fbpx

The Benefits of Cryptocurrency

Share to Linkedin Share to Twitter Share to Facebook Share to Print More
Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Many people think of cryptocurrency as a simple store of value, but there is much more to the idea. Bitcoin is rooted in “financial rebellion,” not as another way to pay for a pizza. There are many benefits implied within a decentralized, trustless, immutable system of record-keeping and value transference. Political and financial leaders around the world are taking note, and you should as well.

Even if you don’t plan to get involved in cryptocurrency as anything more than a portfolio hedge, you’ll definitely enjoy knowing just how crypto will change the financial and political world of the future.

Better Payment Structure

If you have ever been annoyed waiting for a cash transfer from a bank account, you may want to consider using crypto. Transfers are instant with lower fees than platforms like Paypal. Using crypto also eliminates fraudulent chargebacks because payments on a blockchain cannot be reversed.

Using crypto also frees you to send money wherever you want with no middleman scrutinizing your transaction history. This includes international recipients who will also happily avoid Paypal’s expensive currency conversion fees. 

The concept of the micropayment, or pay as you go, on-demand payment structure, is another advantage of using cryptocurrency. The built-in fees that you pay when using a credit card disappear with crypto, making per-second or per-minute micropayments a reality. Instead of paying a subscription fee for a streaming service, for example, crypto allows you to pay only when you watch a movie. As a matter of fact, Streamium is a video streaming service that does just that. 

Growth Investment

Even if you’re not a huge crypto buff, you likely heard of the Bitcoin mania that took place around Christmas 2017. Bitcoin exploded in value, almost touching $20,000 USD per coin. At that time, it was literally the best financial investment of all time. Bitcoin’s value relative to the dollar has receded since then, but crypto bulls believe it can top its 2017 performance and bring the rest of the crypto market with it.

More investors than ever — both individuals and institutions — are holding some sort of crypto in a portfolio. This includes very public crypto skeptics like Jamie Dimon, CEO of JPMorgan Chase. The Chicago Mercantile Exchange (CME) offers options on Bitcoin futures, giving the market mainstream viability it didn’t have before its breakout 2017 year. The crypto market has all of the markings of a solid potential growth investment: rising visibility and sentiment, a relatively low market cap compared to traditional asset classes and consistently increasing utility.

Financial Stability

Many investors in the U.S. think of crypto as a volatile investment. This may be because the U.S. dollar is the world’s reserve currency and still one of the most stable currencies on the planet. To a country like Venezuela, crypto actually represents a more stable form of money. This notion is more than a pipe dream or an experiment — Nigeria, Australia, Spain and Canada have all doubled their use of Bitcoin year over year.

In countries like Venezuela, the population is literally using Bitcoin to save its life. The government cannot exercise nearly as much control over cryptocurrency as it can a fiat currency. Russia is trying to create its own crypto and criminalize any other nonsanctioned competitor. The people of Zimbabwe prefer crypto to the gold-backed currency the government is pushing.

Smart Contracts

Imagine never having to pay a lawyer to do good business again. Imagine a real estate transaction with no escrow fees. This is a world that proponents of Ethereum say is quite possible. The smart contract, built on the Ethereum platform and quantified through the Ether cryptocurrency, brings the unchangeable, fraudless blockchain into the realm of law. Smart contracts create a 100% safe way to conduct an agreement sans the judicial system.

The idea of smart contracts is so well received that Ethereum has actually outpaced Bitcoin in terms of new users over the past year. Ethereum developers say that Ethereum will soon beat Bitcoin in the number of developers, daily value transfers and transactions per second. 

Decentralized Social Media

Facebook and Twitter have recently created controversy because of their willingness to police its platform. Depending on who you ask, we lose. One of the inventive uses of cryptocurrency is to serve as the basis of a decentralized social network. In this structure, there is no central authority to blame for censoring or not censoring controversial content. 

Decentralized social media also gets rid of the data privacy controversy because there is no central authority present to gather and sell private data. Cryptocurrency micropayments replace invasive ads as the platform’s funding mechanism. Spam is still unwelcome, but it is moderated through a smart contract rather than a mod, who can be influenced to be subjective. 

Trade Cryptocurrency 

To get the most out of crypto, you need to be able to get your hands on more than 1 kind of coin. You can do this most efficiently through a trading platform. Take a look at the feature sets of the brokers below.

