Cryptocurrencies are all the rage thanks to the development of recent technologies making them more accessible to a wide general public. If previously cryptocurrency was used mainly for investments, such as to buy xrp or bitcoin, but now the reality has clearly changed This means that there are now more uses for digital currency than ever, including the following purposes which we are about to get into.
Let go of any assumptions about cryptocurrencies only being useful for holding high-risk investments and tech company moguls, as there are plenty of ways that you too could be making use of cryptocurrency and using it for a number of things. Are you ready to find out?
Trading and Private Transactions
One of the most obvious uses of cryptocurrencies is trading them for other, more valuable cryptos as this can increase your overall profits compared to your initial first payment. You can also use them to make private and, most importantly, anonymous financial transactions.
This is incredibly useful for individuals who are looking to transfer large amounts of money without wanting to necessarily explain why, to whom, or revealing the source of the funds.
Low-Cost Transfers and Transactions
You can also opt to use cryptocurrencies for trading and money transfers if you are looking for a way to make financial transactions with low-cost transfer fees with a fast completion.
When you make a payment that has to go through a financial intermediary then you would experience increased fees and the whole process would likely take a lot longer, whereas a litecoin (LTC) transaction of $99 million took just two and a half minutes for a fee of $0.40!
Because they have such low transaction costs, a great use for cryptocurrencies like litecoin (LTC) as well as cryptos like stellar (XLM) and bitcoin cash (BCH) is for international money transfers as cryptocurrencies make for an incredibly safe, lost-cost payment system.
Storing Wealth Without the Fear of Frozen Assets
People can spend their whole lives building up their bank account and personal assets, but these can be frozen in minutes if you are accused or suspected of breaking the law. This can leave you without any access to everything you have ever earned, even if you are innocent.
Cryptocurrencies, on the other hand, can act as a sort of censorship-resistant alternative as the law is unable to interfere with wealth that is accumulated and stored in this way. Only you can access your crypto wallet, so a good use of cryptocurrencies is to hold your finances.
Investing in Early Startups
Another great use for cryptocurrencies is that allows anybody who has access to the internet to invest in some of the new startups that have sprung onto the scene, whilst simultaneously giving these new startup ventures a bunch of new investors to increase their seed capital.
Where certain deals and investment opportunities were once only available to certain types of experienced investors, cryptocurrencies have made it easier for a wider range of investors to get involved with these new startup companies early on in their development.
Sending Non-Cash Remittances
Non-cash remittances are another interesting and also powerful use of cryptocurrencies. You can, for example, send non-cash payments to selected African countries from wherever you are in the world using blockchain technology such as that of the startup company SureRemit.
People living in Africa can then buy native SureRemit RMT tokens which can be used within the app for a number of different non-cash payments, such as topping up mobile data or making a payment towards things like utility bills. This allows people to send money to their relatives or friends in African countries without actually having to send any physical cash.
Thanks to developments in recent technology, cryptocurrencies can now be used similarly to other currencies to make online payments and transactions, even small ones!
For example, a lot of online casinos have started to make cryptocurrencies a valid form of payment which you can use to deposit money into your online gambling account to use for bets or to play online casino games such as poker, the slot machines, or black jack 21.
We hope you have found this article helpful and that you now know what cryptos are for.
As you can see, there are now a number of different ways that people can use their cryptocurrencies. Furthermore, this is only set to grow as cryptocurrencies become an even more commonly used commodity and the potential for their use widens with each day.