Blockchain’s Unique Use Cases: Did You Know These?
For years, people have suffered under the traditional banking systems, making them start looking for alternatives. Think of it this way. The traditional banking systems make it impossible to send money over weekends, public holidays, and at night. As if that is not enough, sending money using a bank transfer system takes a long time and is very expensive. This is why people have turned to the next best alternative: blockchain.
Unlike banks, blockchains are decentralised, implying that they are distributed among users/ nodes in their networks. Also, the information added to the blockchain is immutable. These unique attributes have made blockchain to have unique use cases that you should know and exploit. Remember that most blockchains require you to start by purchasing their native coins.
When people think of trading online, what comes first into their mind are stocks. To trade stocks in the exchanges, you buy them when the price is low and target to sell when the value increases. Well, trading cryptocurrencies work the same way, but your trading instrument will be crypto coins instead of stocks.
To trade cryptos, you need two things, a good trading platform and cryptocurrencies of choice. A good platform is one that charges a reasonable fee and lists different crypto coins that you can trade. For example, if you are interested in trading Cardano (ADA), is it listed in the selected exchange?
When selecting the crypto coin to trade, you need to be extra careful to only pick the high potential ones. Also, you need to follow the news so that you execute moves at the perfect moment to optimise returns. For example, if the news that is expected is in favour of cryptos, make sure to buy the coins with the best chances for growth.
As a crypto trader, you also need to follow different indicators. For example, you should follow the resistance and support areas on the trading charts to know when the price is approaching a peak. This is the best point to sell before the trend changes.
Unlike crypto trading, where you literally sell your coins, staking is the opposite. This method does not involve selling your coins. Instead, you lock your coins to their native networks so that they can help with validating transactions. In return, you are rewarded with a part of the payment made by people using the network.
Although it is possible to stake directly from your crypto wallet, many are those who find it challenging. For example, you are required to keep your computer on and online throughout the staking period. This is never easy over extended periods. A better and more convenient idea is using decentralised finance (DeFi) platforms. Here, all that you need to do is send the coins to the platform, where they are pooled with those from other stakers. One platform that you can trust with all your staking needs, including buying, sending, and earning from cryptos is hi.com.
Using Cryptos to Send Funds
If you have friends, family members, or colleagues in other countries, the simple and direct method to send them money is blockchain and cryptocurrencies. Cryptos make such transfers instant instead of using credit cards or bank transfers that take a lot of time. It is like passing a few notes to a colleague seated next to you in the office.
All that your friends need to have are crypto wallets and be on the same network. For example, you can only send ETH to another person on the Ethereum blockchain network. Then, the recipient can convert the coins to the preferred fiat currency. This method also works well when you are shopping because you can send the coins directly.
These use cases are only part of the growing list of what you can do with blockchain and cryptos. Others you might want to consider are yield farming and crypto lending. Remember that you should work with professionals to understand blockchain even more and optimise the benefits we have listed above. Visit hi now for all your crypto needs.