Over the past few years, cryptocurrency has grown to new heights—from its humble beginnings when it had almost no value to today when it is now one of the most sought-after investments in the market. People are getting more enamoured by the potential of cryptocurrencies and their uses. You can find out more about it yourself here at Cryptoshimbun!
A cryptocurrency is a form of digital payment that uses a decentralized technology called ‘blockchain’ to manage and record transactions. It is most commonly used to buy items online, pay for services or as a form of long-term investment. Nowadays, cryptocurrency can be used in more ways than one. After all, most investors see crypto as the currency of the future and people are clamouring to buy them now before the prices skyrocket.
Users like cryptocurrencies because of the security it offers. They don’t have to provide too much personal information to use them unlike in banking institutions. Some also like the fact that the central authorities don’t have control over them, since banks and governments can reduce the value of physical money with inflation.
Most important of all, the utility of cryptocurrency is unparalleled in the digital world. Take a look below at how you can use them effectively below:
Low-cost money transfers
One of the most popular uses of cryptocurrency is for money transfers. Sending money nowadays is as easy as going to your mobile phone’s banking app and initiating a transfer. You can also go to money transfer sites and have them wire it for you. However, every time you do, you’re charged a huge fee.
Fortunately, you won’t have to worry about this when using cryptocurrencies. If you’re sending money to someone abroad or buying something over the internet, you can transfer cryptocurrency at a fraction of the price. It could only cost you a few cents compared to a hundred or more dollars when transferring fiat money. Transferring cryptocurrency also takes almost no time at all compared to international bank transfers that can take hours to days.
Earn interest with yield farming
While cryptocurrencies are mostly used to buy products and services online, you can also use them to earn more. Mostly, you can use them to trade. You can buy at a low price then sell it at a higher price later. Some people also hold on to them until their price appreciates. Another way to earn with your cryptocurrency is through yield farming.
Like fiat money, you can loan your cryptocurrency to others. Some sites can help you reach people looking for cryptocurrencies to borrow. What you do is deposit units of your cryptocurrency into a lending protocol. From there, you earn interest from trading fees and receive additional yields when the borrower repays their loan with interest.
The lending company then pays the interest to the investors who deposited their cryptocurrency. By earning interests, you get more cryptocurrencies that you can either withdraw or lend again.
Make private/secure transactions
One of the dangers of buying items online is that hackers might get a hold of your information. By using your card for online payments, you are essentially providing your card details to the company, which hackers might obtain.
You won’t have to worry about information theft when using crypto. Since cryptocurrency uses online or physical wallets for storage, no information is available online for hackers to steal.
Additionally, since information and transactions with your cryptocurrency are not controlled by the bank, you will have more privacy as to what you’re using them for. You can make money transfers or purchases without having to explain why and to whom you’re sending it too. Oftentimes, asking for this information delays the transaction for a fund transfer that the other party needs.
Nowadays, cryptocurrency can also be used to travel! Several travel agents now accept cryptocurrencies in booking a flight, renting a car or booking hotels.
Bitcoin, the leading cryptocurrency in the market, also has ATMs in different parts of the world. This makes it easier for travellers to convert their Bitcoin into the local currency, giving users more freedom to use their Bitcoins or cryptocurrencies even while abroad.
Use for your tuition
More academic institutions are also starting to accept cryptocurrencies as a mode of payment for tuition fees such as schools in Germany, Switzerland, Cyprus and the United States.
The Lucerne University of Applied Sciences and Arts in Switzerland stated that they’re accepting cryptocurrency as payment to distribute knowledge on the subject and gain experience in using this new technology.
Meanwhile, The University of Nicosia in Cyprus has been using Bitcoin and other cryptocurrencies since 2013. They announced that they were the first-ever university that adopted using Bitcoin to pay for tuition fees. In the US, King’s College is the first one to do so in 2014.
Startups or companies started by entrepreneurs to start a project or business are now accepting cryptocurrencies to fund their services and products. This is because it is easier to track and obtain funds with cryptocurrency than by using fund-raising websites.
Since many people are already using cryptocurrencies to invest, startup companies adjusted to the demand and began accepting them to further expand their source of funds.
Additionally, charitable organizations are now accepting cryptocurrencies as donations. Some organizations are using cryptocurrencies for their security too. Since blockchains are secured, they can eliminate any problems in charities such as fund leaks or corruption. As such, using cryptocurrencies is a great way to avoid these kinds of issues. Some schools and museums have even announced that they are now accepting cryptocurrency for donations or payments.
Find out everything there is to know about cryptocurrencies here at Cryptoshimbun!