If crypto is to become mainstream, it must find application in everyday life, like paying for coffee at your local cafe. Period!
The above statement is not a maxim but reflects the historical precedent set by coins and paper money. Just as paper money evolved from banking receipts to a ubiquitous means of exchange, cryptocurrencies must similarly integrate and gain widespread acceptance into the fabric of daily transactions to gain widespread adoption.
When we pay bills, send money internationally, or invest using traditional methods such as debit/credit cards or bank transfers, they often come with high transaction fees, delays, and potential restrictions.
Now, imagine doing all this with cryptocurrency. You pay your bills instantly, send money across borders with minimal fees, and invest in assets with just a few taps on your phone. There are no intermediaries, no waiting periods—just seamless transactions.
Crypto has more use cases than the ones we’ve mentioned earlier; it’s more versatile than you may think. This article will explain how crypto is used in everyday life and provide specific examples. Read on to learn more.
Key takeaways
- Cryptocurrencies can be used for various everyday activities, including online and offline purchases, remittances, travel, gaming, and supporting content creators, offering advantages like lower fees, faster transactions, and enhanced security.
- Cryptocurrency is becoming a popular alternative investment option, with more people and institutions recognizing its potential for portfolio diversification, especially with developments like the SEC’s approval of Ethereum ETFs.
- To protect against scams, such as the Paxful/Venmo scams, and ensure the safety of digital assets, it’s essential to use strong passwords, enable two-factor authentication, and store cryptocurrencies in secure hardware wallets.
- For cryptocurrencies to gain widespread acceptance, they need to become a part of everyday life on a global scale. Countries like El Salvador are leading this effort, but the ultimate objective is to make cryptocurrency usage widespread worldwide.
Ways to use cryptocurrency in everyday life
Cryptocurrency offers various practical applications that can enhance day-to-day transactions and investments. Its usage continues evolving, making it an increasingly viable option for consumers and businesses. Below are specific ways individuals can learn how to use cryptocurrency in their daily lives.
Online & in-store purchases
If you’ve been part of the cryptocurrency world for a while, you might know about Bitcoin Pizza Day, celebrated every year on May 22nd. This day marks the first known transaction using cryptocurrency as a form of payment. In 2010, programmer Laszlo Hanyecz created history by using 10,000 Bitcoins to buy two large pizzas from Papa John’s, which were then delivered to his door.
Watch, Laszlo describe the experience and the aftermath of this seminal event to 60 minutes here.
Since then, cryptocurrencies have gained significant traction as a means of buying goods and services from various online retailers, from billion-dollar companies like Microsoft for select purchases to small businesses offering roast meat for Bitcoin.
Payment via cryptocurrency can offer several advantages, including enhanced privacy and sometimes lower transaction fees than traditional payment methods like credit cards or bank transfers.
Remittances
If you have ever sent money abroad, you will know it is costly and time-consuming, especially when done repeatedly. For example, the World Bank estimates fees average 6.35% when remitting $200.
Conversely, cryptocurrency remittances allow users to transfer funds instantly and with minimal fees as they eliminate intermediaries such as banks.
For example, using cryptocurrency such as Bitcoin offers a fast and reliable method for expats and families residing overseas to assist each other, particularly during medical emergencies.
Investments
Cryptocurrency is gaining popularity as an alternative investment strategy beyond traditional assets. For example, over 40% of Americans own cryptocurrencies, representing a significant milestone for this growing asset class.
The recent approval of Ethereum EFTs by the U.S. Securities and Exchange Commission (SEC) further widens the scope of institutional investors’ investments. Hitherto, many of these investors were wary of crypto’s dangers due to the lack of a clear regulatory framework, but now they have embraced crypto to diversify their investment portfolio.
Travel
Do you need to travel without the hustles of currency conversion? Learning how to spend cryptocurrency can be a secure and safe alternative. Felix Weis, a Bitcoin traveler, documented the feasibility of this by traveling around the world for 18 months using only Bitcoin. His journey showcased the growing acceptance of cryptocurrency for real-world transactions, as he managed to pay for accommodations, transportation, and daily needs entirely with Bitcoin.
