When you invest in something, it is crucial that you make the most out of it. If you are investing in Bitcoins, you need to know its advantages so you can make the most out of it. Before knowing the advantages, it is prudent to know things about it. Bitcoins are considered virtual currency or a cryptocurrency. Cryptocurrency refers to computer codes that hold monetary value.
Bitcoin first appeared in 2009 making it the first cryptocurrency. Cryptocurrencies created after Bitcoin like peercoin, litecoin, and ethereum are called alternative coins or “altcoins”. Bitcoins are precious that it behaves like gold coins – possessing value and you can trade it. If you want, you can use it to purchase goods and services online. Others hold it in case it will increase its value over the years.
Now you know basic things about Bitcoin, it is time to delve deeper and see how you can benefit from it. Here are the advantages of Bitcoin you probably didn’t know about:
Freedom in payment
You have to know that Bitcoins are considered decentralised. This means that there are no central bank or other financial institutions that govern it. With this, you are in total control of your money with Bitcoin. As a result, you have freedom in payment. You can send money and receive money anywhere in the world at any time – there are no limitations on transferring and receiving money.
Anonymity in transactions
Payments made through Bitcoins are completed without tying your personal information to the transactions. As a result, your personal information is saved from prying eyes. Ultimately Bitcoins protect you against identity theft. To ensure the safety of your money and personal information, Bitcoins are backed up and encrypted.
No hidden or extra fees
If you use Bitcoins for any goods or services, you will know if merchants charged extra fees. Bitcoins allow the consumers to notice extra fees on any transactions. With this, the merchants do not easily charge something because they need to consult first with the consumer before adding any charges.
Transactions are verifiable
You need to be aware of the blockchain. Bitcoins keep a data ledger called blockchain. The blockchain stores finalised transactions that you can verify. However, personal information is hidden. It will only show your public address but it is not tied to your personal information. Anyone can verify the blockchain to ensure authenticity. Any person or organization cannot manipulate Blockchain; this is to prevent fraud.
It has a very low fee
If you want to cash out, you can process it for a very low fee but if you want your transactions to be faster, you need to pay a higher fee. The payment will depend on you because a merchant cannot charge extra fees without you knowing. There are times that the fees are free.
Protection for merchants
If you are a merchant, you will have peace of mind thinking that transactions cannot be reversed. You will be inevitably protected from potential losses that might happen from fraud. The blockchain will help you verify transactions so you will not be conned or cheated.
Now that you know the advantages of Bitcoins, you can start building your Bitcoin Empire right away.