If you are looking to immerse yourself in the world of cryptocurrency, and crypto exchanges this article is just for you! Step by step we will tell you all the ways you could use or spend your bitcoins (or if you use Ethereum or other cryptocurrencies).
People who invest in cryptocurrencies usually spend some time researching where and how to do it. If you wish to start investing your money or want to purchase some stuff with bitcoins, educating yourself is the first step you should take.
Blockchain technology is growing stronger and becoming more popular every year so learning how to use it sounds like a good idea. In this article, we're going to tell you more about what is cryptocurrency, how and where you can use, spend or invest it.
If you want to go into the cryptocurrency world you should learn the definition of terms like crypto exchange, mining race, blockchain technology, coins, Coinbase, Bitcoin, and Ethereum; but also, you should familiarize yourself with some financial concepts like investing, funds, transactions, trading fees, credit, and exchanges.
If this sounds like too much, keep in mind that cryptocurrency users are constantly learning and studying the advances and changes since it's such a dynamic market. If you want to keep up, you need to do the same.
You can find more information on this subject in our article A guide to Cryptocurrency.
What is Cryptocurrency?
In simple terms, cryptocurrency is a payment method available through crypto exchanges on the internet without the need for a third party to process transactions. It was invented with the purpose to eliminate that third party (the bank) so people could do transactions, buy and pay for things from their phones on an app.
This is a digital, encrypted, and decentralized system of exchange. Bitcoin, Ethereum, and other cryptocurrencies work on blockchain technology.
The blockchain system is designed so that each block has a piece of cryptographic data, transaction data, and a timestamp of a previous block. For instance, a blockchain works like a book that records transactions in code but is distributed across endless users and a network of computers around the world. Bitcoin mining is people who add new blocks to their blockchain.
Another way to look at it is by comparing cryptocurrency to other currencies. The Dollar and the Euro have central authorities that maintain and manage them. However, with cryptocurrency, there are no central authorities managing the money. Instead, the tasks are distributed among various users on the internet.
If you can continue reading and learning about this subject go check out What is Cryptocurrency?
Purchase with cryptocurrency
As we mentioned, cryptocurrency is digital money, which means that its main purpose is to use to buy or pay for things through a digital exchange. Since it is not very popular yet, you can't start buying everything with bitcoins. But eventually, you will be able to find many places that do accept crypto exchanges, both online or in a store.
Cryptocurrency Debit Card
If you create an account on a cryptocurrency app, you could ask for a debit card. This way you can connect your digital funds to the card and purchase things with it like it were cash. Companies like Visa and MasterCard have already habilitated this service, all you would have to do is connect your account.
There could soon be the possibility to have credit cards paid with cryptocurrency!
Travel the World
If you love traveling the world and visiting new and exciting places, now you can do it with cryptocurrencies instead of having all your money in your wallet.
Some airlines, like Destinia, CheapAir, and others, accept Bitcoin as a payment method. Also, now you could pay car rentals or booking agencies with Bitcoin and other cryptocurrencies. Finally, machines like Bitcoin ATMs are on the rise, which means that travelers can convert their digital currency into local currency.
Transfer Money at Low Cost and Privately
That's right, cryptocurrency transfers are much less expensive and take almost no time compared to normal currency transfer fees and times.
According to CryptoDefinitions, in 2018 a transaction of "$99 million worth of Litecoin cost only $0.04 in transaction fees. The transaction itself was also processed in only two and a half minutes." Transactions that big have greater fees when done through a bank and they also take much more time than just two days.
On the other hand, if you wish to do a private or anonymous transaction, cryptocurrency is the best tool to do so. You don’t need to explain why you’re sending large sums of money, the source of your funds, and other private details.
To learn if cryptocurrency is not banned in your country, go read about the Legality of cryptocurrency.
Investing and saving with cryptocurrency
Once you get your hands on some cryptocurrency, there are some good financial investments you can do instead of spending or trading your money.
If you wish to invest in cryptocurrencies there are three things you'll have to do to get yourself in the market.
- Choose your cryptocurrency: Bitcoin is the most dominant cryptocurrency for 2021 but there are thousands to choose from.
- Find a platform to buy cryptocurrencies: Coinbase is the most popular platform for buying coins but not the only one. You can also buy and create an account with Binance, CoinDesk, or Kraken.
- Store your cryptocurrency: People usually store it in a cryptocurrency wallet. There are desktop wallets, online wallets, mobile wallets, and hardware wallets.
Alternative Store of Wealth
One of the best characteristics of cryptocurrency is that it can cushion your funds from unexpected situations. Let's say for whatever reason your bank account or assets are frozen, this wouldn't happen with cryptocurrency.
Cryptocurrencies are "censorship-resistant" which means that you have a private key (that only you own) to your digital wallet and to your digital funds. Therefore, no bank or authority will ever be able to get a hold of your coins or money without your knowledge.
If you are looking to invest, cryptocurrency could help you with any investment you have in mind. If you have your eye on a new and innovative project or startup with promising returns you could take part in ICOs (Initial Coin Offerings) and IEOs (Initial Exchange Offerings).
In the past, ICOs and IEOs were reserved for experienced venture capitalists but now it is open for anyone with access to them.
For more information on this subject go to read about Cryptocurrency, a good investment?
Choosing on where to buy cryptocurrency
Crypto exchanges and cryptocurrencies like Bitcoin are on the rise as well as platforms like Coinbase and digital wallets are taking over the financial market.
Having your coins in a mobile or desktop wallet can be incredibly helpful, and not only for buying the newest most popular thing. You could start investing in it and make more and immerse yourself in this new technological world that will soon become part of our day-to-day life.
If you choose to buy cryptocurrency on Bitcoin or other brands, you first need to do your homework and learn about mining, crypto exchange, trading, credit, Coinbase, and all the other terms we mentioned above. The more prepared you are, the more advantage you will make out of the cryptocurrency market!
To continue learning about this subject check out this article: How many cryptocurrencies are there and which are the best ones?