With Cryptocurrencies Going Mainstream, How Is Purchasing Digital Currencies Becoming Simplified?
It is common knowledge that Bitcoin was the first decentralized cryptocurrency. It was developed in the year 2009 by Satoshi Nakamoto. However, today, there are a wealth of digital currencies in place and are commonly referred to as ‘altcoins.’ In fact, it is estimated that the number extends beyond 4000.
Before understanding how companies are making the process of purchasing cryptocurrency simpler, it is important to understand what it actually is. It is basically a currency operating in the digital or virtual medium. It was established to formulate a novel way of making payments on a global level. This specific currency is also independent of banks. Unsurprisingly enough, it was during the banking crisis that they were first created.
Since it was a completely new concept, cryptocurrencies did not enjoy a rapid uptake and acceptability. This can be attributed to the lack of trust in digital money. Furthermore, for most people, the process of creating or even acquiring a crypto token was extremely confusing and risky. Furthermore, several reliable entities, such as JP Morgan Chase were vocally against their use.
However, in the last few years, a dramatic shift was observed with the rise in global acceptance.
What was the shift?
Even today, Bitcoin cannot be considered a mainstream currency. But it is an undeniable fact that the adoption of cryptocurrency witnessed an unprecedented rise.
Some big investment banks in the US have changed their views on cryptocurrency adoption and have started offering cryptocurrency investments and funds to clients. Furthermore, Blackrock, the world’s largest asset manager, announced that it has entered the cryptocurrency space. Tesla recently acquired $1.5 billion worth of bitcoin, making it possible to pay for a Tesla vehicle with bitcoin, and just a year ago, PayPal incorporated bitcoin, Ethereum, Litecoin, and bitcoin cash.
Many reasons are attributed to the sudden rise in digital currencies. Obviously, the rise in adoption is one. The consistent increase in its value is one more reason, as Bitcoin, Ethereum, and Litecoin have enjoyed a dramatic increase in price in just one year.
Moreover, it is also true that getting one’s hands on digital currencies has become simpler, even for the average investor, after the improvement of cryptocurrency exchanges and platforms.
However, this does not mean that bitcoin and other cryptocurrencies are devoid of any issues. In fact, before they can actually go mainstream, there are many hurdles and regulatory issues that they must overcome. However, they are definitely on the right path. Today, Bitcoin is worth $1 trillion.
Although several renowned entities are entering the crypto scene, many people refused to enter the world of digital currency as the process of purchasing one was excessively complex.
The rise of cryptocurrency platforms
To resolve this issue, several online platforms have been established, which make the process of buying and exchanging cryptocurrency simpler. The acceptability of such platforms rose with the establishment of Coinbase and its decision to go public this year.
For some time now, several platforms and exchanges resembling Coinbase have been in place. Each of them offers a platform where crypto can be bought, with a few focusing on novices and security, as it is an issue that is causing skepticism among many.
One good example in this context is Bit2Me, which is a European platform that was established in the year 2014. However, they operate globally and facilitate the trading of various currencies, with their latest expansion focusing on attracting a wider audience, particularly focusing on beginners.
According to the Co-founder and CEO of Bit2Me, Leif Ferreira, security is the most important aspect of cryptocurrency trading, which cannot be ensured if there is a gap in knowledge. He explains that about a decade ago, people involved in cryptocurrencies were knowledgeable about the field. “But today, with the rise in its popularity in the media, there has been an influx of newcomers, whose enthusiasm far exceeds their knowledge of the technology,” he adds. Platforms such as Bit2Me aim to ensure that crypto is accessible to everyone and each person understands its intricacies thoroughly.
This is achieved through the simplification of their UX in a way that helps new users. Moreover, throughout the platform, they offer walkthrough solutions through features such as Academy, which is an e-learning platform acquiring knowledge from both verified bibliography and trusted mentors in the industry. “We offer videos, articles and step-by-step guides,” Ferreira added. However, it is also important to note that the academy is not meant just for new users. The training sessions that are offered are meant for micro, small and large businesses, as well.
Many new users do not understand how digital wallets work either. Some platforms need users to have a separate digital wallet, while many platforms like Bit2Me, began with a wallet.
“Our first-ever product was the Bit2Me wallet, which is inclusive of a Fiat on/off-ramp. Thus, our users can instantly buy, sell, trade and exchange cryptocurrencies,” Ferreira explains. With their own wallet in place, Bit2Me ensures optimal security, which is augmented with their complex scheme that includes hot/cold wallets and custody solutions.
Today, with the increasing popularity of digital currencies, many platforms are also coming up. As Bit2Me is an older platform, it has managed to build a community. Many other platforms are still very fundamental, in terms of structure. Thus, users are required to have their own wallet and understand the intricacies on their own.
Today, governments and entities of different countries are in the process of launching their own digital currencies. Thus, it is not going to be very long before bitcoin and altcoins go mainstream. However, it is important for new users to start with a platform that is user-friendly. Today, the rise in the popularity of cryptocurrencies has definitely made the process of its adoption easier and with time, it will probably get even simpler.
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