Most people will be familiar with at least one kind of cryptocurrency, as these digital assets are quickly taking over the market and changing the future of banking forever.
While most of us could name one or two forms of cryptocurrency, there are over 10,000 cryptocurrencies in the market to date, with many more expected to be developed over time. The reason why there are so many different kinds of cryptocurrency is the fact that most tokens or coins have been developed for a specific purpose.
These are known as cryptocurrency use cases, and each is designed to either have a specific purpose or to fix an issue within blockchain technology.
With over 10,000 cryptocurrencies in the market today, there are many use cases for each individual token. Some cryptocurrencies have been developed for a specific purpose, whereas others have been designed to be a troubleshooter within the blockchain.
There are just as many purposes and uses for cryptocurrencies as there are different types, so we cannot go through them all today. However, here are three use cases for cryptocurrency that you may be familiar with:
This is the most familiar use case for cryptocurrency, and it is something most of us will be familiar with in some way.
Payment coins are a form of digital money that can be used as payment for both goods and services. Tokens like Bitcoin were developed to provide a safe, secure, and completely private payment method as they do not require capital like banks to oversee the transactions.
Cryptocurrencies that are made to be payment coins act as a 100% digital alternative to fiat currency, and they are becoming increasingly more common to see as an accepted payment method.
Cryptocurrencies that are categorized as Stablecoins are considered to be the same as real-world assets and fiat currencies.
They work much like the US Dollar or the Euro in the sense that they do not change much in value. This makes them stand out in the digital market, as most other digital assets can rise and crash quickly based on market trends.
As the name suggests, Stablecoins provide a safe place for traders to keep their money and retain value without being subject to price volatility.
Smart contract platforms are the security framework that is required to carry out smart contracts. Smart contracts work similarly to any other contract you may encounter, but what makes them different is the fact they do not require a third party to verify the contract.
Some cryptocurrencies are created as a way to oversee these smart contracts and ensure they operate as they were intended.
As you can see, there are lots of purposes behind cryptocurrency, and the market only continues to grow. If you want to get into the world of cryptocurrency, now is a great time to start.
Register with an online exchange platform today to get started in cryptocurrency trading.
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