Bitcoin is reshaping the way we do business and think about finances. As the first cryptocurrency to ever be created, Bitcoin is the torch-bearer of the crypto revolution. The coin is going up in value, and it has an adoption rate of a staggering 113% annually.

The emergence of exchanges such as FrontNode is proof of that mass-adoption.

Trust is the basis on which all monetary transactions are made worldwide. After all, the cash you have in your wallet is little more than pieces of paper. To understand how Bitcoin differs from traditional financial establishments, we must understand the working fundamentals of both.

Our Traditional Financial System

We have come a long way from when the primary currency was gold, silver, or grain. But the main concept behind our current financial system is still the same: the centralized hold of power.

Governments hold their currency and control its value. Banks are also interconnected and abide by rules that are less suited to the present evolving digitalization happening in all sectors.

The founding concept behind the creation of Bitcoin was decentralization. It’s an ecosystem in itself that’s supported by millions of independent nodes. This makes crypto-currency autonomous and free from the jurisdiction of any one institution.

Let’s look at how Bitcoin compares to some other aspects of the financial system.

Bitcoin Compared to Banks

Each bank around the world is connected to the other. When any transaction originates from a payer’s bank, it goes consecutively through various checking procedures across an entire network of mediators.

Bitcoin’s network is a peer-to-peer grid. A structure made up of computers linked together that authenticate and support trades. An automated ledger is maintained of all past and current transactions. This is called the blockchain.

The record of transactions is public and accessible to anyone with an internet connection. That’s the primary differentiator between Bitcoin and more traditional banking systems.

Bitcoin Compared to Stocks and Bonds

Stocks reflect the financial health of a company. Stocks and Bitcoin are both susceptible to market changes and fluctuate in value. However, the investors run while trading stocks differs fundamentally from the risk of trading in Bitcoin.

Instability of business climate, volatility of markets, and government sanctions are some of the risks associated with stocks. The COVID-19 crisis has proved how any upset can decrease stock value.

Bonds pose a similar dilemma. The investors receive a profit on their investment for a fixed time, after which the amount is paid back in its entirety. The possibility of the company going bankrupt is what makes bonds such a gamble.

Comparatively, cryptocurrency structures are of a decentralized nature. They’re not governed by a handful of people on top of any government. That offers additional security and anonymity to Bitcoin investors.

Bitcoin Compared to Gold and Silver

Precious metals have been the primary entity used for investment from the start of time. And this medium of investment is just as popular today.

But the world has transitioned, and precious metals are no longer the great savings plan that they used to be. Fast-paced financiers of today require investment options that can cater to these changes. Moreover, the gold price has been falling recently.

Precious metals pose the risks and burdens of portability and heavy taxes. They require hefty security measures to safeguard them. Most governments sanction significant gold holdings and require declaration while crossing borders.

The FrontNode cryptocurrency exchange offers you the convenience of quicker, simplified transactions from anywhere in the world. It takes less than two minutes to buy Bitcoins securely from the Bitcoin exchange. And it's equally easy to liquidate any money invested with FrontNode.

Why Choose Bitcoin?

Bitcoin is the first-ever crypto-currency and was launched in 2009. Since its emergence, it’s been a topic of much debate, especially when it started appreciating during recent years.

There are many reasons to choose Bitcoin over banks, stocks, and precious metals. Let’s look at a few of those reasons.

1. Ease of Use and No Conversion Fees

Bar a few exemptions, the cryptocurrency is kept in banks or declared before any government tax. Bitcoin taxes are applicable only when the Bitcoin changes hands.

Selling, inheriting, buying, and paying with Bitcoin are therefore taxable. But the IRS exempts the conversion of one cryptocurrency to another from tax.

Similarly, there’s no percentage loss or conversion fees while exchanging cryptocurrencies.

With more and more companies accepting payments in Bitcoin, the ease-of-use is unparalleled. One currency works anywhere in the world; no conversion is necessary.

That’s why investing in Bitcoin makes more sense now, especially with taxes rising all over the world.

2. Additional Security Against Theft

Bitcoin provides better security against theft and third-part seizures than most banks or stock holdings. That too, without the need for physically guarding your assets. It’s made possible because of the safe cryptography used by Bitcoin’s blockchain technology.

Possession of a Bitcoin can only be changed by the one who owns it. To pocket someone’s Bitcoins, you need physical access to their devices. That offers unparalleled security to the owners of the cryptocurrency.

This security also extends to loss and damage that cash is vulnerable to. You also get the convenience of crypto-currency wallets when you purchase Bitcoins from safe exchanges such as FrontNode. That makes Bitcoin just as stress-free to use as a credit or debit card.

3. Reduced Risk of Traceback

Banks require a large staff for efficient running. That makes you more prone to risks such as data breaches because your information can be accessed by many in the banking system.

Unlike banks, you don’t need to give all your details to buy Bitcoin.

Taking part in the journey

An evolution is taking place at the very core of our financial systems. If you want to claim your share of this future and buy Bitcoin, FrontNode is the platform for you.

It’s user-friendly and fast. You can use your credit to make Bitcoin purchases on this interactive and easy-to-use exchange. Sign up now to seamlessly and safely purchase, store and withdraw Bitcoin.