We all remember the piggy bank in which we gladly put every penny received for a good grade or when grandparents come to visit, and probably that piggy bank is the first association for most people to save. Over time, we realized that savings can be spent very easily if the piggy bank is broken. In the end, all we have to do is buy a new one and start from the beginning.
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What is the difference between E-money and virtual currencies?
Most of us have a savings card. When we take the cash to the bank and store it in our bank account, we get a card with the account number. That number is our money. When we talk about electronic currencies, we can divide them into soft and hard. Hard currencies include Western Union and Bitcoin, while soft currencies include those that allow you to cancel your payment, such as PayPal and credit cards.
While only twenty years ago credit and master cards were only available to business and wealthier people, and the rest of us longed to have them, today they have become part of everyday life and very few people do not have at least one. We could say that with their appearance, everything became easier. Thanks to the cards, we don’t have to carry a large amount of money in our pocket, fearing that someone might rob us. Also, thanks to internet banking and trade, we can pay our bills and make purchases without moving from our favorite armchair.
When we talk about virtual currencies, the first association is cryptocurrencies It is an unregulated digital currency that is only available in electronic form. Virtual currency exists within the blockchain network and is considered a subset of digital currency. It is decentralized, meaning it is not controlled by a central bank. The most popular is Bitcoin, although there are many others worth mentioning, such as Ethereum, Litecoin, Ripple, Neo, and so on. Interest in investing in cryptocurrencies is growing day by day and is considered one of the most lucrative businesses today. It is important to mention that the cryptocurrency market is volatile and that the situation can change many times in one day. This is evidenced by a recent event when the value of cryptocurrencies fell dramatically under the influence of coronaviruses that spread around the world.
In addition to the above, there are many other benefits that the use of virtual currencies and e-money brings you.
1. Speed
Electronic or digital money is the electronic equivalent of cash and is kept in an e-money account or on a payment card. Thanks to smartphones, transactions are done very easily and quickly. While transferring money through a bank account can take days, a transaction between virtual accounts takes only a few minutes. This is a great way to save time and forget about the hours spent in line.
2. Security
This is a very secure way to make a transaction, whether it is e-money or cryptocurrencies because there is no third party that will have access to your data. Because it is in the digital, not the printed version, the possibility of copying or losing money is almost ruled out.
3. Digital money is future
Investing in cryptocurrencies is the future. This is a great step for all those who want to provide for their loved ones before retiring. Just as investing in gold always goes well, so does cryptocurrencies. Another advantage is that this investment is very suitable for beginners, thanks to a large number of different currencies and their values, as well as the way you want to invest (trading, mining).
4. Environment protection
For printed money, we need a lot of material and time to make, while with digital there are no such problems. Know that by using digital money you are doing a good thing for nature because you will save some trees.
5. Lower transaction fees
Paying with credit cards can be inconvenient and “painful”. Why? Banks take a large commission for transactions (2-5%). By using bitcoin and blockchain, the transaction fee is significantly lower and very often does not exist.
6. No chargebacks
Another thing that goes in favor of using e-money and virtual currencies is to stop the fraud that comes from returning the money. If you accept the payment option in bitcoin, your sale is completed the moment you receive the transaction from the buyer.
7. No inflation
The good news is that the word inflation does not exist in the world of cryptocurrencies. While some countries additionally print money to “save” the currency, with bitcoin it does not exist due to controlled quantity limits and algorithms in the system.
8. High security
Since only the owner of the private key has access, the Government cannot freeze your account, which makes it extremely secure and reliable.
9. Confidential transactions
As we said, the transaction is done between two parties, without intermediaries. The exchange of information is done on a “push” basis, which means that you only send the recipient what you want more, not more.
10. Accessibility
E-money is a very secure and reliable way of transaction that involves low costs. Digitization has given good benefits to banks to motivate them to use transfer services with a very low commission.
11. Simple flow monitoring
Thanks to highly developed digital technology, it is very easy to track every transaction. All you need to do is access the internet and your account.
Conclusion
Before any investment, it is very important to do a little research and make a list of pros and cons. This will make it very easy for you to make the final decision. Perhaps the best advice you will ever get is to invest only as much as you are willing to lose. Because, although every investment carries a lot of risks, the fact is that the one who does not take risks – does not profit.
