What is cryptocurrency?
Cryptocurrency is an online currency. It works the same way as any normal currency, however, the difference is that the currency is not physical. It can be used to make purchases the same way normal currency is used. It works using a technology called the blockchain. Cryptocurrency has exchange rates for other cryptocurrencies and real currencies too.
Benefits of Buying Crypto
Easy to buy
Since the currency works entirely remotely, you can buy and sell it from the comfort of your house. This makes it very convenient for people who like to trade with currencies. The issue that can arise here is the fact that it makes the market very volatile and it can lead to sudden fluctuations resulting from panic selling or panic buying.
The blockchain uses some of the most high-end technologies to make sure data is dealt with safely. Thus, making cryptocurrency one of, if not the safest investment to make. The money you put in stays safer than in a bank, the only risk it has is the possibility of a sudden drop in the prices of the currency, but that is a rare occurrence in many regards.
Crypto is by far one of the hottest and trending topics nowadays. Everyone is motivated to learn more and invest in some sort of cryptocurrency where possible. This makes an investment safe as the hype around the topic is massive to create enough demand to prosper the market.
Usable like normal currency
One of the biggest attractive features of crypto is the fact that it can be used in place of normal currency. Since it is online, it makes the transaction easy too. Almost all big brands and firms accept cryptocurrency as a method of payment thereby causing ease of transaction in a wide array of possibilities.
Since cryptocurrencies are online, it makes transactions very easy. These transactions are very fast too. These transactions cannot be compared to online banking, as that is still dependent on real-world money. Crypto, on the other hand, is online, from A to Z. Thus if you make a purchase with crypto, or buy crypto, the entire process should be seamless, to say the least.
High level of encryption
The blockchain uses an immensely strong encryption method that almost guarantees the privacy of data. The blockchain uses a method of encryption where data is recorded in the form of “ledgers” and is then distributed to “miners”. A miner is a computer that is connected to the blockchain network. When a transaction is made, it is verified by all these miners. This makes fraud and theft in cryptocurrency almost impossible because hacking millions of computers is impossible, to say the least.
This is one of the most unique features of crypto, you cannot find it in any physical currency around the world. You can make transactions with crypto in almost every country. So if you are traveling, you need not worry about going to the money exchanger and getting familiar with the new currency at all! Crypto is your friend in this situation and you can complete any and every transaction using it, from booking your hotel to reserving a table for a dinner.
Up until the mid-2010s, people didn’t even know about crypto. It was distributed in 1000s as prizes for winning competitions. People paid 1000s of crypto units for basic fast food orders too. The fact that it has boomed so massively that now 1 unit costs over 10,000 $ is astonishing. It is proof that there is immense potential in this field and investment is going to return a profit.
Very good for trading
Crypto trading is very comparable to trading stocks on the stock market. The difference is that the process is much quicker here and you can work with smaller investments too. It is very good for someone trying to learn and improve their trading skills. Furthermore, there are enough online resources to learn and improve.
No transaction fee
Unlike real banking transactions, a crypto transaction will not result in the deduction of a transaction fee. In the grand scheme, these fees can add up and cause a substantial sum. Thus it helps you save money.
If the two parties involved in a deal want to revert it, crypto is very handy. Transactions that have been made, can easily be reverted thereby preventing any unnecessary hassle that may arise from the entire process if done with real currencies and banks.
You don’t need a bank account
A very surprising fact to many is that you do not require a bank account or association with any bank to own and make transactions using cryptocurrency. This means that legal young adults can use these platforms even if they don’t own a bank account, to begin with.
Cut out the middleman
Since crypto transactions are peer-to-peer transactions, it negates the need for a middleman in a deal. The two parties are well aware of who they are dealing with and this simplifies tax paperwork and other such legal formalities.
There are well over 6000 different cryptocurrencies in the world, in 2021. This has led to the development of certain currencies with unique usage. While buying into crypto, you can look at a wide array of possibilities. Greater competition makes a market healthy too.
The potential of high return
Since the market is volatile but also very hyped, in the case of a drop, buying crypto can ensure you a good return when the value goes back up to original and beyond. The key to owning crypto is not selling in the panic and causing a price downfall.
Free to use
Buying and using a cryptocurrency only costs the amount of real money you invested into the currency. There are absolutely no other charges whatsoever.
An extremely important feature of crypto is the fact that it saves a ton of time that would otherwise be wasted in carrying out a real-life transaction. Since everything is at your fingertips, coupled with a fast and reliable ecosystem, it ensures the deals are smooth and seamless.
Great for business
Say you are an entrepreneur, accepting crypto payments can be very beneficial as you not only get the money quickly, the amount can appreciate really quickly as well thereby increasing your profits, thus discounts can be offered on crypto payments too.
The supply is limited
A misconception is that you can keep buying and creating more crypto, this isn’t the case. The limited supply makes the market relatively stable and guarantees long-term investment feasibility.
Allowed in Islam
Research from leading Islamic scholars has concluded that crypto is permissible to use for Muslims. Since special cryptos exist, the ones with no interest can easily be used to make day-to-day transactions easier and faster.
The above are some of the hundreds of advantages there are to buying crypto. For someone buying, doing your research and analysis of the market and specific currency is very important before making a purchase!