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Different Ways Cryptocurrencies Can Be Used For

Cryptocurrencies have been getting more popular since the conception of bitcoin in 2009. Currently, there are over 2,600 cryptocurrencies available in the market, with Bitcoin as the leading cryptocurrency. Most users just buy bitcoin and then sell them. However, there are plenty of ways to use your bitcoin and other cryptocurrencies aside from the usual trading.

These ways include using your cryptocurrencies for payments, investments, remittances, loans, and humanitarian aid.

Mode of Payment

One of the most famous functions of digital currencies today is using it for cashless transactions. There are over hundreds or even thousands of companies and institutions today that accept cryptocurrencies as payment.

These businesses include fast-food chains and restaurants, vacation rentals, car dealerships, banks, technology companies, airlines, travel companies, healthcare institutions, universities, theatres, and many more.

There are also online platforms that accept cryptocurrencies in exchange for their products and services. Some of these websites include those for e-commerce, software, electronic shops, and others.

Remittances

Since this currency is purely digital, sending and transferring money from one place to another is done conveniently. Unlike the traditional fiat currencies that have to go through banks and other businesses that offer money transfer services, transferring cryptos can be done with just a few clicks on the device of your choice—through your smartphone or personal computers.

Sending money through cryptocurrencies will spare you the tedious traditional process of transferring through banks. A few of the notable advantages you can gain from this is having less to no transaction fees, depending on the amount you are sending. Some platforms also offer same-day transfers, which are not always available for bank transfers.

Investments

Digital currencies are known for its unique characteristic of having a limited supply, which makes it volatile in the market. The fluctuating price of cryptocurrencies is what makes it very interesting to crypto enthusiasts and investors. One good example is bitcoin, which is commonly compared with gold. Both are considered as scarce unlike traditional fiat currencies such as dollars, euros, and others, which can be reproduced and distributed by their respective central banks.

Trading

This allows users and customers to trade their assets, which include traditional or fiat currencies and bitcoin or other available digital currencies.

Some cryptocurrency exchanges also allow its users to earn passive income while trading. This is usually done through bitcoin affiliate programs. The commissions earned through affiliate programs vary on the platform and the number of successful trades made through your own affiliate link. The rate or amount earned is calculated based on escrow fees.

Loan Applications

This loan program allows backing loans or borrowing loans in crypto and is considered as an alternative type of financing. This is also a good option for those crypto holders who are not sure whether or not to put their digital currencies in trading platforms.

Through cryptocurrency loan programs, users won’t have to lose or sell their crypto assets should they want to borrow money. Some businesses and platforms provide loans that are collateralized by cryptocurrency assets. Bitcoin (BTC), Litecoin (LTC), and Ethereum (ETH) are among the few and fastest-growing cryptocurrencies that are currently accepted for the said program.

Development Aid

There are a lot of giant companies and individuals that are now in the list of cryptocurrency adopters. Aside from the ways that were mentioned previously, another good way of using your crypto is through giving donations and joining humanitarian actions.

There are over hundreds of non-profit groups today that run campaigns and charity works, which are now accepting cryptocurrencies. Among the most known ones are Red Cross, Save the Children, Autism Speaks, The Water Project, Zamzam Water, and many more.

The Future of Bitcoin Adoption

These are just some of the most familiar ways of utilizing cryptocurrencies. As this innovation continues to expand and grow, its adoption all over the world can also be expected in the years to come. When that time comes, more ways on how and where this coin can be further used will then be discovered and practiced.

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