A cryptocurrency is a digital asset that can circulate devoid of the need for a central monetary authority such as a bank or government. Rather, cryptocurrencies are made using cryptographic methods that allow people to sell, buy, or trade them securely. Richard James Schueler says that bitcoin and most other cryptocurrencies are supported by a technology known as blockchain, which maintains a tamper-resistant record of transactions and keeps track of who possesses what. The creation of blockchains addressed a trouble faced by previous efforts to create purely digital currencies: stopping people from making copies of their holdings and attempting to spend them twice.
With cryptocurrency, the transaction cost is low to nothing at all, the fee for transferring money from a digital wallet to a bank account. You can make transactions at any time of the day or night, and there are no limits on purchases and withdrawals. And anyone is free to use cryptocurrency, unlike setting up a bank account, which requires documentation and other paperwork.
International cryptocurrency transactions are quicker than wire transfers as well. Wire transfers take about half a day for the money to be moved from one place to another. With cryptocurrencies, transactions take only a matter of minutes or even seconds.
While safety and security with online transactions was a definite selling point, it was investment possibilities that drew attention from the masses. For those who were not able to take advantage of traditional banking products, easy access to online cryptocurrencies gave another way for this group of people to invest. There are a number benefits of investing in cryptocurrency, including:
- Avoiding fees
- Direct control over investments
- Easy access to a wide range of investment opportunities
Because of these benefits, Bitcoin and the other cryptocurrencies rose from skepticism in to being a sought-after resource in less than a decade.
Richard James Schueler says that in short, while cryptocurrencies are more convenient than traditional banking and investing options, they are not as secure as using your local bank. When you use your bank, you can rest assured that your cash will retain its worth and that the practices surrounding how your money is invested are highly regulated by federal law. All in all, if safety and security are what you are looking for, finding a local bank branch is the best route.
Getting caught up in the financing, latest and greatest currencies, and investing opportunities is easy, but making smart decisions about your future takes careful planning. There is no better place to start than by gathering information and working with experienced professionals, who have the know-how and expertise to guide you in the right direction.