Cryptocurrency: What is it used for?

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cryptocurrencies
cryptocurrency

A lot of people have heard about cryptocurrency. They have read on the news how much it has made for some people. However, that’s pretty much everything they know about cryptocurrency. Many people want to go into cryptocurrency, but they lack the necessary information to startup. Some even go into the crypto market and lose fortunes because they don’t know what they are doing.

Cryptocurrency, however, is a digital and decentralized currency that is majorly referred to as the money of the future. Some people are skeptical about how true this is because the currency hasn’t gone mainstream yet. However, many big companies and financial institutions are buying into the currency.

You can use cryptocurrencies to buy and sell things, but their uses are not limited to that alone. The following are some of what you can use them for.

Private Transactions

According to the law, when the money in your account exceeds certain limits, the bank would call you to ask where you got the money or where the money is going. And if you don’t respond to the call in time, your account might be frozen. However, Cryptocurrencies allow you to make anonymous private transactions without sanctions or intrusion.

Privacy-centric digital currencies like Zcash(ZEC), PIVX, Monero(XMR) allow users to make transactions without explaining to the bank why and to whom they are sending the money and where they got the money.

Money Transfers at a Low Cost

Cryptocurrency is also used to make substantial money transfers in seconds and at a meager cost. If you want to make money transfers at the bank, there is a limit to the number of transfers you can make per day at a high transfer cost, almost always slow.

For instance, recently, 99million dollars litecoin was transferred within two and a half minutes,  and at the transfer cost of 0.40 dollars. However, if you have to transfer through a bank or a financial institution, it would take days to complete the transaction and a much higher transfer cost.

Alternative Store of Wealth

Using the bank doesn’t guarantee that you will access your money anytime you want it. There are instances when you have not done anything wrong, but your account would be frozen. However, cryptocurrency is used to store wealth and access it when needed – a form of top-tier security.

For instance, Bitcoins act as a censorship-resistance alternative store of wealth. The only person that can access the wallet is the owner, and any authority cannot freeze it.

Trading and Holding

Most people make their money in the crypto market by day trades. They check the charts and look out for a spike in prices. They buy coins after speculating a spike in the market, and when the spike occurs, they sell to make profits. Because of the volatility of the market, most people use trading bots to make trades. You can learn more about trading bots on the BitQL website.

Also, some buy and invest in cryptocurrency by way of holding. Holding cryptocurrency is purchase coins for the long term with the belief that such coin would pump. For instance, about a decade ago, some people invested a hundred dollars in bitcoin; now, they are millionaires.

Conclusion

Cryptocurrency has various uses, which have benefit remarkably majority of the people that have dabbled into it. Even the best thing has its disadvantages. In as much as the uses of cryptocurrency are appealing and lucrative, one can lose a lot of money if the basics are not known. So, if anyone wants to venture into cryptocurrency, they should do their research well.

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