The development of cryptocurrency has been revolutionary. During the financial crisis, cryptocurrency offered a way for people to get financial support amidst the economic downturn. Presently, this new form of currency symbolizes the direction the world is taking – towards a highly cashless and digital ecosystem. At the same time, it continues to offer the population convenience and access to a financial system without much restriction.
Today, there are more than 2,000 types of cryptocurrencies in circulation. However, even with its increasing popularity in the Philippines, many people are still having reservations and misconceptions about the usefulness of cryptocurrency.
To debunk some of the misinformation about cryptocurrency, here are the advantages of using digital money.
Income-earning Potential
There are different ways to earn an income using crypto. First is investing or the buy-and-hold strategy to allow the value to increase over time. This is a very effective money-earning technique as cryptocurrencies are very volatile in the short term but has excellent potential for growth in the long run.
Secondly, users can take a shot at getting short-term opportunities through trading. Crypto trading using a Philippine cryptocurrency exchange is the buying and selling of crypto to take advantage of changes in the prices of the assets. To trade, the crypto user has to create an exchange account, put up the value of the asset to open a position and store the tokens until it is time to sell.
Crypto owners can also stake and lend coins to the system and other users. Staking is where users pledge their assets to validate a transaction, and lending is when crypto owners loan their digital money with interest. Other income-earning uses of crypto include social media crypto content creation, mining, running a lightning node, airdrop, and blockchain forks.
Other Practical Uses
Cryptocurrency in the Philippines is mainly known as an excellent investing and trading medium. While it is true that dealing with cryptocurrency has a high potential for earnings, its uses go more than that. Particularly, crypto can work as a medium pay for services or purchases.
As the world starts to go cashless, crypto wallets are a practical and convenient way to hold money. And with payment partners like coins.ph and Dragonpay, crypto owners can now easily use digital money for payment, whether at physical stores or e-commerce merchants. Using these payment partners, users can exchange their digital money for fiat money to pay bills, buy load, purchase game credits, and remit money.
Mobility
As the use of cryptocurrency is connected through websites and applications via the internet, crypto users can use it anytime and anywhere. Purchasers do not have to go to a bank or store to acquire digital assets. Every transaction is completed securely in the blockchain over the internet.
Moreover, as cryptocurrencies are global, people can also use them when traveling abroad. Paying using cryptocurrency is not much different from using a debit or credit card. The individual simply has to log in to their wallet and make the purchase from the wallet. Booking airline tickets, reserving a hotel room, and paying for restaurant meals using cryptocurrencies are now possible with Bitcoin, Ethereum, and Dogecoin.
Accessibility
Many people cannot open a bank account because of the institution’s strict documentary requirements. The population in rural areas is also often out of the reach of financial institutions. Meanwhile, others lose their access to banking facilities due to records of unpaid bank fees, outstanding debts, and frequent overdrafts. It reflects how highly-regulated banking systems do not provide the same opportunities to particular socioeconomic groups.
But with cryptocurrency, everyone has equal access to cryptocurrency no matter their standing. The blockchain can certify the identity and credit history in a transparent way for everyone in the network. Minus the tiresome paperwork and lengthy procedures, an individual acquires access to a decentralized financial institution. It is quick, straightforward, and provides inclusivity and equal financial opportunities for everyone.
Security & Fraud Prevention
Blockchain creates an unchangeable record of transactions with end-to-end encryption, enhancing security and fraud prevention. Copies of these records are also duplicated to the blockchain of every user in the network so that attempts to change the blockchain would require the hacker to alter every blockchain in the network, which is almost impossible.
Low Transaction Fee & Speed
Since digital asset transactions have no intermediary institutions or government involvement, the cost of transactions is typically lower in contrast to that of banks. Some of the cryptocurrencies with the lowest fees are Stellar at about $0.000004 per transaction, Ripple at $0.00265, and Ethereum Classic at $0.00749. There are also no maintenance or minimum balance fees, overdraft charges, and returned deposit fees.
Additionally, the authorization requirements are less strict, and the waiting period is at a minimum when using crypto. For example, Solana has an average transaction per second of 29,000, Avalanche – 5,000, and Ripple – 1,500. Meanwhile, their transaction verification time is 2.5 seconds, 1-2 seconds, and 4 seconds respectively.
Conclusion
Cryptocurrency undeniably has its set of downsides, but it also has numerous advantages. Aside from being a good investment, it can also be used as a modern payment method. It is secure, speedy, less costly, and easily accessible. With better use safeguards and awareness against scams and cybersecurity threats, crypto owners can take the full benefits of cryptocurrency Philippines.
Trade in the Top Cryptocurrency Exchange in the Philippines
Coexstar PH is one of the best Virtual Asset Service Providers (VASP) in the Philippines, where one can buy and sell the world’s famous coins. It is registered in the Securities and Exchange Commission (SEC) and regulated by the Bangko Sentral ng Pilipinas (BSP). All activities in the platform are subject to the rules and regulations of the BSP and Anti-Money Laundering Act (AMLA).
The company believes that all crypto traders need a secure, convenient, and efficient exchange platform. As such, Coexstar PH provides a stable server operation with top security features that safeguard users’ assets. Sign up today to info.coexph.com to get started, or contact Coexstar PH at help@coexstar.ph to learn more.
References:
https://www.investopedia.com/ask/answers/100314/what-are-advantages-paying-bitcoin.asp
