From Bitcoin to Dogecoin, chances are you’ve heard of at least one form of cryptocurrency. Crypto has become very popular in recent years as an up-and-coming, technologically advanced way for people to invest their money and, hopefully, make a return on their investments. Even with its popularity, though, some people are still wondering what exactly the benefits are to investing.
Advantages of Investing in Cryptocurrency
Crypto Transaction Speeds Are Faster
What do you do if you need to send money to someone in a matter of minutes? In the United States, most banks take up to five days to complete transactions. Trading stocks aren’t much better, since they take up to three days. Even wire transfers typically take up to 24 hours, unless you pay exorbitant fees. The same cannot be said for cryptocurrency. If someone needs money and you send them something from your crypto portfolio, such as one on OKX Crypto Exchange, it typically takes only a few minutes for the transaction to complete and funds to become available.
Crypto Is Highly Secure
Decentralized cryptocurrencies are commonly considered secure forms of payment because they use blockchain security and cryptography as their base. Hash rate is what helps to determine how secure a cryptocurrency is. The higher the hash rate is, the harder it is for a computer to compromise the currency’s network. Bitcoin, which is the number one cryptocurrency in the world, also has the highest hash rate of any other network. Keep in mind, though, that your money is only as secure as the exchange that you use. Research each one thoroughly before deciding which one you want to use for your investment portfolio.
Crypto Provides Accessibility
Setting up a traditional stock account often takes time and requires the help of a traditional financial institution. Cryptocurrency is much easier for anyone to begin trading right from their own home. All you need is an internet-connected device. You won’t need to provide identification or undergo a credit check or background check. It is especially helpful for those who do not already use a financial institution and don’t want to go through a centralized authority to do so but still want to complete online transactions such as sending money to the people they love.
Crypto Is More Private
Because you don’t need to use a traditional financial institution, trading cryptocurrency allows you to maintain more of your privacy. You only need to use your wallet address and not any specific information about you to complete your trades. Keep in mind, though, that if someone does connect your wallet address to your identity, all of your transactions will be public. There are privacy-focused crypto coins and other ways to help you further maintain your privacy when trading, though.
Whether you’ve just started thinking about investing in cryptocurrency or you’re ready to get the ball rolling in your investment portfolio, it’s easy to see why it’s become so popular. The ease of use, affordable startup costs, and heightened privacy and security make it an excellent option for investors of all types.
