With the world of cryptocurrencies growing steadily, the diversity of holders and investors is expanding in tandem. The market for cryptos has also evolved as new offerings are minted all the time, together with a far greater breadth for their uses as investment options and mediums of exchange.
As a result of the choice out there now, it can be difficult to know whether it’s better to spend, save, or stake your crypto. Here’s a breakdown of the different options in more detail to help you decide.
1. Spending Crypto
With more industries than ever accepting cryptocurrencies these days, there are plenty of options available to anyone who wants to spend theirs. Among the many choices, a few sectors stick out for the way they have embraced cryptocurrency. Among them are online shopping platforms and eCommerce sites, food chains like Burger King, and iGaming platforms like online casinos.
Online gaming has become a particularly attractive option for crypto holders for its many perks. According to crypto writer Kane Pepi, the best crypto casinos offer a more private experience, as well as faster and more secure transactions and instant payouts, since they are facilitated by blockchain technology. This has made them very popular among US players as many states don’t offer any legal online gambling options.
Mostly run by offshore sites, they can bypass things like KYC checks and even ID verification, also making them a popular choice for players seeking a less restrictive experience. Given that casinos that offer crypto gambling usually accept all major cryptocurrencies as payment options, it means anyone with crypto holdings can spend their crypto and possibly even win some more at these platforms.
On the other hand, for non-gamblers, there are plenty of ordinary gaming options available for players to spend, or even earn cryptocurrency just for playing games. This occurs through play-to-earn crypto gaming. However, even with ordinary gaming, major gaming brands like Xbox allow users to purchase vouchers using cryptocurrency.
There are also plenty of online stores listed on the Shopify platform that accept cryptocurrency, opening up an entire world of opportunities to spend it, Even at physical stores, restaurants, and car dealerships, crypto holders can now spend their crypto on anything imaginable so long as their merchant or dealership they select accepts it. Crypto has now become so popular that even real estate can be purchased with it and, depending on your region, Bitcoin ATMs around the world allow Bitcoin holders to withdraw cash against their BTC holdings—making shopping as a Bitcoin holder that much easier.
2. Saving Cryptocurrency
For those who want to save crypto, also referred to as “HODLing” (Hold On for Dear Life), crypto can result in enormous appreciation as an asset, so this can be risky but is also a great option if you have the stomach for it. Ever since Bitcoin first launched and went on its famously massive bull run that turned ordinary people into millionaires overnight, many influential people including financial experts, economists, tech experts, and even politicians now view cryptocurrency favorably.
The market has grown a lot more complex since Bitcoin was its only player and it now encompasses thousands of other coins, many of which have since gone on to have their own periods of success. While there are certainly no guarantees and the market is very saturated at the moment, there are those who believe that it’s actually brought a degree of stability and maturity to it. This has made cryptocurrency in general somewhat less prone to volatility. However, investing in it should always be done as an informed decision or in consultation with an expert as many market risks still exist across the board.
3. Staking Cryptocurrency
Lastly, staking your crypto pretty much means investing back into the network it came from. By doing so, you can think of it as investing in a startup. If things go well, by helping the company grow from inception, those that end up being successes reward their investors—usually with shares that equate to a stake in the company.
With crypto staking, by leaving your tokens in the network, you contribute to the development of that blockchain, helping to improve its security and value at the same time. If you back a winning blockchain and stake a token that grows substantially in value, you can be rewarded with more tokens that essentially equate to a larger share of the profits in that context. Despite these perks, staking should be done after careful consideration as not all new tokens and blockchains succeed and grow.
