Believe it or not, home banking has been around for about 40 years now. Different financial institutions tinkered with the idea of letting people bank from home way back in the 1980s.
But it wasn’t until the mid-1990s that online banking took off. Wells Fargo was the first large financial institution to allow people to bank online. And over the next 25 years or so, every other financial institution followed suit.
This initial foray into online banking would eventually lead to the digital finance era that we’re in today. Many people have bought into the idea of buying and selling digital currency and have fully embraced digitalization in finance.
If you’re not familiar with digital finance just yet, you should get to know about it ASAP. The future of digital finance seems strong, and it could change the way in which we all think about money and finances as a whole.
Here is a beginner’s guide to digital finance. It’ll help you get a better understanding of what it is, how it works, and why it has become so popular.
What Is Digital Finance?
First things first: If you’re going to use digital finance to any degree in the near future, you need to know what it is. So let’s get things started by discussing the definition of digital finance.
Digital finance involves the delivery of traditional financial services in the digital realm. Generally speaking, you won’t ever have to set foot inside a financial institution to take advantage of the many benefits of digital finance.
What Are the Benefits of Digital Finance?
There are obviously a whole host of benefits that will come along with using digital finance. It’s a big part of the reason why digital finance has become as popular as it has in recent years.
First and foremost, people have come to appreciate digital finance because it allows them to manage their finances without having to head down to their bank or another financial institution. They can get access to their finances right from their smartphones, which is way more convenient than having to conduct financial transactions in person.
People have also come to love the fact that digital finance is a lot more inclusive than traditional finance. There are lots of people who can’t access certain financial services these days because they don’t live close to the financial institutions that offer them. Digital finance gives them the opportunity to access them.
Additionally, digital finance has the chance to be a lot more lucrative than traditional finance. People can invest in forms of digital currency that they wouldn’t be able to invest in otherwise in many cases.
What Are Some Examples of Digital Finance?
You might not always realize it, but there are lots of examples of digital finance floating around you all the time. By becoming aware of them, you can learn more about how they work and utilize them to put yourself in a better financial position.
Online banking is one of the most rudimentary forms of digital finance. About 75% of the American population uses online banking to some degree. It’s arguably the most well-known form of digital finance.
But online banking is far from the only type of digital finance that’s being used in this day and age. There are also many other examples of digital finance, including things like peer-to-peer lending.
And there are going to be lots of other forms of digital finance making appearances sometime soon. You should make sure that you keep them on your radar so that you don’t miss out on the chance to use digital finance to your advantage.
How Does Cryptocurrency Fit Into the Digital Finance World?
As recently as just a few years ago, the vast majority of Americans didn’t have a clue as to what cryptocurrency was. But today, you could make the argument that crypto has turned into one of the best examples of digital finance.
As of early 2022, about 16% of Americans say that they’ve used crypto in the past. That number is only going to get higher as we move forward and more people get comfortable with the idea of utilizing crypto.
If you’re still pretty new to the digital finance world, you might want to get your feet wet by making an investment in crypto. It can help you familiarize yourself with the digital finance industry while also providing you with an opportunity to make some digital currency in the process.
What Are the Best Types of Cryptocurrency?
If the idea of investing your money in cryptocurrency intrigues you, you should know that there are so many types of cryptocurrency out there.
Most people automatically associate crypto with Bitcoin—and rightfully so when you consider how big Bitcoin has become. But just because Bitcoin was one of the first types of cryptocurrency available doesn’t mean it’s the only one you should consider investing in.
Some of the other types of crypto you might want to consider investing in include:
- USD Coin
- Binance Coin
Each of these types of cryptocurrency brings something a little bit different to the table. They’re also all worth different amounts of money at this moment. But they’re all good examples of digital currencies that you might want to consider collecting now if you haven’t already.
What Should You Know If You’re Going to Invest in Digital Currency?
If you have an interest in getting involved in the digital finance world by investing in digital currency, it isn’t something you should do on a whim. You will want to educate yourself about all the different types of cryptocurrency that we just mentioned before doing anything else.
