The use of cryptocurrencies has exploded in recent years, but you might not have heard of some of the most interesting uses for these tokens. The following are some popular ways to make the most of the possibilities offered to us by digital money.
To Earn Interest
The idea of earning interest using cryptocurrencies has gone mainstream recently, but the industry has run into problems too. In general terms, the idea is that you lend your tokens to a crypto lending site and they pay you interest on it, which they can do because they in turn lend the tokens to others.
This sounds great and the biggest sites were recently offering extremely high interest rates of 10% or more. However, the collapse in 2022 of Luna UST followed by Celsius and Voyager Digital made investors wary of crypto lending. Staking crypto within a network provides an alternative that should be safer, but it tends to provide lower returns.
To Fund an Online Casino Account
Playing online casino games has become a hugely popular hobby, with the likes of roulette, blackjack, and slots all among the most sought-after games. Moving money to the casino account has traditionally been done using the likes of electronic wallets like PayPal or bank cards such as Visa and MasterCard.
The arrival of cryptocurrencies has provided a new way of doing this, as crypto casinos accept the likes of Bitcoin, Litecoin, and Tether as a fast, secure method of funding a player account. A short, simple process for moving money from the crypto wallet to the casino accounts means that you can send money almost instantly and be ready to bet in next to no time, with the only cost relating to any network fee involved.
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To Diversify an Investment Portfolio
The idea of cryptocurrencies as a type of investment has captivated millions of people, but the fear of price volatility has stopped some of them from going ahead. Yet, this type of investment is perhaps best viewed as a way of diversifying a more traditional portfolio, rather than being a stand-alone type of investment.
For a long time, it was thought that Bitcoin was a store of value that was negatively correlated to the stock market in the way that gold is often viewed. Recent price swings have suggested that it’s more closely linked to stocks than this, but it still has some unique factors that affect the price, such as the latest news on regulations or declarations by the crypto whales who own a large number of tokens.
All of this means that Bitcoin and other forms of digital money can help an investor to obtain a more diverse set of assets that don’t all move in exactly the same way. This can be a benefit for anyone with a large portfolio and who wants to protect themselves from being overly affected by sharp drops in any single market.
All of these uses for cryptocurrencies have added to the appeal of digital money for different types of people. As these tokens become more established, we can expect even more interesting uses for them to emerge.
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