You should also check out our guide on using Bitcoin to travel across Africa and our list of the most crypto-friendly tourist destinations.
Numerous travel agencies and airlines have embraced cryptocurrencies, making it easier than ever to book flights and accommodations using digital currencies. For instance, Travala, a leading online travel platform, now accepts various cryptocurrencies for hotel bookings and flight reservations.
Using cryptocurrency while traveling has the following benefits: it reduces the chances of credit card fraud, speeds up the booking process, reduces cost and fees, offers more privacy and security, and global acceptance.
Gaming
In the gaming industry, cryptocurrencies are increasingly gaining popularity as in-game currencies; as of September 3rd, 2024, the gaming crypto token market cap was valued at $29.36B, signaling the growing integration of digital assets into the gaming ecosystem.
In this ecosystem, players can earn tokens through gameplay. These tokens can be traded, sold, or used to purchase other in-game assets. Moreover, online platforms now allow players to buy games and in-game items and access exclusive content using cryptocurrencies.
For example, Axie Infinity lets players earn cryptocurrency by battling and trading creatures called Axies. An example is Decentraland, where players use the cryptocurrency MANA to buy virtual land and items, blending gaming with real-world economic systems.
Gambling
Online casinos have rapidly adopted cryptocurrencies as a payment method, offering gamblers enhanced anonymity and security compared to traditional banking methods. Players can enjoy lower transaction fees by utilizing cryptocurrencies, making gambling more cost-effective.
Online casinos like BitStarz, FortuneJack, BetOnline, and mBit Casino offer a variety of games, sports betting, and live casino options and accept cryptocurrency payments.
However, it’s crucial to exercise caution when choosing online casinos that accept cryptocurrency. To avoid scams and ensure a safe gaming experience, players should research and select platforms with a proven track record.
Supporting content creators
Your favorite content creator might not mind some crypto as a tip for their excellent work. Rather than using a streaming platform to donate, viewers can donate directly to the content creator’s wallet, eliminating fees or commissions from middlemen. This method empowers creators financially and eliminates reliance on intermediaries, such as advertising networks. Some platforms, such as Brave, reward content creators with BAT tokens based on engagement or views, enabling a fairer monetization model.
Donations and charities
Globally, many nonprofit organizations have begun accepting cryptocurrency donations. For example, more than half of the largest charities in the United States, including the Red Cross, now accept crypto donations. This method allows for quick transactions and reduces transaction fees, ensuring more funds go directly to the cause.
Donating cryptocurrency can offer tax incentives, allowing supporters to make a meaningful impact globally. Transparency in transactions is another benefit, as blockchain technology can track contributions to ensure they are used appropriately.
Peer-to-peer transactions
Peer-to-peer (P2P) transactions enable individuals to exchange cryptocurrency directly without intermediaries. This method can lead to lower fees and faster transaction times.
Users can leverage platforms like Paxful to engage in P2P trading. Paxful connects buyers and sellers worldwide, allowing them to negotiate prices, payment methods, and other terms.
International payments
Cryptocurrencies simplify international payments by eliminating exchange rate fluctuations and high fees associated with traditional banks. Businesses can leverage this to make cross-border transactions more efficient.
For example, a small business in Nigeria could easily send payments to a supplier in India using cryptocurrency. By bypassing intermediaries and fluctuating exchange rates, the business can save time and money, improving its bottom line and fostering stronger international partnerships.
Moreover, cryptocurrency can streamline payment processes, making it easier for companies to engage in global commerce. The speed and reliability of these transactions provide a competitive advantage in the international market.
Hedging
Investors seeking to protect their portfolios often turn to cryptocurrencies as a hedge against inflation or market downturns. Digital currencies can offer diversification that traditional assets may not provide.
