Did you know that fifty-five percent of people believe that investing in cryptocurrencies such as Bitcoin is an effective long-term strategy for building wealth?
During the last several years, more and more people have started investing in crypto. Even though the values of many cryptocurrencies rose to all-time highs in 2020 and 2021, their values plummeted in 2022. This is making many people wonder if it’s still worthwhile to get involved.
To help clear up confusion, we’ve created a guide. Keep reading and we will tell you everything that you need to know.
Fast Transaction Speeds and Low Transaction Costs
Before cryptocurrencies existed, people who wanted to send and receive money within the United States needed to pay high transaction fees and would typically need to wait hours or days for the transactions to go through.
In most situations, it takes between three and five days for transactions that are made through U.S. financial institutions to settle. Wire transfers often take up to twenty-four hours and the typical stock trade won’t settle for three days.
But with cryptocurrencies, it’s possible to perform transactions within a matter of minutes. After a network confirms the block with your transaction, everything is fully settled and it becomes possible to use these funds.
It’s also important to know that cryptocurrency transaction costs tend to be much lower than other financial services. In most circumstances, a domestic wire transfer costs twenty-five or thirty dollars. It gets even more expensive if you need to wire money internationally.
Even though it tends to cost much less to perform transactions with cryptocurrencies, you should also be aware that it will cost you a bit more if you’re using a blockchain that experiences high demand. But even if you do have to pay a bit more to use congested blockchains, you’ll still pay less than you’d need to pay if you chose to do a wire transfer.
People who use Bitcoin often perform transactions by using Bitcoin ATM machines such as those that are operated by Byte Federal. If you want to find out how to use them to purchase Bitcoin and want to meet the team, be sure to visit their website.
Accessibility and Security
It’s easy to sell and purchase crypto. All you need is a digital device such as a smartphone or a computer and an internet connection. The biggest challenge that people usually encounter involves setting up a cryptocurrency wallet.
But compared to starting accounts at traditional financial institutions, it’s quick and easy to do this. You don’t even need to have your identification verified or go through background and credit checks.
Those who perform transactions with cryptocurrencies also don’t need to worry about dealing with a centralized authority. There are also many people who face barriers to opening traditional banking accounts who instead choose to use cryptocurrencies to do things such as perform online transactions and send money to their family and friends.
It is also much more secure to perform transactions with cryptocurrencies than it is to do so with banks. This is because transactions are secured by the blockchain system and the wide-reaching network of computers that verify transactions. And while more computers continue to be added to the network, the system will continue to become more secure.
Use Cryptocurrencies if You Value Privacy
There is no need to create an account with a financial institution to use cryptocurrencies. This means that those who use crypto have more privacy than they would otherwise have.
When you perform transactions, all that you need to provide is your wallet address. You do not need to include things such as your name, telephone number, or address. It’s also possible to use coins that are privacy-focused if you want your transactions to be completely anonymous.
Every single cryptocurrency transaction takes place on a distributed blockchain ledger that is public. This means that it’s possible for people to make use of tools to access transaction data. This includes when, where, and how much of a certain cryptocurrency a user sent from the address of a certain wallet.
This means that it is extremely difficult to perform fraudulent transactions with cryptocurrencies. There is proof of when somebody sends money and when it gets received.
A Hedge Against Inflation
Many investors choose to use cryptocurrencies when they are looking for ways to protect their assets against inflation. Many people buy Bitcoin for this single reason.
The cryptocurrency has a hard cap on the total amount of coins that will be minted. This means that the increase in the supply of money will outpace the growth in the supply of Bitcoin. Experts say that this means that the price of Bitcoin will continue to increase.
Investors who value diversification choose to use cryptocurrencies in order to diversify their portfolios. Experts say that the prices of cryptocurrencies are not directly correlated with the prices of other markets. Even though cryptocurrencies do tend to be volatile, they are less likely to rise and fall in value than other markets do.
Get Started in Investing in Crypto Today
If you’ve been on the fence about investing in crypto, it’s important for you to know about the many great reasons to do so. Not only are cryptocurrencies more accessible and more secure, but they are also great options for those who are looking for a hedge against inflation.
If you want to find out more about cryptocurrencies, be sure to check out our blog.