There are quite a few disadvantages surrounding traditional finance, such as fees and privacy. These issues are addressed by decentralized finance and its products, such as the ones provided by Earnity, a company founded by Domenic Carosa and Dan Schatt.
For example, when purchasing an item with your bank or credit card, the retailer will ask to see it and record the name and account number. The information can be stolen by hackers or even the store staff.
It’s like showing one’s key to everyone who walks into the room because store clerks are not always trustworthy. Banks get hacked all of the time; in fact, it happens more than people think. Someone can hack an account and quickly draw the account down to zero.
The good news is that decentralized currencies are just as secure by using blockchain technology, but even better because nobody can touch the money, as experienced by users of Earnity’s platform and as intended by its co-founders Domenic Carosa and Dan Schatt. It is held in a personal wallet that one has complete control over, just like cash. One can store it on an offline hardware wallet connected to a computer without an internet connection and do transactions over the internet.
Users can download many wallets to their phone, computer, or tablet for Bitcoin, Ethereum, Litecoin, and other crypto. They all function nearly the same way, so there is no need to switch between them. They can find a list of popular crypto wallets at Coinmarketcap. Some examples are Airbitz, Exodus, Jaxx, and Coinomi.
Not only can one secure their coins offline, but they are also the only person with the keys to their wallet. This means nobody else can send or take money from them. If someone hacks into their account, they are also hacking into your device, which is much more difficult than it sounds. This is why it’s advised to write down your keys and store them safely.
Another big problem with the traditional banking system is fees. Many hidden charges might be overlooked at first but can eat into one’s budget over time. For example, checking accounts charge a fee just for having an account, but sometimes this fee is waived if there is enough activity in the account. Saving and checking accounts also have monthly fees for using electronic services such as bill pay and debit cards, but those can be waived as well.