What to Know About Cryptocurrency?
Cryptocurrency was first launched in 2008 but it didn’t become globally legitimate until around 2017. That was when major financial institutions recognised cryptocurrency and saw its potential.
Since then it has become an ever-increasing source of revenue for investors and freelancers with many individuals and companies choosing to receive payments only in cryptocoin.
Below we dive into what you need to know about the popular online currency.
Image Credit: Freepik
Incentive to Invest
More and more solo entrepreneurs, small businesses and freelancers are opting to get paid in cryptocurrency and organise their taxes using taxbit. The reason is simple, cryptocurrency is easy to transact with online and has become the preferred payment method for certain companies hiring freelance workers.
For those who receive cryptocoin, there are pros and cons. One advantage is the easy investment opportunity provided. There is less possibility to spend cryptocurrency easily online.
New Services
Ever since 2017 when major financial institutions decided to back cryptocurrency as a viable future currency and investment option, new services have become available to facilitate the currency.
Some websites, brokers, and retailers are offering bonuses and incentives for using cryptocurrency that make it more appealing for users. This is evidence to suggest that cryptocurrency is not legitimate and seen as a solid future prospect.
Instant Payments
One of the great advantages of using cryptocurrency is its convenience online and its security. If you want to trade conventional currency around the world there are many drawbacks and expenses.
For instance, sending money to Vietnam will require the money to transact through several major banks and some minor ones.
Each institution will have fees and charges not to mention the exchange rate. None of these issues exists with cryptocurrency and transactions can be made instantly.
Conversions to Fiat
Although cryptocurrency offers users several very good advantages especially when operating online, the reality is that cryptocoin also has some major drawbacks that should not be overlooked.
One of these is the conversions back to fiat money (government-issued currency not backed by gold) which may be required if you want to buy something offline. The process is lengthy and requires an account with Coinbase or a similar broker. This broker will also take a transaction fee similar to a currency exchange.
Difficult Legally
If you don’t convert your cryptocurrency back to fiat money you might still wish to purchase items offline with it. This is one way to avoid any charges you might incur through cryptocurrency brokers.
Nonetheless, there are challenges to face. Despite the rise in cryptocurrency and its legitimised status in the global marketplace, many offline institutions such as insurance companies, banks, and mortgage lenders won’t accept cryptocurrency or they will require a special broker to facilitate the transaction.
Finding a Merchant
Since cryptocurrency is on the rise, the future for it seems secure. Still, there are many delays in the rolling out of cryptocurrency, especially in a real-world context.
Merchants do exist where you can easily transact with but they are few and far between. It’s likely to change going forward, but for now, you will have to research merchants who trade in cryptocoin or enlist the services of a specialist broker. This, however, is not a reason to dismiss cryptocurrency out of hand, it has many advantages when used online.
