With the price of Bitcoin reaching new highs at the beginning of the year, many private and institutional investors are increasingly interested in cryptocurrencies. The most interesting thing is that the ways to use cryptocurrencies have become more and more diversified. Discover here the top 10 interesting uses of cryptocurrencies.
10 – Make a low-cost payment without any financial intermediaries.
Cryptocurrencies were created to offer an alternative payment method that is inexpensive, transparent, fast, and – above all – bypasses any financial intermediary. All transactions are validated by a proof-of-stake or proof-of-work protocol, mainly via a computer network.
9 – Use an alternative store of wealth that is independent and censorship-resistant.
Cryptocurrencies are totally decentralized, i.e. they do not belong to any central body or government. They are therefore increasingly becoming a valuable reserve for those seeking an independent investment solution against accommodative global monetary policies, or the restrictive policies of certain countries.
8 – Trade cryptocurrencies to take advantage of their volatility.
Using cryptocurrencies for trading can be very profitable, but it is also risky since the market is extremely volatile. However, it is possible to use one’s cryptocurrencies to trade others, and this can be a successful business if you have a good strategy. Bitcoin trading is particularly popular, as BTC is the most popular and important cryptocurrency in the market.
7 – Lend your cryptocurrencies to earn interest.
Since your tokens belong to you, you can do whatever you want with them, and you can easily lend them out via decentralized platforms to earn interest on your crypto funds.
6 – Stake your cryptocurrencies to get more tokens.
Some blockchains are based on a transaction validation protocol called proof of stake (PoS). These blockchains, therefore, use a “staking” process to validate the transactions on the networks. Stacking is a method of earning interest by immobilizing part of your tokens.
5 – Donate your cryptocurrencies to charities.
If you wish to share your cryptocurrencies with others, you can donate your cryptocurrencies to associations. Moreover, in some countries, crypto donations are tax-deductible.
4 – Use your cryptocurrencies to make private transactions.
Some digital currencies offer completely anonymous and private payments, because for these networks the protection of privacy in an increasingly regulated world is essential. Such tokens include Monero, Dash, and Zcash.
3 – Invest in startup projects with your coins.
Some platforms propose to use cryptocurrencies to invest in new projects. While it is more difficult to invest in start-ups when investing “classical money”, cryptocurrencies allow you to discover and support various crypto projects at a very early stage of their development.
2 – Spend your Bitcoin to travel the world.
Many companies now accept Bitcoin and other cryptocurrencies for going on holiday, so you can buy tickets, rent accommodation, as well book sports or tourist activities with your cryptocurrencies.
1 – Send non-cash remittances.
For some people, cryptocurrencies make it easier to send money to a distant destination. Mostly used by migrants to send money to family members, money transfers (remittances) represent the largest arrivals of money in developed countries. Blockchain and cryptocurrencies can help to send money quickly and at a lower cost, but more importantly, some companies offer to use cryptocurrencies for other purposes (non-cash remittances) such as paying bills or buying a mobile top-up.