For many people, cryptocurrency is considered a high risk investment tool. However, not many people know that cryptocurrencies have a wide variety of powerful use-cases. In this article, we will discuss what you can do using your crypto assets.
Cryptocurrency as an investment tool is a very popular use among crypto users. Some crypto users believe that the value of cryptocurrencies (such as Bitcoin) will continue to grow. Many people buy crypto as a long-term investment that can be used in the future.
For example, Bitcoin, which was created in 2009, initially had no value and began to show value in 2010. At that time, the value of one Bitcoin was only USD $ 0.0008 to $ 0.08. However, in the span of 10 years, interest in Bitcoin has surged dramatically, pushing its price 250,000x higher to USD $19,200 per Bitcoin (as of 4 December 2020).
Because of the high potential returns, many investors have started to buy Bitcoin or other crypto assets and use it as a long-term investment tool. Many investors also believe that Bitcoin is a “digital gold” that can protect one’s wealth from monetary inflation caused by global money printing.
The term trading includes all activities that involve buying, selling, and exchanging crypto assets. Buying/selling crypto has become a popular activity for users because they can take advantage of the volatility and make profits. Volatile prices are also an attraction for users to actively trade. Although the price volatility of cryptocurrencies may seem intimidating, it is actually a desired feature for active traders. With high volatility, a trader can repeatedly buy an asset at low price and sell it at high price to make profit.
The price of crypto assets at Pintu always follows the global market price 24/7. You can trade your crypto actively, where you buy crypto at a low price and sell it at a high price. For example, many traders like to buy and sell positions in a matter of days, hours, or even minutes.
Another popular use-case of cryptocurrencies is to transact (send/receive) them internationally.
The speed and transaction costs of sending money via cryptocurrencies are usually much faster and cheaper compared to sending cross-border money via a traditional banking system. Using cryptocurrencies, transfers can be done in real-time over the blockchain network without relying on a third party (such as a bank). The cryptocurrency you send will immediately arrive at the destination wallet in minutes or even seconds.
For example, if you send money via a traditional bank, it usually takes you 3 days to send money to your friend in America with $20 of transaction fees. Meanwhile, to send crypto to your friends who are in America, it only takes a few minutes and costs less than $5.
Apart from using crypto as an investment tool, crypto can also be used for donations. Many global projects accept donations in crypto. You can donate your crypto to help these projects run and achieve their goals.
For example, the Human Rights Foundation accepts donations in the form of BTC or ETH to fund their activities (https://hrf.org/donate-bitcoin/). Large institutions like UNICEF also accept donations using BTC, ETH, BCH, LTC, USDC [https://www.unicef.org.nz/donate-in-crypto](https://www.unicef.org.nz/ donate-in-crypto).