Cryptocurrency is changing how we work, shop, and embrace other opportunities in everyday life. It's transforming financial systems and changing our minds. Various nations and countries have different crypto adoption rates. Considering the current market stats, we'll notice that the UAE is the absolute leader, with 30.4% of the population using cryptocurrency. This is followed by the 21.2% adoption rate in Vietnam and 15.6% in the USA. The numbers impress. But how do you use cryptocurrency in your everyday life? Let's explore the benefits and uses of cryptocurrency. 

What are the 4 types of cryptocurrency?

There are over 23,000 cryptocurrencies available on the web today. Each one has its own history and use cases. However, despite the wide choice of digital assets, they all belong to the four major groups. What are the 4 types of cryptocurrency? Let's review. 

Payment cryptos

This is the first and major group of digital assets to which Bitcoin belongs. As the name of this type of cryptos implies, payment assets are intended to be used to facilitate peer-to-peer transactions. Besides Bitcoin, payment cryptos include Litecoin, Monero, Dogecoin, and Bitcoin Cash.

Utility tokens

This type of cryptocurrency includes any asset running on top of another blockchain. Ethereum was the first to adopt the concept of allowing other cryptos to be launched on its basis. Such crypto coins also allow for smart contracts and dApps. You can use them for governance purposes to give users voting rights. 

Unlike payment cryptos, utility tokens are not capped. They are inflationary, meaning their price falls when more tokens are issued. This procedure is similar to the fiat currency price in a country that constantly runs its cash printing press. 

Stablecoins

Unlike other types of cryptos, stablecoins are the least volatile assets since their price is pegged to the dollar or euro. The most popular example of stablecoins is USDT, the third largest crypto by market capitalisation. Stablecoins are often used to store funds either for the short or long term. These are the top choices for investors who don't want to risk losing their funds because of the market's volatility.

Central Bank Digital Currencies (CBDCs)

Central banks of different countries issue this cryptocurrency based on blockchain technology. The purpose of issuing such assets is to increase payment efficiency and lower costs. The price of such tokens is pegged to the domestic currency of the issuing country. The use of CBDCs and the implementation of this type of cryptocurrency into financial systems are still in the early stages. Unlike other types of cryptos, CBDCs are centralised and controlled by governments. 

Benefits of using cryptocurrency in everyday life

Before discussing the most common uses of cryptocurrency in everyday life, let's focus on its main benefits. 

Thus, the main benefits of using cryptocurrency include: 

• Security and privacy are among the top reasons why millions worldwide switch to digital currency rather than fiat money. Your activities and transactions are not disclosed, no matter how often you use crypto for payments and how many tokens you send per transaction. Besides, crypto transactions protect you from identity theft.
• Another benefit of using cryptocurrency is the possibility of sending money globally. You can make purchases and send money worldwide 24/7 without any restrictions. 
• Crypto assets are decentralised, meaning all transactions are made without relying on third parties. This is a significant advantage, especially in the countries with unstable political situations.
• Cost-effective transaction fees are another reason for the many uses of cryptocurrency in everyday life. International transactions can be costly.

Along with the numerous benefits of using cryptocurrency, there are certain drawbacks you should be aware of. 

• Volatility. The cryptocurrency price fluctuates significantly, and you can only guess when it will rise or fall. Because of the asset's volatility, you should be ready to lose a specific amount when using payment cryptos and utility tokens. To lessen the risk, use stablecoins.
• Using cryptocurrency involves a certain degree of learning curve. You may need some technical knowledge to navigate crypto assets. 
• Despite the increasing number of crypto uses, stores that accept payments in digital assets may still be limited in their acceptance. 
• Investing in crypto and storing money in digital assets is always risky. You may fall victim to hacker attacks unless you use a cold wallet. Besides, you may lose your wallet's private key and need access to your holdings. 
• Although we've already listed low transaction fees as one of the benefits of using cryptocurrency, you should also be aware that fees can grow high when demand is strong. 

Register Now
 

How do you use cryptocurrency daily?

