At its core, cryptocurrency is just digital money that’s decentralized. Simply put, it is a currency that doesn’t rely on banks or governments (meaning no central control). Instead, it runs on blockchain technology that makes it secure and accessible to anyone with an internet connection.
This strange form of currency has taken the world by storm, growing in popularity and market value with every passing second. This means that cryptocurrencies are no longer just for tech enthusiasts or investors. More and more people are jumping on board to actually use crypto in their everyday lives. All this means that a future where you can shop, travel, or even donate to a cause, all powered by digital currencies like Bitcoin or Ethereum, isn’t a pipe dream; it’s happening right now.
So, what cool things can you do with your crypto? Keep reading to find out.
Investing and Trading
Before delving into the number of ways you can spend your crypto in today’s world, let’s explore some ways that your crypto can be a source of income.
Active Trading
You’ve probably heard that the cryptocurrency market is very volatile and fast-paced. For a lot of people, that is enough reason to stay away from the market, and in their defense, that is fair. But if you thrive on fast-paced decisions, active trading can be an exciting way to grow your crypto holdings. What does it entail? Well, all you’re doing is buying and selling cryptocurrencies over short time frames, taking advantage of the very volatility that people are scared of. Now (December 2024) is actually a good time to get started with trading cryptocurrencies, as the major crypto assets are on a bull run. To get into the action, though, you need to register on a reputable, well-regulated crypto trading platform that will give you access to tools like technical analysis, real-time price charts, and trading signals.
The potential rewards of trading your crypto are really high, but remember that the market is very volatile. Prices can swing dramatically within minutes, so this strategy requires a good understanding of market trends and an appetite for risk.
Holding for Long-Term Growth
If you don’t really have the stomach for the risks that come with trading in the crypto market, you can opt for something called the “buy-and-hold” strategy, otherwise known as the HODL strategy. Apart from being perfect for people who prefer a less stressful way to manage their crypto, all it entails is purchasing cryptocurrencies and holding onto them for the long haul, with the hope that their value will increase with time. You need to be really patient if you want to get the best out of this. If you can’t wait, you’ll most likely not get the best out of this method of investment. Here’s a quick example to put that into perspective: early investors in Bitcoin who cashed out their investment at $100 missed out on a potential earning of $100,000 (the current value of Bitcoin: December 2024). So, while the market can be unpredictable in the short term, this strategy leans on the belief that cryptocurrencies will gain widespread adoption and grow in value over time.
Staking and Lending
If you would rather have your crypto work for you, then staking and lending are the ways to go. Staking essentially involves locking up your crypto in a crypto wallet or platform to help secure the blockchain. Doing this earns you rewards in return. Think of it as earning interest on a savings account but with digital assets. Lending, on the other hand, lets you loan out your crypto assets to borrowers and earn interest in exchange. Both methods can provide a steady income stream, but they come with risks, such as platform security issues or price fluctuations.
Spending and Payments
Let’s talk about spending your crypto and sending money. It’s way cooler than just keeping it in your wallet.
Purchasing Goods and Services
Remember that story about the guy who bought a pizza with Bitcoin years ago? Back then, it was a very strange thing to do. Fast forward to today, and it’s not such a big deal anymore! Now, a lot more places are taking crypto. Big companies in different niches, small e-commerce sites, and even a growing number of physical stores now accept select cryptocurrencies as payment. But there are ups and downs.
The good? Sometimes, using crypto can be faster and easier than using a credit card, especially for international purchases. The bad? The price of crypto is extremely volatile, and there are small crypto transaction service charges that can add up pretty quickly.
Travel and Booking
You can now pay with crypto to book a flight or hotel room, and it’s becoming more common. Several travel booking sites like Travala and platforms like Bitpay allow payments with cryptocurrencies. This is advantageous because it can sometimes translate to better exchange rates than using your regular bank card, saving you a few bucks. Plus, transactions can be faster and more private than through traditional methods. However, you must always double-check the fees, as some companies might have surcharges for using crypto.
Crypto Debit/Credit Cards
Yes, you read that right—crypto cards are a thing, just in case you aren’t aware of them. It’s just like your regular debit or credit card, but it uses your cryptocurrency. All you have to do is load it up with your crypto, and then you can use it just like any other card at most stores. Super convenient, right? Some cards even give you cashback rewards in crypto! Remember to always find out what fees apply—these cards usually have fees, like regular cards.
Long Story Short
Cryptocurrency has come a long way from being something only tech enthusiasts know about and invest in. In many ways, it is no longer a niche topic of discussion. Today, it offers a wide range of possibilities in our everyday lives. Whether you’re more interested in growing your crypto than using it, there are opportunities for you to explore. However, as with any financial decision, it’s important to weigh the risks and rewards carefully.
