There is a recently available tremendous increase in the popularity of cryptocurrency. More and more people are looking for opportunities for investing in them. But exactly what cryptocurrencies? Cryptocurrency is merely an electronic digital currency that uses cryptography for its security. This makes it very difficult to counterfeit. Also, it is not issued by any central authority making it safe from government rules and manipulations. In essence, cryptocurrencies are limited entries in the database that no one can change unless they fulfil specific conditions. As of may 2018, over 1800 cryptocurrencies exist. Some of the advantages of cryptocurrencies as explored in this article.
Secure against fraud:
As mentioned above individual cryptocurrencies cannot be counterfeit hence making them 100% safe and secure. Also, they cannot be reversed with little thought by the sender as is the case with credit card charge-backs.
Immediate settlement:
There is no alternative mixed up in purchase of cryptocurrency. This means all the alternative mortgage approvals and involvement is very eliminated. Usually, a purchase of a property involves third parties like notary, lawyers and fee payments. uniswap Cryptocurrency contracts can be specifically made to eliminate alternative involvement and asset transfer can be completed at about a fraction of the time required in traditional asset transactions. This helps in saving long and efforts.
Lower fees:
Since miners are involved, there is no transactions fee for cryptocurrency deals. However, many users usually engage a third party in their transactions, for e. gary. Coinbase for helping them in maintaining their bitcoin accessories. These third parties usually charge a nominal fee for their services and behave like Paypal does for cash or credit card users. Some other cryptocurrency deals include BTCORA, Coinmama, Bitpanda and Kraken.
Identification of theft:
Earlier it seemed like bitcoin can be bought and sold by anyone anonymously. These anonymity factors lead to it being made into an instrument for financing crime. However, this is no longer the case. When you use a credit card, you give full access to your financial plans to the merchant even if the transactions are of a tiny amount. Credit cards are handled on 'pull' basis where the designated amount is pulled by the store or merchant initiating the payment. Whereas cryptocurrencies operate on 'push' basis that permits the cryptocurrency owner to overpower the amount being sent with no more info. Hence cryptocurrencies can be named much safer than credit cards
Decentralization:
One of the cardinal benefits of cryptocurrencies is that they are highly decentralized simply because they use a global network of computers called the blockchain to manage the database that records transactions. Hence cryptocurrencies are not managed by any central authorities but by a network. This network operates on a peer-to-peer basis. Since a network of private and widely distributed miners are accountable for the transactions problems like fraud, censorship among others are eliminated. Centralized deals are easy to use and access they also are highly susceptible to fraud. Decentralized deals are safeguarded better and provide more security. They also provide better privacy and are 'trust-less' in nature.
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