After finally taking the plunge into the next revolution of the financial world, you might wonder how to best use, invest and trade the cryptocurrency you have. Here are 5 lesser-known ways that you can wisely spend your new virtual currency!
- Using Crypto for Payments
Probably the most common use case for crypto is the ability users have to send and receive virtual money from one end of the world to the other, in an easy and secure manner because of the blockchain encryption. Even major players in the fintech market like PayPal have made moves to integrate crypto into their business model to accept it as an online currency. Airlines like Emirates and luxury brands such as Hublot are also doing the same, legitimizing this online currency more and more each day. Basically, Web 3.0 wallets can be used to purchase anything that supports it, such as through Ethereum.
Apart from this, companies are elevating their services to enable familiar functionalities into the world of crypto. One such example is exeno, a leading crypto commerce platform that is introducing its own cryptocurrency - exeno coin (EXN). In the near future, EXN will enable additional services such as a Stake Back program (a cashback program but with crypto), and referral programs. These all help users maximize the crypto they already have, even gaining something back.
- Investing in the Metaverse
Another new trend in the digital world that's heavily anticipated is the development of the metaverse. This is on Web 3.0 landscape, promising an interactive virtual world accessible through virtual reality headsets and our own devices. This 3D environment uses artificial intelligence, and the intellect of many creators and programmers to bring AR, VR, and XR together, allowing each user to interact with each other and experience offline activities, online.
Virtual real estate has recently emerged as one of the more prominent investment opportunities in the metaverse. By using your cryptocurrency, you will be able to purchase NFTs and virtual land on metaverse platforms. Many companies are investing millions in shares of virtual land. Recently, an NFT project known as Pavia sold out almost 60% of the total 100,000 lots of virtual land.
The Sandbox and Facebook Metaverses are such examples taking this concept by storm. To elaborate how far, Sandbox has already partnered with esteemed organizations such as Adidas, Hell's Kitchen, The Walking Dead, Idols like Avenged Sevenfold and Snoop Dogg, and more. It also has its own utility token and scheme for you to create and monetize your own land, selling such virtual real estate in the metaverse.
- Decentralized Autonomous Organizations (DAOs)
The world of crypto can sometimes be overwhelming, and that's exactly why DAOs exist. These are effectively like an online community-based digital ledger that brings together like-minded people to collectively manage and own the organization, keeping all financial transaction records and program rules transparent yet securely stored via blockchain.
To become a member means being a part of this digital fund management system, opening up avenues to invest your own tokens in projects undertaken by and voted for on the DAO system. Some examples of using a DAO include:
- Charities - accepting memberships and donations across the globe and thereafter utilizing the funds accordingly for projects.
- Freelancer Networks - creating a contractor network for pooling of funds for office spaces, software team subscriptions, and more.
- Ventures and Grants - making a venture fund to collect investment capital and enable donors to vote on which projects to undertake, allowing for returns to be paid via the DAO network to members.
DASH, BitShares, and MakerDAO are examples of DAOs that allow you to be a part of this online community.
- Utility-backed NFTs
While you may have already heard of non-fungible tokens (NFTs), utility-backed NFTs take this concept a step further. A utility NFT can be a physical version of the digital NFT that they purchased, matching it in a perfectly tangible form. So with regards to art, you will be able to purchase not just the digital NFT but also receive a physical version of the piece. This also extends to more than just art, utility NFTs can also include unique access passes to events, exclusive memberships or in-game purchases. Gary Vee's Veecon is an ideal example of a utility NFT that provides access to such events.
Utility NFTs play a big role in bridging the gap between the virtual and the physical worlds in the metaverse. Through such NFTs, fashion and luxury items can also be brought into the metaverse, even enabling insight into the details of product tracking.
- Invest in Companies https://bit.ly/3bdpGHz
Many forward thinking companies that are integrating crypto into their business model are taking leaps to be a part of the conversation through Initial Coin Offerings (ICO). An ICO, in familiar terms, is like an Initial Public Offering (IPO), which allows people to invest in a company as it raises funds for a certain purpose. Generally, organizations put up ICOs for products and services related to cryptocurrency. While doing this, their project tokens (much like shares) would go on sale for investors to buy into the project. For example, exeno is currently in its pre-sale phase of its ICO.
To keep people informed about their projects, they would release, and constantly update a whitepaper, encouraging investors to look deeper into the purpose and plan behind the ICO. The primary benefit of ICOs is the high potential of return, as investors are motivated by the likelihood of the token gaining value after its launch. This being said, ICOs come with their own set of risks, so in response the SEC launched the Howey Test that helps investors classify whether their investment counts as security.
Concluding Remarks
As we can see, the use for crypto can be much more than just fund transfers and buying NFTs. This digital asset is quickly growing to bridge the physical and virtual worlds. As we can see through DAOs, purchasing of virtual lands, utility NFTs, stake-back programs, and ICOs - more and more entrepreneurs are finding ways to continue drawing comparisons between the real and virtual worlds, bringing familiar concepts to life to push the adoption of cryptocurrency. This financial technology is certainly developing at much greater speeds than one can keep track of, so best is to stay alert, stay informed, and stay invested!
