What Are the Benefits of Crypto Currency?

by Contributor

(Jan. 10, 2022) — If there’s one thing you should know how to do in your adult life, it’s how to build an effective investment portfolio. Rule #1 of investments is that you should always diversify your portfolio. You can do this by investing in traditional things like a 401k or a Roth IRA, but if you want to get adventurous, then you should consider investing in cryptocurrency.

Crypto might sound like the wild west, but the benefits of crypto currency are endless. Read on to learn all about this exciting investment option!

Cut Out the Middle Man

If you’re just learning about cryptocurrency now, then you’ll probably be happy to learn that one of the biggest cryptocurrency benefits is that you don’t have to deal with a broker at all. That means that you don’t have to worry about paying some middleman’s commission or a brokerage fee in order to purchase or sell crypto.

Buying and selling cryptocurrency is done on a peer-to-peer network that feels much more comfortable and easy to understand. You, the investor, know who you’re going to pay, and exactly how much you’re going to pay. Quite simply, it takes all the guesswork out of investing.

Dodge Transaction Fees

Everyone who has ever had a bank account knows that banks love to charge for every transaction. Apart from being annoying and inconvenient, transaction fees also take a huge hit on your investment. When it comes to cryptocurrency, however, those transaction fees are a thing of the past.

Buying and selling cryptocurrency is done through certain platforms that don’t charge transaction fees because they’re paid by the cryptocurrency network. That said, if you are enlisting the help of a third-party service to manage your wallet, be sure to read the fine print to avoid fees on that end.

Make International Trading a Breeze

Have you traveled to another country in the past and had to deal with exchange rates? If so, then you know that exchange rates and transaction charges eat up a ton of money and reduce your cash on hand.

With cryptocurrency, you don’t have to worry about exchange rates because it is an international currency. That means that your cryptocurrency is worth the same amount of money in the United States as it is in Australia or the European Union. When you trade it, the only fluctuation you have to worry about is the current value of the cryptocurrency itself.

Sold on the Benefits of Crypto Currency?

When it comes to investing for your future, the benefits of crypto currency are clear. Not only can you bypass the middle man altogether, but you also lose much less of your investment to transaction fees, and international trades are super easy to complete. With all of these cryptocurrency advantages, there has never been a better time to shake up your investment portfolio!

Do you want to learn more about personal finance and retirement planning? You’ve come to the right place. Check out the rest of our blog to stay up to date on the latest financial news!