The world is constantly changing as it is being more and more digitized everyday. There was a time when we used to carry hard cash for every need but later it was cards, then online transactions came into the picture. One of the latest ways of transaction is cryptocurrency. It is a digital currency that works as a medium of transaction through a computer network that is not connected to or maintained by any central authority such as the government or bank. Informative discussions about pros and cons of cryptocurrency can be found in several international journals and articles. Find out how Cryptocurrency works and helps making transaction easier in 2023:
1. Accessible to Everyone:
Only a computer or smartphone with a proper internet connection is all that we need for using cryptocurrency. Just set up a crypto wallet and you are good to go. It is easier than creating an account at any traditional financial organization because in this case you will not have to go through any verification process; your credit, background or even your ID, nothing will be verified. Therefore, it can be used by anyone, anywhere. Therefore, in this way Cryptocurrency helps the ones who are incapable or unwilling to be screened by a centralized authority before creating an account. To conclude, cryptocurrency enables the unbanked to make easy online transactions.
2. Fast Transaction:
Waiting for money to be transacted successfully after it is debited is one of the most irritating things ever. Cryptocurrency eliminates these hindrances; it is one of the fastest ways of sending money from one account to another. Generally in the US financial institutions transactions take 3-4 days to be processed and stock trades are settled in more or less 3 days. But thanks to cryptocurrency, these transactions are now completed within some minutes which was unimaginable even a few years back. Once a block containing a transaction is confirmed by the network, it is fully settled and the funds are available.
3. Cheap Transaction:
Cryptocurrency is much cheaper in terms of transaction costs. Transaction mediums are not at all cheap; international transactions are quite expensive. Domestic wire transfer costs much less than that but even this amount is not negligible. A domestic wire transfer possibly costs twenty five to thirty dollars and this is not an exaggeration.Therefore, instead of this, using cryptocurrency is much smarter. Though there is a possibility of an increase of transaction cost because of the demand on blockchains, median transaction fees are way cheaper than wire transfer even if the blockchains are highly crowded.
4. Offers Privacy:
Even though cryptocurrency does not oblige us to go through a detailed verification process, it still maintains privacy from the user’s end. Maintaining a level of privacy in financial transactions is not quite easy. Cryptocurrency offers a certain degree of privacy because it does not require registration for an account at financial institutions. The transactions here are pseudonymous. Though an identifier is there on the wallet addresses, it can not be tracked back because it does not have any specific information about the account holder. There are several ways of securing transaction details even further if further privacy is needed.
In the field of transaction, crypto has begun a new era. Many people are using this digital currency nowadays but again it is completely unknown to several people. There is also an issue of trusting a completely alien currency; it can be quite intimidating but gradually it gets familiar and you will realise how easy it is to use cryptocurrency and how much time and money it saves.
