Cryptocurrencies, like other fiat currencies, are primarily meant for buying and selling goods and paying for services.
However, there are several different uses for cryptocurrencies. In this article, we will review the advantages of cryptocurrencies.
A Cheap Way to Send and Receive Money
Cryptocurrencies are usually used to send and receive money. It is a cheap way because the transaction charge is small and it’s also very fast. Crypto can send large amounts of money in little time.
As an example, a $99 million Litecoin (LTC) was transferred in less than two minutes. For this money transfer, the total transaction fee was $0.40.
In the traditional banking system, the fees for this money transfer would have been much higher. Furthermore, the transfer would have taken several days, or even longer, if it was sent between two countries.
Buying and Selling
Cryptocurrencies can be used for selling and buying. Some online stores accept Bitcoin and Dogecoin as payment when you buy something.
For example, some car sellers in Nigeria accept Bitcoin and USDT as payments for cars. In Dubai, you can buy cars and houses using Bitcoin. Also, some online services accept Ethereum as a form of payment
Other crypto coins used for payment include
- Bitcoin cash (BCH)
- Ethereum (ETH)
- Litecoin (LTC)
Secure Way to Save Money and Store Wealth
Like normal money, cryptocurrencies can also be used to save and store wealth.
However, unlike traditional money, cryptocurrencies like Bitcoin and Ethereum allow people to store wealth secretly.
Take, for example, if you want to open a bank account with a bank in your country, you need to submit documents of identification like an international passport or driver’s license. The bank can access and seize your money whenever they want to. Also, the government can seize your money as well.
However, with crypto, you only need a crypto wallet which only you can access. Only you can give access to another person. As a result, you can save money secretly without anyone knowing about it.
Consequently, authorities cannot freeze or seize the contents of a personal crypto wallet without having access to your private keys.
Earn More with Lending your Crypto
Another use case of cryptocurrencies is allowing you to earn interest by lending your crypto.
Just the same way you can give loans with normal money, you can also give crypto loans while collecting interest.
Using online crypto lending platforms, you can offer to lend your crypto money in exchange for interest when the loan is repaid. In the later lessons, we will talk about these platforms and how you can make use of them.
You can Buy at a Small price and Sell at a High price
It’s possible to buy cryptocurrencies at very cheap prices and sell at a high price.
For example, a Bitcoin was $3,000 in 2017. However, a Bitcoin is currently $40,000. So, if you had bought a Bitcoin back in 2017, you would have made $37,000 in profit if sold today.
Also, Ethereum was worth $342 in June 2017. Currently, one Ethereum is close to $3000.
Cryptocurrencies are now being accepted by major online casinos and sports betting sites. You can deposit crypto to play games and bet on your favourite sports. Also, there are Bitcoin dice games online that allow you to gamble with Bitcoin. Some of the cryptocurrencies accepted by betting sites include
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- Bitcoin (BTC)
- Ethereum (ETH)
Now that we have seen what cryptocurrencies can be used for, let us see some common misconceptions that need to be cleared. Stay tuned for the next lesson.