Around 45 million Americans are crypto users, and that number grows every year.
This rapid growth is a result of increased interest as people learn more about how crypto can benefit them. Despite this, there are still plenty of people who don’t understand crypto or the advantages it brings.
For five of the biggest benefits of crypto investing, keep reading.
1. Transaction Costs
This can be one of the most significant crypto benefits depending on the blockchain you’re using. The fees charged for financial transfers can vary greatly. International transfers, for example, are often very expensive.
Most blockchains have incredibly low fees. You can often send crypto to someone else for a fraction of a cent. Blockchains are decentralized networks and don’t have additional fees for international transfers.
2. Transaction Speed
You can move money around in several ways, but many of them take quite a bit of time. Most financial institutions can take several working days to complete a transfer, and even longer if there are any complications. Even stock trades can sometimes take a few days.
A key benefit of cryptocurrency is that transactions typically take just minutes or seconds, regardless of where you’re sending it. A block that carries out a transaction is confirmed by the network almost instantly. The receiver can then use these funds straight away.
3. Accessibility
In some countries, banks aren’t accessible to everyone. With crypto, on the other hand, anyone with a computer or a smartphone and an internet connection can invest and make transfers. Some wallets take just minutes to set up, and you can buy crypto through a range of online exchanges.
One thing to note is that some exchanges aren’t available in every country. Take a bit of time to research the options that are available to find one you like.
4. Transparency
Of the various cryptocurrency benefits, this is one that really stands out. All transactions happen on a distributed blockchain ledger.
Because of this, all transaction data is visible to anyone. You can see the details of any transaction which makes verification much easier.
This massively reduces the risk of fraud and scams. People can easily see clear details of any transactions and tell if they’re legitimate or not.
5. Inflation Protection
One major downside of saving fiat currencies is the lack of protection against inflation. Cryptocurrencies, however, have the potential to do this. Many cryptocurrencies use capping methods to ensure only a certain number of coins can go into circulation.
The risk here is volatility, as the value of cryptocurrencies can change quickly. Having a diverse portfolio will help reduce your risk exposure, and may be a good way to hedge against inflation.
Are the Benefits of Crypto Worth It?
When weighing up the pros and cons of crypto, many people would agree that it’s worth investing in some. With that in mind, it’s still important to do your own research so that you always know what you’re buying, and always be aware of the risks involved.
These are just some of the most noteworthy benefits of crypto, but there are many more. If you’re interested in learning more about the crypto space, check out some of our other articles.