Advantages of Cryptocurrency
Published on: 10 Apr 22:06
Cryptocurrency is a digital currency with no centralized bank controlling its value or exchange rate. Instead, it’s a peer-to-peer accounting system that utilizes a payment system with miners who confirm transactions. These miners then send the transactions to everyone in the network, so that everyone has a record of these transactions to ensure nothing is doubly spent. These records are the blockchain. Miners are then rewarded for their work with cryptocurrency, which gives them incentive to confirm transactions. Cryptocurrency beautifully maintains integrity and consensus, which protects against those looking to take advantage of the system or cause the system harm. Cryptocurrency is the monetary incentive offered to keep the entire digital currency system secure. cDuel is an online cryptocurrency trading simulator that allows you to sign up for a free account and practice your skills using real-time values of cryptocurrencies. Our trading simulator mimics market conditions, which allows you to practice risk-free, while practicing your trading skills as you aim to achieve the highest rates of return on your investments. Below, we’ll list some of the advantages of cryptocurrencies. Visit us online today to get started!
ADVANTAGES OF CRYPTOCURRENCIES
- Transparent transactions. If you wanted to invest in the stock market, most likely you’d go through a broker who may have to go through another investment broker in order to buy your shares in a particular company. There would be fees for this transaction, and you’d just end up as a name on a stock you own. You’d have to sign paperwork, acknowledging that there is no guarantee your investment is safe, as well as abide by other conditions put forth by the broker. With cryptocurrency’s peer-to-peer trading model, you’ll know exactly who you’re transacting with, eliminating any confusing jargon and fees.
- Easy transfers of assets. When you want to sell a stock, you have to jump through the same hoops (possibly even more) than you did when you bought the stock. You’ll have to contact your broker, pay a fee, and sign paperwork. When you want to transfer an asset, it’s the same complicated process. With cryptocurrency, the blockchain holds all records of transactions. This makes adding in amendments, such as third party approvals, transactions to be completed in the future, or even external factor references easy. There are no fees and no lag time. As soon as it’s approved by the miner, you’re golden.
- Promotes confidentiality. Many people are very protective of their earnings and their assets. With traditional cash and credit systems, your information is fair game for credit reporting agencies, banks with whom you do business, and other agencies who you contract with. However, with cryptocurrency, when you make a transaction, it’s limited to two people: you and the other person. The terms are not disclosed, and you are in control of what information you wish to share. This makes identity theft virtually impossible with cryptocurrency — a threat that is more prevalent than ever. Some argue that this confidentiality and privacy enables fraudsters, terrorists, and criminals in trading on the Dark Web. However, because all transactions have to be verified, there is no more of a threat than there is with a cash/credit system. Furthermore, it’s harder to perpetuate because of everyone agreeing on the transaction.
- Bye-bye transaction fees. We are all well aware of the dozens (sometimes hundreds) of possible fees banks charge for seemingly little things, such as counting coins. That’s because banks are out to make a profit — off us. With cryptocurrency trading, there are no fees because miners who verify transactions are rewarded by the system in cryptocurrency. The only fees you could possibly incur would be of your own undertaking, such as if you hired someone to manage your cryptocurrency transactions for you similar to a broker.
- Potential to expound the credit market. More people have ready access to the internet than to a banking system throughout the world. Since cryptocurrency is a digital currency, you don’t have to go to the bank to do your transactions. All you need to transact in cryptocurrency is the internet, access to a cryptocurrency network, and knowledge on cryptocurrency.
- Facilitates international trade. By not being tied to a mainstream currency or country, cryptocurrency can bypass all international exchange rate fees, interest rates, transaction fees, and any other levy imposed by a country (for the purpose to make money). Cryptocurrency exists for the user, and thus is setup for the user’s success.
- More stable exchange rate. Being a digital and a global currency, cryptocurrencies won’t be subject to events in a particular country in order to determine its value. As long as the blockchain continues to function with independent miners verifying transactions, cryptocurrency, cross-country transactions should be conducted without complications.
- Complete control over your money. When you deposit money in a bank, it’s yours — unless you violate some terms of the bank. They can charge fees, close your bank account — often because of some obscure term of account you violated — and even hold your money until you pay fees. With cryptocurrency, you are the sole owner of your money and in complete control of where it goes.
- Adaptable. There are thousands of different kinds of cryptocurrencies. Many are temporary, but some cryptocurrencies have been created for specific purposes.
- Insanely secure. Once a transaction has been verified by a miner and added to the blockchain, it cannot be reversed, like credit card transactions can be. This protects against fraud. However, you can create a new transaction that does reverse one done previously, but it’s a new transaction agreed upon by both participants in the transaction.
Cryptocurrency is still in its infancy in terms of its potential. It still has to be accepted as legal tender by countries and companies — and that takes time like any new technology takes time to infiltrate the mainstream. However, no one can argue the advantages cryptocurrency as a digital currency has over mainstream currencies that have a physical presence in the market system.
cDuel is passionate about sharing the advantages of cryptocurrency with everyone. We believe cryptocurrencies can change the world as we know it and change how we transact. It has the potential to be the first truly global currency and make all of our lives easier. cDuel offers the best cryptocurrency trading simulator. We use real time-market prices of real cryptocurrencies being traded today, which gives you a real life trading experience while competing with your friends for the best ROI portfolio. Learn the volatilities of the market without risk, and have fun doing so. Visit our online cryptocurrency trading simulator, and sign up today!