6 Ways Cryptocurrency Can Help With Your Day-To-Day Routine
By Space Coast Daily // June 16, 2022
If 2017 was the year of Bitcoin, it was also when cryptocurrencies went mainstream! Gone are the days when cryptos were just a digital asset limited to your hardware or software wallet. Fast forward to the current year, these tokens have escaped their way out of the digital world.
Thanks to the underlying Blockchain technology, cryptos today are more than just a ‘means of transaction’ in the financial world. Besides, if you’re a trader or an investor, you might be surprised to know that the real-world applications of your crypto earnings are exhaustive.
Moreover, with the growing prominence of cryptos, many companies have come ahead to accept these tokens as legal tender, making them a part of our everyday lives in the best ways.
Don’t believe us? Let’s walk you through six different ways cryptocurrencies can help with your everyday routine in 2022.
Real-World Applications Of Cryptocurrencies
1. Streamline transaction speed
Before cryptocurrencies, cross-border payments have been nothing short of a hassle! For instance, if you wanted to send your money to the USA. You’d have to rely on multiple platforms and intermediaries. As a result, most financial institutions take over three to five days to settle the transaction or at least 24 hours, in the case of wires.
This is where cryptocurrencies step in as your daily aid! You can now initiate cross-border payment in minutes, if not seconds. Once the network confirms the block containing your transaction, the accounts are settled and available for use. In addition, you’re also free of any conversion or transaction fees.
2. Reduce costs associated with transactions
The costs of transacting using cryptos are relatively lower than other financial services. When settling with traditional transfers, the process was often long and filled with different taxes and conversion charges. For instance, wire transfers can easily cost you anywhere around $25 or $30 to send money within the country, not to mention the additional costs for cross-border payments.
However, that’s not the case with cryptos! They’re usually less expensive when compared to the other medium of transfers. But, when using cryptos, you should be mindful of the demand of the Blockchain at that time. Since increased demands can significantly shoot up the prices of your transactions, you might want to wait for the right moment. However, in comparison, cryptos continue to be at the lower side of fees as they save you unnecessary taxes.
3. Ease of accessibility
Ease of accessibility is another excellent reason behind the application of cryptos in your everyday life! Since anyone can use cryptos via their web or mobile application, they’re easy to get started with. Opening a crypto wallet is seamless and faster than opening a bank account at a financial institution. In addition, there is no background check or need for ID or credit information.
Cryptocurrencies offer autonomous transactions to their users! Even users without a bank account can receive and send money in crypto tokens. This way, it also saves you from the additional charges you would otherwise pay for maintaining a bank account.
4. Option to diversify your investments
Similar to shares, bonds, and debentures, cryptocurrencies have proven to be a reliable investment tool. Though a device that matches the profile of a high-risk investor, cryptos have proven to give significant returns to their investors. For instance, if you’ve been an investor of BTC since its inception, you would’ve enjoyed a massive return of 48,22,525% from a minimal investment.
However, if you intend to get started with crypto investments now, we suggest combining asset classes with minimal price correlation. This way, even when your stock portfolio is down, you’ll earn as your crypto asset may go up.
Note: Even after the significant return that it has provided over the years, cryptocurrencies continue to be a volatile investment; build your folios craftily!
5. Security of your investments
Unless someone has access to your wallet’s private keys, it’s impossible to sign transactions or get access to your crypto funds. Besides, the underpinning of the crypto tokens, the Blockchain network, has proven to be one of the most secure means of digital transactions over time.
Since transactions are stored over individual blocks, it becomes almost impossible for hackers and cryptojackers to conceive fraud. In addition, any security threat to the Blockchain network would result in a complete lockdown of the network and would otherwise require significant computing power to initiate.
However, while Blockchain is a reliable security for your investments, it should be noted that once you lose the private keys to your wallet, there’s no way to recover your funds.
6. Means of inflation protection:
Many investors consider Bitcoin, among other cryptos, to be a reliable, inflation-proof offering! Bitcoin and Ethereum are often compared to inflation protection investments like Gold and Silver. In addition, the hard cap on the total supply of such tokens is said to capitalize on the rising prices of these digital assets over time.
Cryptos Are The Future!
With all the current scope of cryptos (and possibly more in the future), it’s evident that these digital tokens are in the initial phases of their innovation. Today, you can quickly come across retail outlets and eCommerce stores that have started accepting cryptos as legal tender.
However, if your favorite brand is yet to accept cryptos as a payment method, you might want to check out a platform like Coingate. They allow you to transfer cryptos and turn your token earnings into a gift card from famous brands like Walmart and Amazon.