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15 Amazing Benefits of Cryptocurrencies

Umesh Kurmi is a semi-qualified Chartered Accountant from the Institute of Chartered Accountants of Nepal with seven years of experience.

Crypto Blockchain Currency

15-amazing-benefits-of-cryptocurrencies

Overview

A cryptocurrency is a digital currency shared and secured among users that are configured in a network. The term derives from the combination of cryptography and blockchain, which are both terms that describe technologies that ensure data integrity by making it impossible to falsify.
Cryptocurrency is no stranger to the people of the 21st century. Each and everyday people catch onto a new reality that cryptocurrency can offer. From curing hunger to being trackable, or being able to send money to any part of the world with just the click of a mouse; it is nothing short of astonishing how cryptocurrency makes our lives easier!

The following are 15 amazing benefits of cryptocurrency that we hope you won't miss out on.

1. Effortless Transactions

Cryptocurrencies offer a secure and easy way to transfer money from one place to another. The usage of cryptocurrencies is made easier by their decentralized nature, which makes it impossible for anyone to hack your account or steal your money. You can send and receive money without any third-party interference or chargebacks.


Cryptocurrency transactions are possible through apps, digital wallets via your smartphone or laptop. As cryptocurrencies are decentralized, transactions happen between two people without a third party being involved. No Bank Accounts are required.

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2. Safe & Secure Transactions

The transactions are 100% secure as cryptocurrencies are based on blockchain technology and decentralized peer-to-peer network. There is no need to share your personal information with anyone, and no one can freeze or block your funds or account. The transactions are completely free and instantaneous. You can transfer money between any two countries in a matter of seconds.

Transactions are irreversible once they have been completed. They also offer you a very low transaction fee, which is a fraction of the cost of traditional transactions. Cryptocurrencies can also be used for many other purposes like paying bills, buying stocks, buying groceries, etc.

3. Low Transaction Fees & Short Settlement Time

Except for Bitcoin and Ethereum, other cryptocurrencies offer low transaction fees. Bitcoin and Ethereum may have little larger transaction fees but not as large as traditional banks and financial institutions. Because cryptocurrencies are decentralized, there is no risk of inflation. The users can also hold their cryptocurrency in a digital wallet, and transfer it to another wallet without disclosing any personal information. You can transfer money between any two countries in a matter of seconds. While wire transfers can take several days.

Blockchain technology is a major reason why cryptocurrencies have low transaction fees. It is also a good way to store your money securely and send it anywhere in the world without any hassle.

Cyber Security

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4. Compounding Returns & Industry Growth

The concept of cryptocurrencies has been around for quite some time, but their popularity began to soar in 2017 when Bitcoin reached an all-time high of $20,000 per coin. The total value of all cryptocurrency holdings has just surpassed $3 trillion as of November 2021 while it was $ 1.6 billion in 2013. Crypto-market is one of the fastest-growing markets ever.

5. Counter Inflation

Inflationary effects include rising prices, decreased purchasing power, and currency depreciation. Because cryptocurrencies are decentralized, there is no risk of inflation. Unlike fiat currencies, which are issued by central banks, cryptocurrencies are created by algorithms. Central authorities have no control over cryptocurrencies.

To keep inflation under control, central banks can increase or decrease the money supply. Cryptocurrencies are not printable and have a fixed supply. It means that cryptocurrencies' value is less likely to depreciate than other fiat currencies.

Money Supply

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6. Accessibility

Cryptocurrencies transactions are possible through apps, digital wallets via your smartphone or laptop with an internet connection. As cryptocurrencies are decentralized, the transactions happen between two people without a third party involved. No Bank Accounts are required.

Transactions in cryptocurrencies are not reliant on the traditional banking system. These transactions can take place at any time and from any location. This makes crypto transactions highly accessible.

7. Universally Recognized

Cryptocurrency transactions are globally recognized, and the rules for conducting transactions are consistent around the world. Interest rate risk, exchange rate risk, and transaction risk have little impact on cryptocurrency transactions.

Blockchain technology and its modus operandi remain the same all over the world.

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8. Portfolio Diversification

By eliminating or significantly reducing unsystematic risk, you can build a well-diversified portfolio. Cryptocurrency is a distinct asset class. As a result, diversifying your portfolio with cryptocurrencies is a good idea.

Wi-Fi Access Internet

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Cross Border Transactions

You can transfer money between any two countries in a matter of seconds. While wire transfers can take several days. Blockchain technology permits transactions to cross-national and international boundaries far more conveniently than is true in the traditional banking systems. The transactions are completely free and instantaneous.

10. Full Traceability

The cryptocurrency transactions are fully traceable as the blockchain is a public ledger that keeps a record of all the transactions. Furthermore, no one can conceal the fact that they have received or sent cryptocurrency.

When you make a cryptocurrency transaction, it is publicized. The data is then stored in a blockchain in encrypted form. If you want to know who sent cryptocurrency to whom, it is very difficult because of the privacy feature of cryptocurrencies.

11. Decentralization

The transactions are 100% secure as cryptocurrencies are based on blockchain technology and decentralized peer-to-peer network. You can send and receive money without any third-party interference or chargebacks. Decentralization in blockchain technology means it operates independently of any central banks or government authority.

Decentralization can be achieved through several different methods, including public-key cryptography, distributed consensus, and proof-of-work systems. It helps in building a network that is secure, flexible, and censorship-resistant. To provide decentralization, blockchain technology uses a distributed ledger system. It uses cryptography to protect the integrity of the data.

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12. Prevents Fraud

Blockchain technology is a decentralized ledger that is completely transparent and open to everyone. In the absence of any middleman, the transactions are recorded in a permanent, unalterable way, which makes it easier to trace and track down any fraudulent activity.

The technology ensures that there is no chance of data loss and fraud because it makes use of an encrypted digital ledger that is shared across a network of computers.

13. Global Reach - Banking The Unbanked

Today, billions of people in rural areas do not have bank accounts. As cryptocurrencies are decentralized, the transactions happen between two people without a third party involved. No Bank Accounts are required. Cryptocurrencies transactions are possible through apps, digital wallets via your smartphone or laptop. So, with these devices & internet connectivity, those people can perform transactions easily and privately.

14. User Autonomy

Interest rate risk, exchange rate risk, and transaction risk have little impact on cryptocurrency transactions. Because cryptocurrencies are decentralized, there is no risk of inflation. Central authorities have no control over cryptocurrencies. Many cryptocurrencies' prices are unrelated to government policies. Users and owners have complete control over their funds.

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15. 24-Hour Market Availability With High Integrity

Unlike the stock market, cryptocurrency markets are never closed except in the event of a power outage or internet outage. They are performing decentralized transactions even on holidays too. Decentralization in blockchain technology means it operates independently of any central banks or government authority.

Decentralization can be achieved through several different methods, including public-key cryptography, distributed consensus, and proof-of-work systems. This ensures the integrity of the transactions.

Digital Currency In Nepal

Conclusion

Cryptocurrencies are digital currencies shared and secured among users that are configured in a network. These currencies have grown over the years and have gained more popularity.

The cryptocurrency market is volatile and can be quite unpredictable. As the technology behind cryptocurrencies evolves so will their value as they continue to develop new features that increase user-friendliness while also increasing security and privacy. Cryptocurrencies can be mined, which means they are created as a reward for solving complex math problems.

What do you think about this? Let us know in the comments below.

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This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.

© 2022 Umesh Kurmi

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