Cryptocurrency is a digital currency which is based upon cryptography under blockchain technology that enables such currency as very secured and non-editable. These currencies are getting popular day-by-day since the inception of the Bitcoin, which is the first cryptocurrency whose values multiplied several times since 2009. There are so many digital currencies like Unicoin, Ethereum and so on. Cryptocurrency is thought to be the safest, easiest and cheapest in terms of the transaction as compared to other fiat currencies. This cryptocurrency provides huge advantages, and we can see some incredible benefits of cryptocurrency enumerated below.
1. Low Transaction Cost
Transactions are done by peer-to-peer, which involves the validation of transactions by miners, and it incurs very nominal cost as compared to other fiat currency transfer. As there is no central party or governing body, there isno such extra cost involvement during the completion of a transaction. Whereas, you need to pay a handsome amount of fees for sending or receiving fiat money from one hand to the other.
2. High Transaction Speed
Transaction speeds might be evaluated by determining the time it takes to reach from one wallet to the other wallet or by reckoning number of transaction per second (tps) the network can accommodate. The time is varied from network to network, and each coin aims to have the fastest transaction speed. Transferring of cryptocurrency from one person to another is done in a short time as compared to the banking channels or other medium. Usually, it is from few seconds to few minutes only. However, the transaction time depends upon the following factors.
- High network congestions: If there are so much network congestions, then it may take a few minutes more. But generally, this problem does not persist for a long time. The transaction is validated by anyone of the miners and does not depend upon a single person or computer.
- Huge volume: If there are large transactions in a particular time slot, then it might slow down the transaction speed as every transaction must be validated before transferring to the designated wallet so the volume of the transaction might play a role to minimize the speed of transferring of cryptocurrency. This issue does not continue for a long time as numerous computers are involved in solving the problem of cryptographic code to validate the transaction. As a high-speed set of computers are involved in solving the digital problem in minimum time, crypto-asset might transfer to designated peer.
- High Transaction Fees: Transaction fees also one of the factors which determine the speed of cryptocurrency transfer. If there are higher the value of validation of transaction, then more miners are interested in solving the complicated digital problem to get benefits out of it.
3. Digital Assets
These are financial assets in digital format.Therefore, its value increases with time, like other financial assets. These are the new form of investment, and the upper supply of cryptocurrency is limited like in Bitcoin. Therefore, more the buying of Bitcoin, the value of Bitcoin may increase. As we know that supply is limited and demands are increasing, which means the value will increase as well.
4. High Security
Cryptocurrency is considered to be highly secured as compared to other fiat currencies. It is just a digital code exclusively, which is your assets.You can keep it on paper or offline mode to avoid stealing or hacking. Although, there is the availability of different kinds of wallets where you can store safely with multifold security.
5. Confidentiality of Transaction
One of the key merits of these digital assets is secrecy as no third party can know the transaction amount, place of transaction, an account of the transaction, country of transaction or name of the person. Because of these key reasons, cryptocurrency is widely used for the purpose of buying products and services.
6. Technology-Based Investment
Cryptocurrency is thought to be the future currency which is purely based upon recent and advanced technology. You know that technology-based investment is always appreciated in the world. Such investment pays the investor in the long run as time goes on.
Conclusion: Above benefits are amazing for the investor as these benefits differentiate from conventional assets. Therefore the net worth of digital assets isincreasing day-by-day, and the number of investors is getting attracted to multiply their existing assets. The future of cryptocurrency is considered very bright after lockdown as almost all the powerful economies are dragging towards recession and their currencies are devaluating due to pandemic COVID-19. Hence there is a ray of new sunshine for crypto-world as values have not yet degraded as compared to other fiat currencies. This might have occurred due to the amazing benefits of cryptocurrency.