Learning about the different benefits of cryptocurrencies is important before you start investing in them. It gives you a better idea of what to expect whenever you buy popular cryptos like Bitcoin (BTC), Ether (ETH) and Litecoin (LTC).
According to crypto site CoinMarketCap, cryptocurrencies have reached a volume of up to $91.72 billion as of writing. This means that there is no better time to start learning about cryptocurrency and all it has to offer. Use this opportunity to know why crypto is dubbed as the best digital asset!
Cryptocurrency pros you need to know
Cryptocurrencies are popular among investors nowadays because of the following reasons:
Has a decentralized system
Unlike fiat currencies, cryptocurrencies have a decentralized system, meaning it is not governed by any central organization or financial institution. Its decentralized nature also means that it will not be affected by economic fluctuations in a specific country.
Aside from this, you also have no limits in managing your assets since there’s no authority that will manage your funds other than you. This saves you the trouble of maneuvering through bureaucratic requirements or red tape often encountered by bank users.
Faster transactions
Cryptocurrency transactions are faster compared to bank transfers. With its peer-to-peer process, you can easily send and receive money to another person regardless of location. It’s efficient when shopping, playing online and especially for cross border transactions.
Lesser fees
A great advantage of cryptocurrencies like Bitcoin is that it only has minimal fees no matter the amount that you transfer. Since there’s no need for middlemen or intermediaries, costs are significantly reduced. Compared to traditional banking, you can save yourself from paying large fees by using cryptocurrencies.
Protects your information and coins
In cyberspace, one’s security online is always an important factor to consider, especially when it comes to monetary transactions. Cryptocurrencies use blockchain technology that keeps your identity anonymous and secures every transaction through cryptography.
With a complex network of computers managing the system, hacking into the blockchain is virtually impossible. The blockchain also stores all the data from transactions and once something is recorded, it can no longer be changed.
Moreover, crypto wallets where your funds are stored require a two-factor authentication process as an extra layer of protection for your coins and data. This includes both a private key only accessible by the owner.
Easy to use
Nowadays, with cryptocurrencies mainstream adoption, it has become more accessible to users. As more businesses and institutions include it into their payment options, users can begin using it for daily transactions as well as invest in it for the long-term.
Cryptocurrency vs fiat transactions: Which is better?
Online transactions can be made using cryptocurrency or fiat money but these two currencies work differently from each other. See what sets cryptocurrencies apart from common fiat transactions by checking the table below:
| Cryptocurrency | Fiat |
| Decentralized | Centralized |
| Information is kept on a digital ledger accessible by the public | Data is kept on a private server, open to banks only |
| Control of your funds | Banks manage your funds for you |
| Anonymity | Personal credentials are required |
| Minimal fees | Several expensive bank fees in every transaction |
| Fast and easy transaction within seconds | Takes a few business days to conduct cross-border transactions |
Cryptocurrency investing 101
When it comes to investing in cryptocurrencies, there are two important things you should know: where to buy and how to store them. Find out more about this below:
Where to buy crypto
Since cryptocurrencies are performing well in the market, it has now become easier to buy them. Some of the platforms you can choose from are namely:
- Exchange sites
Exchange sites are platforms for buyers and sellers to trade cryptocurrencies and other digital assets. It often acts as an intermediary between a buyer and seller. Additional fees vary on the specific site you are using. For example in Binance, the user is charged a 0.1% fee per transaction. Other exchange sites you can also visit are Coinbase Pro and TradeStation.
- Broker sites
Compared to exchange sites, broker sites are more fit for beginners because you can buy coins instantly through them. Moreover, it is easier to make deposits and withdrawals in broker sites rather than exchanges. This is because the latter does not accept many fiat currencies for transactions while broker sites have a wider selection of deposit options. The most popular cryptocurrency broker sites are Coinbase, Coinmama and Gemini.
- Peer-to-Peer marketplaces
Peer-to-Peer (P2P) marketplaces is a great online platform to buy and sell cryptocurrencies directly. It allows you to connect with a seller who sets the fees for the purchase. Some examples are Localbitcoins, Bisq and Paxful.
- Payment apps
Payment apps are a convenient way to buy and sell cryptocurrencies. Similar to the P2P marketplace, you can directly connect with the seller. However, its key difference is you are using mobile applications such as Paypal (for areas in the United States), Cash App and Venmo rather than on a browser.
How to store crypto
After buying crypto, you have to store them in a wallet. It operates under the same secure cryptography as the blockchain network. Moreover, you can view it from time to time to know your current balance. The two main types of crypto wallet are the software wallet and hardware wallet.
Software wallets, also called hot wallets, allow you to store your cryptocurrencies online and are ideal for active traders. Meanwhile, the hardware or cold wallets store your funds offline away from online threats, meaning it is more secure as well as more ideal for those planning to invest long-term in cryptocurrencies.
Try crypto trading and use its benefits to the fullest
Be part of the crypto community by investing in different cryptocurrencies like BTC, ETH and more. These are great digital assets that offer benefits like faster and transparent transactions and potential profits in the long run. Try trading them now!