They are Irreversible – No Matter What
Once a transaction has been confirmed, it can’t be changed; this is a crucial point to remember. If you sent your funds by accident, to the wrong person or worse, someone who has scammed you – there is no way to get them back.
Transactions happen fast – within minutes. No need to wait hours or even days. No matter where you are in the world, no matter how close or far you are to the person you are sending cryptocurrency to. Fast transactions combined with irreversibility means you need
to pay attention to what you are doing.
Nobody Knows It’s You
Back when cryptocurrency first started out, privacy and being anonymous was essential to early traders. Today, it’s still common for traders to create aliases so that all the transactions, accounts,
and stored data you have can’t be tied to your real-world identity. This might sound a bit paranoid, but the system is set up to prevent identity theft. For example, credits cards use a ‘pull method. For example when you use your credit card to pay for something, you are giving that
merchant the right to access your full credit. The merchant pulls then money from your credit card account. Cryptocurrency “pushes” the transaction instead, meaning you send the exact amount what you want to the recipient and they don’t get access to any additional
Your Funds are Safer Than in a Bank
There is a very strong measure in place where your cryptocurrency funds are locked in. It’s called a public key cryptography system, which means only the owner of the private key can send the money. Remember the previous point – it’s a “push” transaction, not a “pull.”
Easy to Get Started
It is incredibly easy to get set up and start trading. You need some software, somewhere to store your money and a little knowledge. We will cover what you need in a later chapter. There are no special regulations or certifications. You don’t have to report to anyone or ask permission. No one is watching you. It’s just you and trading. See The Future of Blockchain & Cryptocurrencies
Controlled Supply Could Boost Value Over Time
The amount of most cryptocurrencies decreases over time. This is done by a special piece of source code that specifies how much can exist. This makes cryptocurrencies more like precious metals or limited non-renewable resources. Unlike traditional forms of money, where it is possible just to make more, that is impossible to do with cryptocurrencies.
Banks Can’t Touch You
For those who worry about bank policies leading to future economic instability then trading in cryptocurrencies is a desirable option. Cryptocurrency trading happens entirely outside of any direct control of national banks. This also means that a bank can’t freeze or seize your bank account for whatever reason. They can’t reverse transactions. They can’t touch your money. How is this possible? This is the case because the cryptocurrency ledger lives on a decentralized network with identical copies existing in numerous locations globally. Read about The future Of Cryptocurrency And The Nigerian Economy
Self-Interested Quality Control
Mining happens when transactions are verified and added to the blockchain. Mining is done by real people who use special software to ensure that all the transactions in a blockchain are indeed
verified. They get compensated for this work. It is in their own self-interest financially to keep accurate, up-to-date transaction records. This process secures the integrity of the whole system and the value of the currency itself.
Cryptocurrencies have numerous security features that ensure there are no acts of duplicating the digital funds. This eliminates the need for transactions fees to support third-party payment
processors like a credit card company or PayPal who would typically charge to check those transactions. Miners take over this work and are compensated with new currency units and sometimes optional transaction fees.
Easy to Use
Using cryptocurrencies globally is easy. They are not tied to ever-changing rates or transaction fees. These funds can be exchanged and utilized internationally without experiencing the usual problems using different forms of currency between countries. See this article on Cryptocurrency :The New Normal