exactly the means of payment that will help international companies actively interact with each other and resolve their financial issues within a few minutes without tracking fluctuations in exchange rates. 

Your money is your property.

If you keep your money in a bank (even in the most secure one), you don’t own it. You are giving the management of your funds to a third party. Thus, the organization’s problems will become yours because you will have to go a long way to prove your ownership.

At the same time, the correct use of cryptocurrencies ensures that your funds are only under your control, protected by a private key. Of course, if you don’t use third-party organizations to operate your crypto assets. But even if you are an active user of cryptocurrency exchanges and wallets, it is much easier and faster to withdraw assets from there than from traditional financial institutions.

Safety of use.

When making any cryptocurrency transaction, it is entered into the blockchain. After that, the operation cannot be canceled, changed, or deleted. In this way, you protect yourself from fraud, which is based on the conclusion of a specific contract between the buyer and the seller regarding the refund in case of error or return policy. 

Moreover, strong encryption methods, used in all distributed ledger processes, protect against cybercriminals and account hacking and guarantors of consumer privacy.

Investment prospects.

Of course, we cannot fail to mention the possibility of earning money on crypto. Thanks to digital assets, everyone has access to investment. Every year, crypto projects introduce new ways of using cryptocurrencies that are useful for the industry and beneficial from an investment point of view. 

Moreover, thanks to clear tools on exchanges like WhiteBIT, it is not difficult even for beginners to purchase cryptocurrency, learn and earn money from trading, as well as make a crypto exchange. 

Article tags