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Chapter 3:  Crypto Exchanges

You’ve Got Crypto: What Can You Do With It?

Interesting Fact:
Did you know that, nowadays, you can purchase electronics, food items, clothing, and everything in between using crypto?
easy
9 minutes

In this section, we’re going to talk about how to use cryptocurrency, once you already own it!

Owning crypto is a very exciting prospect! In the previous sections of this Crypto 101 Handbook, we’ve covered buying, selling, trading, swapping, and dealing with cryptocurrencies, in general. However, perhaps you’ve caught yourself wondering - what else can I do with Bitcoin, and other cryptocurrencies, too?

Well, once you get yourself some crypto assets, a whole new world of possibilities opens up, potential activity-wise. All that’s left to do is for you to weigh all of your options, and pick the best one!

In this section, we’re going to talk about how to use cryptocurrencies, and what can you do with your crypto. Specifically, we’ll cover the 5 most notable concepts and activities that you can participate in, with your crypto assets, and discuss their pros and cons, too.

Let’s get to it!

How to Use Crypto? 5 Rewarding Strategies Explained (Animated)

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How to Use Crypto? 5 Rewarding Strategies Explained (Animated)

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Storing Crypto Away in a Cold Wallet

So, the very first thing that you can do with your cryptocurrencies is actually the most straightforward of the bunch, as well - store them away, in a cold wallet device.

How to use crypto: Storing crypto away in a cold wallet.

Cold wallets are special, secure hardware devices that allow you to store your crypto, usually for a longer period of time. Think of these wallets as those little safe deposit boxes that you can rent, at your local bank, and store some valuable items in. It’s really the crypto equivalent of that!

The so-called “cold storage” is actually a very popular concept, within the crypto space. With the market being so volatile, still, and multiple high-tier exchanges and other crypto services going under thanks to one scandal after the other, people are looking at alternative ways of storing and securing their assets - cold wallets are the obvious answer, for most!

Now, admittedly, it’s also not something that will fit every single person looking at how to use crypto. Let’s say that you’re a day trader - someone who is constantly trading cryptocurrencies, and trying to “time the market”, so to speak. In a situation like this, keeping your cryptocurrencies in cold wallets might not be very convenient!

On the flip side, if you plan to hold the crypto that you’ve bought for a long time, as a long-term investment, and don’t really care about how to use Bitcoin to buy things, then cold wallets are certainly your best friend. The best example I can think of is this - imagine that you’ve just bought an old, vintage car. It’s absolutely gorgeous, and without a single scratch or dent in sight.

If you plan to keep that car for a few years, as an investment, and then sell it when its price appreciates, you’d probably store it in a designated garage, and wrap it up with multiple layers of protective materials. On the flip side, if you actually plan to drive the car, then unwrapping it every single time would simply be, well… Inconvenient!

How to use crypto: Cold storage.

The golden rule within the industry is pretty simple - you should store the majority of your assets in cold wallets, while keeping only a small amount on an exchange. This way, you’ll be able to buy, sell, and trade cryptocurrencies as you please, while the bulk of your investment stays safe and sound within a hardware wallet.

Trading Your Crypto

Of course, all of what I’ve just told you only works if you’re in it for the long term. That might not be your goal - instead, you might want to actively trade your assets!

This is the second activity of how to use Bitcoin, or any other crypto - trading. Admittedly, this is really an umbrella term - “trading” could mean everything from active day trading, where you flip crypto assets tens or hundreds of times per day, as well as passive trading, every few weeks, when you see an opportunity to make a potential profit.

It’s actually probably the most popular activity that people choose to participate in, with their cryptos! Once you have bought the coins and tokens that you want, a whole new world of opportunities opens up to you.

In order to start trading, however, you’ll need to spend a lot of time figuring out the intricacies of the market, as well as deciding on your tools, too. For example, will you perform all of your trades on centralized exchanges, or will you transfer your funds to a third-party wallet, and use the services of DEXs - decentralized exchange platforms?

What about taxes - that’s another headache to sort out, as well! Don’t worry, though - if you feel like trading is the path that you want to take, but are confused about where to start, there are dedicated sections covering both CEXs & DEXs, as well as crypto taxes, on this Crypto 101 Handbook - check them out, before you start trading!

Staking

Moving on, the third activity that you can participate in with your newly-acquired crypto assets is staking.

How to use crypto: Staking.

Now, staking is a whole separate can of worms, in itself. However, it’s also a super-popular method of how to use Bitcoin (and other cryptos) to make money, strictly for the fact that you are able to earn a passive interest on the cryptocurrency that you hold.

If you’re looking to get into staking, there are a couple of things that you need to figure out, beforehand. First, there are two types of staking - one where you directly interact with a specific staking pool, and another, when you stake crypto on an exchange platform.

Naturally, both have their pros and cons, as well. In the first scenario, you can stake your crypto on a pool of your choice, and do so from a designated wallet that you own. This method, however, is a bit complex, and you need to have a pretty decent understanding of staking, in general, in order to do everything properly.

Staking crypto on exchange platforms is becoming more and more popular, as time goes on. While it’s super-convenient, and you can find some great interest rates with the asset of your choice, some people avoid this form of staking due to the fact that you have to keep your assets on an exchange. With the multiple controversies that many exchange platforms find themselves in, you can probably see their point.

Then, you should also know that not all cryptocurrencies can be “staked”, the traditional way. If you already own some crypto, you can just utilize a single simple google search, and find out if your coin or token is “stakeable”. If you’re looking at what you can do with crypto, are interested in staking, but don’t have any assets yet, then proper research is warranted - take the time, and look into the coins that will both bring the best staking profits, and provide the least volatility, market-wise!

Investing Into Different Projects

The penultimate method of how to use cryptocurrencies involves investing in different crypto-native projects.

How to use crypto: Investing into different projects.

At first glance, this might look a bit confusing - doesn’t buying crypto constitute as “investing in a project”? And, yes - oftentimes, if you purchase a crypto asset, you’re directly or indirectly investing into the underlying platform that stands behind that project.

That being said, however, some projects only allow you to invest in them via crypto - meaning, you can’t use fiat (or, traditional, government-issued) money to invest, and must instead use some popular cryptocurrency.

This is especially true if you’re looking to back newly-launched projects. Visiting the official websites of such platforms, you’ll notice that investors can acquire said project tokens by trading them for ETH, USDT, or any other popular cryptocurrency, often on a decentralized exchange.

It’s a tad bit of a complicated process, I admit. However, if you’re looking to invest in specific projects, you would likely take the time and study them in-depth - this would, naturally, involve their token acquisition methods, too!

Using Specific Services

Last but not least, the fifth way of how to use crypto is, admittedly, rather expansive - you can use your crypto coins and tokens to pay for certain goods and services!

How to use crypto: Using specific services.

If you’ve ever wondered how to use Bitcoin to buy things, or even about what can you buy with Bitcoin, in general, this is probably the route that you’ll want to take. As crypto is becoming increasingly more adopted by the day, more and more traditional services offer payment options with crypto coins and tokens.

Services are just one part of the deal, though - the “what can you buy with cryptocurrency?” list extends to different products, as well! Nowadays, you might find shops that accept crypto payments, and deal in electronics, food items, clothing, and everything in between!

It’s worth mentioning that some people might find this method of how to use crypto a bit counterintuitive, since you would use a theoretically appreciating asset to purchase depreciating products. In other words, why would you buy a used car with your BTC coins, if the car will lose value, while BTC would likely grow and become more valuable, with time?

This argument is mostly popular with people who consider themselves investors, however, and who are looking to gain some monetary benefits from the space. If that’s not what you’re about, and you’re excited to purchase everyday items with cryptocurrency, keep in mind that, with time, the list of options is getting progressively bigger!

This wraps up the list of the main use cases of crypto assets. Don't forget to check other sections on this Crypto 101 Handbook if you want to become a real crypto expert!

