It’s been a decade since cryptocurrency exists in our world. But in recent times only, it has gained a lot of popularity. Also, as the main purpose of cryptocurrency is to provide us an alternative payment method, there are users who are looking to use crypto coins in their daily lives.
So the question is, how to use cryptocurrency to pay for everyday things? Well, there are a couple of ways for you to spend your coins.
And I will be talking about them in brief. So here we go and see How to Use Cryptocurrency to Pay:
Why should you Pay using Cryptocurrency?
One of the best parts of cryptocurrency is that it comes under a decentralized network. Unlike the real-world currency, it is not controlled by the bank or government. As a result, if a government brings any negative policies, it will not really devaluate the value a crypto coin has.
Also, decentralization helps in establishing a trusted network. Since every transaction is recorded on an open-source ledger. So it is pretty easy to tell when fraud is taking place. Moreover, thanks to decentralization, crypto transactions happen pretty quickly compared to banks.
2. Globally Accepted
Another cool feature of cryptocurrency is that it is globally acceptable. As you already know that cryptocurrency is not controlled by any bank or government.
As a result, a single currency can be used worldwide. So you don’t have to pay any conversation or forex fee to convert one currency to another.
All you need is a payment address, and you are good to go. This surely makes purchasing goods overseas easy.
Also, if you are planning to send money to someone living in a different country, then you can use cryptocurrency. Because crypto transactions are faster than bank transactions. Plus, it is pretty cheap compared to what banks charge you.
3. Minimal Transaction Fees
Another strong reason on how to use Cryptocurrency is that it has minimal transaction fees. Cryptocurrency has two types of charges – maker and taker fees. Also, some exchanges might charge you deposit or withdrawal fees.
But apart from that, you don’t have to pay any other fees. But if you compare the same with banks, then you have to pay minimum balance fees, overdraft charges, and so on.
4. Earn Interest
You can also use crypto to earn interest. There are many crypto savings platform available out there but the most trustable once are YouHodler and Celsius Network. These platforms offer you interest on crypto holdings deposited with them.
These platforms offer loans to individuals by lending your coins. As a result, your cryptocurrency can earn up to 7.5% APY or more. Of course, it completely depends on how many returns the platform is offering you.
Why you shouldn’t Pay using Cryptocurrency?
1. Price Always Fluctuating
One of the major cons of cryptocurrency is that the price is always fluctuating. Since it is not controlled by anyone, hence the crypto market is extremely volatile.
Cryptocurrencies like Bitcoin can gain or lose their value within minutes only. And this is what makes cryptocurrency a risky thing. But yes it also brings a lot of profits. Both are risk and rewards of dealing in cryptocurrencies on day to day basis.
However, in certain cases, cryptocurrency creates a lot of confusion. For instance, when it comes to refunding a product. Also, as bitcoin prices are changing so frequently, the value of your assets may go to the bottom pretty quickly, leading you to financial loss.
2. Not clarity about Taxes in many countries
We cannot deny the fact the world is yet to be open about crypto. Even many countries don’t have any laws related to cryptocurrency. So you don’t really know how much tax you have to pay or how it will affect your finances.
How Should You Pay using Cryptocurrency?
1. Buy Cryptocurrency
One of the first steps is to buy cryptocurrency. When it comes to paying via crypto, BTC is one of the widely accepted coins. But yes, you can also buy other coins like LTC, ETH, XRP, and others.
You can easily buy cryptocurrencies using your credit or debit card. Just make sure to find a trusted crypto exchange with low withdrawal fees.
2. Setup a Crypto Wallet
The next step is to set up a crypto wallet. Crypto wallet will allow you to store your crypto and help you to spend it as you like.
There are many types of crypto wallets available. However, I would recommend you to use a mobile crypto wallet. As it will be more convenient for you to pay for your everyday things.
3. Look For Merchants That Accepts Cryptocurrency
Finally, you will need to start looking for merchants who accept cryptocurrency and choose any accepted coins to pay for your purchases.
So that was a quick guide for how to use cryptocurrency to pay for everyday things. I hope this has helped you with your query. In case of any specific questions, feel free to drop a comment below.