A huge part of the appeal of digital currency is that it isn’t regulated by any financial institutions and/or governments. As a result, there is so much more freedom when it comes to buying, selling, and investing in it.
But because digital currency isn’t as regulated as traditional currency, it does come with some risks. There are certain types of digital currency that can fluctuate greatly in value from one day to the next.
Because of this, you’ll want to start off slow when investing in digital currency. You’ll also want to avoid sinking too much of your savings into digital finance at any time. It’ll help you steer clear of losing a large amount of money that you might not be able to afford to lose.
What Do You Need to Buy and Sell Digital Currency?
If you want to begin buying and selling digital currency, you’re going to need to get your hands on a few things first. You’ll need to start by signing up for an account with a cryptocurrency exchange that can help you to buy and sell digital currency.
You will also need to obtain a cryptocurrency wallet that you can use to hold any digital currency that you have. It’ll be of the utmost importance for you to do this since you won’t be able to keep digital currency in a bank like regular currency.
Outside of securing these things, you’ll also want to find a Bitcoin ATM in your area that you can use for buying and selling crypto on the spot. It’s the simplest way to turn cash into crypto and vice versa.
Visit bytefederal.com to find out more about Bitcoin ATMs and how they can help you get involved in digital finance.
Where Can You Use Digital Currency?
Since many Americans didn’t know much about digital currency just a few years ago, there weren’t many places where people could use it. They mostly had to stick to making online transactions with digital currency.
But as time has gone on, more and more establishments have started to give people the chance to use digital currency. Some of the largest corporations in the country now accept Bitcoin and other forms of digital currency.
Once you begin buying and selling digital currency, you should look into where you can use it. You might be surprised to see how many options you’ll have when it comes to putting digital currency like Bitcoin to good use.
Is It Legal to Buy and Sell Digital Currency?
Several years ago, there weren’t very many laws on the books as far as digital finance was concerned. Most people weren’t buying and selling digital currency, so there wasn’t a huge need for laws governing the digital finance world.
This has, unfortunately, created some confusion around the legalities of using digital currency. There are tons of gray areas in the digital finance industry simply because lawmakers haven’t gotten around to putting enough laws on the books governing the industry yet.
For this reason, you’ll need to do some digging around on your own before you start using any digital finance services or investing in any digital currency. You’ll also need to stick to investing in the more popular forms of digital currency, like Bitcoin, since there is more known about the laws surrounding them.
The last thing that you want to do is get really excited about investing in digital currency only to make crucial mistakes that could get you into some legal trouble. You need to know the digital finance world inside and out so that you only invest in digital currency that is going to keep you within the limits of the law.
What Does the Future of Digital Finance Have in Store for the World?
Digital finance is still so new to so many people. It’s why it’s hard for many people to wrap their heads around what the future of digital finance could have in store for us.
But many experts are predicting that the future of digital finance is going to introduce exciting new developments. The introduction of artificial intelligence, for example, is expected to make a huge splash in the digital finance world. It could be used to predict how certain types of cryptocurrency will perform in both the short and long terms.
There is also a belief that things like machine learning could change the way that people keep tabs on their digital finance statements. They should be able to monitor them so much more effectively due to advances in technology.
Before anyone gets carried away when thinking about the future of digital finance, though, there is still so much the average person needs to learn about the present. You aren’t going to be able to monetize your interest in digital finance until you know almost everything there is to know about it.
Use what you’ve learned here to lay down a strong foundation for yourself when it comes to digital finance. You should be able to use this foundation to get yourself more involved in everything that the digital finance industry has to offer.
Make Sure You Know What Digital Finance Is Before Using It
We’re all at a very pivotal point in terms of the financial future of this country. It sure sounds like the way that we buy and sell things could change because of the rise of digital finance.
If you’re going to have any chance to use digital finance to improve your financial situation, you’ll need to make it your mission to learn everything you can about it. You’ll also need to be open to the idea of using the different types of cryptocurrency. It’ll give you a leg up on those who are still refusing to buy into the hype surrounding Bitcoin and other kinds of digital currency.