Best For
Crypto Trading
Overall Rating
Get started securely through eToro’s website
Best For
Crypto Trading
N/A
1 Minute Review

eToro, headquartered in Cyprus, England and Israel, has provided forex products and other CFD derivatives to retail clients since 2007. A major eToro plus is its social trading operations, including OpenBook, which allows new clients to copy trade the platform’s best performers. Its social trading features are top notch, but eToro loses points for its lack of tradable currency pairs and underwhelming research and customer service features

Best For
  • U.S.-based cryptocurrency traders
  • Social and copy traders
  • Simple user interface
  • Community engagement and following other traders
Pros
  • Expansive network of social trading features
  • Large client base for new traders to imitate
Cons
  • U.S. traders can only buy cryptocurrency
  • Only 15 cryptocurrency pairs available
Best For
Buying & selling Bitcoin
Overall Rating
get started securely through Robinhood’s website
Best For
New Investors
Overall Rating
try for free securely through Gemini Crypto’s website
Best For
New Investors
N/A
1 Minute Review

Gemini is a cryptocurrency exchange and custodian that offers investors access to 26 coins and tokens. Founded in the US, Gemini is expanding globally, in particular into Europe and Asia. Offerings include both major cryptocurrency projects like Bitcoin and Ethereum, and smaller altcoins like Orchid and 0x.

Gemini is 1 of the only brokers with multiple platform options based on skill level. New investors will love the streamlined interface of Gemini’s mobile and web apps, while advanced investors might appreciate all the tools that come with ActiveTrader. 

In addition to a host of platform choices, Gemini users also have access to insured hot wallets to store tokens without worrying about digital asset theft. Learn more about what Gemini can do for you in our review.

Best For
  • New investors looking for a simple mobile and web app
  • Experienced investors who need a more advanced platform with more tools
  • Users looking for a 1-stop-shop to buy, sell and store all of their coins
Pros
  • Easy and quick signups — can get started in as little as a few minutes
  • Multitude of platforms to accommodate traders of all skill levels
  • Hot wallets include insurance to protect your from theft and hacking attempts
Cons
  • Charges both a commission and a convenience fee for users buying and selling through the desktop or mobile app
Best For
Crypto Investing
Overall Rating
Get started securely through Coinbase’s website
Best For
Crypto Investing
N/A
1 Minute Review

Coinbase is one of the Internet’s largest cryptocurrency trading platforms. From Bitcoin to Litecoin or Basic Attention Token to Chainlink, Coinbase makes it exceptionally simple to buy and sell major cryptocurrency pairs. 

You can even earn cryptocurrency rewards through Coinbase’s unique Coinbase Earn feature. More advanced traders will love the Coinbase Pro platform, which offers more order types and enhanced functionality.

Though Coinbase doesn’t offer the most affordable pricing or the lowest fees, its simple platform is easy enough for complete beginners to master in as little as a single trade.

Best For
  • New cryptocurrency traders
  • Cryptocurrency traders interested in major pairs
  • Cryptocurrency traders interested in a simple platform
Pros
  • Simple platform is easy to operate
  • Comprehensive mobile app mirrors desktop functionality
  • Coinbase Earn feature rewards you with crypto for learning about available coins
Cons
  • Higher fees than competitors
Best For
Mobile Traders
Overall Rating
get started securely through Voyager’s website
Best For
Mobile Traders
N/A
1 Minute Review

Voyager is a leading name in the sphere of cryptocurrency investing, giving you access to over 50 tokens and coins. Buy, sell and swap assets using Voyager Crypto’s simple mobile platform available as a free download for iOS and Android users. 

When you invest through Voyager, you’ll pay nothing in commissions, which is a major benefit when compared to other cryptocurrency brokers. Voyager is also one of the only brokers we’ve seen that allows users to earn interest on their crypto investments. 

Though the broker could do more to improve its customer service, it’s an excellent option for beginner investors and seasoned professionals alike.

