Blockchain Opens New Ways to Access Financial Services

The world of finance is adrift, racing away from the traditional and centralized model to the decentralized way of doing things. Blockchain technology has offered people a new method of accessing banking services without going through a bank or traditional financial organization. If you are considering joining the crypto world, keep reading as we demonstrate the main benefits and further highlight the key services you can exploit. It's also good to get aware of the taxonomy.

Why Blockchain and Cryptocurrencies?

The main benefit of using blockchain and cryptocurrencies is that they help to eliminate third parties when seeking or processing financial transactions. For example, if you are sending funds, you do not need to use a bank. Instead, the process is completed on a peer-to-peer model. Here are the main advantages that come with using cryptos and blockchain technology: 

• Transactions are completed faster compared to traditional banking services. 
• You are able to run transactions confidential. 
• Buying and using crypto coins means that you are helping to grow blockchain technology. 
• The cost of running financial transactions through blockchain and cryptos is low. 

Three Financial Services You can Do with Cryptos  

Blockchain is revolutionizing every industry, from supply chains to the health sector, but it is the financial discipline that is impacted the most. Here are the main services that you can now access through blockchain networks:

• Crypto Staking

For most people, money is the best tool for investment. Often, cash is used to buy other assets, such as stocks, bonds, and properties. Instead of using fiat money, you can now rely on cryptocurrencies to make passive income. All that you need to do is lock the coins to their respective blockchain networks over a specific period to earn a reward. The fact that you will not be required to sell your coins makes this method very attractive. 

• Sending Value 

If you want to send value to a recipient, such as a friend or family, outside your home country, using a bank transfer can be pretty challenging. Instead, you should consider using crypto networks because they are easier and pretty straightforward. All that you need is to have ample coins and a crypto wallet. The recipient also needs to be on the same blockchain network. For example, you can only send ETH coins to another person on the Ethereum blockchain. 

Because the process is peer-to-peer, you are able to send value any time of the day or night. You can even send funds on weekends and during public holidays. There are no limitations.

• Borrowing Money 

When people are faced with financial shortfalls, the first option is taking a loan from a financial institution. This is never easy, and lenders do a lot of background checks before approving loans. For example, you are likely to be denied a loan if your credit score is poor. However, no one will come back to review your background when taking a crypto loan. 

To take a crypto loan, all that you need is to commit your coins. The process uses smart contracts, which complete the process immediately without involving third parties. Again, you need to appreciate that the terms and conditions of the loan agreement cannot be amended. When you finally repay the loan, the coins put forward as collateral is returned to your wallet. However, they will automatically be credited to the lender’s wallet if you fail to repay as per the agreement.

The world is in a state of transition. People have been looking for alternatives that are more affordable and convenient, and cryptos have proved to be that option. Indeed, the crypto world is only getting started, and you are likely to enjoy a lot more financial services. To buy, send, and earn from cryptos, visit hi.com. They allow you to earn as high as 40% of your coin value.