What to do with your cryptocurrency and where to spend it

• What are the different types of cryptocurrencies and how are they developed for different purposes？

• Why would a business or service provider opt to accept cryptocurrency？

• The most common ways you use cryptocurrency right now

• A list of the most popular websites and services that accept cryptocurrency right now

Cryptocurrency is a new type of online money with qualities that imply it could eventually replace traditional money. But, in order for money to be useful, it must be able to buy goods, so what can you buy with cryptocurrencies right now？

Coins vs. Tokens: What's the Difference？

To comprehend what you may buy with cryptocurrency, you must first realize that it is divided into several categories, each with its own set of uses.

All cryptocurrencies can be viewed as investments in the same way that a tradeable share in a corporation listed on the Dow Jones or FTSE can. It can be purchased and sold with the goal of making a profit. We have a full section dedicated to cryptocurrency trading.

But, as has been often said, cryptocurrency can be used as both a form of digital money and an investment, but this is a very broad description that lacks specificity.

Bitcoin and Ethereum are the two most popular cryptocurrencies, both of which can be used to invest and spend money.

However, Ethereum also serves as a foundation on which other projects can be built, many of which contain cryptocurrencies and have very particular use cases.

The distinction between a coin and a token is made here. Coins are designed to be used as a kind of money, and they have their own blockchain.

Tokens are designed to be used as a form of payment within a blockchain system.

To comprehend tokens, imagine traveling to a theme park where you must purchase unique tokens to ride the rides, yet the tokens do not operate anywhere else.

The holder of cryptocurrency tokens also has the opportunity to vote on changes to the way the blockchain works, which adds a layer of complexity.

Consider playing an online game in which you gather tokens that may be used to purchase items within the game, as well as to contribute to the game's evolution.

As a result, you shouldn't expect to be able to use all cryptocurrencies as money; those designated as tokens are intended for a specific use-case rather than general use as money.

Some instances are as follows:

• MANA is an Ethereum-based currency that may be used in Decentraland, a virtual environment where users can buy, develop, and sell land.

• NRM - A Numerai token used to crowdsource the best models for predicting share price movement.

• FIL - A Filecoin token that may be used to pay for unused data storage or to monetise your own idle storage.

Why may merchants and services choose to accept cryptocurrency？

Given the difference between coins and tokens, it should come as no surprise that most cryptocurrency tokens aren't extensively used outside of trading or their specialized blockchain ecosystem.

Despite the fact that cryptocurrencies are designed to be used as money, getting shops to accept them as a payment option is difficult.

Merchants will simply make their selection based on demand, or where they believe a cryptocurrency will solve a specific need for a customer.

Because of how delayed the confirmation process may be, the majority of activity in Bitcoin, by far the most popular cryptocurrency, is linked to trading rather than buying goods and services.

This is why Paypal allows users to buy and sell Bitcoin but not to use it to purchase items.

Merchants can overcome the speed issue by lowering the number of confirmations required or accepting Lightning Payments, which are immediate and low-cost. This does, however, necessitate a consumer's understanding of Lightning payments and the use of a Lightning-compatible wallet. A separate article on the subject can be found here.

Ethereum is the second most popular cryptocurrency after Bitcoin, and while it can be used to buy items online and is considerably faster than bitcoin, it is primarily used for trading and supporting systems developed on top of it, as well as Smart Contract execution for Defi and NFTs.

With that in mind, let's take a look at some real-world instances of how cryptocurrency may and is being used, starting with the most basic:

The Internet's Dark Side

Darknet markets like the Silk Road were one of the first large-scale uses of bitcoin. Bitcoin facilitated the selling of unlawful products and services when used in conjunction with Tor browsers, which disguise location.

Although the original Silk Road was shut down in 2013 and its founder, Ross Ulbricht, was sentenced to life in prison without the possibility of release, other similar sites have sprung up in its place, using more privacy-focused cryptocurrencies such as Minero or Zcash.

Learn Darnket sites are not supported by cryptocurrency, yet they are a significant step in the evolution and use of cryptocurrency. They demonstrated a practical application for a censorship-resistant monetary system with built-in privacy.

Gambling

From both the player's and the provider's perspectives, the payment process is one of the most congested aspects of online gaming. Many banks and credit card companies refuse to work with gambling sites, owing to geographic constraints, and those that do are pricey.

Some gamblers don't want their gaming activity to appear on their bank or credit card accounts, or they find the procedure of establishing payment methods onerous. Cryptocurrency solves all of these issues, and Satoshidice was the initial use case for Bitcoin.

