Cryptocurrency: What are You Meant to Do With it?

Over the last few years, the use and popularity of cryptocurrency have continued to increase steadily. However, despite the rising popularity, a lot of people are still at a loss as to what you are meant to do with the cryptocurrency once you have it. Truthfully, your options are somewhat limited, although strides are being made to diversify what you can use the cryptocurrency for. Let’s take a look at your options. 

Retail Uses

This is perhaps the most limited use of cryptocurrency. There are a few cryptocurrencies, like bitcoin, which are recognised as a form of payment by a limited number of retailers. In the next few years, the number of retail establishments that accept cryptocurrency is likely to steadily, if slowly, increase. 

Investments

Investing in cryptocurrency is an incredibly popular option for a lot of people; arguably, this and trading are the two most common routes that people take. Investing, as a concept, is inherent with risk, but for the most part, cryptocurrencies do tend to hold their value well. It is all about waiting for the right time to get the highest returns. In order to invest, you need to have a secure digital wallet; Paxful has the details on the best Bitcoin wallet in 2022, so check them out. They also provide a reputable marketplace to allow you to trade, as an added bonus.

Trading

As mentioned above, trading – alongside investing – is one of the most popular uses of cryptocurrency. Trading and investing are similar to an extent, but investors tend to sit on their investment for a lot longer than traders do. Traders, on the other hand, tend to trade more regularly to earn smaller profits and reinvest their initial stake. 

Mining

There are several forms of cryptocurrency that need to be mined in order to be freed from the data blocks. Miners need to use software and algorithms in order to free the coins. Purchasing the software can be expensive; however, miners are rewarded with coins. This can help you to make back your initial stake in the mining software, and then anything above that is pure profit. 

Stakes & Dividends

These are lesser known than other options. Firstly, you can stake your cryptocurrency, which is somewhat similar to putting your money into a high-interest bank account. The platform that you use to do this is important because they dictate the incentives, rewards, and interest that you can accrue, so be sure to do your research beforehand. Dividends are more so for those that have more coins. Again, as with stakes, research is key. For the most part, cryptocurrency dividends tend to provide you with more coins rather than anything else. 

In Summary

As a beginner, cryptocurrency can seem a little confusing, especially when you are trying to work out what to do with the cryptocurrency once you have it. Luckily, there are a number of options out there, perhaps even more than you would assume at first glance. When it comes to making the right choice for you, it will largely depend on your individual circumstances, like your knowledge of cryptocurrency, how many coins you have, and how much time you have to dedicate to your new hobby too.