People frequently consider cryptocurrency to be nothing more than a vehicle for financial investments. Because of Bitcoin’s sustained price appreciation over the past few years, a great number of investors have become millionaires in a relatively short period of time. It’s easy to lose sight of the fact that the utility of cryptocurrencies is growing with each passing year.
Let’s go into some ways you can use different cryptocurrencies as a utility vehicle and a way to generate a side income.
1. Low-Cost Money Transfers
One of the most well-known ways to use cryptocurrency is to overcome the high charges levied by banks and other financial institutions.
In one instance, someone transferred $99m in Litecoin for just $0.40. The whole process took just 2.5 minutes to complete.
Low fees have meant cryptocurrencies such as Bitcoin Cash and Stellar have become excellent payment options for cross-border transfers.
2. Online Gambling
Most people think that cryptocurrency and online gambling are only partnered because some casinos have come to accept cryptocurrency as a deposit option. This was how it started, but blockchain casinos have come to the fore in recent years.
Using a combination of smart contracts and blockchain technology, these casinos are housed entirely within the blockchain and allow cryptocurrency holders to play their favorite games.
While a concept in its infancy, many crypto casinos in 2022 have grown in popularity, with further growth expected.
3. Pay for Goods and Services
The point of cryptocurrency was to increase anonymity by creating an alternative to the centralized financial systems of the world. It was hoped that people would be able to pay for everyday goods and services in cryptocurrency one day. With total anonymity across the blockchain, it provides a safe and secure way of operating free of government censorship.
Businesses have increasingly offered cryptocurrency payment options, including Bitcoin and Ethereum. While these options remain relatively few in number, companies such as Home Depot and Microsoft have made Bitcoin payments available.
Digital projects have also become prominent, with gaming and investment-related projects like NFTs coming to the fore. It’s not uncommon to see people promoting NFT projects in 2022.
4. Yield Farming
Cryptocurrency trading has long been a popular way of earning money, but it requires time, skill, and experience. Instead of making high-risk plays via trading, you can hold your coins for long-term gain.
Yield farming in the form of crypto staking and DeFi lending allows you to generate a regular income through interest rates in much the same way as a traditional bank. The difference is that banks are offering all-time low-interest rates, whereas you could undoubtedly earn up to 12% per annum with cryptocurrencies such as Tether.
5. Protect Your Wealth
People who live in developing countries may worry about storing their wealth within a traditional bank account. Censorship from authorities and highly volatile economies all threaten your wealth.
Cryptocurrency anonymity provides you with permanent cash access if the worst happens. Cryptocurrencies such as Bitcoin can be held within wallets with your private key. No government has ever managed to freeze a crypto wallet successfully.
6. Startup Investments
Early-stage tech startups have increasingly offered shares in their companies via Initial Coin Offerings (ICOs). They work in the same vein as an IPO and form a key fundraising option for startups looking for project backers.
ICOs have experienced ebbs and flows in their popularity, with $6.88bn raised in Q1 of 2018 alone.
The rise of ICOs has enabled ordinary people to invest in companies during the earliest stages of their journeys. Previously, this was an option available exclusively to experienced venture capitalists. Although undoubtedly a risky venture with a high chance of failure, it’s an option if you’re looking to diversify your portfolio.
7. Paid Content Posting
Steemit is the world’s first incentivized platform, encouraging creators to publish high-quality content in exchange for cryptocurrency.
Upvoting high-quality content allows those creators to get rewarded. Steemit is there to reward creators and encourage a higher standard of online content.
Steemit has become especially popular within emerging markets, with the platform experiencing tremendous growth in the last few years.
Conclusion
Cryptocurrency has increasingly diversified over the years regarding how it can be used and the number of available currencies. Far and away, its primary use is as an investment, but coin developers are working to find other uses.
If you already hold cryptocurrency, you can do much more than keep it in a digital wallet. How do you use your cryptocurrency?
