A quick dive into the crypto world
As more and more countries are moving towards a society driven by digital payments, cryptocurrencies are becoming extremely popular. Let’s delve into this vast and fascinating world, starting with a brief definition of cryptocurrency.
What is a cryptocurrency?
Cryptocurrency is a digital money exchange made by private consumers and organisations. Cryptos are typically considered as a medium of monetary exchange. This means that the usual financial policies do not apply to cryptos. There are more than 5.000 cryptocurrencies in the market, with Bitcoin being the primary digital currency. However, the creation of new coins is literally soaring.
How to purchase cryptocurrencies
It’s getting easier to purchase cryptocurrencies, at least the most popular ones. There are several platforms that allow you to purchase a wide variety of digital coins. What happens when you buy the coins? Where do you store them? The answer is: digital wallets. These spaces allow you to hold your cryptocurrencies and send funds to other people with ease. Digital wallets store the private keys (strings of characters that let you access your currencies) directly on your device.
The benefits of cryptocurrencies
Now that we know what cryptocurrencies are, it’s time to discover some of the most important benefits they can have. Read on!
With cryptos, the money transfer process is simplified
It’s undeniable that wires or bank-to-bank transfers are becoming faster year after year. However, there’s still plenty of miles to go, because some transfers require a week or longer to be deposited. Cryptocurrencies speed up the process. They don’t require all the checks that banks are accustomed to doing. This means that a cryptocurrency transfer happens immediately. Furthermore, it doesn’t require any fees, and is visible in the blockchain for anyone to see.
Cryptos stimulate crowdfunding initiatives
In order to start a new project, you need to raise money. Crowdfunding is one of the most popular ways in which you can find funds to start developing your activity. In the crypto world crowdfunding is known as ICO (Initial Coin Offering). During an ICO campaign, you can ask people to support your project by purchasing some of the projects’ tokens and earn a reward.
They allow fewer frauds
When it comes to money, fraud is one of the most critical issues to take into account. In fact, the risk of fraud can occur whenever you use a credit card to swap funds on a site that is considered unsafe. Cryptocurrencies can reduce this risk. As blockchain is a public ledger, all crypto transactions are traceable.
