If you own cryptocurrencies or are planning to own them, you must be wondering what are the actual benefits of cryptocurrencies that can be helpful on a regular basis. And if the value of your cryptocurrencies is crashing, you must be reevaluating your decision to invest in them. Just like any other currency, cryptocurrencies were also created to serve as a mode of exchange but with the power of technology. Cryptography and blockchain technology ensure the security of cryptocurrencies whenever a transaction or trading is being made.
Today, there are thousands of cryptocurrencies with investors around the world with rising popularity of new cryptocurrencies every other year. As the popularity of some of the cryptocurrencies goes down, their value also crashes, leading them to completely disappear from the world of crypto.
There are some major businesses that happily accept cryptocurrencies, Bitcoin to be precise. Some of them are Microsoft, Whole Foods, Tesla, Starbucks, PayPal, Etsy, Newegg and many others.
Before we discuss the use cases of cryptocurrencies in real life, let’s discuss where do we store these currencies to use them.
Typically, there are 4 places where you can store your cryptocurrencies:
- Mobile wallets: Mobile apps that you can download where the crypto apps create designated private keys for you.
- Hardware wallets: These are similar to USBs that you can plug into your computer/laptop to transfer all your assets to your device to make them offline.
- Desktop wallets: These wallets are downloaded onto your computer that allow you to use various security features.
- Paper wallets: A paper document that keeps your private keys offline to keep the attackers at bay.
Now let’s look at some of the uses of cryptocurrencies in daily life.
Pay with your cryptocurrencies
It has become easier to pay with your cryptocurrencies as more businesses have started accepting them. You can make payment to all the above-mentioned companies whenever you make a purchase. The payment is made as per the market value of the cryptocurrency during the transaction. Then the payment service/app of the cryptocurrency converts the payment into the currency as per your liking.
There are various cryptocurrency portals through which you can make payment online for online shopping. Moreover, they can be used to pay at cafés, restaurants, jewelry stores, travel agencies, hotel bookings and many more.
Cryptocurrencies as investments
People investing in cryptocurrencies are highly aware of the direct risk that comes with them. Many have witnessed tremendous increase in the value of their cryptocurrencies while many others have seen a huge plunge. Due to its immensely volatile nature, people are ready to take the risk with the belief that they will see a rise in value soon.
Due to global political reasons, many cryptocurrencies have endured a drop in their value. Which is why it is necessary to take the right decision as to which cryptocurrency can be more promising in the long run. Bitcoin, Ethereum, Cardano, Dogecoin and a few others are among the popular categories of cryptocurrencies.
The cost effectiveness and the speed of sending and accepting cryptocurrency has been well appreciated over the years. The decentralized nature of cryptocurrencies helps people to send and accept the currencies without the requirement of external authorization. This also helps save money on banking, overdraft charges etc.
As the time passes, the acceptance of cryptocurrency is expected to increase as it shows promising effects on businesses.