There are dozens of uses of cryptocurrency in everyday life. This article discusses the most common uses of crypto, providing you with practical use cases of using digital assets for your daily needs. For your convenience, we've divided all uses for cryptocurrency into four major groups. Check them out. 

Making purchases

We are lucky to live in an age when digital assets can be used similarly to fiat money. Whether shopping in-store or online, you can use cryptocurrency to pay for your order. The only thing you should confirm is whether the merchant accepts crypto payments. 

Today, finding a company that accepts crypto payments in different industries is no longer an issue. Many companies accept Bitcoin payments for airline tickets, travel booking, hosting services, tech gear, luxury cars, etc. Online retailers like Overstock and Newegg also accept cryptocurrency. What's more, you may pay your restaurant bill with crypto! Restaurants like Subway and KFC Canada have already accepted crypto. 

Paying bills and taxes

Moving to another block of uses for cryptocurrency, it's worth pointing out that some cities and countries have started accepting tax payments in cryptocurrency. Most of them have received payments in Bitcoin and Ethereum. The city of Zug in Switzerland is one of the most vivid examples of crypto tax payments that have needed to be accepted since 2016. 

• In 2021, the Canton of Zug started allowing tax payments in Bitcoin or Ether.
• Lugano launched the "Plan ₿" to encourage crypto acceptance. Taxes and municipal services are payable in Bitcoin, Tether, and LVGA stablecoin.

Start Trading
 

Sending money abroad

Whether sending money to relatives or business partners, cryptocurrency allows you to store and transfer funds, bypassing governmental restrictions. This is one of the most common uses of cryptocurrency for people in different countries worldwide. 

If you want to send money abroad and do not want the bank control involved, opt for a crypto transfer. By sending cryptocurrency abroad, you may rest assured none of your transactions will be stopped or blocked because of the amount you transfer. Such transactions are not subject to restrictions from international payment systems. 

The same rule applies to receiving money in crypto. Regardless of the purpose of receiving digital assets in your wallet, it's become effortless. Besides, you do not need to wait hours or days until the money is funded. Transfers occur instantly, and you can start converting and withdrawing them immediately. 

There are plenty of other uses of cryptocurrency for international transfers. For example, some companies pay salaries in crypto, and charity and non-profit organisations also accept donations in cryptocurrency. Organisations like Ultimate Fighting Championship (UFC) send bonuses to crypto fighters. 

Investing and trading

It's one of the most expected and generally adopted uses of cryptocurrency in everyday life. Most of us have got used to using digital assets for trading, staking, and mining rather than paying salaries or making integrational transfers. 

The investing and trading uses for cryptocurrency are diverse, including the following:

• Buying and holding cryptocurrencies as an investment, especially limited-issue coins like Bitcoin. Such assets have a big potential to increase in value over time. Buying such assets in fiat money and holding them for a short term while waiting for the price to rise is a wise use case. 
• Short-term trading of volatile cryptocurrencies to try to profit from price movements;
• Lending out crypto holdings to earn interest on platforms offering crypto deposits. You can place your assets on the lending platform or freeze your funds. This way, you can receive passive income in crypto. 
• Using crypto as a collateral asset is a go-for choice for investors who have funded fiat money in digital currency and do not want to spend it. 
• Crypto trading is another popular use case for cryptocurrency. To describe it simply, it works by buying cheaper and selling expensive. This is one of the most popular ways to make money with crypto due to the high volatility of most assets in the market. 
• Asset tokenisation is the last but not least remarkable use for cryptocurrency in everyday life. It involves turning physical and virtual goods into tokens. Asset tokenisation makes transactions with the asset more transparent and simplifies buying and selling goods.

Final words

Wrapping it up, cryptocurrency has multiple uses in everyday life, from paying for orders to sending salaries and making instant transfers internationally. How do you use cryptocurrency in everyday life? It's up to you to decide what benefits of using cryptocurrency appeal to you the most. Get inspired by the use cases listed above and discover your unique approaches to using crypto. 

Register Now