Why use Cryptocurrencies?

Cryptocurrencies such as Bitcoin, Ethereum and Ripple can be tricky for first-time users to understand. But though the technology that backs up cryptocurrencies is complicated, the aim of them is simple: to democratise currency transactions, making them easier, safer and more accessible for the average person.

If you’re thinking about investing but you aren't sure whether it's the right decision, read on to find out more about the incredible benefits associated with cryptocurrencies.  

Easy Payments

With cryptocurrencies, financial transactions are made incredibly quick and easy. The only information you need is the account (usually known as the "wallet address") of the person you are sending a payment to; within a few minutes the payment will have arrived.

Lower Fees 

Cryptocurrencies are decentralised, which means they are not affiliated with one regulatory body, financial institution or country. Instead, transactions are tracked and recorded by a global peer-to-peer network of users. This means that the fees associated with traditional banking methods are massively reduced, and in some cases eliminated altogether.

Unbeatable Security

Cryptocurrencies rely on two things for security: sophisticated cryptography, and a peer-to-peer network of users. All users are given personalised keys which are used to sign and verify transactions. To ensure the security of all the information in the blockchain (where the history of all transactions is stored) a specific type of algorithm, designed by the NSA, is utilised every time new information is added.

The peer-to-peer network helps to maintain security simply through sheer numbers; with many different users verifying transactions, it’s incredibly difficult to falsify or tamper with the blockchain.

Privacy 

Many cryptocurrencies allow you to remain anonymous, but even those that are not fully anonymous (e.g. Bitcoin) can offer a refreshing level of privacy. Because cryptocurrencies are decentralised, you don’t need to supply a third party such as a bank with information on your spending habits.

Easy Foreign Transactions 

Cryptocurrencies are not affiliated with any one country, which means you can easily make payments to people on the other side of the world, or receive payments when you are away from home in a foreign country.

Smart Contracts

As we’ve seen, it’s incredibly quick and easy to make payments using cryptocurrencies. But with a type of blockchain technology known as smart contracts, you can also streamline legal processes. Smart contracts are built around a series of set conditions and exist inside the blockchain, where they are held securely and therefore cannot be tampered with.

When certain conditions (such as the expiration date of a contract) are fulfilled, payments are released. Provided that these contracts are properly constructed in the first place, the need for a middleman is removed.

Growing Popularity

Though it’s hard to predict the future of any currency – digital or not – there’s no denying the rising popularity of cryptocurrencies. With Zloadr, you can stay up to date on all the latest news from the cryptocurrency markets. Read our guides and follow our market information to make an informed decision about where to place your money.