What Can You Do with Crypto?

If you’re considering the benefits of entering the crypto space, understanding your crypto’s purchasing power and capabilities is essential. Today, cryptocurrency can be used in many different ways to benefit the coin holder. Whether you’re trying to make money by generating rewards or you want to invest in digital assets like NFTs, entering the crypto world is easy and beneficial. Here are just a few things you can do with your crypto.

Buy Things

That’s right, buy things! Today, you can purchase many real-world items using cryptocurrency. If you invest in a cryptocurrency while it’s low and you can hold it until it accrues value, you could use that more considerable sum to make a purchase. As more and more people and business owners become comfortable with crypto, the list of items you can purchase using cryptocurrencies will continue to increase. Some cryptocurrencies like the new FTX Token, and FTT, are designed with built-in burn mechanisms to maintain an appreciation of the token and help fight inflation. Tokens with these regulations are great investments for anyone looking to make future purchases using crypto. Today, you can buy using crypto from many different e-commerce stores; there are even cases of people purchasing real estate using crypto.

NFTs & The Metaverse

Though there are many real-world items you can purchase using crypto, non-fungible tokens (NFTs) are the number one digital asset bought and sold. NFTs are unique digital assets held on a blockchain. These NFTs are immutable records of ownership over a digital or physical asset, often containing an encoded version of the digital asset or information regarding the real-world asset. NFTs were first used on the Ethereum blockchain, and since, a massive digital art market has blossomed through the use of NFTs to verify the originality of digital artworks. Some NFTs endorsed by celebrities will sell for millions of dollars on the NFT marketplace. Any artist or collector can join an NFT marketplace like that at FTX to mint, buy, and sell their NFTs.

The metaverse is the next evolution of the internet and the ultimate crossover between our daily lives and how we interact online. The metaverse, when complete, will be a series of interconnected digital universes that run simultaneously and can be accessed by anyone in the world with an internet connection. The metaverse will run off of a self-sustaining crypto-economy where users can freely create digital assets as NFTs to sell and exchange for crypto within the metaverse that they can then use to purchase other metaverse assets or experiences. Many crypto investors are considering the future of the metaverse and investing in the long-term success of that digital universe to bring them returns. Today, several metaverse projects are available for people to purchase digital real estate.

Invest

One of the best long-term uses of your crypto is to hold it in a stake pool or liquidity pool to earn rewards over time. Staking is a great way to generate high returns through a proof-of-stake blockchain model. Coin holders can become nodes on the blockchain and stake their coins along with others as collateral for a chance to be selected to verify a block of transactions in exchange for earning rewards. The more coins staked with a particular node, the higher chance that the node will be selected to verify more blocks.

If the cryptocurrency you select does not run on a proof-of-stake model, you can still stake your investment in a liquidity pool known as yield-farming. Your coins are locked into the liquidity pool through a smart contract and lent out to borrowers. There is always risk involved, as with traditional lending; however, you can check the health of a liquidity pool by the amount of crypto staked in the pool. The more coins staked, the higher the chance the pool is successfully generating returns.