It’s time to acknowledge that cryptocurrencies are here to stay and that they’re no longer just a buzzword trending in the finance and tech industry. As it is often perceived only as a niche practice, many may find themselves wondering if they should get into it at all. However, there are plenty of actual benefits and practical uses of cryptocurrencies for even the most basic of consumers.
Benefits of Using Cryptocurrencies
Before we get into how to use cryptocurrencies, let’s discuss why you should use them. For starters, everything is fully encrypted and decentralized. This reduces the risk of fraud, as the details are all stored on a ledger that cannot be tampered with. In addition to this, since it is decentralized, meaning that there’s no governing body, the transactions are much faster. This is especially noticeable when compared against regular international transfers which can take up to several days.
Plus, since there are no intermediaries involved, the payment fees tend to be relatively lower than those made through regular banks. This is akin to how other digital alternatives are able to save money due to a lack of physical constraints. Take online casinos as an example, where you can easily find a variety of online slots bonus options. Here, they offer options like a generous welcome bonus to their new users, which is made feasible thanks to their business model which has lower overhead costs. This is a similar reason as to why cryptocurrency payment fees are lower when compared to their conventional counterparts.
Finally, let’s discuss how not everyone has access to regular banking services depending on their location. Cryptocurrencies actually democratize this by allowing everyone with internet access to participate openly and easily. There are currently hundreds of crypto exchanges readily available that only require a few steps to authenticate your account.
Practical Uses of Cryptocurrencies
The most obvious and practical use of crypto will remain its capabilities as an investment asset. This is a solid option for many investors who are looking to diversify their portfolio, and it works for both long-term and short-term investment plans. Moreover, you have plenty of currencies to pick from, each with its own unique strengths. While this does require plenty of careful research, this isn’t any different from other investment options like stocks.
To add to this, certain coins, like Solana or Ethereum, even allow you to stake them. This essentially works in a similar as to a savings account but with crypto. Once you stake your coin of choice, you will begin to slowly accrue interest. The only disadvantage is if you want to unstake and then sell the coin, it may take several days to process, so it is more beneficial for long-term investment options.
Lastly, while still somewhat uncommon, is the option to use crypto as a payment method. There are currently several brands, including fast food chains, that accept crypto as a form of payment. The largest ones are Microsoft, AT&T, and Twitch, but the list is growing at a rapid speed as cryptocurrencies are becoming more accepted in various industries.
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It’s safe to say that crypto is not a niche market in 2024, but one that is slowly becoming more mainstream. As such, whilst you may hold some reservations regarding it being a relatively new form of currency, this is simply an innovative option that you could benefit from exploring.
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