Did you know that you can go to a dealership and buy a car with digital currency? That’s only the tip of the iceberg. You can also get your morning coffee, gift cards, electronics, groceries, flights, and takeout.
Since bitcoin isn’t regulated, you never have to worry about your funds being taken from you. Investing in bitcoin is so easy that anyone can do it, and the whole process is anonymous. Cryptocurrency can protect against inflation as well.
These are only a few benefits you’ll be able to take advantage of. Check out this guide to learn what you can expect when you invest.
What Is Cryptocurrency?
Bitcoin is a type of currency that exists solely on the web. All the cryptocurrency in the world is stored on something known as the blockchain.
For you to get started buying and selling bitcoin, you’ll need to have a digital wallet. It’s like a physical wallet, except instead of housing cash, it holds cryptocurrency.
Your crypto wallet doesn’t “store” bitcoin per se. It’s only a representation of how much bitcoin is available to you.
Inflation can have a huge impact on many assets. For instance, the value of your cash will plummet.
During these times of financial uncertainty, your digital currency will be safe due to its scarcity. There is only 21 million bitcoin on the blockchain.
When people rush to buy cryptocurrency during inflation, the increase in demand will cause the value to go up.
Transactions Are Simple
As long as you have an internet connection, you can invest in bitcoin. It will only take you a few minutes to register your account and purchase digital currency with your debit card.
If you go to a bitcoin ATM, you will have to use cash, but the process is no more difficult than using the machine at your bank.
No matter what option you use to buy and sell your bitcoin, it will only take a few seconds for the transaction to go through. At most, you may have to wait about 10 minutes to see the change reflected in your crypto wallet.
The biggest concern that users have when it comes to dealing with an internet-based currency is security. While bitcoin isn’t completely anonymous, it’s impossible to track.
Bitcoin users are identified using numbers and keys. It makes it difficult for hackers to trace transactions back to you.
Transactions that take place on the blockchain are always visible, but thanks to security measures, you’ll remain hidden. The only person who will ever know how much currency you have in your digital wallet is you.
If so happens, your wallet address does get out to the public, and you can regain your anonymity by generating a new one.
Before you can move forward with a transaction at a bitcoin ATM, you’ll have to verify your identity. If you can’t scan your driver’s license, you won’t be able to buy bitcoin.
All of these things and more make using a traditional bank riskier. When you set up your digital wallet, you don’t have to use any of your personal information. For bank accounts, it’s a requirement.
Bitcoin is decentralized, meaning that there’s no third-party involvement. There are no rules on who can join the network. Again, as long as you have an internet connection, you’re good to go.
You can join the blockchain as an investor, user, or, if you have the equipment for it, a miner. The coding that goes into cryptocurrency makes it impossible for one individual to manipulate.
You never have to worry about someone freezing your assets. Even if you go bankrupt, your digital currency will be safe.
Decentralization is a perk that’s exclusive to cryptocurrency. If you put your assets anywhere else, you risk your account going away or your funds being frozen when you need them the most.
Potential for High Rewards
Bitcoin isn’t the only type of cryptocurrency in the world. In fact, there are thousands of them to choose from. While some have more availability than others, there is one thing that’s true.
They all tend to have spikes in demand and value. When this happens, you have the potential to earn a good amount of money.
With high rewards comes high risk, however. While it’s true that cryptocurrencies experience huge spikes, they go through periods of decline as well.
It’s a Push System
When you pay a bill with your debit card, and it doesn’t come out right away, you risk another bill swooping in to steal the funds. This will cause a chargeback on your card, which means the first bill never gets paid.
Bitcoin works on a push system. As soon as the transaction happens, it can’t be reversed. It’s a lot like cash in that way.
Bitcoin Acts as Real Money
One of the coolest things about cryptocurrency is that you can use it to buy the things you use every day.
Certain car dealerships take bitcoin as payment. You can also use cryptocurrency to purchase your morning coffee or a flight to travel back home to see your parents.
Is there a ride that you’ve got your eye on? If the dealership accepts digital currency, you might be able to use that to purchase and drive away with a new vehicle. If you have the dogecoin for it, you can use that to buy yourself a Tesla.
Keep in mind that even if a dealership doesn’t take bitcoin, nothing is stopping you from going to an ATM to exchange your cryptocurrency for the cash you need to buy the car. You can search here to find one near you.
You can buy a lot with cryptocurrency, but you can’t get everything. Gift cards are a good way around that.
