Every time people visit an online store or shop downtown, the most preferred methods of payment are credit cards and cash. Now, we have another option that you should consider: cryptocurrencies. You have probably heard about cryptos, and comparing them to credit cards, direct bank transfers, or cash payments will reveal so many surprises.
Cryptos are digital currencies that are designed to only reside in their native blockchain systems. Unlike fiat money that we are used to, cryptos are not printed or minted. The blockchain and cryptography technologies behind cryptos have proved so effective, and they are now helping define the future of finance. For example, people can access loans by simply putting forward their cryptos without getting subjected to comprehensive background checks. The finance sector is changing, and you should not be left behind. So, what exactly can you do with cryptocurrencies and blockchain?
Sending Value Directly through Blockchain Networks
If you want to send money abroad today, the most common method is a bank transfer. Banks review your information plus the details of the recipient before approving the transfer. The main challenge of this system is that the operation is expensive, takes long, and details are not confidential. You can knock all of these challenges down by using cryptocurrencies.
With cryptos, there is no one to get in between you and the recipient. The transaction is peer-to-peer, which means that your recipient gets the funds instantly. In most blockchain networks, the transfer only takes seconds. See, you are able to send funds from Singapore to London, Warsaw, Cairo, New York, or Los Angeles, among other areas on the globe, in seconds. Here are other benefits of using cryptos to send value:
- Transactions are confidential.
- The cost of sending value is low.
- Using cryptos means you are supporting blockchain technology.
Making Passive Income
Do you want to make some passive income? Cryptos provide an excellent method for you. Indeed, there are several methods that you can use. The most common is staking. This means that you commit your coins to help validate transactions in the selected blockchain network. In return, you are rewarded with a portion of the fee that people pay to run transactions. Unlike stocks or properties, you do not have to sell your coins when staking cryptos. At the end of the staking period, the coins are returned to your crypto wallet. You might also want to consider holding and yield farming.
Today, more businesses are embracing cryptocurrencies. This means that in addition to credit cards, debit cards, and cash, cryptocurrencies are likely also to be accepted for payment. By the end of 2020, there were more than 15,000 businesses across the globe accepting cryptocurrencies for payments. Instead of paying with cash, why not do it with cryptos? The transactions are faster, cheaper, and more convenient.
If you want to apply for a loan from a bank, one of the requirements is collateral. This can be a car, house, or other accepted assets. Now, decentralized finance (DeFi) platforms have added cryptos to that list. So, instead of committing the family car, why not use Bitcoins (BTC) or Ethereum (ETH)? Taking crypto loans comes with the following benefits:
- No background checks are done.
- The loan is processed fast.
- There are no administrative boundaries.
- There is no need for legal experts to draft and secure the agreement.
These are only a few ways of using your cryptos. Others include buying non-fungible tokens, gaming, and paying taxes. Cryptos can also be awesome gifts to your loved ones. Remember that the crypto niche can be pretty risky, and it is advisable to work with professionals. hi.com is your one-stop point for buying, selling, and earning from your cryptos. They have the right professionals that you can rely on to make the right crypto-related decision.