Digital assets extend financial options beyond crypto trading
The use of digital assets now encompasses operations that go beyond buying and selling cryptocurrencies, from international transfers to payments and access to digital dollars.
For years, sending money abroad, accessing dollars or finding investment alternatives has involved costs, delays and banking barriers. Digital assets offer a different way to address these financial needs and expand the options available from a phone.
Binance presented five concepts to understand these uses: financial access, blockchain, platform choice, security and everyday applications of digital assets. The proposal explains how these tools can be used with lower costs, shorter processing times and fewer intermediaries.
Daniel Acosta, Head of Binance for Latin America: “Increasingly, what matters is not understanding the technical details of blockchain, but recognizing its inherent characteristics (transparency, efficiency, direct access) that make a more open, faster financial proposition with fewer barriers possible. Binance’s vision is not to be just an exchange where crypto is bought and sold, but an integrated financial platform where a person can store value, access digital dollars, send money abroad, and opt for yield and diversification products, managing their money more efficiently, all from a single application”.
Five concepts to understand digital assets.
1. Financial access: what digital assets are used for.
Digital assets can be used to address specific financial needs. Depending on the asset and the network, they allow users to hold value in digital dollars without a bank account in a foreign currency, send money between countries, protect themselves against the devaluation of the local currency, pay for goods and services or access investment products.
It is also necessary to become familiar with some terms. Wallets are applications that allow users to manage digital assets; exchanges facilitate their purchase, sale or exchange; and stablecoins are designed to maintain their value linked to a reference currency, such as the US dollar.
2. Blockchain: the technology that makes it possible.
Blockchain is the technology behind digital assets. Its operation is based on a public and transparent ledger where transactions are recorded and verified without the need for an intermediary.
Transactions are validated by a distributed network of computers and, once confirmed, are incorporated into a chain of immutable records. These characteristics enable transfers in seconds and at significantly lower costs than traditional services.
3. Choosing an integrated financial platform.
The choice of a platform should consider more than the ability to buy and sell cryptocurrencies. An integrated platform can bring together access to stablecoins and other tokens, P2P markets, cross-border transfers, payments, and yield and diversification products.
Among the aspects worth reviewing are security tools, identity verification processes, ease of use, transparency about products, account and asset protection mechanisms, and the licenses and registrations available in different jurisdictions.
4. Security from day one.
Protecting an account starts with measures such as using a unique and strong password and enabling two-factor authentication. It is also advisable to verify communications received and protect personal data.
Using official channels to make inquiries or manage an account is also part of these measures, as is being wary of unsolicited messages that promise guaranteed returns or pressure users to act quickly.
5. Uses beyond buying and selling: addressing everyday needs.
Digital assets have applications that go beyond buying and selling cryptocurrencies. These include access to digital dollars through stablecoins, cross-border transfers, everyday payments, and access to yield and diversification products.
In the case of transfers between countries, they can be carried out quickly and economically compared with traditional services that charge fees of between 5% and 10% and can take several business days. For payments, the use of cards or integrations that allow automatic conversion into local currency is also contemplated.
Specifically, the five concepts bring together financial uses, technology and security for those beginning to explore digital assets. As a person becomes familiar with these tools, they can identify which ones best suit their needs and begin using them progressively, staying informed and conducting their own research.
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