Home Business Insights & Advice The benefits of cryptocurrency transactions from a wealth management standpoint

The benefits of cryptocurrency transactions from a wealth management standpoint

by Sponsored Content
16th Dec 19 3:49 pm

The presence of the Internet has ushered in an entirely new era in regards to investment possibilities. Many of these transactions can be carried out in a matter of seconds and unlike in the past, the presence of a middleman is often not required. This is particularly the case for those who are looking to buy Neo Coin and similar digital tokens. So, what are some of the main advantages associated with the cryptocurrency market and why might these assets make a great addition to an existing portfolio? Let us take a look at some of the inherent features of this sector in order to learn more.

The concept of anonymity

It is a well-known fact that transactions involving cash or credit will come attached with some type of transaction history. This can be a very real problem due to the rise in data theft and similar techniques which might expose sensitive financial information to third parties. On the contrary, cryptocurrencies involve a discrete agreement between no more than two parties (the buyer and the seller). Therefore, the history and details of the transaction itself will remain entirely out of the public domain. This is critical from a security point of view; particularly for those who are prone to making relatively large transactions at any given time.

Transaction fees and similar surcharges

Even the most well-respected online investment platforms will normally come attached with some type of transaction fee. This could be levied in the form of a standard commission or a set percentage that will be charged when a withdrawal is made. However, cryptocurrency trades are normally not associated with any type of fee. The data miners which supply these virtual tokens will receive compensation from the network itself. The only time when a fee may be charged is in the event that a third-party wealth management service is employed.

A host of cryptocurrencies to choose from

The market for cryptocurrency continues to grow and there are now a host of unique assets to choose from. The most well known is Bitcoin and yet, some other options can produce equally impressive results. A handful of examples include:

  • Ethereum
  • NeoCoin
  • Zcash
  • Dash
  • Ripple

Many of these currencies are highly liquid; excellent for those who are hoping to turn a short-term profit.

The mobile-responsive edge

Much like the majority of digital investment platforms, most cryptocurrency trading software packages are fully compatible with mobile devices. This is important, as many individuals will need to access their accounts while away from the home or the office. Assuming that a strong wireless connection is present, transactions and similar actions can be carried out in a matter of seconds.

Easing cross-border transactions

A final point to mention involves factors such as exchange rates, inflation and other types of charges that would normally apply to international investments. As this sector is rather independent of the traditional markets, these concerns will not apply. This is great news for anyone who is looking to avoid the fees that are frequently associated with other financial vehicles. This is largely due to the peer-to-peer exchange system that has come to define the cryptocurrency sector as a whole.

These are some of the main reasons why cryptocurrencies could very well represent another “string to the bow” in terms of investment opportunities. Of course, it is still important to perform a significant amount of research in advance so that the most appropriate actions can be taken when the time is right.

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