The cryptocurrencies fundamentally changed the financial market and became a revolution that was not yet there. Although many people draw attention to their disadvantages and risks, today we will introduce key benefits of cryptocurrencies from a transaction point of view.
Transactions without unnecessary complications
In traditional business, traders, brokers or agents may incur unnecessary costs just to make a simple business transaction. Paperwork, brokerage fees, commissions and any other extra expenses are needed.
One of the advantages of cryptocurrency transactions is that they are one-to-one relationships that take place on a peer-to-peer network structure that virtually ousts any third party. This leads to greater clarity in the compilation of control records, less confusion over who should pay for who, and more responsibility because both parties involved in the transaction know who they are.
Easy Asset Transfer
One financial analyst describes the block structure of the encryption system as a “large property rights database” that can be used on one level to implement and enforce bilateral commodity contracts such as cars or real estate.
Transactions are more confidential
Banks and similar institutions often take the history of transactions as a reference document for providing services and making various payments. Simply put, they can check the balances on your account to ensure that sufficient funds are available. For important business transactions, a more in-depth investigation of your financial history may be required.
Another great advantage of the cryptocurrencies is that each transaction you make is a unique exchange between the two parties, the terms of which can be agreed and determined. What’s more, information is exchanged based on clicks, so you can transfer exactly what you want to send to the recipient – and nothing but that. This protects the privacy of your financial history and the potential threat of account theft or identity.
Greater access to payment
It is estimated that 2.2 billion people worldwide currently have access to the Internet or mobile phones, but currently do not have access to traditional banking systems. The ecosystem of the cryptographic monetary economy has the potential to make every transaction possible.
In a traditional banking or credit card system, you effectively transfer your funds to a third party that decides on them. Accounts may be closed without prior notice for breach of the terms and conditions of financial institutions. You only decide about the cryptocurrencies in your wallet yourself and no one can arbitrarily close or disable it.