The Innovations & Differences That Crypto Has Brought To The Financial Markets

The history that Cryptocurrency has made in the financial markets is unprecedented. Setting up diversity of digital assets that is empowered Blockchain for any device that use internet is one of the best way to break through financial freedoms. We never that a time would come that people can trade or make transactions using digital assets like Bitcoin , Ethereum, Tether, Solana, Ripple litecoin.

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The smart contract
One of the innovation features of Cryptocurrencies is the introduction of Smart contracts for some of the Crypto assets like Bitcoin and Ethereum that Support users to make quick and easy transactions on the Blockchain without stress. Smart contracts in simple terms mean an innovative way of agreed contract or transaction between two parts with predetermined conditions, as soon as these conditions are met, the contract is executed. One good thing about smart contract is that it eliminate any third party involvement involvement in the transaction. Smart contracts are trusted nodes programme that are run on the Blockchain to execute transactions bypassing third person acting as intermediary before the transactions are executed. This is one of the best ways the trader of investor can secure his assets without any fear of losing the assets. Examples of smart contract is the innovation ways that Bitcoin and Ethereum assets are traded on the Blockchain.

This has really helped many traded to make investment at very fastest rate compared to centralized financial economy where paper and coins are used. Currently, individuals can use physical money to buy for digital currency like Bitcoin, Ethereum or any other cryptos and HODL while waiting for better time to sell for profits. Looking at the liquidity and volatility of some of these cryptos, it gives the investors to trade from one crypto asset to another by attracting good profits. Since prices of cryptos have ups and down moves, the investor can make an insane profits which would be far better than investing in centralized Banks.

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Defi for Blockchain
Defi simply means "Decentralized Finance." This is a well defined cryptocurrencies-based system which allow crypto users to trade, make exchanges or transact and do other financial services without any involvement of centralized Authority to control the system. Unlike the Centralized system where individuals investments are encounter with third party like loaning and withdraws; for Defi, projects like investment which involves buying and selling of assets or holding cryptos in wallets are done in decentralized Blockchain. When selling or buying one crypto for another crypto, it's done using peer-to-peer trading. This is very great innovation that crypto has brought to all of us.

This means that in "Defi" individuals crypto users have full control over their assets on the Blockchain. There is no centralized Authority to dictate what the assets should be used. The Defi user is free to decide on how to invest in his own assets. In many centralized Banks, the investment of loans are based of fixed interest leverage on the amount of loan received. So, the profits on the interest is normally fixed which are normally determined by the Central Banks. But, in Defi, since crypto has a tendency of rising without knowing the amount of point that it would reach, there is a likelihood of getting excess profits of what you expect.

Cryptocurrency is changing the lifestyle of people through multiple assests introduction

In Centralized finance market, we only trade with paper one coin money. This seen as limitations to what investors or business men can do. It is seen as one way alternative of trading. With Cryptocurrencies introduction, there are many assets or digital currency that individuals Investors can choose to trade. The choice depends on the investors. He can combine more assets depending on the strategies he is using to achieve more profits in his portfolio.

Invest without stress with electronic system
When did Banks transactions began to use electronic system of making transactions. I think this idea of of electronic transfer of money was borrowed from the idea of Cryptocurrencies. This is really a fact I have realized, when Crypto trading was introduced, for instance buying Bitcoin using fiat money to exchange for Bitcoin. Exchange platform like Coinbase, Ecurrency4u and Paxful were in existence accepting transfers either transferring fiat for crypto or exchanging crypto for fiat. It's just recently that Some Banks adopted the electronic based system of transactions. Even not all the Banks use Electronic transactions. But Crypto has long being using electronic transactions for crypto. That's the main reason of building crypto Blockchain. You can trade at your comfort zone. Being in your room and using your Mobile phone of laptops for trading. There are more convenient ways for users to trade without going to long distance to make transactions like what take place in our local Banks.

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Raising the economic status of individuals in many Countries

From the past Ten (10) years I didn't actually know something about Bitcoin or Hive. But through friends I became know to some of the crypto assets, how to invest and how to earn tokens through the use of Hive Blockchain. Many Countries have accepted the use of Bitcoin. In Ghana, we have #Ecurrency4u that accept Bitcoin for trading. A Ghanaian can send Cedis (¢) and get Bitcoin if he has registered for Bitcoin wallet in the Ecurrency4u. In this case, those users who have their families and friends Abroad and Western Countries find it convenient to transfer bitcoin using their mobile phone or laptops.

_{Gerd Altmann}
Most of the investors in the Countries have have big firms or industries. Due to huge Money that they receive, they need not to trade with physical paper money due to the risk of armed robbers. They prefer using digital currency like Bitcoin

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Expansion of Education
The expansion of Education through crypto is very enormous. Through cryptocurrency, it has paved way for people to learn a lot of things, especially the best ways to invest using Blockchain technology. There many E-learning going across the Globe. A lock of people are learning how to thrive in the financial markets through studying the technical analysis, fundamental or economic data and centimental analysis. There are many experts in most of our Social Media like Twitter, YouTube, Discord and Facebook. The Crypto education has really opened our minds of how to manage our finance.

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In Conclusion, There are good news in the pipe line. There are more transition Crypto is bringing. Now Web3 is one ways we are going to experience very easy ways of trading crypto. Let's wait and learn more.

Posted Using LeoFinance Alpha