Blockchain technology is the most notable benefit of cryptocurrencies. They lack any central authority, company, or payment processor which attracts many investors. The growth in the crypto market is increasing the number of crypto investments too. More than 100 million people and popular companies like Twitter, Tesla, PayPal, Microsoft, etc are investing in cryptocurrencies. Here are some of the reasons why crypto investments are considered to be beneficial.
● Easy Transactions
Crypto transactions can be executed at a low cost, quite easily, and will be carried out most privately. Anyone can send and receive cryptocurrencies through hardware wallets. Smartphone app, or an exchange wallet. Some cryptocurrencies like Ethereum, Bitcoin, Litecoin, etc can be easily purchased through Bitcoin ATMs. You do not need a bank account to use these ATMs. So if you have money, you can purchase cryptocurrencies. These coins can then be sent to your phone or digital wallet. Thus, it is a blessing for people who do not have access to conventional financial systems.
Cryptocurrencies are based on blockchain and cryptography, which makes them a secure and safe form of transaction. Thus, security is one of the most notable advantages of cryptocurrencies. The hash rate determines the security of cryptocurrencies. When the hash rate is higher, it requires high computing power to get into the network. Bitcoin is the safest of all cryptocurrencies due to its high hash rate.
● Low Fees With Lesser Settlement Time
While some people invest in cryptocurrencies for the rise in their price, others find it as a good medium of exchange. Ether and Bitcoin transactions don't cost more than some cents, or to the maximum, some dollars. Other cryptocurrencies like Litecoin or XRP may take even less. It takes just seconds or minutes to complete crypto payments. Bank transactions will cost more and may take several days to complete.
● High Industry Growth
The growth of the crypto market has been exponential, making it stand out among the other industries in terms of growth value. The total market cap of cryptocurrencies has been rising since its start with Bitcoin in 2009. Even with many ups and downs, the industry continues to maintain its market growth.
● More Chances To Earn High Returns
Cryptocurrencies like Bitcoin have been showing exponential performance during the past few years. With a start of zero value, Bitcoin has grown to a value of more than thousands of dollars. Some altcoins have even managed to outgrow the value of Bitcoin, however, many of them later collapsed. Bitcoin is one of the biggest advantages of crypto investments. But the losses are also seen as the drawbacks of this type of investment. For speculators and day traders, the volatility of cryptocurrency is their utmost benefit. Traders can earn more profit by wisely making use of the fluctuations.
● Transactions Are Private
Cryptocurrencies offer more privacy. However, all transactions will be recorded on the public ledger. This ledger will display only the wallet address, which does not reveal the identity of the user. Most crypto transactions are found to be pseudonymous, you may find many methods to make anonymous transactions.