Recently, many shareholders have been learning new ways to diversify their investment portfolios. One avenue that is opening for investors is investing in cryptocurrencies like Bitcoin or Ethereum. Do you want to learn more about the benefits of cryptocurrency in comparison to traditional local currency? Learn more about the benefits of cryptocurrency in 2023.

What Is Cryptocurrency?
Cryptocurrency is a digital currency that uses cryptography to secure transactions and control the creation of new units. Any central bank or government does not issue cryptocurrency or is backed by physical assets.

Instead, cryptocurrency like Ethereum is supported by a peer-to-peer computer network that records transactions on a public ledger. It allows cryptocurrency to be traded online without needing third-party verification. What are the benefits of cryptocurrency? Here is a compiled list of benefits of cryptocurrency in 2023:

Decentralization
Decentralization is one of the essential features of cryptocurrencies like Bitcoin or Ethereum. It means that there is no single authority or control over cryptocurrency. The decentralized nature of cryptocurrency works like any other currency without government involvement. As a result, cryptocurrency is not controlled by anyone, making it safe and secure for enthusiasts.

Decentralization removes any form of government involvement, which means no one can control or manipulate the money supply. It also ensures that political considerations will not lead to any adjustments to cryptocurrency's monetary policy.

Decentralization leads to fewer vulnerabilities in the cryptocurrency world. For example, unlike banking, bitcoin transactions don't need to be verified by any third party.
Lastly, the best thing about decentralizing cryptocurrency like Bitcoin or Ethereum is that it gives freedom to people worldwide. Unfortunately, businesses that use traditional banking services are the ones who need this the most. It can be because they need more capital or don't live in countries where banks are trusted institutions (like some emerging markets).

Accessibility
Cryptocurrency is a decentralized digital currency that you can trade online. Any government or bank does not own it, and any physical asset does not back it. Instead, cryptocurrency relies on peer-to-peer transactions to be exchanged for goods and services. It opens up the use of cryptocurrencies to everyone with a computer or mobile device and access to the internet.

Setting up a cryptocurrency wallet for either Bitcoin or Ethereum takes only minutes. It is much faster than opening an account at traditional financial institutions. In addition, there are no ID verifications or background checks needed for cryptocurrency accounts.

In some countries, both Bitcoin and Ethereum are restricted or banned altogether. But there are ways around this restriction through various exchanges and peer-to-peer options.

Bitcoin is a prominent cryptocurrency because it is accessible. Anyone can buy Bitcoin or Ethereum without going through the tedious process of opening a bank account or verifying their identity with the government.

Security
Cryptocurrency is a digital currency that uses a decentralized system to verify transactions. It's called blockchain, a shared ledger of transactions that are copied and updated in real time by all computers on the network. It makes it virtually impossible to tamper with, which means your money is safe with Bitcoin or Ethereum.

Cryptocurrency uses private keys to access users' digital wallets where their funds are stored. In addition, all cryptocurrency transactions like Bitcoin or Ethereum are encrypted for additional security.

Moreover, the cryptocurrency network is secured by blockchain technology. It is distributed network of computers that verify cryptocurrency transactions. Therefore, it becomes harder to tamper with as more computers join the network.

However, there are instances of hacking of cryptocurrency accounts related to a centralized exchange. Keeping your assets in your wallet is way more secure. Moreover, investing in tried and tested investments like either Ethereum or Bitcoin for added security.

Cross-border payments
Globalization has created a world where we can connect with people from across the globe daily. But what about payments? Traditional payment methods need to be faster and more affordable. It works well for businesses or savvy individuals who want to make international transactions quickly and easily.

Cryptocurrency payments such as Ethereum and Bitcoin offer an alternative solution in the cross-border space by providing high speed and low friction compared to traditional methods. The ability to transfer money worldwide quickly and cheaply is ideal for businesses looking for new markets and consumers who want to shop overseas. Therefore, Bitcoin and Ethereum transfers are highly affordable without paying any fees.

Inflation protection
One of the most important functions of most cryptocurrency is their ability to protect against inflation. Inflation occurs when the supply of goods and services grows faster than the amount of money in circulation. Thus, it causes prices to rise.

Inflation can be devastating for your savings. It lowers the value of what you have. Cryptocurrency like Bitcoin or Ethereum have a fixed supply cap. Hence, fewer Bitcoins or Ethereum are available to purchase as more people join the cryptocurrency network. It ensures that even if there are millions of new users, the value of each coin will remain the same due to an increase in supply.

Do you want to invest in something that will hold its value over time (and potentially increase in value)? Consider investing in Bitcoin cryptocurrency or another similar cryptocurrency like Ethereum.

Transactional freedom
Cryptocurrency allows users to control their funds in their wallets, such as Ethereum or Bitcoin. It means that you are not subject to the rules and regulations of traditional financial institutions. These institutions can seize or freeze your assets without your consent. You also get complete control over your personal data, an added benefit of cryptocurrency.

Cryptocurrency is gaining popularity with the younger generation, such as Ethereum. It allows them to make financial transactions without government or bank involvement. No longer must wait for approval from banks before making a purchase or transfer; cryptocurrency gives users complete autonomy over their finances.

The best thing about cryptocurrency is that it offers complete control and full autonomy over your financial life. For example, Ethereum does not feature any restrictions imposed by third parties like government agencies or banks.

You can transfer cryptocurrency such as Bitcoin or Ethereum anywhere in the world, anytime, with cryptocurrency. This is without any hassles associated with traditional methods such as wire transfers. In addition, there are no geographical boundaries when using cryptocurrency.

Conclusion
Cryptocurrency is revolutionising the financial sector, and cryptocurrency's benefits are evident with Bitcoin or Ethereum. Most cryptocurrency designs feature unique advantages in comparison to fiat currencies. Are you ready to jump on the cryptocurrency bandwagon? Start your journey with a reputable crypto exchange in UAE like crypto desk for a fast and safe online cryptocurrency experience. Here, you buy Bitcoin and sell Bitcoin.