*This post has been written by Hedgehog, an MCS influencer and one of Korea's famous cryptocurrency key opinion leaders.
Greetings from MCS, the derivatives trading platform where traders ALWAYS come first.
What do you think MCS traders can usually do with their cryptocurrency? Today, we will look at three things you can do with cryptocurrencies.
Used For Remittance/Payment
When you think about what you can do with cryptocurrency, the easiest thing that comes to mind is remittance/payment. The Bitcoin White paper also states that Bitcoin is designed to allow individuals to freely conduct financial transactions, such as remittances, in a P2P method worldwide without the central bank. For example, if you need to send money to a friend on the other side of the globe, if you do not use cryptocurrency, you need to transfer money overseas through the central bank. In order to remit money abroad, you must provide all of your personal information to the bank and pass KYC (Know Your Customer), AML (Anti-Money Laundering), etc., and you must provide the counter-party's personal information bank details. Even if you provide all the information to the central bank and complete the remittance request, it is not over. Central banks in each country are connected through a network called SWIFT, and since remittances are not directly connected from Bank A to Bank B, but through several intermediary banks, it will take a tremendous amount of time until the recipient actually receives the money. On the other hand, if you remit with cryptocurrency, you don't have to go through intermediaries, and even if you send money to a friend on the other side of the globe, the transfer can be completed in just a few minutes if you just know the recipient's cryptocurrency wallet address.
Bitcoin network miners use computing power, verify the authenticity of Bitcoin network transactions, collect the transactions in blocks and record them on a decentralized public ledger called blockchain. Miners play an important role in the Bitcoin network, and each time a block is created, as a reward for using enormous computing power to maintain a healthy Bitcoin network, a certain amount of Bitcoin is paid.
Many people today think, "Investing in cryptocurrencies is a high risk high return investment." Well yes. Cryptocurrency is a high-risk asset, and the market value of cryptocurrencies show higher fluctuations than any other investment asset. However, as time goes by, the cryptocurrency investment market matured and with the explosive growth of Stable Coins (Cryptocurrencies with values linked 1:1 against certain Fiat Currencies), deposit/savings systems, which were only seen in existing banks, have entered the cryptocurrency market. In addition, with the development of Defi, financial systems using various cryptocurrencies are beginning to emerge and are attracting attention globally. Some cryptocurrency financial products still have high-risk and high-return financial products, while some cryptocurrency financial products have financial products that can preserve the principal. You may wonder how there can be a cryptocurrency financial product that can preserve the principal. This is possible as the cryptocurrency derivatives market is growing rapidly, like the MCS perpetual contract trading platform. As the cryptocurrency derivatives market is making its grounds, various financial products are being launched because a variety of hedging strategies can be capitalized. Therefore, we should no longer consider the cryptocurrency market as an unconditionally high-risk high-return market, but as another financial market where different cryptocurrency financial products are brought to the market expanding the selection range which is similar to the existing traditional financial markets.
New industries, such as blockchain and cryptocurrency, have a wide range of doubts and uncertainties. However, as innovative technologies such as the internet and smartphones have become a part of our everyday lives, it is only a matter of time blockchain and cryptocurrency become the same existence as it develops and matures.
I am a Bitcoin margin trader, Hedgehog. Thank you for reading this post.
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