Be Your Own Bank, and Keep it Safe!

The world is becoming more and more economically unsafe. For the common man, understanding this is as difficult as rocket science – who are we to understand as to how to the dollar rises or falls, what meaning do stocks hold for us, how exactly are we to ascertain whether a country’s economy is boosting or recovering? To the untrained mind, the matters of money might as well be Latin. To make matters even more complicated, there is yet another development that the public cannot ignore – cryptocurrency.

A cryptocurrency is a unique kind of a digital currency that is created and managed through advanced encryption techniques known as cryptography. It was nothing but a dream in the 1990s, but became a rather virtual reality in 2009 with the concept of BitCoin. The value of Bitcoin minorly rose through the years, and finally found a stable investor in April 2013, and peaked at a record $266 per Bitcoin. The idea is for this alternative currency to be as commonplace as dollars and euros.

The advantages of cryptocurrency make it superior to the forms of money that is more commonly used –

  1. It is fraud free – it cannot be counterfeited
  2. There is no chance of identity theft – credit cards function on the ‘pull’ principle, where the desired amount is taken by the merchant from the customer’s designated account. Bitcoins give the customer the entirety of the power, by working on the ‘push’ principle, allowing them to give the merchant exactly how much they want to and nothing more.
  3. Access to everyone – with access to internet, of course. In fact, one in three Kenyans now carry out their transactions by owning a Bitcoin wallet!

As with any new technology the potential for risk and error is prevalent. Where there is risk, insurance follows. Crypto insurance to cryptocurrency exchange, offered by Crypto Insurance is now one of the most sought after services, covering losses from internal and external causes, e.g. Theft by employees, cyberattacks or unauthorized access. With the help of blockchain technology, transparent transactions are guaranteed by the Crypto Insurance Companies. Crypto insurance also covers user losses if a crypto-exchange ever fails. The Insurance Fund is based on currency obtained from the sale of Crypto Insurance policies, making the fund a constantly growing one.

Cryptocurrency is sure to fundamentally change the global economic system, and it is wise to ride this wave of technology safely, with insurance to pay the price for any bumps along the way.

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