private keys<\/strong><\/a> used to access those cryptocurrencies - the coins themselves are always located on the blockchain.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Private keys.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_01.jpg/" alt=\"What is a crypto wallet: Private keys.\" width=\"1000\" height=\"605\" \/><\/p>\n<p>If you feel confused, think about it this way - imagine that you want to protect your physical, traditional money. You store it in a safe - one that has a digital lock that can be accessed by entering the right combination of numbers. Now, you write that combination down, on a slip of paper, and put it in your wallet.<\/p>\n<p>Do you carry that money around with you? No - it&rsquo;s stored within the safe! All that you carry is the piece of paper with the number combination required to access the safe. The same is true with cryptocurrency wallets, as well!<\/p>\n<p>This is why all wallets - no matter their type - have <strong>two special number and letter combinations associated with them<\/strong> - a private key, and a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-public-key/">public key<\/strong><\/a>. Your private keys are like your password - as the term implies, they&rsquo;re completely private, and should never be shared with anyone - if people found out your private keys, they could steal your cryptocurrencies very easily!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Ambire.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_03.jpg/" alt=\"What is a crypto wallet: Ambire.\" width=\"1000\" height=\"577\" \/><\/p>\n<p>This is where the expression <em>&ldquo;not your keys, not your crypto&rdquo;<\/em> comes from, as well. Many wallet providers offer crypto storage services to their clients, but in reality, and at the end of the day, those companies hold your private keys for you. So, if anything bad would happen, you wouldn&rsquo;t have the ability to recover your lost funds!<\/p>\n<p>A public key is different. It&rsquo;s like your international bank account number - you would give it to another person, and they&rsquo;d be able to send you some cryptocurrencies!<\/p>\n<p>Imagine that you borrowed some money from your friend, and now want to give it back. Your friend requests that you send them the equivalent amount in <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin - fair enough!<\/p>\n<p>Once you receive the friend&rsquo;s public key, you&rsquo;ll be able to make that transaction, from your own wallet. This transaction will be easily provable, too, since it will be recorded on the blockchain, where anyone will be able to view it, at any point in time. Of course, they wouldn&rsquo;t see your name - the only information attached would be the two wallet addresses, the amount sent, and the point in time when the transaction took place.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Wallet address.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_02.jpg/" alt=\"What is a crypto wallet: Wallet address.\" width=\"1000\" height=\"911\" \/><\/p>\n<p>Now, do keep in mind that <strong>not all crypto wallets can store any cryptocurrency<\/strong>. Some wallets are <em>coin-<\/em> or <em>token-specific<\/em> (meaning, you can only store that one, particular asset on them), while others offer support for hundreds of different cryptocurrencies. As time goes on, though, multiple asset-supporting wallets are becoming the norm, more and more.<\/p>\n<h2>Hot VS Cold Wallets<\/h2>\n<p>Moving on, another form of a question that you might come across while studying crypto wallets would sound something like this: <em>&ldquo;what is a cold wallet in crypto?&rdquo;<\/em>, or <em>\"what are the different types of crypto wallets?&rdquo;<\/em>.<\/p>\n<p><strong>Yes, cryptocurrency wallets have types<\/strong>. Thankfully, it&rsquo;s nothing overly complicated!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Hot VS Cold wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_04.jpg/" alt=\"What is a crypto wallet: Hot VS Cold wallets.\" width=\"1000\" height=\"441\" \/><\/p>\n<p>Figuring out what is a crypto wallet involves understanding that there are two major wallet types - <strong>hot, and cold wallets<\/strong>. These odd-sounding names reference internet connectivity - a <em>&ldquo;hot&rdquo;<\/em> wallet is one that maintains a constant connection to the internet, while <em>&ldquo;cold&rdquo;<\/em> wallets are usually hardware devices that can be unplugged from your computer, and that don&rsquo;t need to be connected to the internet 24\/7.<\/p>\n<p>These two different types of <strong>crypto wallets are then segmented into smaller subtypes<\/strong> - hot wallets include web browser-based wallets, dedicated software programs, or even crypto exchange account wallets, too. On the flip side, cold wallets are mostly <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware devices<\/strong><\/a> - there are also <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-paper-wallet/">paper wallets<\/strong><\/a>, but these are very niche, and I won&rsquo;t get into them too much now.<\/p>\n<p>How do all of these crypto wallets work? Well, the premise is practically the same, actually - no matter what type of a wallet it is that you&rsquo;re using, they will all have private and public keys, so the underlying functionality remains very similar.<\/p>\n<p>Now, the debate of hot VS cold wallets has been present since the dawn of time - people have always tried to find a consensus of <strong>which one is a better option<\/strong>, overall. While this is a debate that requires to be discussed in more detail, let me just say - both of these different types of crypto wallets have their own pros and cons that are worth considering!<\/p>\n<h2>Wallet &ldquo;Best Practices&rdquo;<\/h2>\n<p>Speaking of pros and cons, now that you know what is a crypto wallet, and how crypto wallets work, general functionality-wise, we should also talk about some of the most important <em>&ldquo;best practices&rdquo;<\/em> that you need to be aware of, no matter which type of a wallet it is that you decide to use!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Best practices.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_05.jpg/" alt=\"What is a crypto wallet: Best practices.\" width=\"1000\" height=\"839\" \/><\/p>\n<p>First of all, it&rsquo;s advisable that you <strong>have at least two wallets<\/strong> - one cold, and one hot. Your cold wallet would be a hardware device where you&rsquo;d store the bulk of your crypto portfolio. The hot wallet could be exchange-based - here, you&rsquo;d keep a smaller amount of crypto, designated for trading and other usage purposes.<\/p>\n<p>Now, of course, you can have as many wallets as you want - however, the combination that I&rsquo;ve just mentioned is time-tested, and works for most people!<\/p>\n<p>Moving on, as you begin to understand what is a crypto hardware wallet, you should also put in the conscious effort to <strong>not showcase your wallet in a public setting<\/strong>. Some hardware crypto wallets feature a pretty unassuming design - they might look like, say, USB sticks.<\/p>\n<p>Still, though, you should never take your wallet out in a public setting, if you don&rsquo;t need to. If some potential thieves notice it, and they&rsquo;re aware of what that device is, you could find yourself in some trouble!<\/p>\n<p>On the flip side, <strong>hot wallets have some safety precautions attached to them<\/strong>, as well. In an ideal scenario, you would log into your crypto exchange, as well as use your hot wallets on a device that&rsquo;s specifically designated for those purposes. While it&rsquo;s certainly not a common scenario, a separate device like this would minimize the risk of you getting a virus or a keylogger, and having to one day log into your wallet, only to see it emptied, with your crypto assets nowhere to be found.<\/p>\n<p>Not necessarily a common scenario, but it does happen!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Safety.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_06.jpg/" alt=\"What is a crypto wallet: Safety.\" width=\"1000\" height=\"568\" \/><\/p>\n<p>Lastly, you should note that <strong>there are no bullet-proof wallets out there<\/strong> - whether it be a hot wallet, or a hardware device, there&rsquo;s always the risk of your asset security being compromised, and them getting stolen. In order to protect your crypto, you should look into using multiple wallets, and keeping small amounts of coins and tokens on each one. At the very least, you should use a hardware wallet!<\/p>\n<p>That wraps up my introduction to what is a crypto wallet, their types, and how do these wallets work. Check out other sections of this chapter to learn even more about crypto wallets.<\/p>","definition":"Did you know that the two major types of crypto wallets are called \"hot\" and \"cold\"?","status":"published","meta_title":"What is a Crypto Wallet and How Does It Work?","meta_description":"You are new to the crypto world and trying to find a thorough answer to the question \u2013 what is a crypto wallet? You'll find it right here!","meta_keywords":"what is a crypto wallet, how does a crypto wallet work, what is a cold wallet crypto, what is a cryptocurrency wallet, cryptocurrency wallet types, different types of crypto wallets, how does crypto wallet work, what is a fiat wallet crypto, what is a crypto hardware wallet, what is a dead wallet in crypto, what is a crypto wallet used for, how does a crypto hardware wallet work","modified_content":"<p>In this section, I&rsquo;m going to tell you what is a crypto wallet, and how it works!<\/p>\n<p>When you&rsquo;re just starting out with crypto, there are a few <em>&ldquo;essential&rdquo;<\/em> things that you need to figure out and understand, as soon as possible. One of these things has to do with <strong>cryptocurrency wallets<\/strong> - rather, what they are, how they work, and how you can start using them, as well.<\/p>\n<p>It can be an intimidating topic to get into, simply due to how huge and expansive it truly is! Worry not, though - that&rsquo;s what I&rsquo;m here for, to tell you all about the different types of crypto wallets, and how they work.<\/p>\n<p>In this section, we&rsquo;re going to answer the question - <strong>what is a crypto wallet?<\/strong> I will tell you about the concept of wallets in the crypto industry, in general, and then we&rsquo;ll get to the specifics - what is a crypto wallet used for, what are the crypto wallet types, which wallets are the best, and so on.<\/p>\n<p>Do note, though, that this is an introductory section - we won&rsquo;t go into the intricacies of crypto wallets, since that would take thousands of words to explain!<\/p>\n<p><em>Now, then - let&rsquo;s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"What is a Crypto Wallet? (Explained With Animation)\"\n title=\"What is a Crypto Wallet? (Explained With Animation)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: What is a Crypto Wallet?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"What is a Crypto Wallet?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"gCEtStqW_is\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">What is a Crypto Wallet? (Explained With Animation)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-crypto-wallet-explained-with-animation.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-crypto-wallet-explained-with-animation.jpg?tr=w-760 1000w\"\n alt=\"What is a Crypto Wallet? (Explained With Animation)\"\n title=\"What is a Crypto Wallet? (Explained With Animation)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"What is a Crypto Wallet? (Explained With Animation)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>The Concept of Crypto Wallets<\/h2>\n<p>While concepts as vast as cryptocurrency wallets can feel really overwhelming, when you&rsquo;re just getting into it, the golden rule is to start off from the very beginning, and work your way on from there.