What Is Cryptocurrency and The Best Way To Use It?

It is a wrong perception that only millionaires and technically gifted people use cryptocurrency. They are considered investments that only the ultra-rich can afford to make. People fail to realize that cryptocurrencies like Bitcoin serve far more exciting purposes like Bitcoin Lotteryto their users.

Let us have a quick look at how we can use cryptocurrencies in the best ways possible.

Low-rate money transfers

There are several instances where websites accept various cryptocurrencies as the mode of payment on their platform. You can also transfer funds to individual cryptocurrency wallets. The best part about these transactions is that they attract a low fee.

On the other hand, different payment modes have a relatively large transaction fee than Litecoin, Bitcoin, etc. Also, cryptocurrency transfer hardly takes more than a few seconds. In contrast, other financial mediums can take a few days to transfer the amount when the transaction is cross-border.

A secure way of storing wealth

It might sound absurd that your bank accounts could be frozen one day. In reality, this is becoming more and more common in the present-day scenario. There are several jurisdictions where this is possible owing to their dubious laws.

Suppose you face financial misconduct or have a spar with a powerful entity, the chances of your bank account getting frozen increase manifold. Whereas if you hold Bitcoin, no one can seize your wealth since cryptocurrencies are censorship-resistant. Only you have the key to your private wallet. The authorities cannot freeze your wallet under any circumstances.

Make transactions privately

Many cryptocurrencies have centralized their model around privacy. Using digital currency such as PIVX and Monero (XMR), you can seamlessly make anonymous financial transactions.

A bank cannot ask why you made a particular transaction, nor are you liable to explain. Nor do you have to disclose the source of your funds. When you make transactions through the usual route, there can be unnecessary delays owing to various bureaucratic processes.

Investment in ingenious early-stagestartups

  • A new form of fundraising has emerged.
  • It is known as digital token-based fundraising.
  • Now anyone can invest in tech startups with ease.
  • Initial Coin Offerings (IPO) and Initial Public Offerings (IPO) are how startups generate capital.
  • They can do so when they sell digital tokens to potential investors, i.e., you.
  • You pay them through established cryptocurrencies such as ether (ETH), bitcoin, or Litecoin (LTC).
  • As the price of the bought token fluctuates, it determines the startup’s value—the valuation increases when the token cost increases and vice versa.
  • The opportunity of investing in these startups has been made a possibility with the advent of cryptocurrencies only. Earlier, this privilege used to be with venture capitalists only.
  • There have been multiple instances where digital tokens of ICO’s have experienced an exponential increase in their value and in the multiple of thousands too.

Receive payments for posting content

A plethora of social media and blogging platforms have cropped up with the rise of cryptocurrency. These are heavily incentivized and pay users and publishers handsomely. These financial rewards are in the form of cryptocurrency. They can also be at the receiving end of remunerations by upvoting posts. One such platform is Steemit.

These websites do not sell your data but pay you a good amount in exchange for the high-quality content you provide. This is the sole reason they are gaining wide traction among the youth and gaining more and more users over a while.

Rent your hard drive as storage in the cloud

Many blockchain-based cloud companies pay users cryptocurrency for leasing their hard drive storage to those who require it. One such solutions company is Storj. Such companies are good at what they do and have proved themselves more secure than their traditional counterparts.

These new cloud companies are faster, too, since there is more than one machine that is transferring your file at the same time. They are cheaper since no specific data-center is used. Instead, they use spare hard drives, as mentioned above. There is no scope of data leakage since the file is shredded and encrypted. It is purely a peer-to-peer-based system where you don’t need to build trust with a particular organization or entity.

An excellent global cryptocurrency

The days of spending time in a massive line in front of a foreign exchange officer are gone. Just remember your Bitcoin wallet’s key, and you are good to go when you travel abroad. Also, there is an increasing number of travel agents accepting Bitcoin for booking flights, tickets, etc.

Conclusion

We now recognize the utility cryptocurrency is providing in this fast-paced world. With governments ramping up financial surveillance, it is a relief that some privacy and anonymity come along with cryptocurrency. Blockchain technology has already made our life easier and, in the future, it is sure to provide many more innovative solutions.

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