What are the benefits of crypto-trading?
With the arrival of the World Wide Web and the modern Internet, our ability to exchange information changed forever. In the past, if we wanted to get information, we would need to call someone, send them a fax, buy a book in a physical bookstore (or borrow it from a library), or else maybe wait days for someone to send us a brochure or other documents in the mail. This now seems unimaginable.
The same digital revolution is now happening with currency exchange. Cryptocurrency trading is upending the way we send and receive money and revolutionizing our ability to share assets of value with anyone around the world. Soon, the idea of going to a physical bank or sending someone a money transfer that takes several business days to clear and incurs high commission charges will become just as archaic as the idea of sending somebody a document by fax.
While access to the internet has allowed us to exchange information peer-to-peer, globally and instantaneously by means of simply clicking on a website, until the invention of bitcoin and crypto-assets, it had not been possible to do the same thing with money. The lack of ability to trust a stranger online and to verify their identity meant that we needed a third party in the middle of the transaction. Instead of trusting one another, we would rely on a bank, a credit card company or other middlemen such as PayPal or a clearinghouse that would help us prevent double-spending and ensure our funds were safely sent and received.
Yet, when the person or persons are pseudonymously known as Satoshi Nakamoto published the Bitcoin white paper 11 years ago, it opened up a new era of possibilities for the global exchange of value. Cryptocurrency trading now means that anyone, anywhere in the world, can open an account and begin trading securely and safely with anyone else — exchanging a digital form of money — with no need for intermediaries or their associated costs and charges. But this is just the tip of the iceberg, and some of the additional benefits of cryptocurrency trading are outlined below:
More cost-effective than traditional money exchange
Cryptocurrency exchanges cut out the usual intermediaries needed to trade. Such middlemen often add little value yet create expensive additional charges. By removing these intermediaries and allowing peer to peer trading, costs can be reduced and fees made significantly more competitive.
Crypto Trading is Automated
Functions that are currently carried out by middlemen in traditional systems can be automated using smart contracts (software programmes that execute automatically when a particular set of conditions is met) to completely get rid of the many financial intermediaries that exist today, all of whom take their commissions and charges, raising costs for the customer and slowing down access to your capital.
Transactions are Locked In
After a transaction has occurred, changes cannot be made to the data. This means that the user maintains a full, immutable audit trail or bank statement of his/her activities which allows you to prove ownership no matter who you trade with anywhere in the world.
Inclusive and Liquid
The global reach and lower fees offered by cryptocurrency exchanges allow access to trading to a new, global network of investors which can bring liquidity into markets that have previously had little to no access to it. Liquidity brings about better pricing and faster transaction times.
Fast and Accessible
Thanks to peer-to-peer trading, you can transfer ownership digitally within seconds. The cryptocurrency market is also usually available to trade 24 hours a day, seven days a week. Since there is no centralized governance of the market, transactions can take place directly between parties on cryptocurrency exchanges anywhere in the world.
For many users, the experience of cryptocurrency trading will be unfamiliar and perhaps surprising at first. Yet, once you begin trading, it doesn’t take long for customers to see that the experience has significant benefits in terms of speed, cost, security, and convenience.
Over 4.33 billion people were active internet users as of July 2019, which equates to around 56 percent of the global population. Pew Research also estimates that more than 5 billion people have mobile devices, over half of which are smartphones. The wide availability of internet access and mobile telephony opens up the possibility of access to the cryptocurrency market for all these people. This creates many new opportunities to trade and exchange value. In developing or less developed countries, many people may not have any access to financial infrastructure at all without the possibilities offered by cryptocurrency wallets and exchanges.
The future of global trade for all will be based around the secure, digital exchange of assets. Cryptocurrency exchanges are just one of the first steps to unlocking that value for the benefit of everyone.
CoinMENA, incorporated in Bahrain, is one of the MENA region’s leading digital assets and blockchain companies, providing a safe and easy way to buy and sell digital assets. For more information, visit CoinMENA.com