There are sites like Bitrefill that will allow you to purchase gift cards for tons of reputable brands like Xbox, Steam, Amazon, and Uber.
Are you someone who can’t go without their morning coffee? You’ll be happy to know that you can use your bitcoin to buy all the java you want if you have the digital wallet, Bakkt.
All you have to do is link your Starbucks app to your wallet. From there, you’ll be able to conveniently buy your drinks with cryptocurrency.
At one point in time, Whole Foods accepted bitcoin. Sadly, they stopped a while ago.
That doesn’t mean you can’t use your cryptocurrency to buy your groceries. It only means that you’ll have to jump through a few more hoops.
You can buy a gift card from well-known stores such as Walmart, Kroger, and Whole Foods. You can also use a payment processing app.
Do you need a new laptop for school? Are you trying to pick up the latest smartphone? If you have the funds stored up, you can put your credit card away and use your digital wallet to cover these big purchases.
Newegg is a huge company that accepts both bitcoin and altcoin payments through a payment processing app called BitPay.
The downside is that if you decide later you can’t actually afford that shiny new laptop, you won’t be able to get your money back. Newegg doesn’t offer refunds for any purchases made through the payment app.
No matter if you need to make an emergency trip home or you just want to travel, you can use your crypto wallet to buy your plane tickets.
Websites such as Travala and AirBaltic accept bitcoin. You can also buy your airline tickets with a gift card bought from Bitrefill.
Do you want to be able to watch your favorite Netflix shows while you’re across the country? You can when you sign up for a VPN with bitcoin.
Since a VPN hides your IP, you can make it appear as if you’re in the US when you’re in another country. This means you’ll be able to access any shows that are region locked.
Some subscription services will let you pay for your membership using cryptocurrency, but it’s rare. For certain streaming services, such as Netflix, you’ll have to buy a gift card with bitcoin and use that to sign up for your membership.
Great Solution for Travelers
Traveling can be a hassle in that you have to locate the nearest place to convert your cash and then wait in a long line. If there are any bitcoin ATMs near your location, you can avoid the line.
When you use an ATM to exchange your bitcoin for cash, it will automatically convert it for you.
Are There Any Cons?
Nothing is without its flaws. There are a few downsides to buying and selling bitcoin that you need to be aware of before you get started.
For some people, certain advantages that come from using digital currency turn into disadvantages.
As stated before, bitcoin is scarce. Only 21 million of them exist on the blockchain.
This causes the value to fluctuate as demand skyrockets and drops. As you can imagine, it makes life as an investor difficult.
Scarcity is only one thing that affects bitcoin’s volatility. If an investor makes headline news by talking about how bad cryptocurrency is, the value could change overnight.
Yes, with no regulation, you don’t have to worry about waking up to an empty digital wallet one day. The problem is that no regulation means no protection.
If you lose everything you have due to a scam, there isn’t much that can be done about it. There’s also no guarantee of valuation. This means if a bunch of investors decides they don’t want to use cryptocurrency and sell what they have, it will hurt those who have a large number of coins stacked up.
When you’re at the bitcoin ATM, you have to double and triple-check that you’re sending money to the right digital wallet. If you enter the address incorrectly, that’s it. You won’t be able to refund the transaction.
If you have a paper wallet and your child decides to use it as their own personal coloring book, you’ll no longer have access to your funds. The same applies in the case of hard drive crashes and viruses.
Use Is Limited
There are a lot of companies that will allow you to make purchases with bitcoin. If you can’t get the things you want outright, you can buy a gift card and use that.
This being said, use is still pretty limited because cryptocurrency isn’t widely seen as an acceptable form of payment.
When you go to a bitcoin ATM, you won’t be able to buy and sell bitcoin for free. There’s always a transaction fee.
Most machines will charge you about 8% on average, but it can go up as high as 10%.
If you live in a highly populated city, you won’t have too much of a problem finding a bitcoin ATM. They’re available in the most convenient stores and airports.
For those who live in a rural area, however, things get a bit more complicated. You may have to drive a few miles to get to your nearest machine.
Everything You Need to Know About Investing in Bitcoin
Investing in bitcoin opens the doors toward financial freedom. Not only can you use your digital wallet to order a pizza, but you never have to worry about waking up to frozen assets.
While cryptocurrency does come with its disadvantages, you’ll find that the pros outweigh them.
Are you looking for all the latest news on bitcoin? Visit the crypto section of our blog for daily updates.