<\/p>\n<p><strong>So, what is a crypto wallet?<\/strong> As the term might imply, cryptocurrency wallets are special software or devices that allow you to store your cryptocurrencies within. They are used to both safe-keep your crypto, as well as a place where you could store your coins and tokens for longer periods of time.<\/p>\n<p>Now, straight off the bat, let&rsquo;s get something clear. Everyone will always say - <em>&ldquo;store your crypto in a wallet&rdquo;<\/em>. Technically, that&rsquo;s not what happens - <strong>your cryptocurrencies are never stored INSIDE of your wallet<\/strong>. Instead, what your wallet actually houses are the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-private-key-secret-key/">private keys<\/strong><\/a> used to access those cryptocurrencies - the coins themselves are always located on the blockchain.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Private keys.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_01.jpg/" alt=\"What is a crypto wallet: Private keys.\" width=\"1000\" height=\"605\" \/><\/p>\n<p>If you feel confused, think about it this way - imagine that you want to protect your physical, traditional money. You store it in a safe - one that has a digital lock that can be accessed by entering the right combination of numbers. Now, you write that combination down, on a slip of paper, and put it in your wallet.<\/p>\n<p>Do you carry that money around with you? No - it&rsquo;s stored within the safe! All that you carry is the piece of paper with the number combination required to access the safe. The same is true with cryptocurrency wallets, as well!<\/p>\n<p>This is why all wallets - no matter their type - have <strong>two special number and letter combinations associated with them<\/strong> - a private key, and a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-public-key/">public key<\/strong><\/a>. Your private keys are like your password - as the term implies, they&rsquo;re completely private, and should never be shared with anyone - if people found out your private keys, they could steal your cryptocurrencies very easily!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Ambire.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_03.jpg/" alt=\"What is a crypto wallet: Ambire.\" width=\"1000\" height=\"577\" \/><\/p>\n<p>This is where the expression <em>&ldquo;not your keys, not your crypto&rdquo;<\/em> comes from, as well. Many wallet providers offer crypto storage services to their clients, but in reality, and at the end of the day, those companies hold your private keys for you. So, if anything bad would happen, you wouldn&rsquo;t have the ability to recover your lost funds!<\/p>\n<p>A public key is different. It&rsquo;s like your international bank account number - you would give it to another person, and they&rsquo;d be able to send you some cryptocurrencies!<\/p>\n<p>Imagine that you borrowed some money from your friend, and now want to give it back. Your friend requests that you send them the equivalent amount in <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin - fair enough!<\/p>\n<p>Once you receive the friend&rsquo;s public key, you&rsquo;ll be able to make that transaction, from your own wallet. This transaction will be easily provable, too, since it will be recorded on the blockchain, where anyone will be able to view it, at any point in time. Of course, they wouldn&rsquo;t see your name - the only information attached would be the two wallet addresses, the amount sent, and the point in time when the transaction took place.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Wallet address.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_02.jpg/" alt=\"What is a crypto wallet: Wallet address.\" width=\"1000\" height=\"911\" \/><\/p>\n<p>Now, do keep in mind that <strong>not all crypto wallets can store any cryptocurrency<\/strong>. Some wallets are <em>coin-<\/em> or <em>token-specific<\/em> (meaning, you can only store that one, particular asset on them), while others offer support for hundreds of different cryptocurrencies. As time goes on, though, multiple asset-supporting wallets are becoming the norm, more and more.<\/p>\n<h2>Hot VS Cold Wallets<\/h2>\n<p>Moving on, another form of a question that you might come across while studying crypto wallets would sound something like this: <em>&ldquo;what is a cold wallet in crypto?&rdquo;<\/em>, or <em>\"what are the different types of crypto wallets?&rdquo;<\/em>.<\/p>\n<p><strong>Yes, cryptocurrency wallets have types<\/strong>. Thankfully, it&rsquo;s nothing overly complicated!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Hot VS Cold wallets.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_04.jpg/" alt=\"What is a crypto wallet: Hot VS Cold wallets.\" width=\"1000\" height=\"441\" \/><\/p>\n<p>Figuring out what is a crypto wallet involves understanding that there are two major wallet types - <strong>hot, and cold wallets<\/strong>. These odd-sounding names reference internet connectivity - a <em>&ldquo;hot&rdquo;<\/em> wallet is one that maintains a constant connection to the internet, while <em>&ldquo;cold&rdquo;<\/em> wallets are usually hardware devices that can be unplugged from your computer, and that don&rsquo;t need to be connected to the internet 24\/7.<\/p>\n<p>These two different types of <strong>crypto wallets are then segmented into smaller subtypes<\/strong> - hot wallets include web browser-based wallets, dedicated software programs, or even crypto exchange account wallets, too. On the flip side, cold wallets are mostly <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-hardware-wallet/">hardware devices<\/strong><\/a> - there are also <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-paper-wallet/">paper wallets<\/strong><\/a>, but these are very niche, and I won&rsquo;t get into them too much now.<\/p>\n<p>How do all of these crypto wallets work? Well, the premise is practically the same, actually - no matter what type of a wallet it is that you&rsquo;re using, they will all have private and public keys, so the underlying functionality remains very similar.<\/p>\n<p>Now, the debate of hot VS cold wallets has been present since the dawn of time - people have always tried to find a consensus of <strong>which one is a better option<\/strong>, overall. While this is a debate that requires to be discussed in more detail, let me just say - both of these different types of crypto wallets have their own pros and cons that are worth considering!<\/p>\n<h2>Wallet &ldquo;Best Practices&rdquo;<\/h2>\n<p>Speaking of pros and cons, now that you know what is a crypto wallet, and how crypto wallets work, general functionality-wise, we should also talk about some of the most important <em>&ldquo;best practices&rdquo;<\/em> that you need to be aware of, no matter which type of a wallet it is that you decide to use!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Best practices.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_05.jpg/" alt=\"What is a crypto wallet: Best practices.\" width=\"1000\" height=\"839\" \/><\/p>\n<p>First of all, it&rsquo;s advisable that you <strong>have at least two wallets<\/strong> - one cold, and one hot. Your cold wallet would be a hardware device where you&rsquo;d store the bulk of your crypto portfolio. The hot wallet could be exchange-based - here, you&rsquo;d keep a smaller amount of crypto, designated for trading and other usage purposes.<\/p>\n<p>Now, of course, you can have as many wallets as you want - however, the combination that I&rsquo;ve just mentioned is time-tested, and works for most people!<\/p>\n<p>Moving on, as you begin to understand what is a crypto hardware wallet, you should also put in the conscious effort to <strong>not showcase your wallet in a public setting<\/strong>. Some hardware crypto wallets feature a pretty unassuming design - they might look like, say, USB sticks.<\/p>\n<p>Still, though, you should never take your wallet out in a public setting, if you don&rsquo;t need to. If some potential thieves notice it, and they&rsquo;re aware of what that device is, you could find yourself in some trouble!<\/p>\n<p>On the flip side, <strong>hot wallets have some safety precautions attached to them<\/strong>, as well. In an ideal scenario, you would log into your crypto exchange, as well as use your hot wallets on a device that&rsquo;s specifically designated for those purposes. While it&rsquo;s certainly not a common scenario, a separate device like this would minimize the risk of you getting a virus or a keylogger, and having to one day log into your wallet, only to see it emptied, with your crypto assets nowhere to be found.<\/p>\n<p>Not necessarily a common scenario, but it does happen!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"What is a crypto wallet: Safety.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//what_is_crypto_wallet_06.jpg/" alt=\"What is a crypto wallet: Safety.\" width=\"1000\" height=\"568\" \/><\/p>\n<p>Lastly, you should note that <strong>there are no bullet-proof wallets out there<\/strong> - whether it be a hot wallet, or a hardware device, there&rsquo;s always the risk of your asset security being compromised, and them getting stolen. In order to protect your crypto, you should look into using multiple wallets, and keeping small amounts of coins and tokens on each one. At the very least, you should use a hardware wallet!<\/p>\n<p>That wraps up my introduction to what is a crypto wallet, their types, and how do these wallets work. Check out other sections of this chapter to learn even more about crypto wallets.<\/p>","youtube_video":{"id":55,"channel_id":1,"sort":43,"video_title":"What is a Crypto Wallet? (Explained With Animation)","description":"What is a crypto wallet, and how do such wallets work?\n\nCryptocurrency wallets are a major part of the industry - most crypto holders couldn\u2019t imagine their lives without using these platforms! If you\u2019re just getting started with crypto, though, all of the different crypto wallet types can get pretty confusing.\n\nIn this video, I will tell you about what is a crypto wallet, and how these wallets work, in the first place. I will also talk about the different types of crypto wallets (hot and cold ones), and their notable pros and cons, too.\n\nDo you use cryptocurrency wallets? Which ones do you think are the best? Share your thoughts in the comments below!\n\nVideo Time Table:\n0:00 Introduction to What is a Crypto Wallet\n1:14 The Concept of Crypto Wallets\n3:57 Hot Vs Cold Crypto Wallet\n5:57 Best Practices of Crypto Wallets\n7:45 Wrap-up: What is a Crypto Wallet?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#WhatisaCryptoWallet #HowDoesaCryptoWalletWork #WhatisaColdWalletCrypto","video_id":"gCEtStqW_is","duration":500,"view_count":280,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/what-is-a-crypto-wallet-explained-with-animation.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-03-21T15:55:41.000000Z","created_at":"2023-03-21T23:00:06.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :prev-section="{"id":380,"chapter_id":3,"order":6,"featured_image_id":3074,"youtube_video_id":45,"author_id":1,"created_at":"2022-11-21T11:57:44.000000Z","updated_at":"2023-12-21T06:50:09.000000Z","slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","content":"<p>In this section, we&rsquo;re going to talk about <strong>how to turn your <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fiat/">fiat to crypto, and vice versa!<\/strong><\/p>\n<p>Recently, I wrote a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-buy-crypto/">section about buying cryptocurrency, for the very first time. If you haven&rsquo;t read it, make sure to check it out! In that section, I went through the steps that you would need to take in order to become a proud owner of crypto!