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What Are The Main Benefits Of Decentralisation?

If you’ve ever spoken to an advocate of cryptocurrencies such as Bitcoin and Ethereum, chances are they were waxing lyrical about their decentralised nature.

That’s because, while many are now getting involved due to the attractive returns these investment opportunities offer, decentralisation is still one of crypto’s biggest pulls.

Here we’ll be discussing the benefits of decentralisation to discover why people are so keen to manage their own finances and cut out financial institutions that have long been in control of our money.

What Are DeFi Wallets?

To ensure your crypto and transactions are fully decentralised, you’ll need what’s known as a DeFi wallet. So let’s start with the most basic of questions – what is a DeFi wallet? Short for “decentralised finance”, these wallets are like a digital bank account where you store and manage all of your cryptocurrencies.

These wallets allow you to store, send and receive digital assets – all without relying on traditional banks. Unlike traditional wallets, DeFi wallets operate on blockchain technology, providing users with full control over their funds, as well as allowing them to operate anonymously.

Users can access various financial services, such as lending, borrowing and trading, directly from their DeFi wallets, offering financial freedom and autonomy over their digital assets in a safe, secure and transparent way.

You may see Defi wallets referred to as “non-custodial”, which means that users retain possession and control of their cryptocurrency, achieved by storing private keys directly on their devices. 

Unlike conventional wallets, susceptible to hacking due to consolidated crypto holdings, DeFi wallets eliminate that vulnerability. Your private keys remain exclusively accessible to you, ensuring heightened security, although users must not lose these keys or allow them to get into the wrong hands or their assets are at risk.

How Do DeFi Wallets Work?

DeFi wallets utilise blockchain technology as a ledger to fulfil their transactions. Operating on smart contracts – self-executing digital agreements where the terms of the contract are directly written in code for additional security – these wallets automate and execute their own financial processes without the need for any intermediaries such as banks. 

By eliminating the need for a central authority such as banks who essentially have control of your finances, users are put firmly in the driving seat of their own finances. Their wallets are protected by private keys and seed phrases, ensuring security and ownership of their assets.

Blockchain, which is the underlying technology that underpins the whole network, records all transactions, enhancing transparency and reducing the risk of fraud at both ends. 

Benefits Of Decentralisation

So now we have a good understanding of DeFi wallets and the decentralisation this offers, let’s take a look at the main benefits. 


Decentralisation in cryptocurrency means that users have complete control over their funds, removing any dependence on central authorities such as banks or governments. 

This autonomy enables individuals to oversee their finances autonomously, providing a greater degree of freedom and privacy, away from external interference. 

The decentralised nature of cryptocurrency provides financial sovereignty and enhances security and trust within the system. With full ownership and control over your assets, you can confidently navigate the digital economy on your own terms.

Protects From Economic Instability:

Although the value of cryptocurrencies can be heavily influenced by other economic factors and regulatory changes, because they operate on decentralised networks, this makes them somewhat resistant to government interference and economic instability. 

This resilience makes them a safe bet against inflation, currency devaluation and other such financial turmoil, offering a stable alternative for storing and transferring money. 

By eschewing traditional financial systems, cryptocurrencies provide individuals with greater control over their own finances and help them avoid the risks that can sometimes come with centralised authority


While those who are still not on board with crypto would have you believe everyone who uses these assets does so to purchase illegal items or substances from the dark web, this is obviously not the case! Some would simply prefer their transactions be done anonymously, which is one of the main draws of crypto. 

Cryptocurrency transactions provide users with enhanced privacy and anonymity. Through cryptographic protocols, users can execute their financial transactions without revealing any personal information, which helps keep them secure against identity theft and fraudulent activities. 

Reduced Fees For Overseas Payments: 

If you’re a frequent traveller or you own a business that makes plenty of international transactions, traditional payment methods can be costly and inefficiently slow. 

That’s because conventional banks often impose hefty fees and exchange rates on overseas payments, eating into the funds of both individuals and businesses. 

Thankfully, with the use of crypto and decentralised finance, you can make seamless cross-border transactions at a fraction of the cost. 

With the use of blockchain technology, users can make overseas payments quickly and affordably, without being subject to eye-watering fees or currency conversion charges.

Using Your Crypto Card:

To help you make the most of this decentralisation, you need to get yourself a crypto card.

Crypto cards are much like your regular bank card as they can be used to pay for goods and services. The only difference is that rather than being linked to your traditional bank account, crypto cards are linked to your crypto wallet instead.

When you make a transaction, the crypto is converted into fiat currency. So even though you’ve paid in crypto, the business you’re paying still receives pounds or whatever currency you’re paying in.

In the past, one major drawback of crypto was the difficulty of spending it. These assets were viewed mainly as something you can invest in, rather than a currency for making everyday purchases.

But ever since the arrival of crypto cards, all that has changed. These cards allow you to use your crypto to pay for your morning coffee, make ATM withdrawals and spend with any retailer that accepts Visa and Mastercard.

All of this is made possible by the provider – in this case us – who uses blockchain technology to convert your crypto into fiat currency. So if you’re in search of an XRPayNet crypto card then you’ve come to the right place!

So those are the main benefits you get from decentralisation. Each individual will have their own view and, as you can see, there are multiple ways you can earn passive income from using your crypto cards, maximising your holdings and making the most of your finances. 

Long gone are the days when crypto was just a vehicle for investing – these days you’re able to make everyday purchases and earn tasty rewards and perks simply by using your crypto card instead of your traditional debit card.

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