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7- Benefits Of Crypto Currency

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The term “Crypto Currency” is one of the latest and widely used economic terms in contemporary times. But its origin dates back to prehistoric periods. Using tokens in B2C and B2B trade is neither unusual nor new. Since ancient times, this practice has been in use when the small communities did not have regulated currencies and organized modes of payments. 

In that scenario, communities & traders had developed their own systems of payment for buying & selling goods. The most common methods were two – one the barter trade, and the other tokens.

bitcoin

Even today, most of us must have obtained plastic tokens at the counters in restaurants, snacks shops and fast food kiosks before getting the dish. This is something that nearly resembles cryptocurrency while doing online shopping.

The emergence of Crypto Currencies

With the advancement in technology and the emergence of online shopping, these physical plastic & metallic tokens have been transformed into e-Tokens or Virtual Tokens. And so these are also called virtual currency, e-currency and crypto currency. To date, none of these currencies are available in physical form. These are generated and exchanged on computers with specially designed software. 

ethereum

The first digital currency, “Bitcoin” was brought into existence in 2009. By now, more than 200 such currencies are available on the crypto-coin market and are used worldwide. These include:

  1. Bitcoin
  2. Bitcoin Cash
  3. Wrapped Bitcoin
  4. Ethereum
  5. Ethereum Classic
  6. Tether
  7. Benance Coin
  8. Bitcoin SV
  9. Dogecoin
  10. Litecoin
  11. Benano
  12. Polkadot
  13. XRP
  14. Uniswap
  15. USD Coin
  16. ICP
  17. Solana
  18. Chainlink
  19. Theta
  20. Polygon
  21. Shiba Inu
  22. Binance USD
  23. Stellar
  24. Kusama
  25. Dai
  26. PancakeSwap
  27. Iota
  28. EOS
  29. Aave
  30. VeChain
  31. Monero
  32. Tron
  33. Maker
  34. Neo
  35. Filecoin

Benefits of Digital Currency

As compared to State-regulated currencies, a digital currency has its own uses. These currencies have but are not limited to the following benefits. 

Global Usage

Unless allowed and accepted by other countries, all the official currencies are valid only in the issuing country. If required to be used in any other country, they need to be converted into local currency. Any e-currency can be obtained and used anywhere, anytime. 

No Restrictions on Holding & Using Crypto Currency

Except in only 3 or 4 countries where their use is illegal, all virtual currencies can be held and used freely. Prominent countries where virtual currencies are not allowed include China & Saudi Arabia. The only issue is, states do not recognize them. But they have not banned their use. Irrespective of the fact that the Govts. do not recognize these virtual currencies, they allow their citizens to use virtual currencies for online purchases and investments.

Decentralized Status

All the virtual currencies are decentralized. They are not regulated by any Central Bank or Govt. Regulator. Investors or users are required to follow the terms & conditions of the Company that manages the virtual currency. The common condition is a restriction on use against illegal trade like drugs.

Open Source 

All virtual currencies can be acquired online freely by investment in local currency. For example, if you need Bitcoin or Dogecoin, or any other virtual currency, you won’t need to get your local currency converted to any other currency. Just pay online in your own currency and get virtual currency equal in amount.

World-Wide Acceptance

Virtual currencies are global currencies and are accepted by businesses across countries for B2B and B2C shopping and holding for investment. Among the prominent online stores & businesses that accept e-currencies is Shopify. 

Payment By Credit Cards

Many well-reputed global banks allow using their credit cards for investments in virtual currencies. In India, the Reserve Bank has withdrawn its earlier restrictions imposed on the Banks against using their credit cards to acquire virtual currencies.

Traded Like Other Currencies

Most of the e-currencies are traded on their own trading platforms. These are traded in the same manner as other global currencies, stocks & commodities are traded on stock exchanges. 

These currencies are highly volatile. Like stocks, they too undergo heavy fluctuations from a shoot-up to the peak to a nosedive fall to the basement.

bitcoin-crypto-currency

Investors should stay active and keep a vigil on their trends.

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