<\/p>\n<p>What if you already have your crypto, and are ready to take some profits - in other words, you want to cash out? Is it as simple to do as when you buy crypto, or are there some extra steps involved? You'll find answers to all of those questions (and more) in this section!<\/p>\n<p>So, in this section, we&rsquo;re going to talk about turning crypto into fiat money, and fiat to crypto. I&rsquo;ll tell you about the best ways to convert crypto to fiat, in a step-by-step manner!<\/p>\n<p><em>Let&rsquo;s get right to it, then!<\/em><\/p>\n<h2>Turning Crypto Into Fiat: The Exchange Method<\/h2>\n<p>So, while there are a few different ways of how you can turn fiat to crypto, and then crypto into fiat money, we&rsquo;ll start off with the most obvious one - <strong>selling your cryptocurrency on a fiat-to-crypto exchange<\/strong>, for USD, EUR, or any other traditional currency, and then transferring it to your bank account.<\/p>\n<p>Now, for the sake of covering every possible major scenario, I&rsquo;ll talk about two different situations - first, I&rsquo;ll assume that you&rsquo;ve read the previous section about buying crypto, and already have cryptocurrency on an exchange platform, and later, I&rsquo;ll also talk about what to do if you&rsquo;re crypto is stored in a wallet somewhere.<\/p>\n<p>Assuming that you&rsquo;re already registered on a cryptocurrency exchange, have passed all of the required <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//kyc-crypto/">KYC &amp; AML<\/strong><\/a> checks, and have your account all set up, with crypto assets on it, the <em>&ldquo;cashing out&rdquo;<\/em> part is actually really simple to do&hellip; In most cases.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Trade and withdraw.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_01.jpg/" alt=\"Fiat to crypto: Trade and withdraw.\" width=\"1000\" height=\"1080\" \/><\/p>\n<p>You see, there&rsquo;s a pretty good chance that all that you really need to do is sell your crypto on the exchange, for the currency of your choice, and then use the withdrawal feature on the platform! <strong>Most high-end exchanges will allow you to pick and choose the withdrawal method<\/strong>, but if you already have, say, the debit card that you used to buy crypto added to the exchange, you can click a few buttons, and wait for the money to reach your bank account.<\/p>\n<p><em>Is it really that simple?<\/em> Actually, yes - it is! You will naturally need to decide how much crypto you want to sell VS if you want to keep any on the exchange, but other than that, chances are that your process of turning crypto into fiat money is going to be very quick, simple, and straightforward.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Buy, transfer, withdraw.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_02.jpg/" alt=\"Fiat to crypto: Buy, transfer, withdraw.\" width=\"1000\" height=\"874\" \/><\/p>\n<p><strong>Now, there&rsquo;s another scenario<\/strong> where the exchange that you&rsquo;re using might allow you to BUY crypto via a bank transfer or credit &amp; debit cards (turn fiat to crypto), but doesn&rsquo;t support an actual WITHDRAWAL feature, in fiat money. Some years back, this used to be the case somewhat often - there were but a handful of reliable exchanges that would allow you to <em>&ldquo;cash out&rdquo;<\/em>, so to speak.<\/p>\n<p>Nowadays, this is a much rarer occurrence - but it still does happen! So, what should you do in a situation like this?<\/p>\n<p>Well, there are two options - one is a bit simpler, and involves exchange platforms, while the other involves actually meeting other people. We&rsquo;ll cross that bridge when we get there, though - for now, let&rsquo;s focus on the first option.<\/p>\n<p><strong>Your first step is to find a cryptocurrency exchange<\/strong>, other than the one you&rsquo;re currently using, and one that allows its clients to withdraw fiat money into their bank accounts. Once again, doing so shouldn&rsquo;t prove to be difficult - most of the top-tier exchanges have this functionality!<\/p>\n<p>Once you find an exchange like this, however, you will then need to register on it, pass the KYC checks, and transfer your crypto from the current exchange to the new one. Here, you will be able to sell it, and after adding a valid payment method, cash out!<\/p>\n<p>Now, I admit - all of that sounds a bit convoluted, when you just machine-gun it out loud like that. But, I assure you - the process is actually much simpler than it looks, in reality! There are two things that you should pay the most attention to - <strong>picking an appropriate exchange, and ensuring that your crypto transfer is safe and correct<\/strong>. If these are topics that you&rsquo;d like more information about, there are dedicated sections covering <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">crypto exchanges<\/strong><\/a> and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//blockchain-transaction/">blockchain transactions<\/strong><\/a> on this Crypto 101 Handbook - check them out!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_03.jpg/" alt=\"Fiat to crypto: Wallet.\" width=\"1000\" height=\"743\" \/><\/p>\n<p>Now, another potential scenario might be that you&rsquo;re <strong>holding your cryptocurrencies in a wallet<\/strong> - a separate piece of software or hardware that has nothing to do with an exchange. If that&rsquo;s the case, all that you need to do is transfer your crypto from the wallet to a designated exchange platform of your choice, and sell it there. It&rsquo;s similar to transferring your money from a bank account to an exchange, in a fiat VS crypto way!<\/p>\n<p>Note, though, that there&rsquo;s a potential alternative route, as well - some wallets have built-in tools that would allow you to sell crypto, straight from the wallet! This depends on what wallet it is that you&rsquo;re using, but if your crypto storage supports a feature like this, it&rsquo;s definitely worth considering, since you skip out on a lot of steps!<\/p>\n<h2>Turning Crypto Into Fiat: The In-Person Meetup Method<\/h2>\n<p>Continuing on, up to this point, we&rsquo;ve discussed the <em>&ldquo;easy&rdquo;<\/em>, or <em>&ldquo;preferable&rdquo;<\/em> methods of turning crypto into cash - all you need is an exchange, and a valid withdrawal method, and you&rsquo;re set! Well, that&rsquo;s assuming that you&rsquo;ve already bought crypto, and know how exchanges work, in the first place - if that&rsquo;s still something you&rsquo;re feeling iffy about, make sure to read a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">dedicated section<\/strong><\/a> about it before moving on whit this one!<\/p>\n<p>Now, there&rsquo;s another approach that you could take, as well - one that involves<strong> meeting other people, and selling your crypto in the real world<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: The in-person meetup method.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_04.jpg/" alt=\"Fiat to crypto: The in-person meetup method.\" width=\"1000\" height=\"632\" \/><\/p>\n<p>Straight off the bat, let me just say - <strong>I do NOT recommend doing this<\/strong>, neither for fiat-to-crypto, nor crypto-to-fiat conversion purposes! With crypto transactions becoming simpler and faster to perform, on exchanges, there really is no major reason why you would go through all of that effort of meeting another individual, and performing the transaction this way.<\/p>\n<p>Well, maybe there is one reason - if you&rsquo;re really adamant about <strong>preserving your anonymity<\/strong>.<\/p>\n<p>Think about it this way - say, you&rsquo;ve never bought any crypto, and are not registered on any type of exchange platform. Yet, you already own cryptocurrency - maybe a friend sent it to you, or someone paid you for your awesome drawing in crypto tokens? Whatever the case might be, you&rsquo;re at a point where you want to turn your crypto into fiat money.<\/p>\n<p>However, you are really serious about your privacy, and thus, registering on a cryptocurrency exchange, and providing it with all of your sensitive information just doesn&rsquo;t sound appealing to you. In a situation like this, your only real other option is to find a potential buyer from your area, meet them, and make the transaction.<\/p>\n<p>If, for any reason, you do decide that an in-person transaction is <em>&ldquo;the way to go&rdquo;<\/em>, there are a few things that you need to be aware of. First and foremost, <strong>never go alone<\/strong> - always bring at least one other friend, to keep you company and provide that extra safety.<\/p>\n<p>Secondly, <strong>make sure to meet the buyer in a public place<\/strong>, like the mall or a coffee shop. This will make you both feel easier about the meeting, since there will be other people around.<\/p>\n<p>Lastly, if you&rsquo;re accepting cash for your crypto, you should <strong>carry a fake-money checking machine with you<\/strong>. This way, you&rsquo;ll be able to check the money on the spot, and won&rsquo;t need to worry about potentially being scammed.<\/p>\n<p>Let me reiterate, though - in-person crypto sales are a very specific, niche scenario that, in the vast majority of cases, isn&rsquo;t the recommended thing to do. Instead, you&rsquo;re much better off going the traditional, exchange route.<\/p>\n<h2>Don&rsquo;t Forget the Taxes!<\/h2>\n<p>Now that you know how to turn crypto into fiat money, it would be very irresponsible of me to let you go without talking about one last thing. And, it&rsquo;s actually a topic that everyone in the crypto space are really excited about - taxes!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Don't forget taxes.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_05.jpg/" alt=\"Fiat to crypto: Don't forget taxes.\" width=\"1000\" height=\"504\" \/><\/p>\n<p>Well, maybe it&rsquo;s not the most exciting topic that one might think of, but it&rsquo;s definitely a huge and important point that needs to be considered, when you&rsquo;re dealing with buying and selling crypto.<\/p>\n<p>No matter if you sell cryptocurrencies on an exchange, directly from your wallet, in person, or in any other way imaginable, <strong>your sale will be considered a taxable event<\/strong>. Thus, you should take some time out of your day, make a cup of coffee, sit down, and really look into the specifics of crypto taxation in your country.<\/p>\n<p>What I&rsquo;m getting at is simple - while you might have made an awesome profit from your initial crypto investment, part of that profit will likely need to be paid, as taxes! Of course, when you&rsquo;re performing an in-person transaction, things become much more complicated - you need to declare the sale yourself, and there&rsquo;s no exchange to pull the data from, at the end of the tax year.<\/p>\n<p>Just one more reason to stay safe, and only buy and sell crypto on reliable, trusted cryptocurrency exchange platforms!<\/p>\n<p>Now, if you&rsquo;re really concerned about the crypto taxes, and are looking for every possible legal solution of how to minimize them, <strong>I highly recommend checking out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-avoid-crypto-taxes/">this section<\/a> on how to avoid cryptocurrency taxes - legally, of course<\/strong>! Maybe you&rsquo;ll be eligible for a tax reduction, or perhaps there&rsquo;s some other, specific law in your region, that will allow you to save a lot of money on taxes?<\/p>\n<p>That being said, it's about all the basic information you need to know as a crypto beginner. Just remember - <strong>the best way to convert crypto to fiat is via a trusted, reliable exchange platform<\/strong>.<\/p>","definition":"Did you know that most high-end crypto exchanges allow you to easily withdraw your fiat money back to your bank account?","status":"published","meta_title":"How to Turn Fiat to Crypto and Vice Versa","meta_description":"Don't know how to turn your fiat to crypto, and the other way around? Right here, you'll find everything about crypto to fiat redemption.","meta_keywords":"fiat to crypto, fiat vs crypto, fiat to crypto exchange, best way to convert crypto to fiat","modified_content":"<p>In this section, we&rsquo;re going to talk about <strong>how to turn your <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-fiat/">fiat to crypto, and vice versa!