With services like Sportsbet.io putting the bitcoin logo in front of a global audience via the shirt sponsorship of Premier League team Southampton, cryptocurrency gambling is probably one of the fastest growing segments of the ecosystem.

Adult Services are available.

Adult sites, similar to casinos, pay a premium for payment services or have them blacklisted in their jurisdiction, and seek to avoid the sites appearing on their accounts where possible.

Pornhub has been extremely forthright about its cryptocurrency usage.

As you can see from the early use cases, cryptocurrency has been adopted by companies that are considered dangerous by traditional financial institutions, resulting in a fee for processing payments, or are restricted geographically.

Cryptocurrencies like Bitcoin are borderless and permissionless, allowing users to solve a specific payment problem without breaking any regulations.

Debit cards backed by cryptocurrency

• Paxful

• Binance

• Coinbase

Other services function similarly to a traditional debit or prepaid card, offering you cash back in cryptocurrency for everyday Visa purchases.

One of the most well-known examples of this is Crypto.com, which pays out in its own coin, CRO.

There are businesses like Nexo that issue a loan for every transaction that may be paid back in fee or cryptocurrency, or Blockfi, which now offers a full-fledged credit card with cash back benefits.

What's the catch, exactly？

Be careful that several of these debit card services have lengthy card-issuing wait times.

To have access to the card's functions, you'll have to'stake' crypto up front, much like a bond. This, like any cash-back earned, has the potential to depreciate in value.

If your card is pre-paid, you'll have to top it up on a regular basis, which can be inconvenient.

Remittance

Sending money internationally is one of the most common uses for cryptocurrency, with many people working in other countries doing so.

The traditional approach is very expensive and time-consuming because it usually requires an exchange of currencies and banks.

6.8 percent

According to the World Bank, the global average cost of mailing $200 in the first quarter of 2020 was

Because remittances aren't usually time-sensitive, bitcoin's confirmation time isn't an issue, and its store-of-value properties make it more appealing than weak local currencies. You can always use the Lightning Network if speed is a priority.

Using the Lightning Network to spend Bitcoin

Bitcoin has shown to be a good store of value, but it's not well suited to small, time-sensitive transactions. Using the Bitcoin blockchain, the Lightning Network, on the other hand, can enable quick and immediate transactions. The increasing list of sites that accept Lighting may be found here.

We've written a separate essay about how to use the Lightning Network and how it addresses Bitcoin's scaling problem.

Digital Collectibles - Purchasing NFTs

One of the most popular new crypto use cases is Non Fungible Tokens. They are one-of-a-kind tokens that indicate ownership of a digital or physical asset, with art, music, and sports media being the most prominent examples. This means that NFTs can be used to purchase art, music, tickets to a concert or game, and special access to events.

A list of NFT marketplaces can be found here:

• OpenSea

• Rarible

• Nonfungible.com

• Super Rare Objects

• Foundation

Read our blog posts on NFTs and the music industry, as well as a general overview of NFT use cases.

Where Can I Spend My Cryptocurrency？

Although you can't spend cryptocurrency directly on Amazon, you can utilize Purse.io, a site that takes bitcoin as a middleman and demonstrates that innovation is taking place. Amazon may provide it in the future, but for now, here's a list of well-known brands that accept cryptocurrency.

• Express VPN is one of the most widely used VPN services in the world.

• Amazon via Purse.io - A marketplace that offers bitcoin users a 15% discount.

• New Egg is a company that sells computer gear and electronics.

• Overstock is a large-items discount shop.

• Norwegian Air is a budget airline based in Norway.

• Dallas Mavericks - NBA tickets and goods

• The Oakland Athletics have purchased private suites in the Major League Baseball.

• Bitrefill - Mobile top-ups and gift cards for Skype, UBER, Vodafone, Playstation, Apple Store, and a variety of other well-known brands.

• Twitch - Twitch is a streaming site that accepts a variety of cryptocurrencies.

• AT&T is a large US mobile network that was one of the first to accept cryptocurrencies.

• XBox Credits - Use Bitcoin to top up your XBox account.

• Air Baltic is the world's first airline to accept bitcoin payments.

Crypto is currently accepted by a large number of considerably smaller businesses, both online and offline. We aren't quite at the tipping point yet, but as scaling solutions for bitcoin and ethereum gain traction, it may be sooner than you think.

If You're From El Salvador,

El Salvador became the first country to make Bitcoin legal tender on September 7, 2021. This means that businesses in El Salvador are expected to accept Bitcoin, which means you can already use it to pay for things like McDonald's and Starbucks.

El Salvador has a population of 6.5 million people, making it a small country. If more countries follow their lead, there will be an increase in the number of places that accept Bitcoin because it will be required.