The world is experiencing changes away from the traditional medium of exchange, investment, and financial transaction to digital and contemporary means. These changes are often aided by advancements in the use of computers and technology. One of such changes is the digital alternative to traditional means (either card or cash), called “cryptocurrency”. Examples of cryptocurrency are Bitcoin, Litcoin, Ethereum, etc. Cryptocurrency is now legal tender in many countries of the world.
The following are 5 things you should know about it:
1. Asset and Investment: Cryptocurrency is a digital asset that is computerized and works with blockchain. Since its introduction, the value of the cryptocurrency has been surging, and early investors are seeing the rewards of their investment. Just recently, the value of Bitcoin rose to 15 million naira. Imagine if you had bought one Bitcoin for less than 100 thousand naira some years back! Therefore, cryptocurrency is a good platform to invest in. Also, the value of Ethereum in April 2020 is less than 100 thousand nairas, but an Ethereum as of today is now valued at 300, 000 naira. Which investment will give you more than a 200% return in less than a year? With the projected increase in value this year, cryptocurrency is a good platform for investment.
2. No Hidden Charges: The exorbitant fees charged by financial institutions on transactions is outrageous. Their charges include SMS fees, withdrawal charges, transfer charges, VAT, stamp duty, etc. However, these charges are not applicable in cryptocurrency; you will only be charged for transactions, which is usually minimal in comparison with bank charges.
3. Fear of Third Party: Unlike what is obtainable in financial institutions, nobody will have access to your information if you do not compromise your wallet information as an owner. Nevertheless, staffs in financial institutions have access to your information, and they can release such if ordered by the court.
4. No Exchange Rate: Cryptocurrency is not limited by the exchange rate when it comes to international transactions. The value of cryptocurrency in Nigeria is the same as its value in the USA or China. For instance, the conversion of one local currency to another currency is usually limited by the exchange rate, thereby limiting the value of a currency with a low exchange rate. However, the value of cryptocurrency is the same all over the world.
5. Security: Although, many think that cryptocurrency is a system designed by fraudsters. However, it is worthy to state that cryptocurrency is secured and encrypted; it can only be tampered with through the owner’s compromise of sensitive information.