cryptocurrency has been incredibly popular over the past few years but many consumers and investors may be wondering what all the fuss is about why would someone select cryptocurrency when their local currency works just fine for most things why would someone invest in a cryptocurrency in fact there are a number of advantages to using and investing in cryptocurrency and they truly matter even more than you think hey everyone welcome to crypto trends in today's video we'll go over the question why cryptocurrencies matter more than you think so make sure to subscribe to the channel so you don't miss out on any of our videos so without further ado let's get into it benefits of cryptocurrency transaction speed if you want to send money to someone in the united states there are few quicker ways to transfer money or assets from one account to another than with cryptocurrency the majority of transactions at u.s financial institutions are settled in three to five days a wire transfer typically takes at least 24 hours to complete stock trades settle in three days however one of the benefits of cryptocurrency transactions is that they may be done in minutes when the network confirms the block containing your transaction it is fully settled and the money is accessible for use transaction costs when compared to conventional financial services the cost of transacting with cryptocurrency is quite low a domestic wire transfer for example is not rare to cost 25 or 30 international money transfers might be even more expensive cryptocurrency transactions are typically less expensive however you should be aware that increased demand on the blockchain may result in higher transaction prices even on the busiest blockchains median transaction fees remain lower than wire transfer prices accessibility cryptocurrency is accessible to everybody all you need is a computer or smartphone with internet access when compared to opening an account at a typical financial institution the process of creating a cryptocurrency wallet is extremely quick there is no identification verification there is no credit or background check cryptocurrency allows the unbanked to gain access to financial services without going through a centralized authority a person may be unable or reluctant to open a standard bank account for a variety of reasons people who do not use traditional banking services may be able to use cryptocurrency to conveniently perform online transactions or send money to loved ones security nobody can sign transactions or access your funds unless they have access to your crypto wallet's private key however if you lose your private key you will be unable to reclaim your funds furthermore the blockchain system's nature and the dispersed network of computers confirming transactions safeguard transactions the network grows more secure as more processing power is added to it any network assault or effort to change the blockchain would necessitate sufficient computer power to confirm numerous blocks before the rest of the network could verify the ledger's accuracy that type of assault is extremely expensive for popular blockchains like bitcoin or ethereum privacy because you do not need to open an account with a financial institution to use cryptocurrency you may keep your transactions private transactions are pseudonymous which means you have an identifier on the blockchain your wallet address but no specific information about you in many circumstances this level of secrecy is beneficial both innocent and illicit however if a wallet address is linked to an identity all transaction data is made public there are numerous methods for further masking transactions as well as several coins that are privacy focused to increase cryptocurrency's secret nature diversification cryptocurrency can provide investors with an alternative to traditional financial assets such as equities and bonds while there is insufficient historical data on the price activity of the crypto markets in comparison to stocks or bonds the prices appear to be uncorrelated with other markets so far as a result they can be a valuable source of portfolio diversification you can achieve more consistent profits by mixing assets with low price correlation if the value of your stock portfolio falls the value of your crypto asset may rise and vice versa still crypto is often quite volatile and if your asset allocation is overly heavy on crypto it may end up boosting the volatility of your total portfolio so are you bullish about cryptocurrencies if so why please share your thoughts in the comment section below this would help others when investing with that being said here we come to the end of our video i hope you like this video if so then don't forget to subscribe to the channel so you never miss any video see you in the next video till then take care thanks for watching
