Cryptocurrencies are becoming more popular. Most people have heard about Bitcoin (BTC). This cryptocurrency has been in the news constantly. Bitcoin has had several tremendous price hikes. As a result, early investors that managed to hold their BTC assets had enormous gains.
The hope of making big profits has drawn many people to the crypto sphere. However, many find it difficult to decide which cryptocurrency to buy in the first place. There are hundreds of cryptocurrencies to choose from.
Your choice depends on what you plan on doing with your crypto holdings. For example, as a long-term investment, Bitcoin is a good choice. To pay for goods and services, other coins like Litecoin (LTC) may be more convenient.
Once you decide what cryptocurrency to invest in, you have to choose an exchange. There are practically hundreds of exchanges. Not all of them offer the same cryptocurrencies. Also, the fees and service level greatly differ between exchanges. The best option is a cryptocurrency instant exchange online.
After selecting the exchange, you must get a crypto wallet to hold your digital coins. There are different types of wallets. Some come as physical devices, whereas others are apps for smartphones. Select one that offers a high-security level. After creating your crypto wallet, now you can purchase cryptocurrencies.
But, what can you do with your cryptocurrency holdings? Below, we describe the best ways to use them.
1. Use Your Cryptocurrency as an Investment Vehicle
Bitcoin is often regarded as a ‘safe’ investment for the future. However, other cryptocurrencies may grow even more than Bitcoin. A smart strategy is to build an investment portfolio. You can keep a percentage of relatively safe assets like Bitcoin, and speculate with more volatile coins. Use a BTC to ETH exchange to get some Ethereum assets, for example.
Some of the most promising cryptocurrencies to include in your portfolio are:
- Bitcoin (BTC);
- Ethereum (ETH);
- Bitcoin Cash (BCH);
- Dogecoin (DOGE);
- Litecoin (LTC);
- Polkadot (DOT).
However, you can add any cryptocurrency you deem convenient.
2. Use Your Cryptocurrency for Day Trading
Some cryptocurrencies are quite volatile. The price of a highly volatile coin can vary greatly within a few minutes. You can leverage this volatility to make quick gains by buying and selling cryptocurrencies within a short time. Granted, this is a risky activity. However, it can be very profitable. If day trading sounds interesting for you, it is recommendable that you learn as much as you can about the best practices in this activity.
3. Use Your Cryptocurrency for Online Purchases
Many online retailers accept certain cryptocurrencies as payment methods. You can buy goods, digital content, and other products using your digital coins. You can also pay for some Internet services using cryptocurrency. Using cryptocurrency is generally faster and cheaper than conventional payment methods like credit cards or bank transfers.