5 Different Uses for Your Cryptocurrency

If you have decided to take the plunge and invest in cryptocurrency, you may be wondering what else you can do with your digital currencies whilst they sit in your wallet.

They may be primarily viewed as high-risk investments but they can also be put to good use within a number of applications that you may not necessarily know about. If you are interested in familiarizing yourself with different uses for your cryptocurrency, continue reading to find out everything you need to know.

1. To transfer money

Since cryptocurrency was launched and subsequently exploded into the mainstream, it has primarily been used to transfer money from one account to another with users benefitting from lower transaction fees and faster speeds than traditional payment methods. In 2018, for example, a cryptocurrency investor successfully transferred $99 million worth of Litecoin in a transaction that took less than three minutes to process from start to finish and cost $0.40 in transaction fees.

If $99 million worth of fiat currency was sent through traditional means, on the other hand, it would have racked up hefty transaction fees and potentially even taken a number of days to process, especially if it was a cross-border transaction. The low transfer fees and faster speeds associated with cryptocurrency have, therefore, led to it becoming a great channel within which to transfer money.

2. To travel the world 

The cryptocurrency industry has experienced rapid growth and development within the past decade to the point where it is now entirely possible to travel the world with digital currencies alone. This has led to the emergence of a number of travel companies that either accept cryptocurrency as a valid payment method or that only accept cryptocurrency as a valid payment method when it comes to booking flights, accommodation, and even vehicle rental with CheapAir, Destinia, and Bitcoin.travel amongst some of the most popular examples.

The launch of CryptoCribs in 2017 also paved the way for home-sharing marketplaces built solely on cryptocurrency to become commonplace in the not-so-distant future and with cryptocurrency ATMs cropping up all over the world, financing your next trip with cryptocurrency alone may be possible sooner than you could have ever possibly imagined.

3. To swap or trade coins 

If you are familiar with investing in cryptocurrency, you may also be familiar with the process of swapping or trading coins. It was designed to reduce the overhead cost and length of time required to exchange a particular asset for another and has become something of a growing trend within the cryptocurrency world in recent years with a number of platforms, such as ParaSwap, now widely available to choose from.

Swapping or trading coins can also provide you with several benefits including the ability to swap or trade during periods of downtime or outside cryptocurrency market hours, obtaining improved liquidity, and the option to go long or go short. It may sound risky but it can also be extremely profitable by allowing you to gain direct exposure to the ongoing demand for digital currency.

4. To invest in startups 

The past decade has seen a dramatic surge in the number of cryptocurrency-based fundraisers with a valid internet connection often all that is required to become an investor in today’s increasingly digital-driven landscape. This can provide startups with the much-needed seed capital they need to get off to a great start and increase their chances of experiencing long-term success down the line.

In addition, Initial Coin Offerings, or ICOs, are, in the very simplest of terms, cryptocurrency’s answer to Initial Public Offerings, of IPOs, and can provide startups with the opportunity to raise capital by selling brand-new digital tokens to early backers in exchange for a predetermined amount of a particular cryptocurrency, such as Bitcoin or Ether. This price then acts as an intermediary for the success or failure of the startup as it gradually grows and develops and begins to trade on the public market.

5. To send remittances 

As well as transferring money, traveling the world, swapping or trading coins, and investing in startups, cryptocurrency can also be used to send remittances. The launch of SureRemit in 2017, for example, allowed users to send non-cash remittances from any country in the world to a number of select African nations.

This is done by purchasing the platform’s RMT tokens before using them within the app to make non-cash remittances for a number of reasons, such as to pay for mobile data top-ups or household bills, for friends or family members living in Africa regardless of where in the world they may be. It has already shown promise in some African regions and is expected to continue to do so in the coming years.

If you have decided to invest in cryptocurrency for the first time or as an experienced investor, you may be wondering what else you can do with your digital currencies whilst they are in your wallet. They can, however, be put to good use to transfer money, to travel the world, to swap or trade coins, to invest in startups, and to send remittances.

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