<\/strong><\/p>\n<p>Recently, I wrote a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-buy-crypto/">section about buying cryptocurrency, for the very first time. If you haven&rsquo;t read it, make sure to check it out! In that section, I went through the steps that you would need to take in order to become a proud owner of crypto!<\/p>\n<p>What if you already have your crypto, and are ready to take some profits - in other words, you want to cash out? Is it as simple to do as when you buy crypto, or are there some extra steps involved? You'll find answers to all of those questions (and more) in this section!<\/p>\n<p>So, in this section, we&rsquo;re going to talk about turning crypto into fiat money, and fiat to crypto. I&rsquo;ll tell you about the best ways to convert crypto to fiat, in a step-by-step manner!<\/p>\n<p><em>Let&rsquo;s get right to it, then!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)\"\n title=\"4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: Taking Profits: Turning Crypto Into Fiat<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"Taking Profits: Turning Crypto Into Fiat\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"AiQfGSEhxmg\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/4-ways-to-turn-fiat-to-crypto-vs-crypto-to-fiat-easily-explained.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/4-ways-to-turn-fiat-to-crypto-vs-crypto-to-fiat-easily-explained.jpg?tr=w-760 1000w\"\n alt=\"4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)\"\n title=\"4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Turning Crypto Into Fiat: The Exchange Method<\/h2>\n<p>So, while there are a few different ways of how you can turn fiat to crypto, and then crypto into fiat money, we&rsquo;ll start off with the most obvious one - <strong>selling your cryptocurrency on a fiat-to-crypto exchange<\/strong>, for USD, EUR, or any other traditional currency, and then transferring it to your bank account.<\/p>\n<p>Now, for the sake of covering every possible major scenario, I&rsquo;ll talk about two different situations - first, I&rsquo;ll assume that you&rsquo;ve read the previous section about buying crypto, and already have cryptocurrency on an exchange platform, and later, I&rsquo;ll also talk about what to do if you&rsquo;re crypto is stored in a wallet somewhere.<\/p>\n<p>Assuming that you&rsquo;re already registered on a cryptocurrency exchange, have passed all of the required <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//kyc-crypto/">KYC &amp; AML<\/strong><\/a> checks, and have your account all set up, with crypto assets on it, the <em>&ldquo;cashing out&rdquo;<\/em> part is actually really simple to do&hellip; In most cases.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Trade and withdraw.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_01.jpg/" alt=\"Fiat to crypto: Trade and withdraw.\" width=\"1000\" height=\"1080\" \/><\/p>\n<p>You see, there&rsquo;s a pretty good chance that all that you really need to do is sell your crypto on the exchange, for the currency of your choice, and then use the withdrawal feature on the platform! <strong>Most high-end exchanges will allow you to pick and choose the withdrawal method<\/strong>, but if you already have, say, the debit card that you used to buy crypto added to the exchange, you can click a few buttons, and wait for the money to reach your bank account.<\/p>\n<p><em>Is it really that simple?<\/em> Actually, yes - it is! You will naturally need to decide how much crypto you want to sell VS if you want to keep any on the exchange, but other than that, chances are that your process of turning crypto into fiat money is going to be very quick, simple, and straightforward.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Buy, transfer, withdraw.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_02.jpg/" alt=\"Fiat to crypto: Buy, transfer, withdraw.\" width=\"1000\" height=\"874\" \/><\/p>\n<p><strong>Now, there&rsquo;s another scenario<\/strong> where the exchange that you&rsquo;re using might allow you to BUY crypto via a bank transfer or credit &amp; debit cards (turn fiat to crypto), but doesn&rsquo;t support an actual WITHDRAWAL feature, in fiat money. Some years back, this used to be the case somewhat often - there were but a handful of reliable exchanges that would allow you to <em>&ldquo;cash out&rdquo;<\/em>, so to speak.<\/p>\n<p>Nowadays, this is a much rarer occurrence - but it still does happen! So, what should you do in a situation like this?<\/p>\n<p>Well, there are two options - one is a bit simpler, and involves exchange platforms, while the other involves actually meeting other people. We&rsquo;ll cross that bridge when we get there, though - for now, let&rsquo;s focus on the first option.<\/p>\n<p><strong>Your first step is to find a cryptocurrency exchange<\/strong>, other than the one you&rsquo;re currently using, and one that allows its clients to withdraw fiat money into their bank accounts. Once again, doing so shouldn&rsquo;t prove to be difficult - most of the top-tier exchanges have this functionality!<\/p>\n<p>Once you find an exchange like this, however, you will then need to register on it, pass the KYC checks, and transfer your crypto from the current exchange to the new one. Here, you will be able to sell it, and after adding a valid payment method, cash out!<\/p>\n<p>Now, I admit - all of that sounds a bit convoluted, when you just machine-gun it out loud like that. But, I assure you - the process is actually much simpler than it looks, in reality! There are two things that you should pay the most attention to - <strong>picking an appropriate exchange, and ensuring that your crypto transfer is safe and correct<\/strong>. If these are topics that you&rsquo;d like more information about, there are dedicated sections covering <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">crypto exchanges<\/strong><\/a> and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//blockchain-transaction/">blockchain transactions<\/strong><\/a> on this Crypto 101 Handbook - check them out!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_03.jpg/" alt=\"Fiat to crypto: Wallet.\" width=\"1000\" height=\"743\" \/><\/p>\n<p>Now, another potential scenario might be that you&rsquo;re <strong>holding your cryptocurrencies in a wallet<\/strong> - a separate piece of software or hardware that has nothing to do with an exchange. If that&rsquo;s the case, all that you need to do is transfer your crypto from the wallet to a designated exchange platform of your choice, and sell it there. It&rsquo;s similar to transferring your money from a bank account to an exchange, in a fiat VS crypto way!<\/p>\n<p>Note, though, that there&rsquo;s a potential alternative route, as well - some wallets have built-in tools that would allow you to sell crypto, straight from the wallet! This depends on what wallet it is that you&rsquo;re using, but if your crypto storage supports a feature like this, it&rsquo;s definitely worth considering, since you skip out on a lot of steps!<\/p>\n<h2>Turning Crypto Into Fiat: The In-Person Meetup Method<\/h2>\n<p>Continuing on, up to this point, we&rsquo;ve discussed the <em>&ldquo;easy&rdquo;<\/em>, or <em>&ldquo;preferable&rdquo;<\/em> methods of turning crypto into cash - all you need is an exchange, and a valid withdrawal method, and you&rsquo;re set! Well, that&rsquo;s assuming that you&rsquo;ve already bought crypto, and know how exchanges work, in the first place - if that&rsquo;s still something you&rsquo;re feeling iffy about, make sure to read a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-do-cryptocurrency-exchanges-work/">dedicated section<\/strong><\/a> about it before moving on whit this one!<\/p>\n<p>Now, there&rsquo;s another approach that you could take, as well - one that involves<strong> meeting other people, and selling your crypto in the real world<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: The in-person meetup method.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_04.jpg/" alt=\"Fiat to crypto: The in-person meetup method.\" width=\"1000\" height=\"632\" \/><\/p>\n<p>Straight off the bat, let me just say - <strong>I do NOT recommend doing this<\/strong>, neither for fiat-to-crypto, nor crypto-to-fiat conversion purposes! With crypto transactions becoming simpler and faster to perform, on exchanges, there really is no major reason why you would go through all of that effort of meeting another individual, and performing the transaction this way.<\/p>\n<p>Well, maybe there is one reason - if you&rsquo;re really adamant about <strong>preserving your anonymity<\/strong>.<\/p>\n<p>Think about it this way - say, you&rsquo;ve never bought any crypto, and are not registered on any type of exchange platform. Yet, you already own cryptocurrency - maybe a friend sent it to you, or someone paid you for your awesome drawing in crypto tokens? Whatever the case might be, you&rsquo;re at a point where you want to turn your crypto into fiat money.<\/p>\n<p>However, you are really serious about your privacy, and thus, registering on a cryptocurrency exchange, and providing it with all of your sensitive information just doesn&rsquo;t sound appealing to you. In a situation like this, your only real other option is to find a potential buyer from your area, meet them, and make the transaction.<\/p>\n<p>If, for any reason, you do decide that an in-person transaction is <em>&ldquo;the way to go&rdquo;<\/em>, there are a few things that you need to be aware of. First and foremost, <strong>never go alone<\/strong> - always bring at least one other friend, to keep you company and provide that extra safety.<\/p>\n<p>Secondly, <strong>make sure to meet the buyer in a public place<\/strong>, like the mall or a coffee shop. This will make you both feel easier about the meeting, since there will be other people around.<\/p>\n<p>Lastly, if you&rsquo;re accepting cash for your crypto, you should <strong>carry a fake-money checking machine with you<\/strong>. This way, you&rsquo;ll be able to check the money on the spot, and won&rsquo;t need to worry about potentially being scammed.<\/p>\n<p>Let me reiterate, though - in-person crypto sales are a very specific, niche scenario that, in the vast majority of cases, isn&rsquo;t the recommended thing to do. Instead, you&rsquo;re much better off going the traditional, exchange route.<\/p>\n<h2>Don&rsquo;t Forget the Taxes!<\/h2>\n<p>Now that you know how to turn crypto into fiat money, it would be very irresponsible of me to let you go without talking about one last thing. And, it&rsquo;s actually a topic that everyone in the crypto space are really excited about - taxes!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"Fiat to crypto: Don't forget taxes.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//crypto_to_fiat_05.jpg/" alt=\"Fiat to crypto: Don't forget taxes.\" width=\"1000\" height=\"504\" \/><\/p>\n<p>Well, maybe it&rsquo;s not the most exciting topic that one might think of, but it&rsquo;s definitely a huge and important point that needs to be considered, when you&rsquo;re dealing with buying and selling crypto.<\/p>\n<p>No matter if you sell cryptocurrencies on an exchange, directly from your wallet, in person, or in any other way imaginable, <strong>your sale will be considered a taxable event<\/strong>. Thus, you should take some time out of your day, make a cup of coffee, sit down, and really look into the specifics of crypto taxation in your country.