Popular Cryptocurrencies and Their Use: What Can You Do with Crypto?

You can unlikely find at least one person in modern society who has never heard of cryptocurrencies. But not everyone, even those who are already trying to enter this field, knows what it is and how they work. Let's get this straight.

It is a digital currency that exists only on the Internet. It is not a classic currency on paper or in the form of coins. National governments or banking organizations are unrelated to this currency and cannot control it. All transactions are stored in a decentralized system called the blockchain.

Until a few years ago, people treated cryptocurrency as a high-tech toy only for technical specialists. But now, it is considered a real means of payment or investment. In many countries, it is already possible to purchase real estate, contribute to a business, or invest in other areas using this digital currency. The main reasons for its rapidly growing popularity are transparency, security, and speed, which distinguish it from traditional payment methods.

Now, we will look at where cryptocurrencies are used, which options are better to choose, and how to use them correctly. We will also see the security recommendations to get all the advantages of the currency.

Top 10 Practical Uses of Cryptocurrency

Even despite the stability and development of cryptocurrencies, there are those who say that this is «nonsense» and «divorce». But the reason is always the same — they just didn't understand how to use them, so they couldn't get the most out of their investments.

We have prepared for you practical applications of cryptocurrencies, which are not only simple but also effective in modern realities:

1. Online shopping

Online stores are adapting to modern conditions to attract more customers, so many of them have already introduced cryptocurrency as a payment method. In addition, many services are already introducing this method, such as changing their gift cards, which can already be exchanged for services. In particular, well-known brands such as Netflix or Google Play have already introduced this practice.

2. Sending money across borders

Many choose this method of sending funds from one country to another because of the speed of transactions and the ability to bypass intermediaries with huge fees. Many families already send money in this way, and freelancers are gradually switching to this method.

3. Trading and investing

This is already considered a classic investment method. Many cryptocurrencies can already be traded, such as conventional commodities or stocks. Many traditional investment methods are already fading into the background, and portfolio diversification is being filled with bitcoin or other options.

4. Betting and passive income

Another additional plus is the opportunity to earn interest by storing cryptocurrencies. To do this, you can use staking and participation in decentralized finance. It is comparable to the usual opening of a deposit in banks, although it is more convenient and simpler.

5. NFT and digital collections

Digital art no longer looks like something unreal and not worthy of attention. Thanks to NFT, you can invest not only in this area but also in-game items and even collectible tokens. The blockchain has a unique code for each item to make it convenient and safe.

6. Games and the Metaverse

Many game developers have already accepted cryptocurrency to pay for services or products inside the game. Cryptocurrencies are not just virtual; they are equivalent to the real price on the market.

7. Charity

Every dollar is in the account for charities so that they can enter any payment method. Realizing that cryptocurrency is already valued in a real market, they accept such payment methods. Plus, there are no fees, and the speed is high. Even with such a currency, it is possible to ensure transparency of all transactions.

8. Private transactions

One of cryptocurrencies' advantages is that transactions can be carried out anonymously. If you need these types of operations, you should choose options already designed for private use. Data about participants and the amount can be protected.

9. Payments to freelancers

More and more freelancers and remote specialists are turning to cryptocurrency as a payment method to avoid high fees and delays. The ability to buy and sell crypto easily makes it a practical choice for those who work independently and value speed and flexibility in managing their finances

10. Travel and impressions

Major tour operators have also started accepting payments in the form of cryptocurrencies for trips, flights, and events. If access to banking services is restricted, this becomes not only convenient but also almost the only option.

Most Popular Cryptocurrencies and What They're Used For

Despite the wide range of uses, not all cryptocurrencies suit all areas. Each option is better according to specific criteria, so they should be used in a specific direction. Among the leading cryptocurrencies, it is worth paying attention to:

Bitcoin (BTC)

It is one of the top digital currencies. Thanks to its popularity, it is now used only for large payments or as a reliable way to save money. Reliability and popularity are the main advantages, guaranteeing a wide range of usage.

Ethereum (ETH)

This option is considered the basis for technologies such as DeFi, NFT, and smart contracts. It provides versatility for a huge number of projects, and more than a thousand of them are now available.

Tether (USDT), USD Coin (USDC)

These options are pegged to the dollar, so they are used to make transfers from different countries for trading. An additional feature is protection against volatility.

Binance Coin (BNB)

This is a narrower option, but the primary uses are considered to be in the Binance ecosystem: for paying commissions, participating in token sales, and games.

Solana (SOL) and XRP

Low cost and speed make them attractive in Web3 and fintech projects.

Pros and Considerations

Such a wide-ranging method of application is not for nothing because it has many advantages, and it is worth noting the main ones:

• Speed. Operations are carried out in just a few minutes; in some cases, only a few seconds are enough. There are no delays when funds are urgently needed.
• Availability. The project is available to everyone, as the bank does not have such strict checks before opening an account.
• Globality. Currencies work on the territory of all countries, and transactions can be carried out without problems from one country to another.
• Transparency and decentralization. There are no fakes because the whole system works transparently and securely.

But since the system has been in existence relatively recently, there are still several disadvantages to be identified:

• Volatility. There is not always stability in the market, and the exchange rate may change for many reasons.
• Legal status. This method is not legal in all countries yet.
• Safety. If you choose an untested option, you can lose everything at once.

This is no longer just a trend that attracts many, but no one knows how to use them. Cryptocurrency is already a real currency that can be used for purchase, investment, and transfer. All the advantages only contribute to development, speed, and safety, making cryptocurrency applications even wider yearly.