The word cryptocurrency may have first been heard in the year 2009 with the introduction of bitcoins, but not much has been known about it until lately. Cryptocurrencies are digital currencies. They are decentralized money, meaning there is no central bank to regulate its transactions. Examples of the digital currencies are Bitcoins, Litecoins, Ethereum, Zcash, Dash, Ripple, and Monero.
Any cryptocurrency in existence prevents fraud because payments cannot be reversed. Since the money is digital, no one can counterfeit or reverse it. Where it can be used as a means of payment for a service, the party receiving the money would likely prefer using bitcoins or the others because it would be impossible for the sender to reverse the payment. Many online freelancers also like the idea because it gives them full control over their money once it has been paid.
In addition, cryptocurrency payments don’t waste time. Since third parties are not necessary for the transactions made, a deal can be concluded quicker than when using the banks or the other online payment systems.
The issue about high transfer fees with some online payment systems is another reason why people decide to use cryptocurrencies. Most cryptocurrency transactions are done with a very small processing fee. Fr example, sending about $103 via bitcoin costs less than $4 commission. Similarly, the party receiving the money spends nothing more than $1 only to receive the funds.
Using a cryptocurrency prevents identity theft because there is no need to supply one’s personal details when opening an account. This is not the case with the traditional payment systems such as credit card, cheques and online systems such as PayPal. Cryptocurrency users are therefore safe and are less likely to have their accounts hacked.
Anyone can open a cryptocurrency account. Since no one governs the number of accounts one can own, it is possible to have up to five or more with lots of money in them. Moreover, since the internet is available to all, these digital currencies can be owned by anyone who can just open an account using a cell phone or a laptop. The availability of different bitcoin apps is also making things a lot easier.
Cryptocurrency wallets can be used to store large sums of money. Because it is completely decentralized, one can save millions of dollars in it without fear of being questioned by some government officials. If a person has made a lot of money from some laudable projects, then it is safe to open cryptocurrency wallets and storing the money there.
Since cryptocurrency wallets can be opened by anyone, there is no need to be worried about IP addresses when doing so. This makes account freezing almost impossible as is the case with some other systems like PayPal where the user has to use a country’s IP address consistently to avoid being blocked.
Even though it is not yet as popular as the credit cards which are more frequently used in global commerce, it is safe to say that time is coming when it will be more recognized on the global scene. Already, there are bitcoin ATMs and online shops where bitcoins are accepted as a medium of exchange.