Know the term Unbanked, this is the explanation!

Bittime  - Unbanked is one of the popular terms among thecrypto. This term emerged because many people cannot access the banking system. In fact, there are still many who don't have an account or debit card. What is unbanked? Here's the discussion!

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What is Unbanked?

Unbanked is a term used to describe people who do not have access to basic banking products and services, such as bank accounts, debit cards, or credit. 

Many unbanked people come from marginalized sectors of society, such as the poor, women, or minorities. They are often rejected by traditional financial institutions for various reasons, such as not having identity documents, proof of income, or collateral.

According to World Bank data, around 1.7 billion people worldwide were still unbanked in 2017. This means they were unable to enjoy the benefits of financial services, such as sending and receiving money, storing money safely, paying bills, or investing for the future . This can exacerbate poverty, inequality and social exclusion.

Crypto Helps the Unbanked Community

Even so, there is hope for unbanked people, namely cryptocurrency or crypto assets. Crypto assets are digital assets that run on blockchain technology , which is a decentralized system that is not controlled by a central authority. 

Crypto offers an alternative solution to traditional banking, one that is more accessible, cheap and inclusive. Here are some ways cryptocurrency can help the unbanked:

Crypto Provides Access to Financial Services

cryptocurrency provides access to global financial services. With crypto, unbanked people can access financial services wherever they are, as long as they have a smartphone and an internet connection.

They don't have to worry about the fees, restrictions, or discrimination that banks typically impose. They can also transact with anyone around the world, without intermediaries or third parties.

Unbanked Can Make Money Transfers and Loans

Not only that, cryptocurrencies provide access to various financial services. With crypto, unbanked people can take advantage of a variety of financial services, such as peer-to-peer payments, remittances, loans, staking and more.

These services can help them meet their daily needs, send money to family or friends, get capital for a business, or earn passive income.

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Investment Opportunities

Cryptocurrencies provide access to investment opportunities. With crypto assets, unbanked people can invest in various digital assets, such as Bitcoin, Ethereum, or other tokens.

They can buy, sell, or exchange these digital assets on various platforms, such as exchanges, wallets, or apps. They can also participate in innovative projects, such as DeFi, which offer financial products and services powered by blockchain.

Examples of Crypto Help Unbanked

One example of a DeFi project that can help the unbanked is Goldfinch. Goldfinch is a crypto-backed lending protocol that allows unbanked people to get loans without collateral or credit verification. 

Goldfinch uses a community-based trust model, where lenders can assess borrowers' creditworthiness based on reputation, performance and feedback. In this way, Goldfinch can provide access to capital for the unbanked, while reducing risk for lenders.

Thus, cryptocurrencies can be a solution for unbanked people, providing them with access to better, fairer and more sustainable financial services. 

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

To be able to buy crypto assets on Bittime , make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.

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DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.