<\/p>\n<p>What I&rsquo;m getting at is simple - while you might have made an awesome profit from your initial crypto investment, part of that profit will likely need to be paid, as taxes! Of course, when you&rsquo;re performing an in-person transaction, things become much more complicated - you need to declare the sale yourself, and there&rsquo;s no exchange to pull the data from, at the end of the tax year.<\/p>\n<p>Just one more reason to stay safe, and only buy and sell crypto on reliable, trusted cryptocurrency exchange platforms!<\/p>\n<p>Now, if you&rsquo;re really concerned about the crypto taxes, and are looking for every possible legal solution of how to minimize them, <strong>I highly recommend checking out <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-avoid-crypto-taxes/">this section<\/a> on how to avoid cryptocurrency taxes - legally, of course<\/strong>! Maybe you&rsquo;ll be eligible for a tax reduction, or perhaps there&rsquo;s some other, specific law in your region, that will allow you to save a lot of money on taxes?<\/p>\n<p>That being said, it's about all the basic information you need to know as a crypto beginner. Just remember - <strong>the best way to convert crypto to fiat is via a trusted, reliable exchange platform<\/strong>.<\/p>","youtube_video":{"id":45,"channel_id":1,"sort":51,"video_title":"4 Ways to Turn Fiat to Crypto VS Crypto to Fiat (Easily Explained)","description":"Whether you\u2019re a cryptocurrency trader or investor who has turned fiat to crypto, there comes a time when it\u2019s a good idea to take some profits, and cash out. However, in order to do so, you need to be aware of how to turn crypto into fiat money, in a fast and safe manner. \n\nIn this video, I am going to tell you how to do just that. We\u2019ll talk about the best ways to turn crypto to fiat, both when it comes to traditional cryptocurrency exchanges, as well as some other, alternative methods.\n\nHow often do you take profits from your crypto investments? Share you experiences, in the comments below!\n\nVideo Time Table:\n\n0:00 Intro to Turning Fiat to Crypto & Crypto to Fiat\n0:55 Using a Crypto Exchange\n4:35 In-Person Transaction Method\n6:26 Crypto to Fiat & Fiat to Crypto: Taxes\n7:42 Wrap-up: Turning Fiat to Crypto & Crypto to Fiat\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#FiatToCrypto #FiatVsCrypto #CryptoToFiat","video_id":"AiQfGSEhxmg","duration":485,"view_count":389,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/4-ways-to-turn-fiat-to-crypto-vs-crypto-to-fiat-easily-explained.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2022-12-29T16:08:37.000000Z","created_at":"2022-12-29T23:00:03.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}}}" :model="{"id":381,"chapter_id":3,"order":7,"featured_image_id":3075,"youtube_video_id":46,"author_id":1,"created_at":"2022-11-21T14:06:15.000000Z","updated_at":"2023-12-21T07:25:18.000000Z","slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","content":"<p>In this section, we&rsquo;re going to talk about <strong>how to use cryptocurrency<\/strong>, once you already own it!<\/p>\n<p>Owning crypto is a very exciting prospect! In the previous sections of this Crypto 101 Handbook, we&rsquo;ve covered buying, selling, trading, swapping, and dealing with cryptocurrencies, in general. However, perhaps you&rsquo;ve caught yourself wondering - what else can I do with <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, and other cryptocurrencies, too?<\/p>\n<p>Well, once you get yourself some crypto assets, a whole new world of possibilities opens up, potential activity-wise. All that&rsquo;s left to do is for you to weigh all of your options, and pick the best one!<\/p>\n<p>In this section, we&rsquo;re going to talk about how to use cryptocurrencies, and what can you do with your crypto. Specifically, we&rsquo;ll cover <strong>the 5 most notable concepts and activities that you can participate in<\/strong>, with your crypto assets, and discuss their pros and cons, too.<\/p>\n<p><em>Let&rsquo;s get to it!<\/em><\/p>\n<h2>Storing Crypto Away in a Cold Wallet<\/h2>\n<p>So, the very first thing that you can do with your cryptocurrencies is actually the most straightforward of the bunch, as well - <strong>store them away, in a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-cold-wallet/">cold wallet<\/a> device<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Storing crypto away in a cold wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_01.jpg/" alt=\"How to use crypto: Storing crypto away in a cold wallet.\" width=\"1000\" height=\"512\" \/><\/p>\n<p>Cold wallets are special, secure hardware devices that allow you to store your crypto, usually for a longer period of time. Think of these wallets as those little safe deposit boxes that you can rent, at your local bank, and store some valuable items in. It&rsquo;s really the crypto equivalent of that!<\/p>\n<p>The so-called &ldquo;cold storage&rdquo; is actually a very popular concept, within the crypto space. With the market being so volatile, still, and multiple high-tier exchanges and other crypto services going under thanks to one scandal after the other, people are looking at alternative ways of storing and securing their assets - cold wallets are the obvious answer, for most!<\/p>\n<p>Now, admittedly, it&rsquo;s also not something that will fit every single person looking at how to use crypto. <strong>Let&rsquo;s say that you&rsquo;re a day trader<\/strong> - someone who is constantly trading cryptocurrencies, and trying to <em>&ldquo;time the market&rdquo;<\/em>, so to speak. In a situation like this, keeping your cryptocurrencies in cold wallets might not be very convenient!<\/p>\n<p>On the flip side, <strong>if you plan to hold the crypto that you&rsquo;ve bought for a long time<\/strong>, as a long-term investment, and don&rsquo;t really care about how to use Bitcoin to buy things, then cold wallets are certainly your best friend. The best example I can think of is this - imagine that you&rsquo;ve just bought an old, vintage car. It&rsquo;s absolutely gorgeous, and without a single scratch or dent in sight.<\/p>\n<p>If you plan to keep that car for a few years, as an investment, and then sell it when its price appreciates, you&rsquo;d probably store it in a designated garage, and wrap it up with multiple layers of protective materials. On the flip side, if you actually plan to drive the car, then unwrapping it every single time would simply be, well&hellip; Inconvenient!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Cold storage.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_02.jpg/" alt=\"How to use crypto: Cold storage.\" width=\"1000\" height=\"391\" \/><\/p>\n<p>The golden rule within the industry is pretty simple - <strong>you should store the majority of your assets in cold wallets, while keeping only a small amount on an exchange<\/strong>. This way, you&rsquo;ll be able to buy, sell, and trade cryptocurrencies as you please, while the bulk of your investment stays safe and sound within a hardware wallet.<\/p>\n<h2>Trading Your Crypto<\/h2>\n<p>Of course, all of what I&rsquo;ve just told you only works if you&rsquo;re in it for the long term. That might not be your goal - <strong>instead, you might want to actively trade your assets<\/strong>!<\/p>\n<p>This is the second activity of how to use Bitcoin, or any other crypto - trading. Admittedly, this is really an umbrella term - &ldquo;trading&rdquo; could mean everything from <strong>active day trading<\/strong>, where you flip crypto assets tens or hundreds of times per day, as well as <strong>passive trading<\/strong>, every few weeks, when you see an opportunity to make a potential profit.<\/p>\n<p>It&rsquo;s actually probably the most popular activity that people choose to participate in, with their cryptos! Once you have bought the coins and tokens that you want, a whole new world of opportunities opens up to you.<\/p>\n<p>In order to start trading, however, you&rsquo;ll need to <strong>spend a lot of time figuring out the intricacies of the market<\/strong>, as well as deciding on your tools, too. For example, will you perform all of your trades on centralized exchanges, or will you transfer your funds to a third-party wallet, and use the services of DEXs - decentralized exchange platforms?<\/p>\n<p>What about taxes - that&rsquo;s another headache to sort out, as well! Don&rsquo;t worry, though - if you feel like trading is the path that you want to take, but are confused about where to start, there are dedicated sections covering both <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">CEXs &amp; DEXs<\/strong><\/a>, as well as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-avoid-crypto-taxes/">crypto taxes<\/strong><\/a>, on this Crypto 101 Handbook - check them out, before you start trading!<\/p>\n<h2>Staking<\/h2>\n<p>Moving on, the third activity that you can participate in with your newly-acquired crypto assets is staking.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Staking.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_03.jpg/" alt=\"How to use crypto: Staking.\" width=\"1000\" height=\"540\" \/><\/p>\n<p>Now, staking is a whole separate can of worms, in itself. However, it&rsquo;s also a super-popular method of how to use Bitcoin (and other cryptos) to make money, strictly for the fact that you are able to <strong>earn a passive interest on the cryptocurrency that you hold<\/strong>.<\/p>\n<p>If you&rsquo;re looking to get into staking, there are a couple of things that you need to figure out, beforehand. First, <strong>there are two types of staking<\/strong> - one where you directly interact with a specific <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-staking-pool/">staking pool<\/strong><\/a>, and another, when you stake crypto on an exchange platform.<\/p>\n<p>Naturally, both have their pros and cons, as well. In the first scenario, you can stake your crypto on a pool of your choice, and do so from a designated wallet that you own. This method, however, is a bit complex, and you need to have a pretty decent understanding of staking, in general, in order to do everything properly.<\/p>\n<p>Staking crypto on exchange platforms is becoming more and more popular, as time goes on. While it&rsquo;s super-convenient, and you can find some great interest rates with the asset of your choice, some people avoid this form of staking due to the fact that you have to keep your assets on an exchange. With the multiple controversies that many exchange platforms find themselves in, you can probably see their point.<\/p>\n<p>Then, you should also know that <strong>not all cryptocurrencies can be &ldquo;staked&rdquo;, the traditional way<\/strong>. If you already own some crypto, you can just utilize a single simple google search, and find out if your coin or token is <em>&ldquo;stakeable&rdquo;<\/em>. If you&rsquo;re looking at what you can do with crypto, are interested in staking, but don&rsquo;t have any assets yet, then proper research is warranted - take the time, and look into the coins that will both bring the best staking profits, and provide the least volatility, market-wise!<\/p>\n<h2>Investing Into Different Projects<\/h2>\n<p>The penultimate method of how to use cryptocurrencies involves <strong>investing in different crypto-native projects<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Investing into different projects.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_04.jpg/" alt=\"How to use crypto: Investing into different projects.\" width=\"1000\" height=\"750\" \/><\/p>\n<p>At first glance, this might look a bit confusing - doesn&rsquo;t buying crypto constitute as <em>&ldquo;investing in a project&rdquo;<\/em>? And, yes - oftentimes, if you purchase a crypto asset, you&rsquo;re directly or indirectly investing into the underlying platform that stands behind that project.<\/p>\n<p>That being said, however, <strong>some projects only allow you to invest in them via crypto<\/strong> - meaning, you can&rsquo;t use fiat (or, traditional, government-issued) money to invest, and must instead use some popular cryptocurrency.