Cryptocurrencies allow their users to do transactions without a third party (example credit union or banks). It allows more democracy in the economic field and let people do transactions in a secure and free manner. In this article, we will explore the benefits of using cryptocurrency as a payment method.
1. It can be used anywhere
You can store your cryptocurrency in a digital wallet that can be managed from your smartphone. You can also store it in a hardware wallet which is done using the Ledger Nano S technology. With this technology, you will be allowed to take your cryptocurrencies anywhere you go.
2. Cryptocurrency is your personal property
Your cryptocurrencies are completely under your ownership and management as long as you know its passphrase or password. No one will be able to use it without these security codes. On the other hand, the money you put in the bank is legally considered not yours anymore, as you become a creditor to the bank who manages your money.
3. You can have the benefits of being a bank customer without a bank
Around 2 billion people in the world do not have a bank account, and most of them do not have a mobile phone. The blockchain and cryptocurrency technology can allow people with no bank accounts to do financial transactions using a phone and biometrics which could increase their wealth.
4. It allows a high level of privacy
Unlike working with a bank, you do not have to provide a wide range of personal information. In order to pay with cryptocurrency, you won’t need to provide as much data as you did for opening a bank account, and this will not have a negative effect on your transactions, nut in fact you will be able to place them anonymously. Privacy though differs from one cryptocurrency to another.
5. You will benefit from a 24/7 traceability of transactions
Transactions in the blockchain are verified using nodes which are decentralized networks of devices. They will be stamped on time and connected to the previously done transaction which creates a chronological series of transactions. The transactions are irreversible and successive which forms the blockchain. They are also updated and synchronized on all devices. This means that no third parties are allowed to modify the payment or reverse it.
6. It is divisible through many crypto bank accounts
In one crypto wallet, the user will be allowed to create more than one account number and address. This is useful if you do not want to carry too much crypto in your pocket.
7. You will be allowed fast, secure and transparent handling of smart contracts
The blockchain technology allows the virtual digitization of services and 3D objects, in order to put their value in the blockchain. This makes it not necessary to refer to third parties such as notaries, banks, or advisors, making the transaction cheaper and faster for costumers. Not only transactions, but the latter also applies to insurances, loans and the tracking of goods.