Reposted from our blog here.
If you are just getting started in the crypto space, here’s something worth knowing: Investing in Bitcoin isn’t the only way to use your crypto assets.
Though investing in it is one of the most common methods of utilizing Bitcoin and other cryptocurrencies, there are numerous other options worth exploring. This includes using your crypto to earn more and maximizing its potential to more practical use cases such as using Bitcoin as a form of payment. Ahead, we discuss some of the common ways you can use your Bitcoin.
Earn Interest on it
Though we are all aware that investing in cryptocurrency is a form of investment, there are other ways you can earn with your crypto. One such method - that even beginners can do - is to deposit your crypto assets into interest-earning accounts. There are many platforms that offer this service for investors, and most of them come equipped with other features to help you maximize the productivity of your crypto assets.
One such platform is Hodlnaut, which offers high-interest rates of up to 12.73% APY on stablecoins like USDC and 7.46% APY on Bitcoin and Ether. The plus side to this? The interest rates are calculated daily and paid out weekly! The platform also has features such as the Preferred Interest Payout and Token Swap to allow users to earn and receive in the currency of their choice.
Flexibility and control over your crypto assets? Checked.
Furthermore, these platforms are likely to offer compounded interest. This would mean that you will earn interest calculated based on a larger sum than the initial deposit.
This is one of the prime methods to earn consistent returns even during market fluctuations. The best part? You don’t even need to actively manage it. Deposit your funds, and you’re good to go.
Make Payments With it
Similar to fiat currency, you can use your crypto assets to make day-to-day payments. And with the increase in the adoption of crypto activity by major financial institutions such as PayPal, paying with cryptocurrency has become more inclusive.
Earlier this year in March, PayPal announced that it would allow US consumers to use their cryptocurrency to pay at several of its online merchants internationally. This would enable customers who hold virtual currencies in PayPal digital wallets to use their assets at checkout to make purchases. And that’s not all - Visa also revealed that it will allow the use of USDC to settle transactions on its payment network.
On top of that, there are many merchants and providers that accept payment in Bitcoin too. Xbox allows its customers to use Bitcoin to pay for games, add-ons, and Xbox Live subscriptions. Expedia, one of the world’s largest online travel booking agencies, currently accepts BTC for hotel bookings and is planning to introduce it as a payment option for flights, activities, and more. Plus, Subway, Burger King, and Whole Foods accept Bitcoin payments in selected locations around the world.
While paying in cryptocurrency is not yet widely adopted, there are already numerous merchants that accept payments with cryptocurrencies. And with increasing news of commercial giants looking to implement crypto activity into their business models, payments in cryptocurrencies are expected to grow.
Engage in Staking
To explain what crypto staking is, here’s a simple analogy.
Bob bought 10 bricks from a seller with his own money. As he left the store, he notices many individuals placing their bricks around a damaged house to improve the house’s stability and security. As a good citizen, Bob decided to join in. However, with the monsoon season in full swing, there is a chance that the bricks might get damaged and the house may collapse. In exchange for the risk he took, the housing committee has decided to offer free bricks to individuals who have helped with ensuring the house’s safety.
Crypto staking adopts a similar concept where individuals who partake in it will lend out their coins to a blockchain network known as a Proof-of-Stake (PoS) network. A PoS network keeps the blockchain secure in order to prevent external attacks and thus, maintains the integrity of cryptocurrencies.
The coins will then be “locked up” and used to validate transactions to ensure that operations can continue to run smoothly on the network. Since crypto staking would require individuals to lend out their coins to the network, they will then be rewarded by it.
Staking does not require tons of effort and is relatively simple to do. To start, you can sign up for a platform that offers staking services. Next, you can lock your crypto assets in the wallet available on the platform. The PoS network will then utilize your cryptocurrencies to validate transactions.
Though we have only discussed three common methods of using your Bitcoin, there are a number of other ways to utilize it. However, be sure to do your own research (DYOR) before exploring other methods to use your Bitcoin and other crypto-assets - you won’t want to regret it later on.
And if you’re looking to maximize the productivity of your crypto assets by earning interest on them, be sure to sign up for a free Hodlnaut account to start earning up to 12.73% APY! Drop us an email at firstname.lastname@example.org if you have any questions.