Cryptocurrency can be an extremely useful tool in a variety of situations. It has numerous uses that go beyond simply being a way to store and spend money.
These digital assets are highly versatile, and they can be utilized in several ways that you might not expect. If you’re looking for alternative uses for your crypto, here are five ways to do so.
Online Gambling Using Cryptocurrencies
Online casinos require verification and several documents for player identification. They do this to secure transactions, prevent malpractices and stop underage players from using the platform.
However, many players prefer anonymity when gambling online. The good news is a lot of online casinos now let players make deposits in cryptocurrency.
Online casinos that let you bet using Ethereum, Bitcoin, or any other type of cryptocurrency usually do not ask for verifications; instead, they provide players with in-house wallets. This way players are guaranteed anonymity and swift transactions.
Easy Money Transfer
Although there are bank apps and several online payment platforms that make the transfer of fiat currency easy, they are relatively restricted in comparison to crypto transfers.
Transferring fiat currency always involves the need for an intermediary, be it a bank or credit card company, and this results in additional fees and sometimes, delays.
However, transferring crypto only concerns two parties—the sender and the receiver. Of course, fees will be incurred, but they are much lower when compared to conventional transfers.
In 2018, a litecoin trade caused a buzz on Reddit.
The trade of $99 million litecoin was concluded in minutes and cost the sender only $0.40 in fees.
Consider Yield Farming
If you are looking for an easy way to earn some passive income off your crypto holdings, yield farming is a great crypto investment option.
Yield farming works similarly to your usual savings account; it involves depositing your crypto to a lending protocol for a period to earn interest or other rewards. This is also known as ‘staking’.
The lending protocol then offers your crypto up as a credit to other crypto users who then pay interest on their credit facility, a proportion of this interest is then returned to the depositor.
Although yield farming is an excellent way to put your coins to use, it is not without risks. Before you get started with yield farming, ensure you understand what it entails, and take the necessary precautions to protect your holdings.
Store of Value
Several factors make a commodity a good store of value. Cryptocurrency ticks many of those boxes, but the reason for the reluctance of its acceptance as a store of value is its volatility.
However, the volatility of crypto is something that can be mitigated by investing in stablecoins. Stablecoins are digital currencies that have their value tied to other stable assets such as gold and USD.
For instance, Tether’s USDT is a stablecoin pegged to the Dollar and is believed to be free from market volatility unlike other coins like bitcoin.
With that concern out of the way, you can use cryptocurrency to store your wealth. It is a secure way to do so.
Travel
If it’s on your bucket list to travel the world, you can do that with cryptocurrency. Several popular travel agencies now accept payment in cryptocurrencies. You can also book hotels, and rental cars, and plan tours with companies that accept this digital asset.
There are many ways to utilize cryptocurrency, but if you are not well-informed, you may fall prey to scams or even the forces of the market. You should always consult your financial advisor before deciding on how to put your cryptocurrency to good use.
