What Can Cryptocurrencies Be Used For?

So you have chosen your cryptocurrency and have invested, installed your wallet, and you're ready to spend some of it. Okay but where and how do you do that? There seems to be no definitive guide, well, do not panic, we have you covered. 

There is no doubt, if people are willing to spend, business owners are willing too. Overstock is a great example, although the number of vendors who accept digital currency isn't as large, as those that accept credit cards, there are still thousands who accept cryptocurrency transactions.

As with anything new to the market, there is always a cautious approach to new tech. However, alternative currencies are gaining in popularity and many of those hesitant business owners are now taking notice.

Many websites offer alist of merchants that accept cryptocurrencies in exchange for goods and services. If you’ve tried doing business with a company that doesn't take alternative currencies, look for an alternative. You’ll be amazed how many businesses have changed their minds about cryptocurrency, simply through the recommendation of their customers.

So, if you've got your investments settled, and you're itching to dive in and make a few purchases with your cryptocurrency, your purchases will help keep the cryptocurrency healthy, you get new stuff. Everyone’s a winner!

Using your cryptocurrency is just as easy, if not easier than the traditional payment methods of paying for goods or services with your credit card or debit card.

A cryptocurrency machine in London

The majority of your transactions are likely to take place from your home on your computer, but online transactions, and can be used to make purchases, pay bills, buy precious metals or donate to your favourite charity.

How does an online transaction work?

Okay so once you approach a vendor about their goods or services, they provide you with their public key. It is basically a line of code that is used to identify them. This public key may not be obvious or even visible to you, as it is often embedded in “Pay Now” button, but do not worry, it is there. Both yours and the vendor’s public keys ensure no transaction can be made without them.

No transactions can be made with digital currency without the public keys of both parties involved. After you transmit your public key, the seller can identify you and vice versa. Their account will be credited, and yours will be debited. That's all there is to it, it is easy to make an online transaction.

It is important to note, that your name and address, unlike your credit cards, does not contain your physical address as all transactions are anonymous. Remember to provide your address if the shipping of goods is involved, do not leave the seller with no way to deliver to you.

Cryptocurrencies are not just for online transactions, many retailers accept in-store use. So, you can still look at what you're buying, prior to making your purchase. However, the experience is slightly different than using cash in some cases, as many businesses post a QRcode next to an item.

A QR code is similar to a bar code, which you can decipher with a multitude of readily available apps that can be installed on your smartphone. You can literally just scan the code and carry out the transaction right there in-store. As an added bonus, the product’s QR code will often include a discount, encouraging the in-store rather than online purchase or the product.

What Are Cryptocurrencies?

Cryptocurrencies do not rely established financial institutions to guarantee or verify transactions. The computers and users on the network confirm Cryptocurrency transactions. New currency is produced through ‘mining’, and how mining works depends on the currency and varies from one cryptocurrency to the next.

Cryptocurrencies are completely digital, so they can be used in lots of ways that traditional currencies can’t, for example you don't need an account or good credit to use cryptocurrencies. Buying consumables and services is becoming increasingly easier as more and more retailers accept them. Fees for using cryptocurrencies tend to be far less than the processing fees of standard credit cards. It is also possible to make anonymous transactions, with cryptocurrencies your online cash is discreet, and safe to use.

Cryptocurrencies: What To Consider?

Cryptocurrencies are traded in many different ways. Here are the main aspects to consider.

• Volume of Daily Trade

Daily trading volume: the value of the coins that are exchanged daily. A relative high daily trading volume, can indicate a healthy economy.

• Verification

A major difference between cryptocurrencies is their verification method. The longest standing and most common, is called proof of work. To verify a transaction, a computer has to solve a difficult math problem. All this requires a massive amount of energy to operate. Proof-of-stake systems have tried to solve this by letting large share users verify transactions, requiring less processing power.

• Acceptance by Retailers

A few cryptocurrencies are widely accepted, most, however, have more limited acceptance. In many cases, cryptocurrencies are designed for purposes other than retail shopping.

Many stores in capital cities now accept CryptoCurrencies
for purchases just as they accept a normal credit card or cash

Whatever your initial thoughts are, cryptocurrencies are an exciting new financial development. Where the technology will lead? No one knows, but cryptocurrencies sure offer possibilities that traditional cash can't.

Cryptocurrencies Review

Bitcoin is the original cryptocurrency, and although its value is not as high as in the past, it is the most valuable cryptocurrency on the market. Its verification system is resistant to fraud, but it requires significant processing power to ‘mine’.

Peercoin was first conceived as an answer to growing sustainability concerns surrounding another cryptocurrency. Some specialty online retailers take payments in the currency, but these remain few and far between. With a little digging, you can exchange Peercoins for survival gear, video games, jewelry and more. Some charitable companies also accept payments in Peercoin.

Ripple is an entirely new kind of cryptocurrency. Because of its unique architecture, no retailers directly accept Ripple for goods and services, as the Ripple currency is a medium for converting any currency instantly into any other one, without relying on a central exchange. Ripple has the potential to allow for more trade in many existing currencies.

Primecoin is a cryptocurrency that functions as a form of money, uses the processing power of its users to conduct mathematical research. Since Primecoin is a fairly novel currency, its retail acceptance is very low, but using it could grant significant benefits to the scientific community.