For example, an investor might allocate a portion of their portfolio to Bitcoin as a hedge against potential stock market crashes. If the stock market were to experience a significant downturn, Bitcoin’s price gains could potentially offset losses in other assets. Crypto traders, on the other hand, can hedge against volatility by converting their crypto into stablecoins like USDT and USDC.
Using cryptocurrency for hedging strategies requires an understanding of market trends and volatility. Investors should stay informed to manage risks and make well-timed decisions.
How to buy cryptocurrency on Paxful
Now you know what you can do with crypto, let’s show you one way to get your hands on it using Paxful.
Buying cryptocurrency on Paxful is straightforward, involving a few essential steps to ensure a smooth transaction. Users can easily navigate the platform to find preferred payment methods and sellers that suit their needs.
- Sign up and verify your account: Create a Paxful account in seconds using your phone number or email address. Next, verify your account by uploading personal documents such as your National ID or passport. This adds an extra layer of security. You’ll also get a free Paxful wallet to store your crypto.
- Find a seller on the marketplace: Buy a preferred asset by browsing the available trade partners. Pay for crypto using over 450 payment methods, including credit or debit cards, bank wires, and payment apps.
- Initiate trade: Having reviewed available offers and checking your trade partner’s profile, specify the amount of crypto you want to buy and start the trade.
- Complete payment & receive crypto: Follow the seller’s instructions to complete your payment. Once your payment is confirmed, Paxful releases the crypto directly to your wallet.
Note: Paxful holds the crypto in institutional-grade, independent escrow, ensuring your funds are safe until both sides complete the trade. - Leave feedback: Share your experience by leaving feedback. This helps foster a positive and trustworthy trading environment on Paxful.
How to use cryptocurrency safely
Cryptocurrency is digital money, and when money is involved, someone will try to steal it from you. That’s just a fact of life. But worry not, as there are proven ways to keep bad guys away from your crypto.
Always keep your crypto safe
First, always use strong, unique passwords to secure your online accounts and wallets to reduce the risk of unauthorized access. Second, never share your password and private keys, especially over emails or text messages.
Moreover, It is also advisable to enable two-factor authentication (2FA) wherever possible. This adds an extra layer of security beyond just a password.
Additionally, storing crypto in a hardware wallet offers protection against online threats, as these wallets are offline. Keep backup seed phrases in a secure, physical location to prevent loss.
Learn more about how you can protect your account here.
Avoiding scams
Scams in the cryptocurrency world are common and can be detrimental to financial health. The first line of defense is through education; for example, educating yourself on the risks and red flags associated with cryptocurrency scams makes it easier to notice them, like the Paxful/Venmo scams, where fraudsters may trick users into believing they’ve made a legitimate purchase.
Researching companies and platforms before investing is essential. Individuals should ensure that the exchange or wallet service has positive reviews and a good reputation. Look for red flags like promises of high returns with little risk, which can indicate a scam.
Final thoughts
Using cryptocurrency in everyday life can be an empowering experience as it opens up new opportunities for transactions and investments.
To get started, it’s recommended to learn about how cryptocurrencies function, how to participate in trading on marketplaces or exchanges, and how to securely manage digital assets using wallets, including hot and cold wallets, to ensure security.
Furthermore, Investing in cryptocurrency requires careful research, and speaking with an investment advisor before making any decisions is essential to evaluate the pros and cons. For example, price volatility—a common feature in crypto—can lead to significant gains and substantial losses, especially in the short term.
Important Note: Paxful does not provide investment, tax, or legal advice, and you are solely responsible for determining whether any financial transaction strategy or related transaction is appropriate for you based on your personal investment objectives, economic circumstances, and risk tolerance. Paxful may provide information that includes but is not limited to blog posts, articles, podcasts, tutorials, and videos. The information contained therein does not constitute investment advice, financial advice, trading advice, or any other advice, and you should not treat any of the content as such. Paxful does not recommend that any digital asset should be bought, earned, sold, lent out, or held by you, and will not be held responsible for the decisions you make to buy, sell, trade, lend, or hold digital assets based on the information provided by us.