<\/p>\n<p>This is especially true if you&rsquo;re looking to back newly-launched projects. Visiting the official websites of such platforms, you&rsquo;ll notice that investors can acquire said project tokens by trading them for <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">ETH, <a href=https://www.bitdegree.org/"//crypto//buy-tether-usdt/">USDT, or any other popular cryptocurrency, often on a decentralized exchange.<\/p>\n<p>It&rsquo;s a tad bit of a complicated process, I admit. However, if you&rsquo;re looking to invest in specific projects, you would likely take the time and study them in-depth - this would, naturally, involve their token acquisition methods, too!<\/p>\n<h2>Using Specific Services<\/h2>\n<p>Last but not least, the fifth way of how to use crypto is, admittedly, rather expansive - <strong>you can use your crypto coins and tokens to pay for certain goods and services<\/strong>!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Using specific services.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_05.jpg/" alt=\"How to use crypto: Using specific services.\" width=\"1000\" height=\"777\" \/><\/p>\n<p>If you&rsquo;ve ever wondered how to use Bitcoin to buy things, or even about what can you buy with Bitcoin, in general, this is probably the route that you&rsquo;ll want to take. As crypto is becoming increasingly more adopted by the day, more and more traditional services offer payment options with crypto coins and tokens.<\/p>\n<p>Services are just one part of the deal, though - the <em>&ldquo;what can you buy with cryptocurrency?&rdquo;<\/em> list extends to different products, as well! Nowadays, you might find shops that accept crypto payments, and deal in electronics, food items, clothing, and everything in between!<\/p>\n<p>It&rsquo;s worth mentioning that <strong>some people might find this method of how to use crypto a bit counterintuitive<\/strong>, since you would use a theoretically appreciating asset to purchase depreciating products. In other words, why would you buy a used car with your BTC coins, if the car will lose value, while BTC would likely grow and become more valuable, with time?<\/p>\n<p>This argument is mostly popular with people who consider themselves investors, however, and who are looking to gain some monetary benefits from the space. If that&rsquo;s not what you&rsquo;re about, and you&rsquo;re excited to purchase everyday items with cryptocurrency, keep in mind that, with time, the list of options is getting progressively bigger!<\/p>\n<p>This wraps up the list of the main use cases of crypto assets. Don't forget to check other sections on this Crypto 101 Handbook if you want to become a real crypto expert!<\/p>","definition":"Did you know that, nowadays, you can purchase electronics, food items, clothing, and everything in between using crypto?","status":"published","meta_title":"How to Use Crypto? 5 Key Activities","meta_description":"You've bought some Bitcoins and now you're wondering how to use crypto. Read this to find out the five main use cases of crypto assets.","meta_keywords":"how to use crypto, what is cryptocurrency used for, how to use bitcoin, what can i do with bitcoin, how to use bitcoin to buy things, how to use bitcoin to make money, how to spend crypto, what can you buy with bitcoin, what can you buy with cryptocurrency, how to use cryptocurrency","modified_content":"<p>In this section, we&rsquo;re going to talk about <strong>how to use cryptocurrency<\/strong>, once you already own it!<\/p>\n<p>Owning crypto is a very exciting prospect! In the previous sections of this Crypto 101 Handbook, we&rsquo;ve covered buying, selling, trading, swapping, and dealing with cryptocurrencies, in general. However, perhaps you&rsquo;ve caught yourself wondering - what else can I do with <a href=https://www.bitdegree.org/"//crypto//buy-bitcoin-btc/">Bitcoin, and other cryptocurrencies, too?<\/p>\n<p>Well, once you get yourself some crypto assets, a whole new world of possibilities opens up, potential activity-wise. All that&rsquo;s left to do is for you to weigh all of your options, and pick the best one!<\/p>\n<p>In this section, we&rsquo;re going to talk about how to use cryptocurrencies, and what can you do with your crypto. Specifically, we&rsquo;ll cover <strong>the 5 most notable concepts and activities that you can participate in<\/strong>, with your crypto assets, and discuss their pros and cons, too.<\/p>\n<p><em>Let&rsquo;s get to it!<\/em><\/p>\n<div class=\"container\">\n <div class=\"row justify-content-center\">\n <div class=\"col-md-10 suggested-comparisons pb-3 mb-4\">\n <div class=\"d-flex flex-row\">\n <div class=\"text-center\">\n <div class=\"img-block-yt\">\n <img src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//images//compare-crypto-exchanges.gif/"/n alt=\"How to Use Crypto? 5 Rewarding Strategies Explained (Animated)\"\n title=\"How to Use Crypto? 5 Rewarding Strategies Explained (Animated)\" class=\"border-0\">\n <p>Video Explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"col-xs-10 col-sm-10 col-md-10 text-left py-3 yt-info\">\n <h4 class=\"mb-1\">Video Explainer: You\u2019ve Got Crypto: What Can You Do With It?<\/h4>\n <p class=\"py-1 mb-0 youtube-video-subtitle\">Reading is not your thing? Watch the \"You\u2019ve Got Crypto: What Can You Do With It?\" video explainer<\/p>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div class=\"col-12 col-md-11 px-3\">\n <div class=\"wrapper mb-0\">\n <div class=\"position-relative youtube mb-4 bg-transparent p-0 video-modal-popup\" data-toggle=\"modal\"\n data-target=\"#video-modal\" data-id=\"VbtVQnCbjsg\" data-title=\"CryptoFinallyExplained\">\n <div class=\"video-gradient-top\"><\/div>\n <p class=\"text-left dyk-video-title\">How to Use Crypto? 5 Rewarding Strategies Explained (Animated)<\/p>\n <img data-srcset=\"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-use-crypto-5-rewarding-strategies-explained-animated.jpg?tr=w-420 500w,\n https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-use-crypto-5-rewarding-strategies-explained-animated.jpg?tr=w-760 1000w\"\n alt=\"How to Use Crypto? 5 Rewarding Strategies Explained (Animated)\"\n title=\"How to Use Crypto? 5 Rewarding Strategies Explained (Animated)\"\n class=\"p-0 lazyload\">\n <img class=\"play-button lazyload\" data-target=\"#video-modal\"\n data-src=\"https:\/\/assets.bitdegree.org\/crypto\/assets\/video-button.png?tr=w-85\"\n alt=\"How to Use Crypto? 5 Rewarding Strategies Explained (Animated)\">\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <div class=\"row justify-content-center text-center\">\n <div>\n <a href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n class=\"btn yt-promo mb-2\" target=\"_blank\" rel=\"nofollow noopener noindex\">\n <div class=\"row justify-content-center align-items-center mx-0 text-center\">\n <div class=\"col-4 col-md-4\">\n <i class=\"fab fa-youtube yt-dyk-btn\"><\/i>\n <\/div>\n <div class=\"col-8 col-md-8 text-center yt-promo-text\">\n <h4 class=\"m-0 text-white\">SUBSCRIBE<\/h4>\n <span>ON YOUTUBE<\/span>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n<\/div>\n<div class=\"modal fade\" id=\"video-modal\" tabindex=\"-1\" role=\"dialog\">\n <div class=\"modal-dialog modal-dialog-centered modal-lg\" role=\"document\">\n <div class=\"modal-content\">\n <div class=\"modal-body p-0\">\n <button type=\"button\" class=\"video-modal-close close\" data-dismiss=\"modal\" aria-label=\"Close\">\n <i aria-hidden=\"true\" class=\"fas fa-times\"><\/i>\n <\/button>\n <div id=\"iframe\"><\/div>\n <\/div>\n <a class=\"text-decoration-none\"\n href=https://www.bitdegree.org/"https:////www.youtube.com//c//CryptoFinallyExplained?sub_confirmation=1\%22\n rel=\"nofollow noopener noindex\" target=\"_blank\">\n <div class=\"modal-footer p-0 d-block bg-white\">\n <div class=\"row justify-content-center m-0\">\n <div class=\"col-3 col-md-4 col-lg-2 p-0\">\n <img class=\"w-100 h-100\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//assets//crypto-subscribe.jpg/" alt=\"Subscribe\">\n <\/div>\n <div class=\"col-9 col-md-8 col-lg-2 px-0 d-flex\">\n <div class=\"modal-subscribe w-100\">\n <p class=\"m-0 mt-1 mr-3\">SUBSCRIBE<br>\n <span class=\"m-0\">ON YOUTUBE<\/span>\n <\/p>\n <\/div>\n <\/div>\n <div class=\"col-12 col-md-12 col-lg-8 p-0 text-center d-flex justify-content-center align-items-center\">\n <div class=\"modal-subscribe-text\">\n <h4 class=\"m-0\">Understand crypto with ease<\/h4>\n <span>New explainer videos every week!<\/span>\n <\/div>\n <\/div>\n <\/div>\n <\/div>\n <\/a>\n <\/div>\n <\/div>\n<\/div>\n<h2>Storing Crypto Away in a Cold Wallet<\/h2>\n<p>So, the very first thing that you can do with your cryptocurrencies is actually the most straightforward of the bunch, as well - <strong>store them away, in a <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-cold-wallet/">cold wallet<\/a> device<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Storing crypto away in a cold wallet.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_01.jpg/" alt=\"How to use crypto: Storing crypto away in a cold wallet.\" width=\"1000\" height=\"512\" \/><\/p>\n<p>Cold wallets are special, secure hardware devices that allow you to store your crypto, usually for a longer period of time. Think of these wallets as those little safe deposit boxes that you can rent, at your local bank, and store some valuable items in. It&rsquo;s really the crypto equivalent of that!<\/p>\n<p>The so-called &ldquo;cold storage&rdquo; is actually a very popular concept, within the crypto space. With the market being so volatile, still, and multiple high-tier exchanges and other crypto services going under thanks to one scandal after the other, people are looking at alternative ways of storing and securing their assets - cold wallets are the obvious answer, for most!<\/p>\n<p>Now, admittedly, it&rsquo;s also not something that will fit every single person looking at how to use crypto. <strong>Let&rsquo;s say that you&rsquo;re a day trader<\/strong> - someone who is constantly trading cryptocurrencies, and trying to <em>&ldquo;time the market&rdquo;<\/em>, so to speak. In a situation like this, keeping your cryptocurrencies in cold wallets might not be very convenient!<\/p>\n<p>On the flip side, <strong>if you plan to hold the crypto that you&rsquo;ve bought for a long time<\/strong>, as a long-term investment, and don&rsquo;t really care about how to use Bitcoin to buy things, then cold wallets are certainly your best friend. The best example I can think of is this - imagine that you&rsquo;ve just bought an old, vintage car. It&rsquo;s absolutely gorgeous, and without a single scratch or dent in sight.<\/p>\n<p>If you plan to keep that car for a few years, as an investment, and then sell it when its price appreciates, you&rsquo;d probably store it in a designated garage, and wrap it up with multiple layers of protective materials. On the flip side, if you actually plan to drive the car, then unwrapping it every single time would simply be, well&hellip; Inconvenient!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Cold storage.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_02.jpg/" alt=\"How to use crypto: Cold storage.\" width=\"1000\" height=\"391\" \/><\/p>\n<p>The golden rule within the industry is pretty simple - <strong>you should store the majority of your assets in cold wallets, while keeping only a small amount on an exchange<\/strong>. This way, you&rsquo;ll be able to buy, sell, and trade cryptocurrencies as you please, while the bulk of your investment stays safe and sound within a hardware wallet.<\/p>\n<h2>Trading Your Crypto<\/h2>\n<p>Of course, all of what I&rsquo;ve just told you only works if you&rsquo;re in it for the long term. That might not be your goal - <strong>instead, you might want to actively trade your assets<\/strong>!