Cryptocurrencies have grown exponentially in recent years. People now see it as an alternative money that can be used in place of the traditional fiat money. Why are people so excited about cryptos? Well, cryptos are decentralized, electric, and anonymous. There is no central governance of this digital currency. With cryptos, you can access your money anytime and any day you want.
Cryptocurrencies have so many uses – some of these uses are:
1. Low-cost money transfers
Sending and receiving payments is one of the most known uses of cryptos. You can transfer and receive payments at a high speed and low cost using cryptocurrencies. Transfer of millions of dollars in cryptos will take only a few minutes and a little transaction fee. This transaction fee may be insignificant when you consider the amount of money that was sent. Sending the same amount of money through a financial intermediary would take a higher transaction fee and several days or even longer if the transaction is a cross-border transaction.
Digital currencies such as Bitcoin Cash (BCH), Stellar (XLM), and Litecoin (LTC), are excellent payment systems for transferring money internationally due to the low fees associated when they are used for transactions.
2. Wealth management
Cryptos can be used in managing wealth. You are in full control of your wealth and can manage it like you want. When you store a crypto like Bitcoin in a wallet, it can never be frozen by authorities; this is because a private key will be required for any access to the wallet and only the owner of the Bitcoin has the private key that gives access to the wallet.
3. Send non-cash remittances
Non-cash remittances are another powerful use of crypto. Platforms like SureRemit allow their users to send non-cash remittances from anywhere in the world. Users do this by purchasing tokens that can be used in the SureRemit app to send the non-cash remittances. Some of these non-cash remittances that can be done within the app include utility bill payment, mobile data top-ups, etc.
4. Make private transactions
Some privacy-centric digital currencies like Zcash (ZEC) and Monero (XMR) allow users to anonymously make financial transactions. This implies that users can transfer a large sum of money without having to explain anything to a bank or any centralized body. You are in complete control of your crypto transactions as you won’t have to explain to anyone the source of your fund and who you are sending it to. Without these bureaucratic processes, the financial transaction is made easier and faster.
Cryptos are being used by many startups to fund their ideas, products, and services. Instead of using fund-raising websites or traditional VC funding, most startup leaders now look to cryptos as a way of raising money for what they need. Cryptos are revolutionizing the way funds are raised as they make it easy to obtain and track money.
More retailers are now accepting crypto as a means of carrying out transactions. One such category is travel transactions. Some travel agencies now accept crypto such as Bitcoin as a form of payment for flight tickets, car rentals, cruises, and hotel bookings.
Cryptocurrencies are becoming increasingly popular by the day. They are changing every aspect of our lives. They are useful not just for trading and investing but in so many other ways. We’ve considered some of the uses of cryptos in this guide; however, you need to know that there are other uses. As cryptos continue to gain popularity in our daily lives and the business world, we are going to see more uses of them.