So, now that you’ve (hopefully!) got the crypto basics down, you might be wondering, “What’s all the buzz about? What are the benefits of crypto versus traditional currency?” If you’ve found yourself thinking something along these lines, fear not! You are not alone, and here at LIFElabs we want to demystify the world of digital currency so that you feel empowered and fully prepared to get involved in this exciting technology yourself! Here are just a few of the many benefits that cryptocurrency has to offer:
Independent and Decentralised
As we mentioned in Part 1 of our “Get to Know Crypto” series, digital currencies are decentralized. This means that there is no need for a central bank or government to keep track of things like the current value of the money and who’s got how much thanks to the distributed nature of Blockchain technology.
For example, we know that when a government decides to print more money, the value of that money goes down, and in some cases becomes virtually worthless. This makes cryptocurrency an attractive alternative – it’s not reliant on any one country’s economy and it carries the same value internationally.
So, if the value of the currency in your country goes down, your digital currency is not affected.
Safe and Secure
Up until now, banks have relied on their own set of records to keep track of how much money everyone has. These records are usually kept in one place and on computer servers that make the information vulnerable to hacking. Unfortunately, we’ve seen just how vulnerable in recent years.
Cryptocurrency uses Blockchain technology which keeps permanent ledgers all around the world. These ledgers exist on a network which allows for continuous updates to occur synchronously, ensuring that all records match. This makes hacking the Blockchain essentially impossible so your digital funds are safe and sound.
Want to transfer money to a friend or relative living abroad? With traditional money, you would need to ask your bank to make a wire transfer to the recipient’s bank, which could take up to five days or more, not to mention incurring additional fees which have to be paid to the respective banks. This is a huge difference compared to digital currencies.
On average, digital transactions only take about 30 minutes for approval. In extreme cases they can take several hours, but they are always completed within the same day. As our world becomes more connected and globalized it’s becoming increasingly important that our money is able to keep up with our fast-paced lifestyles.
Cryptocurrency uses a peer-to-peer payment system, which means that there’s no third party, like a bank, that’s keeping track of your transactions – one of the many benefits of using revolutionary Blockchain technology.
Instead, each digital currency holder has a “wallet” (basically a program or app) that stores the ‘keys’ you need to access your balance of coins and tokens. Through our app, LIFEwallet, you are fully in control of your transactions. We’ve even added extra privacy features that protect your identity and make your privacy a priority.
So that’s it! A quick look at just a few of the many benefits of using crypto! You’re well on your way to becoming an expert, and if you stay tuned for Part 3 of our Get to Know Crypto series, you’ll learn how to enter into this exciting world with confidence and ease.
As always, please send us your questions (however basic you think they are!) to: [email protected]. We’re here for you!