<\/p>\n<p>This is the second activity of how to use Bitcoin, or any other crypto - trading. Admittedly, this is really an umbrella term - &ldquo;trading&rdquo; could mean everything from <strong>active day trading<\/strong>, where you flip crypto assets tens or hundreds of times per day, as well as <strong>passive trading<\/strong>, every few weeks, when you see an opportunity to make a potential profit.<\/p>\n<p>It&rsquo;s actually probably the most popular activity that people choose to participate in, with their cryptos! Once you have bought the coins and tokens that you want, a whole new world of opportunities opens up to you.<\/p>\n<p>In order to start trading, however, you&rsquo;ll need to <strong>spend a lot of time figuring out the intricacies of the market<\/strong>, as well as deciding on your tools, too. For example, will you perform all of your trades on centralized exchanges, or will you transfer your funds to a third-party wallet, and use the services of DEXs - decentralized exchange platforms?<\/p>\n<p>What about taxes - that&rsquo;s another headache to sort out, as well! Don&rsquo;t worry, though - if you feel like trading is the path that you want to take, but are confused about where to start, there are dedicated sections covering both <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//dex-vs-cex/">CEXs &amp; DEXs<\/strong><\/a>, as well as <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//how-to-avoid-crypto-taxes/">crypto taxes<\/strong><\/a>, on this Crypto 101 Handbook - check them out, before you start trading!<\/p>\n<h2>Staking<\/h2>\n<p>Moving on, the third activity that you can participate in with your newly-acquired crypto assets is staking.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Staking.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_03.jpg/" alt=\"How to use crypto: Staking.\" width=\"1000\" height=\"540\" \/><\/p>\n<p>Now, staking is a whole separate can of worms, in itself. However, it&rsquo;s also a super-popular method of how to use Bitcoin (and other cryptos) to make money, strictly for the fact that you are able to <strong>earn a passive interest on the cryptocurrency that you hold<\/strong>.<\/p>\n<p>If you&rsquo;re looking to get into staking, there are a couple of things that you need to figure out, beforehand. First, <strong>there are two types of staking<\/strong> - one where you directly interact with a specific <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//learn//crypto-terms//what-is-staking-pool/">staking pool<\/strong><\/a>, and another, when you stake crypto on an exchange platform.<\/p>\n<p>Naturally, both have their pros and cons, as well. In the first scenario, you can stake your crypto on a pool of your choice, and do so from a designated wallet that you own. This method, however, is a bit complex, and you need to have a pretty decent understanding of staking, in general, in order to do everything properly.<\/p>\n<p>Staking crypto on exchange platforms is becoming more and more popular, as time goes on. While it&rsquo;s super-convenient, and you can find some great interest rates with the asset of your choice, some people avoid this form of staking due to the fact that you have to keep your assets on an exchange. With the multiple controversies that many exchange platforms find themselves in, you can probably see their point.<\/p>\n<p>Then, you should also know that <strong>not all cryptocurrencies can be &ldquo;staked&rdquo;, the traditional way<\/strong>. If you already own some crypto, you can just utilize a single simple google search, and find out if your coin or token is <em>&ldquo;stakeable&rdquo;<\/em>. If you&rsquo;re looking at what you can do with crypto, are interested in staking, but don&rsquo;t have any assets yet, then proper research is warranted - take the time, and look into the coins that will both bring the best staking profits, and provide the least volatility, market-wise!<\/p>\n<h2>Investing Into Different Projects<\/h2>\n<p>The penultimate method of how to use cryptocurrencies involves <strong>investing in different crypto-native projects<\/strong>.<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Investing into different projects.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_04.jpg/" alt=\"How to use crypto: Investing into different projects.\" width=\"1000\" height=\"750\" \/><\/p>\n<p>At first glance, this might look a bit confusing - doesn&rsquo;t buying crypto constitute as <em>&ldquo;investing in a project&rdquo;<\/em>? And, yes - oftentimes, if you purchase a crypto asset, you&rsquo;re directly or indirectly investing into the underlying platform that stands behind that project.<\/p>\n<p>That being said, however, <strong>some projects only allow you to invest in them via crypto<\/strong> - meaning, you can&rsquo;t use fiat (or, traditional, government-issued) money to invest, and must instead use some popular cryptocurrency.<\/p>\n<p>This is especially true if you&rsquo;re looking to back newly-launched projects. Visiting the official websites of such platforms, you&rsquo;ll notice that investors can acquire said project tokens by trading them for <a href=https://www.bitdegree.org/"//crypto//buy-ethereum-eth/">ETH, <a href=https://www.bitdegree.org/"//crypto//buy-tether-usdt/">USDT, or any other popular cryptocurrency, often on a decentralized exchange.<\/p>\n<p>It&rsquo;s a tad bit of a complicated process, I admit. However, if you&rsquo;re looking to invest in specific projects, you would likely take the time and study them in-depth - this would, naturally, involve their token acquisition methods, too!<\/p>\n<h2>Using Specific Services<\/h2>\n<p>Last but not least, the fifth way of how to use crypto is, admittedly, rather expansive - <strong>you can use your crypto coins and tokens to pay for certain goods and services<\/strong>!<\/p>\n<p><img style=\"display: block; margin-left: auto; margin-right: auto;\" title=\"How to use crypto: Using specific services.\" src=https://www.bitdegree.org/"https:////assets.bitdegree.org//crypto//storage//optimized//how_to_use_crypto_05.jpg/" alt=\"How to use crypto: Using specific services.\" width=\"1000\" height=\"777\" \/><\/p>\n<p>If you&rsquo;ve ever wondered how to use Bitcoin to buy things, or even about what can you buy with Bitcoin, in general, this is probably the route that you&rsquo;ll want to take. As crypto is becoming increasingly more adopted by the day, more and more traditional services offer payment options with crypto coins and tokens.<\/p>\n<p>Services are just one part of the deal, though - the <em>&ldquo;what can you buy with cryptocurrency?&rdquo;<\/em> list extends to different products, as well! Nowadays, you might find shops that accept crypto payments, and deal in electronics, food items, clothing, and everything in between!<\/p>\n<p>It&rsquo;s worth mentioning that <strong>some people might find this method of how to use crypto a bit counterintuitive<\/strong>, since you would use a theoretically appreciating asset to purchase depreciating products. In other words, why would you buy a used car with your BTC coins, if the car will lose value, while BTC would likely grow and become more valuable, with time?<\/p>\n<p>This argument is mostly popular with people who consider themselves investors, however, and who are looking to gain some monetary benefits from the space. If that&rsquo;s not what you&rsquo;re about, and you&rsquo;re excited to purchase everyday items with cryptocurrency, keep in mind that, with time, the list of options is getting progressively bigger!<\/p>\n<p>This wraps up the list of the main use cases of crypto assets. Don't forget to check other sections on this Crypto 101 Handbook if you want to become a real crypto expert!<\/p>","youtube_video":{"id":46,"channel_id":1,"sort":50,"video_title":"How to Use Crypto? 5 Rewarding Strategies Explained (Animated)","description":"How to use crypto after you acquire some coins or tokens?\n\nOnce you make your first crypto acquisition, you\u2019re now part of the exclusive club of crypto owners - welcome! However, what\u2019s next - specifically, how to use your newly-acquired crypto, and what can you buy with Bitcoin, Ethereum, and other assets?\n\nIn this video, I will answer the questions of what is cryptocurrency used for, and tell you about the 5 main methods of how to use cryptocurrencies. I will also outline the benefits and shortcomings of each, so that you would be able to figure out if either of them fits your wants and needs.\n\nDo you have any tips on how to use crypto, or what can people buy with Bitcoin? Share them, in the comment section below!\n\nVideo Time Table:\n\n0:00 Introduction to How to Use Crypto\n0:58 Storing Your Crypto in a Cold Wallet\n2:56 Trading Your Crypto\n3:56 Staking Crypto\n5:28 Investing Into Crypto Projects\n6:38 Using Specific Services\n7:50 Wrap-up: How to Use Crypto?\n\nGet Quick Crypto Tips on Twitter - Follow:\nhttps:\/\/twitter.com\/crypto_xplained\n\n#HowtoUseCrypto #WhatisCryptocurrencyUsedFor #HowtoUseBitcoin","video_id":"VbtVQnCbjsg","duration":490,"view_count":235,"thumbnail_url":"https:\/\/assets.bitdegree.org\/youtube\/crypto-finally-explained\/how-to-use-crypto-5-rewarding-strategies-explained-animated.jpg","thumbnail_width":1280,"thumbnail_height":720,"published_at":"2023-01-05T16:23:05.000000Z","created_at":"2023-01-05T23:00:05.000000Z","updated_at":"2024-01-09T23:00:04.000000Z","channel":{"id":1,"title":"CryptoFinallyExplained","channel_id":"UCOryUY0yxC08eJtK23mNgiA","main_playlist_id":"UUOryUY0yxC08eJtK23mNgiA"}},"featured_image":{"id":3075,"uuid":"983e4d8d-2ade-4155-be94-b9380a5565ad","name":"how-to-use-crypto-featured-image.jpg","url":"https:\/\/assets.bitdegree.org\/crypto\/storage\/optimized\/how-to-use-crypto-featured-image.jpg","path":"crypto\/storage\/optimized\/how-to-use-crypto-featured-image.jpg","mime_type":"image\/jpeg","disk":"digitalOceanSpaces","size":35794,"width":768,"height":478,"custom_properties":null,"created_at":"2023-06-19T06:58:39.000000Z","updated_at":"2023-06-19T06:58:39.000000Z"}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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Contracts?","status":"published","modified_content":null},{"chapter_id":6,"order":7,"slug":"what-is-a-dao-in-crypto","title":"The Notion of a Decentralized Autonomous Ogranization (DAO)","status":"published","modified_content":null},{"chapter_id":6,"order":8,"slug":"what-is-staking-in-crypto","title":"What is the Goal of Staking Crypto Assets?","status":"published","modified_content":null},{"chapter_id":6,"order":9,"slug":"what-is-liquidity-pool-in-crypto","title":"What is a Liquidity Pool and How Does It Work?","status":"published","modified_content":null},{"chapter_id":6,"order":10,"slug":"what-is-automated-market-maker","title":"Automated Market Maker: the Cornerstone of the Decentralized Crypto Exchange Industry","status":"published","modified_content":null},{"chapter_id":6,"order":11,"slug":"what-is-yield-farming-in-crypto","title":"The Main Yield Farming 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Tokens?","status":"published","modified_content":null},{"chapter_id":8,"order":5,"slug":"how-to-research-crypto","title":"Crypto Research Fundamentals & Social Signals: Your Daily Trading Strategy","status":"published","modified_content":null},{"chapter_id":8,"order":46,"slug":"portfolio-diversification-definition","title":"Portfolio Diversification: The Whats, the Whys, and the Hows","status":"published","modified_content":null}]},{"id":9,"title":"Mining","slug":"mining","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-mining.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-mining-101.jpg","rating":80,"sections":[{"chapter_id":9,"order":1,"slug":"what-is-crypto-mining","title":"Crypto Mining: What It is and How Does It Work?","status":"published","modified_content":null},{"chapter_id":9,"order":2,"slug":"what-is-a-mining-pool","title":"Mining Pools: Is Collective Mining Better Than Solo Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]" current-chapter="crypto-exchanges" current-section="how-to-use-crypto">