It’s no secret that cryptocurrency has become a very hot topic that is in the news daily, especially when they are trading at such insane prices.
But most people look at cryptocurrencies as just an investment tool, something to be bought at a low price and sold again for a high price to make a profit.
There is so much more to cryptocurrency, which, to be honest, can be extremely complex in understanding.
As a consumer, however, knowing the uses of cryptocurrency and how to employ them to your benefit is most important. And it goes deeper than just investment or spending it at a casino online.
Find out these five uses of cryptocurrency that are often overlooked but could be extremely beneficial.
1. Transfer Money At Low-Cost
With cryptocurrencies not being regulated or controlled by centralized banks, there is a lot more financial freedom that can come with their use.
A big one is the ability to transfer money at a much lower cost than what it would cost to transfer money through a bank. Banks charge an exorbitant amount of fees just to transfer your money to someone else, or vice versa. Skip the middle man.
Banks usually charge flat rates for transfers that increase as the amount of the transfer goes up. These fees can be quite large and add up if you frequently transfer larger sums of money. But with cryptocurrency, transfers can be done for a small fraction of a penny per dollar.
Others have flat rates below one dollar for any amount of transfer. And with the amount of real money that a single piece of cryptocurrency can be worth, this becomes a very efficient and cheap way to transfer large sums of money safely.
2. Alternate Way To Store Wealth
Cryptocurrency is a great way to store wealth besides in a bank or other financial accounts, and because cryptocurrency is not centralized with any form of banks or regulated by any government, it is off-limits to any type of seizure or issues that might abound from financial issues one might face.
So if one were to have an issue with bankruptcy and owned cryptocurrencies, those cryptocurrency funds would likely be unaffected.
3. Invest in Startups
New startup businesses are starting to get into the cryptocurrency world because it can help them produce equity for raising funds as an alternative to crowdfunding.
Companies can start their own type of cryptocurrency where they then make an Initial Coin Offering (ICO).
During these ICOs, investors buy cryptocurrency from the startup, providing true monetary value and equity for the company to use in their venture.
This is becoming more and more popular as there are now over 17,000 different types of cryptocurrencies on the market.
So instead of just forking over money to a company to use, the investor gets something in return that, at the moment, should go up in value over time and give them a healthy return on their investment.
4. Private Transactions
Some cryptocurrencies are being produced to be 100% untraceable and allow users to make anonymous financial transactions.
This goes back to number one on this list, but it also allows large sums of money to be transferred without the painstaking process of having to jump through hoops like one might have to when dealing with large money transfers between banks.
These types of private transactions will continue to become popular, especially as governments continue to push the bounds of financial privacy for citizens all across the globe.
People like their privacy, and due to the security of cryptocurrency, it could turn into a much more widely used form of currency than just for big money transfers.
5. Currency of the Future
Cryptocurrency is shaping up to be the currency of the future.
With the waning popularity of cold hard cash and the likes of Venmo, PayPal, and CashApp being widely used, it only makes sense that cryptocurrency would become the new form of currency.
It is decentralized, secure, and digital, which all fit into the future world that is currently taking shape.
Cryptocurrency is beginning to make its way into the physical consumer realm as business entities begin to accept certain kinds of cryptocurrency as payment for goods and services.
Don’t think of cryptocurrency as just an investment tool. It has so many other great possibilities.