Cryptocurrency, an online exchange of tokens, has changed the fate of the entire finance industry. There’s no doubt that the cryptocurrency gained such traction with its amazing backend system, massive profits, and above all, granting individual ownership to the owner himself that eliminated half of the finance industry complications.
What is the Effect of No Third-Party Involvement in Cryptocurrency?
Middleman/Third-party, a broker, is an intermediary between two parties involved in payments. He’s responsible for collecting the buyer’s payment and providing it to the seller with his huge cut as well.
In traditional currency dealings, third-party interference can frustrate both parties. On top of it, the unnecessary commission, brokerage fee, paperwork, and tax inevitably increase the transaction price. Apart from that, the middleman involvement can also be dangerous for your assets in terms of security concerns, as you never know when and where they can leak your personal information.
This is what is diverting people’s attention from traditional dealings, and that’s when they realize what a treat cryptocurrency is. Famous for its standard practice of peer-to-peer affairs, crypto is thriving at its best.
Decentralization eliminates the need for a third party, as in this, crypto is controlled by none other but the owner himself. It is not concentrated by banks or other administrative powers, giving the owner of the assets the autonomy of his assets.
Even the most recognized traditional liquid assets take full control over your assets which, ethically, you own, but if you don’t do things their way, your account will be blocked, frozen, or garnished. However, with cryptocurrency, the owner has access to all of his funds all the time; whether he buys, sells, or changes the terms, it’s all up to the owner himself. There’s no third party to dictate him or confiscate his earnings.
Similarly, the heavy transaction fees, which was every traditional currency user’s complaint, were reduced in cryptocurrency. Transaction fees can have a significant impact on your assets, especially for someone who occasionally transfers payments. The banks and other credit card companies turn up as the middleman of the transactions generating their share.
But cryptocurrency tackled this issue by introducing minimum transaction fees, which usually don’t even apply if not necessary. The system is developed so that Bitcoins or other tokens receive their compensation fee from the crypto networks. This way, the user can send or receive the exact amount that was decided between both parties, with no unnecessary cuts.
Apart from that, individual ownership might be very beneficial for the user, but it raises a lot of security concerns at the same time. But you need not fret over the vulnerability of your assets as cryptocurrency’s association with blockchain technology that encrypts your data to record and secure each of your transaction.
The third-party involvement can expose your data as they have full access to your personal information like credit card or account number. However, in the case of cryptocurrency, besides the strong encryption, the use of wallets and exchanges adds more security to your assets, leaving no room for fraud.
Cryptocurrency is a very profitable source of income. But one must only invest the amount he can afford to lose because the nature of the market is very unpredictable.