Best For
  • Cryptocurrency investors looking for a wide selection of supported projects.
  • Investors who prefer mobile trading.
  • Anyone interested in earning interest on their crypto investments.
Pros
  • Simple, straightforward and intuitive mobile platform
  • Wealth of investment opportunities
  • Allows users to earn interest on select crypto investments
Cons
  • Only available for mobile users — no desktop platform
  • Limited routes to contact customer service team
Best For
No or Low Fees
Overall Rating
get started securely through BlockFi’s website
Best For
No or Low Fees
N/A
1 Minute Review

Maybe you think cryptocurrency is the future, or perhaps you were swept up in the initial waves of Bitcoin. BlockFi may be your next step if you’re ready to evolve as a crypto investor.

Whether you’re a native crypto user or curious enough to start investing, BlockFi seeks to bring institutional-grade financial products to crypto markets that often face restricted access. It strives to bring clients low-cost, simple applications designed to maximize the potential of crypto assets. Learn more in our BlockFi review.

Best For
  • Crypto native clients. You own Bitcoin now. You’re the friend who fills in the blanks when conversation turns to cryptocurrency, and you devour crypto literacy content like it’s your job (and maybe it is). BlockFi’s platform can help take your crypto assets to the next level.
  • Crypto fringe clients. If you’ve dabbled in buying alternative assets like crypto or know enough to be interested, BlockFi can help you take the next step.
  • Crypto curious clients. If you’re both intrigued by bitcoin and the type of person who obsessively learns everything you can about things you’re new to, BlockFi’s crypto asset platform might be the entry point you’re looking for.
Pros
  • Mostly fee-free platform
  • Market-best interest rates
  • Earn interest, trade and borrow from a centralized hub using the BlockFi app
Cons
  • Mostly restricted to those with a base knowledge of cryptocurrency
  • No dedicated relationship with an investment advisor, so best for those who have a solid handle on crypto trading
Best For
High Spending Limits
Overall Rating
get started securely through Coinmama’s website
Best For
High Spending Limits
N/A
1 Minute Review

Coinmama prioritizes convenience, security, and efficiency in its cryptocurrency exchange. Customers buy and sell directly with the company, so orders fill instantly and without any hassle. 

While you’ll need to get a crypto wallet from another company, the ability to buy and sell seamlessly and securely through Coinmama’s platform makes crypto trading easy and safe.

Best For
  • Crypto traders who want instant transactions and immediate access to their crypto
  • Buyers who want to buy coins with a credit or debit card
Pros
  • Fills orders and sends your coins in minutes
  • Wide variety of payment options accepted
  • Generous loyalty program that provides serious discounts to qualifying customers
  • Fast and friendly customer service
Cons
  • 3rd-party crypto wallet required to actually receive your coins.
Best For
Sign Up Bonuses
Overall Rating
get started securely through crypto.com’s website

There’s More to Life Than Money

Although you may certainly use Bitcoin, Ether or altcoin as cash, the real benefits of crypto are much broader. Even if the current generation of cryptocurrencies phases out as money, the social and financial ideas they brought to the mainstream cannot quickly be forgotten. The ideas mentioned above represent only the tip of the digital iceberg in terms of potential social and financial utility.

Avail yourself of the more technical benefits of value stores, smart contracts and other crypto utilities. They will certainly play a major part in people’s lives in the very near future. The more you learn today about what crypto can really do, the more your life will benefit tomorrow. You may even be inspired to create a use of your own for cryptocurrency in this still quite new and wide-open space.

Frequently Asked Questions

What are the advantages of cryptocurrencies?

1
What are the advantages of cryptocurrencies?
asked
1

Several of the benefits of cryptocurrencies include quick asset transfers, confidentiality, security and decentralization.

answered

What are the disadvantages of cryptocurrencies?

1
What are the disadvantages of cryptocurrencies?
asked
1

The drawbacks of cryptocurrencies include volatility, higher levels of risk and fewer regulations.

answered

Try Gemini

Gemini builds crypto products to help you buy, sell, and store your bitcoin and cryptocurrency. You can buy bitcoin and crypto instantly and access all the tools you need to understand the crypto market and start investing, all through one clear, attractive interface. Gemini Crypto Platform offers excellent account management options. You can manage your account at a glance, view your account balance 24-hour changes and percent changes. Get started with Gemini now.

Exclusive: Cryptocurrency Weekly Newsletter

What you’ll get: a deep dive into relevant crypto projects, exclusive insights into alt coins from the pros & more!