Cryptocurrencies not only save time and allow confidence in transactions but also reduce transaction costs. They give individuals full control over their assets.
Cryptocurrencies are created to serve different purposes, so they have different uses.
1 – Cryptocurrency: a means of payment
Cryptocurrency can be used to pay.
Cryptocurrency can be used as a payment system for goods or services especially online, without the intermediary of a financial institution. It is therefore possible to pay for purchases as long as the seller accepts this method of payment. More and more businesses are accepting this method of payment.
Cryptocurrency allows for secure and transparent transactions.
For example, it is possible to support charities and humanitarian causes such as the Red Cross, UNICEF and Greenpeace that accept cryptocurrencies. Some countries accept bill payments in cryptocurrencies.
2 – Cryptocurrency: a means to invest
Cryptocurrency can be used for investments.
The purpose of cryptocurrency is to invest in the virtual financial market without intermediary.
It can therefore be used as a share, a bond or even as collateral for loans.
It is also possible to buy NFTs, i.e. a non-fungible token, in order to invest in collectibles.
3 – Cryptocurrency: a means to speculate
Cryptocurrency can be used for speculation.
The volatility of the price of cryptocurrencies makes it possible to make gains. Thus, speculating on the prices of cryptocurrencies is a way to make capital gains.