Cryptocurrencies have revolutionized the way people conduct financial services around the world. It has become a value digitally represented without the intervention of any governmental or other authorities. They can be electronically stored, transferred, and traded. Along with decentralization, cryptocurrencies have also made distributed ledgers and cryptography more popular.
The crypto market has been undergoing fast-paced growth in the past few years. More than 20000 cryptocurrencies are available today. A lot of them have found their use cases in different parts of the world. Here are some of the most important ones.
- Decentralized Virtual Currency
The most important use case cryptocurrencies put forward is a digital currency in the decentralized form. There is no third-party or government interference in cryptocurrencies. Therefore, no association can regulate or control them.
- Crypto Banking
Many popular banks have reshaped themselves to accommodate cryptocurrencies in their services, which led to crypto banking. They offer crypto savings and interest accounts. Conventional banks may store stocks, cash, or other financial assets of users. On the other hand, crypto banks hold both fiat currencies and crypto assets. However, countries including India have to move more forward to reach these crypto use cases.
- Crypto Staking
Those looking to find some passive income using crypto assets may try crypto staking. Proof-of-Stakes or PoS blockchains help you to stake cryptocurrencies and take part in the consensus mechanism of cryptocurrencies. In return for it, you are allowed to validate a particular block on the chain and get rewards. Solana, Ethereum, Polkadot, Luna, Avalanche, and Cardano are cryptocurrencies available for staking. PoS blockchains are safe for crypto investments. The participants in the network are forced to lock some portion of the local tokens. Thus, it defends any malicious attempts on that particular blockchain.
- Asset Tokenization
Your physical assets can be tokenized and linked to digital coins using cryptocurrencies. Thus tokenization of copyrights, stocks, art, real estate, commodities, etc is possible. This asset tokenization process increases the market liquidity of different real assets. It will also improve the participation of different investors who struggle to invest because of the unavailability of cash. When the ownership of various items into different pieces will help investors to get a portion of the assets’ value they hold.
- Online Payments
International payments have undergone drastic evolution with the arrival of cryptocurrencies. Their low transaction costs, decentralized characteristics, and high transaction speed have accelerated things further. Cryptocurrencies can also be used to pay for different products and services as a payment option. Many popular enterprises such as Starbucks, Pepsi, Mastercard, McDonald’s, etc have started accepting cryptocurrencies as a payment option.
- Crypto Gaming
Recent years have witnessed a rapid rise in the gaming industry. Many gamers around the world are purchasing in-game items as NFTs and looking for the best time to trade them. The P2E games are the best ways to make use of your crypto assets to have fun and get NFTs in the form of rewards. These games also allow you to earn cryptocurrencies in the form of rewards.