As Bitcoin attracts a lot more hype, its main advantages are put in the spotlight thanks to the increasing number of investors that realized how beneficial it could be to add BTC to their financial portfolios.
Furthermore, Bitcoin was created as a decentralized cryptocurrency, and that inherently comes with its own advantages. If you have little experience with crypto trading, in this article, we take a closer look at some of the most useful aspects of investing in BTC.
Negligible Transaction Fees
Thanks to the peer-to-peer-based design of the blockchain network, the transaction fees are kept pretty low because you directly receive and send BTC transactions without the process of communicating with a third party such as a financial institution.
Hence, the transaction fees are minimal, but they are under the influence of the traffic of the network, and when the traffic of the network rises, the transaction fees may also increase. However, the design of the blockchain network ensures that transaction fees which are paid by the users are negligible in comparison to the banking fees we pay for transactions with traditional currencies.
In other words, there are no minimum balance fees, no additional charges for making BTC transactions, and no withdrawal fees. Otherwise, if you’re a company, there are no fees associated with receiving BTC transactions. This also means that international payments are not tied to exorbitant fees.
Online Trading and BTC Investments
Another advantage of investing in Bitcoin is that there is an abundance of options when it comes to obtaining it through online trading sites. Since this is one of the first successful cryptocurrencies that entered the crypto market, and it is frankly the reason there is a crypto market today, you will find BTC available on the most reliable trading sites.
Also, there are plenty of great automated trading platforms like https://the-bitcoinprime.com/, which allow you to get BTC through an AI-powered trading robot that facilitates trading for its users automatically. This system isn’t associated with high commission fees. Actually, they only charge a 2% commission on profits generated on the site. Plus, you only need that a deposit of $250 to create an account and start trading here.
Anonymity and User Autonomy
Bitcoin was appealing to a lot of new users because it allows complete discretion. It conceals the real identity of the users, and they could send and receive BTC payments without sharing their personal, sensitive data.
In contrast, the data about the transactions are transparent to the users; however, everything associated with the identity of the members on the network, regardless of their role as miners or investors, remains confidential.
Another advantage is that BTC is a decentralized currency which means there is a peer-to-peer focus on the payment system, and the BTC transactions are approved without the interference of any financial institution. Also, its supply and demand are not controlled by any authority. Hence, the protocols of the blockchain network control the inflation rate of Bitcoin, while simultaneously, the design impacts the supply of BTC and the rate at which new BTC is being produced on the network.
The price of Bitcoin is based on the interaction of the supply and demand because there is a permanent number of BTC that can ever be produced to 21 million, while through Bitcoin mining, a new BTC enters the crypto market. As the popularity of Bitcoin grew, the demand surpassed the number of BTC that are being produced.
That’s why the price of Bitcoin is rising. Actually, during the latest bull run that happened after the halving, the price increased over 200%, and it went from approximately $10,000 in 2020 to over $60,000 per Bitcoin in 2021. This is another reason why Bitcoin is a popular investment and a safe-haven asset.