What Can You Use Cryptocurrency For?

What Can You Use Cryptocurrency For?

Cryptocurrency has to be one of the most talked about technologies of the past few years, with Bitcoin, Ethereum, and others potentially changing the way finance works. A lot of the attention towards crypto has been based around their price volatility, with big swings in coin value attracting media headlines. You can look up the current Bitcoin price to see just how volatile these assets can be, and this volatility has presented opportunities for traders and investors.

However, aside from being a financial asset that can potentially lead to investing profits, cryptocurrencies can be used in a variety of different ways. Bitcoin was initially developed as a means to transfer money online, but as blockchain technology has improved, new innovative ideas have created new uses for crypto. In this article, we’ll look at what you can use cryptocurrencies for.

Online Transfers

When Bitcoin was first launched, its anonymous creator saw it as a way for people to send and receive money without the need for banks or third-party processors. The blockchain takes away the need to trust a payment processor and also reduces fees and the time it takes to transfer funds.

Thanks to Bitcoin and other cryptocurrencies, you can now send and receive money anywhere in the world. Best of all, crypto is accessible to all, and if you use a decentralized crypto, it can’t be controlled by another organization or government.

While you do pay a small fee when sending money with crypto, most chains are extremely cheap, and even sending huge sums of money, you’ll rarely have to pay  than a few dollars. That said, some coins are much better for transfers than others, as network congestion and block size can affect the speed and cost of transfers.

Earning Interest

Cryptocurrencies are seen as something of a risky investment due to the fact that their prices can move up and down significantly in a short space of time. However, that might change over the next few years as the market matures and the amount of liquidity increases. In addition, crypto staking presents a new opportunity for investors.

By staking your crypto in staking pools or with yield farms, it’s possible to earn money on your investment, much like earning dividends from stocks. There are a few different types of staking, including proof of stake, which is what the new Ethereum network is based on.

Proof of stake lets you earn money from your Ethereum by staking as part of a pool and validating transactions. On the other hand, yield farms allow you to earn interest by lending your crypto to an institution, which then lends money out and charges interest to make a profit.

Supply Chain Tracking

While most people see cryptocurrencies as a way of storing value or exchanging money, the blockchain technology can be revolutionary in a number of different ways. Supply chain tracking is one interesting feature that several cryptocurrencies are exploring.

A supply chain crypto essentially uses the blockchain to record data on the processes involved in the production and distribution of a product. For example, it could allow consumers to trace the history of their designer bags, helping to prevent counterfeits and ensuring both consumers and businesses save money.

Supply chain management is a hugely important part of any economy and allows consumers to receive the products they need. Whether it’s in medicine, agriculture, retail, or any other market, being able to track and verify products can help improve consumer trust and result in a healthier economy.  

Final Thoughts

Cryptocurrencies have a wide range of uses not confined to simply investing and trading. There are a lot of different coins out there, and most have unique features that allow them to be used in different ways.