The idea of cryptocurrency has become a common subject of discussion over the past few months and you can see that many forums and discussion groups are filled with topics about various aspects of cryptocurrencies. When all this idea of cryptocurrency started initially, then there were many apprehensions regarding its future and people doubted its potential, but now we can see that more and more people have started trusting it. Some of the most popular cryptocurrencies which have become common names are Bitcoin, Ripple and Ethereum.
It is nearly impossible to fake a cryptocurrency because they are highly secured and hence the traditional problems which used to happen in credit cards like chargebacks and counterfeit cards are not possible in cryptocurrency. Apart from this advantage, let us see various other advantages which cryptocurrency can provide us:
Settlement time: The time taken for transaction settlement in cryptocurrency is far less than the time taken by traditional banking and financial institutions. The transaction settlement in cryptocurrency does not require heavy formalities and regulations, therefore, the settlement time is much faster.
Lesser transaction fees: The transaction fee in cryptocurrency is much less than traditional banking institutions. The miners involved in verifying a transaction in the cryptocurrency network get paid for rendering their service in verifying transactions. If you use third-party exchanges, then the transaction fee might be a little higher but still less then the traditional government designated financial institutions.
Reduced chances of theft: When you pay through credit card, then the mechanism that is applied to the transaction is based on "pull" system where the service provider pulls amount from your card. On the other hand, transactions in cryptocurrency are based on a "push" system where the sender initiates only the amount that is required which greatly reduces the chances of theft.
Decentralized mechanism: Cryptocurrencies do not come under any single centralised control they are operated by a network of miners spread across the world. This decentralized nature of cryptocurrency limits any chances of monopoly and thereby it greatly enhances the trust of users.
Anonymity: There are several situations in which a user might not want to reveal his identity online while transacting money. Anonymity is not possible if money exchange takes place through banks because there are various formalities and documents which provide details about the sender and receiver. Cryptocurrency provides a high level of anonymity for people involved in transactions.
Considering the above features and advantages which cryptocurrency provides over traditional money exchange, we can easily say that cryptocurrency will further get momentum with time as more and more people will get familiar with it.
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