Along with the growing popularity, there is also a growing confusion about how to use cryptocurrencies. In this article, we intend to settle this problem by explaining the main ways to use cryptocurrencies.
The history of cryptocurrency
In simple terms, a cryptocurrency is a type of digital currency that is created using computer coding. Although it is a form of currency, there is no physical money, as we are used to traditional Fiat currencies such as rubles and dollars. Instead, all crypto assets are located in the digital space and can be sold, transferred, or exchanged for goods and services.
Many people do not understand how and why cryptocurrency first appeared. The idea behind this goes back to the early 1980s. However, it wasn’t until 2009 that the first digital currency, Bitcoin, appeared. Since then, thousands of other cryptocurrencies have been launched, and there seems to be no sign that the situation will slow down any time soon.
The main idea and premise of cryptocurrency is that it is decentralized. This means that no government or other organization controls it. Along with this, one of the main goals was to make the use of cryptocurrencies anonymous.
As you will see in the sections below, there is a lot to do with these digital currencies. From buying cars to paying for food, cryptocurrencies are becoming more convenient to use every day, as more retailers and restaurants are willing to accept these funds as payment.
Crypto assets have many advantages over traditional money. Among the most notable is that they are decentralized, fast, secure, and accepted almost all over the world. It is for these and other reasons that many people start using these currencies.
Popular cryptocurrencies
If you are new to the crypto world, you should know that there are many other coins out there. Currently, there are more than 2000 different cryptocurrencies available, and more than 6,000 have been created. However, a huge number of them are unknown to most people. We have dedicated this section to the three most popular cryptocurrencies that are particularly popular at the moment.
Bitcoin
Given the fact that Bitcoin was the first cryptocurrency in history, we can’t help but talk about it. The world first learned about Bitcoin in 2009. Since then, the coin’s popularity has increased dramatically, and it is still the most sought-after digital asset. In addition to its popularity as digital gold, it also has the largest market capitalization among all other cryptocurrencies – $199,013,595,159.
Ethereum
Another popular cryptocurrency is Ethereum. However, unlike Bitcoin, Ethereum is a relative newcomer to the digital currency space, having been founded in 2015. Despite its young age, Ethereum has quickly become one of the most popular cryptocurrencies on the market.
Litecoin
Litecoin is another popular cryptocurrency that dates back to 2011. It was developed by a Google employee and has a significantly faster transaction processing time than Bitok.
As we mentioned earlier, there are more than 2000 different cryptocurrencies available. If you want to see the full line of options in addition to the three main ones we mentioned above, you should visit Coinmarketcap. There you can see all existing digital currencies and information about their current price, market capitalization, and price trends.
How to buy cryptocurrency
These days, it is relatively easy to buy cryptocurrency in one of the many ways. You can buy coins on the exchange or at an ATM with cryptocurrency. No matter which of these methods you use, it’s a quick and easy process.
The most popular way for people to buy digital currency is through exchanges. Crypto exchanges are much like stock exchanges in the sense that they are a place where you can buy or sell crypto. Also, many crypto wallets have this feature.
If you want to make a purchase not on the exchange, then you can use an ATM with digital currency (if it is available in your region). Distributed all over the world, these machines are used to buy various cryptocurrencies. Instead of leaving with real money, you will receive a confirmation and private keys that are used to sell or transfer your cryptocurrency funds.
What you can spend crypto on
Using its core blockchain technology, cryptocurrency payments take place in a decentralized, secure and transparent ecosystem. Instead of intermediaries such as banks, governments, or other forms of centralized management, cryptocurrencies use computerized automated algorithms to ensure reliable transactions.
Multiple intermediaries for traditional payments involve overhead for end users. By eliminating them, the crypt significantly reduces the cost of payment. In addition, it speeds up international payments, provides greater autonomy and control for the user, as well as optimal privacy.
Although some merchants still do not accept crypto payments, they are becoming an increasingly common payment method. Thus, cryptocurrencies can be used to pay for anything and everything, if there is a supporting infrastructure.
- Cryptocurrency and online gambling
One of the first followers of cryptocurrency was the gambling industry. What’s great about this is that it allows online players to choose from a wider range of payment methods when they make deposits or withdraw funds from a betting site.
In addition to being able to play online gambling, there are many other things you can do with cryptocurrencies.
- Car purchase
If you end up owning a significant portfolio of cryptocurrencies, you can buy a car using them. Instead of paying on credit or in cash, some buyers paid for their car purchases in full using Bitcoins and other alternative coins. Lamborghini has become extremely popular among crypto millionaires who have achieved great success with their investments in crypto.
There are a huge number of car dealerships around the world that accept cryptocurrency as payment. If you want to buy a new car with funds in cryptocurrency, or find out which dealerships accept digital currency, a simple Google search will provide you with a list of the nearest representative offices that accept crypto assets as payment.
- Buy a house
Another option is to use funds in cryptocurrency to buy real estate. As in the car example above, you will need a fairly large crypto portfolio to complete your home purchase. However, this is already a daily practice, and many real estate sellers around the world now accept digital currency as a form of payment. For those who want to buy a house with their cryptocurrency funds, just enter a search query about real estate around the world that can be purchased with your digital currency, and you will be surprised by the number of responses.
- Retail purchase
If your crypto portfolio isn’t big enough to buy homes or cars yet, you’re still in luck. You can make retail purchases with your crypto funds. Currently, many online stores and traditional conventional retail chains accept digital currency as a form of payment.
In the online space, there are many online stores that accept cryptocurrencies such as Bitcoin and Ethereum. However, most of them are smaller stores that you probably haven’t heard of. Fortunately, there are also large merchants that have integrated crypto payments on their platforms.
If you don’t make all your purchases online, it’s still an option to spend some of your funds in cryptocurrency at a regular retail store. Currently, this form of payment is mainly accepted by smaller retailers. However, we expect that the number of retailers that allow customers to pay for purchases with crypto will continue to grow.
- Buying food
Finally, you can pay for food with crypto. Like regular retailers, many restaurants around the world now accept cryptocurrency as a form of payment. Using apps like CoinMap, you can find restaurants in your area that allow you to use digital currency to pay.
Risks of using cryptos
Another thing we wanted to highlight is the benefits and risks of using cryptocurrency. We are here to give you a thorough look at both sides of the coin, and to let you know what the potential advantages and disadvantages are when using crypto assets. It is very important that you understand exactly what you can get involved in.
First, let’s take a look at some of the risks associated with cryptocurrencies. One of the main dangers of digital currencies is that their prices are very volatile, which means that the value quickly changes in any direction.
Another risk associated with cryptocurrency is the risk of your coins being hacked. Since everything happens in a digital format, there is always a chance that someone will be able to access your crypto funds and steal them. To reduce the likelihood of this, make sure that you are using a reliable cryptocurrency wallet.
You should also take into account the fact that the legislation of the country or region where you want to use it applies to the crypto industry. If we talk in particular about the Russian Federation, then first you should carefully study the legal field, and only then perform operations with assets.
Well, if we talk about the advantages of cryptocurrencies, there are a lot of them, but the main thing is that it begins to replace other Fiat money. This is largely due to the fact that cryptocurrencies can be sent and spent all over the world, unlike traditional currencies, which are usually tied to a specific country or region. They are also excellent protection against inflation, but this is a completely separate conversation.
