When digital currencies were introduced, one could not help but wonder if they would be practical and successful in the long run. The first bitcoin sale was done for 10,000 coins, when a user bought two pizzas for those coins. This was just after bitcoin was reportedly hacked in August 2010.
Till date, cryptocurrencies maintain their volatility with the owners witnessing heavy fluctuations in the valuation of these currencies. However, the fact is they are now accessible to the common people also and not just a few insiders. The decision to buy them or trade in them depends on the risk appetite of the crypto holder.
Trading in crypto does not require much investment and can be done in small units. Purchasing crypto needs comparatively higher investment. If you want guidance and tips on crypto trading visit this site to get a clear insight. Purchasing crypto with the intention of holding them is less speculative. The steep increase in the price of Bitcoin which has risen from $0 to $37000 is proof. As a common investor, cryptocurrencies can be used on everyday purchases just like cash or other digital payments. Let us touch upon some tips for the same.
1. Diversify the storage of the cryptocurrency
Cryptocurrencies are relatively a new concept used for everyday purchases. Just like with the normal currency/money, crypto also can be stored in wallets. One can use a software wallet or hardware wallet as per convenience.
Software wallets can be accessed from mobiles, desktops or any online source, and hardware wallets are usually in the form of a USB. There are also paper wallets that work just like cash. The 2 QR codes stand for receiving and spending the crypto in exchange for your purchase.
One smart move while purchasing everyday items is to keep just a small amount in the wallet that will be used more frequently for the purchase transaction. This limits the losses that arise in case of a cyber attack. One should note that the wallets are nothing but data and codes. Using a secure network and saving from cyberattacks is of prime importance since these wallets have high value.
2. Avoid Wallets by Providers
It is safest to avoid wallets by providers because it exposes the private key. The buyer cannot control the provider’s server. Though this is convenient for non tech savvy shoppers, it is more exposed to government intervention and other legal problems if the provider loses his business to a legal takeover. Instead use a hardware wallet which is encrypted and safer.
3. Explore the direct spending avenues
Crypto is accepted by many online sellers and retailers. These include giants like Microsoft whose products can be purchased from their online store, Wikipedia and Save the Children where donations are accepted in cryptocurrencies, Expedia for online travel booking via Bitcoin, and Overstock for purchasing retail goods like apparel appliances, furnitures, decor items.
4. Connect the crypto to debit cards
Just like the current debit cards are a replacement to carrying cash around, cryptocurrencies can be connected to a debit card like Visa or Mastercard. One can then spend the crypto at all places where these cards are accepted. Bitcoin is the most popular cryptocurrency which is accepted in these cards.
5. Check the authenticity of the digital wallet
Like any genuine financial platform, parameters like enhanced security features and secure network connections are good enough to check if the exchange platform is genuine or not. Proper encryption like TLS encryption, SSL encryption are the genuine parameters one should look for while dealing with the storage of cryptocurrencies.
6. Adopt safe practices while transacting
Hacking of user information is common with online payments. Mobile apps are the common and convenient platforms for spending on everyday purchases with cryptocurrencies. Hence, stealing confidential user login information, mobile apps to track on screen activities and keystrokes pose a threat since the value of these currencies have skyrocketed in the past years.
As of now there is no law and governance involved in the cryptocurrency transitions. So any loss that arises due to carelessness in purchase transactions will not be addressed by banks. The best way to avoid any mishaps is by choosing strong passwords, using password rotation and the two-factor authentication process. Also ensure to not use the passwords of the cryptocurrency account in any other personal accounts.
7. Access the genuinity of the transaction
There is no legal intermediary like the government or bank in all crypto transactions. This gives the purchaser complete autonomy over his own money. The government issued currency put limitations on how one can spend it but this is not the case with cryptocurrency. The safety and liabilities of the purchase fall wholly on the buyer due to absence of government rules. So stay alert.
8. Choose trusted sites listing stores
To make it easier to search for places that accept Bitcoin, which is the most famous cryptocurrency, there are sites that let users search on a virtual map. A famous site is Coinmap. Shoppers can see clearly which stores accept bitcoin in the nearby places. However, it is wise to do research first because though some may have used Bitcoin earlier, they may not be using it now.
9. Use Bitcoin, the most famous crypto
Over the years, Bitcoin has turned out to be the most easy crypto to purchase goods online. Buyers will notice that bitcoin has more exchanges, merchants and system support. The security of Bitcoin is proven. This is why there are stores where boards of “Bitcoin Accepted” are displayed. You can buy bitcoin on Moonpay and start purchasing.
It is inevitable that due to lower administrative and government interference, user discretion and accessibility cryptocurrencies will become more famous as easier modes of transaction for not only trading but also for everyday purchases.. Above tips to create user awareness, if used wisely can make daily transactions very convenient.