More people are turning to cryptocurrency to earn, make purchases, and send payments because of the advantages these digital currencies offer compared to traditional forms of money.
Think of zero service or hidden fees, security, privacy, and transparency.
So, how to get started with crypto? Let’s discuss some of the popular uses of crypto and some solutions offered by CoinPayments.
Cryptocurrencies function similarly to other assets, such as stocks or properties.
As with traditional lenders, new lenders also offer crypto loans, meaning crypto owners can use their holdings as collateral to secure future loans.
Because crypto-backed loans let individuals borrow money using Bitcoin or other crypto assets as collateral, i.e., collateralized debt positions (CDPs), traders can obtain liquidity without needing to sell crypto holdings.
Regardless of being a novel asset class, cryptocurrencies are promising, especially when retaining value for HODLers.
Similar to how precious metals like gold have traditionally been a store of value, crypto can be an alternative way to store value outside fiat currencies like the U.S. Dollar (USD) or Japanese Yen (JPY).
In the early days of crypto, there was a lot of speculation whether it could become a viable currency. Many people were skeptical of the idea. Over time, however, using cryptocurrencies expanded beyond a niche group of tech-savvy individuals.
Cryptocurrencies are also used for trading, and they can be bought and sold on decentralized exchanges like Poloniex or Bitfinex for fiat currencies like USD or EUR. These trades are made by speculating whether the price will rise or fall based on supply and demand.
However, with over 21,000 cryptocurrencies in circulation (as of November 2022), today’s crypto buyers must contend with many options, making it nearly impossible to identify suitable projects to bet on.
To counteract the volatile conditions, CoinPayments debuted a couple of features to convert coins automatically:
Cryptocurrency has always been used to facilitate internet transactions since its inception.
With the surge of decentralized exchanges and digital wallet assets, crypto-related services are improving, thus providing real-world eCommerce solutions such as buying products or paying bills with crypto.
Following closely has been the surge in businesses accepting cryptocurrencies as payment methods. For instance, Shopify, eCommerce retailers like Newegg and Overstock, and online marketplaces like Etsy now accept cryptocurrencies.
Over $330 million was donated by philanthropic investors in 2021, and $30 million in crypto was donated to Ukraine, indicating how popular cryptocurrency has become for charitable donations. Some organizations accepting crypto include the Electronic Frontier Foundation and the Wikimedia Foundation, which both accept donations in Bitcoin or other cryptocurrencies to support their work.
Through a crypto payment gateway such as CoinPayments, consumers can use their wallets to pay for the merchandise.
Freelancers are included, too. With an integration similar to PayPal’s Mass Pay system, employers can quickly and affordably send mass payments to several addresses simultaneously — which is ideal for distributing commissions or paying invoices.
Crypto is characterized by a fragmented nature that has historically limited real-world usage. A wide variety of market options means users must choose between various cryptocurrencies.
For example, without currency conversion, a customer who only has Dogecoin and wants to make an eCommerce purchase, for example, could not complete their transaction if the merchant does not accept Dogecoin. CoinPayments however enables businesses to accept over 120 coins.
These problems have spurred efforts to develop tools that simplify the process and help people understand cryptocurrencies more efficiently.
By providing an intuitive and accessible interface that facilitates crypto payments, our tools will help make crypto more accessible for consumers and accelerate its adoption by businesses.
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