If you are brand new to the world of cryptocurrency and are only now considering to buy Bitcoin for the very first time, it might be a good idea to understand all the different things you can do with your coins. While Bitcoin is primarily seen as a store of value that increases over time, there are many other utilities that come into play.
In this article, we will briefly talk about all the different things you can do with Bitcoin, and offer some useful resources to help you navigate your journey. After reading this post, you should have a better understanding of the different actions you can take within the exciting world of cryptocurrency.
1. Store it / HODL
Bitcoin rewards those that are patient. The technology is still in its infancy, and most celebrated investors do not even properly understand it. Here is what legendary investor Kevin O’Leary had to say about Bitcoin when talking to Anthony Pompliano on CNBC back in 2019 (he maintains the same view today)
Because most people underestimate the potential of Bitcoin, one of the best use cases for investors is simply to store it in a wallet and let time pass by for demand to grow. As the value of Bitcoin appreciates over time, your wealth will increase as well.
2. Trade it on exchanges
For those that are less patient, there are many opportunities to make a short-term profit with Bitcoin. Simply sign up on an exchange, study the market dynamics, and start trading cryptocurrency. To start with this process you will need to study all about technical analysis and learn how to read price indicators. This “hobby” can be very risky, and almost certainly leads to losses for new investors. Therefore, if you decide to give it a shot, make sure that you first:
- Learn how to control your emotions, as this is the biggest factor that leads to bad trades.
- Learn how to trade by reading upon useful information through valid channels (e.g. Crypto Cred).
- Always set a stop-loss and plan out your goal before entering a new trade.
- Never risk more than 5% of your portfolio on a single trade.
3. Give it to friends and family
Sending Bitcoin can be a little tricky at first, but you should soon understand exactly how to do it. When you choose to give some of your BTC to your friends and family, you do not only engage in your first few transactions, but you also help spread awareness of the technology. By doing so, you will play an important role in bringing in more demand for the popular cryptocurrency, which in turn should result in a higher price point.
Aside from friends and family, you can also donate Bitcoin to charity. This is a great idea for those that have significant holdings and wish to help those less fortunate. There are several organizations, including Binance Charity, that help raise funds for those in need.
4. Use it to buy things online
Apart from using BTC to earn more crypto, you can also use it to make online (and even physical) purchases. Let us break this down so you can get an easier understanding:
- There are hundreds of stores online that sell their products and services in exchange for Bitcoin. Those can be large retailers who implement payment widgets on their websites or even stores that accept direct Bitcoin deposits by offering their own unique public address.
- In real life, you can pay with Bitcoin in several pubs and restaurants, as well as hotels across the globe. Aside of that, with the introduction of crypto debit cards, you can also make purchases in every store with a POS machine, converting your crypto directly into government-backed money.
5. Earn passive income
Bitcoin can also be stored on exchange platforms, similar to the way you would store money in your bank. However, since the concept of cryptocurrency is so brand new, you can receive interest rates that exceed 10% APY, with some going up to 25% APY. This amount is naturally enormous for those familiar with the traditional banking system and can act as a great source of passive income for those who wish to use their money in an effective way. Aside from storing your money in savings accounts, you can also use staking, yield farming, or other types of passive income opportunities.
6. Use it to gamble
Finally, one of the most interesting use cases of Bitcoin is its ability to fuel your lucky days. Whether you wish to play online poker, participate in a virtual lottery, or throw some virtual dices, you can use Bitcoin to earn a lot more money.