What is Cryptocurrency Used For?

Steve Ballinger, MBA
A free video tutorial from Steve Ballinger, MBA
Millionaire Investor|Stocks|Cryptocurrency|Teaching 293,000+
4.4 instructor rating • 25 courses • 295,804 students

Learn more from the full course

Cryptocurrency: Complete Bitcoin, Ethereum, Altcoins! (8 HR)

Bitcoin & Other Cryptocurrency Is Growing Fast. Master Cryptocurrency Use & Successful Investing In Bitcoin & Altcoins!

08:04:20 of on-demand video • Updated January 2018

  • Use cryptocurrency like Bitcoin and others for your personal use.
  • Choose and setup your cryptocurrency wallet to hold your digital coins.
  • Evaluate and choose an exchange that fits your trading needs.
  • Invest in cryptocurrency with confidence and apply successful strategies and techniques.
  • Build your own cryptocurrecny portfolio that matches your risk tolerance.
  • Apply Fundamental and Technical Analysis (Charting) when choosing individual coins to invest in.
English [Auto] So what is cryptocurrency use for. I mean it's no good if you can't use it. Right. And particularly as far as investors you want to make sure it's something that's used in news regularly because if not you know it won't have any value and won't rise in value. So really good for me in ways that cryptocurrency is use its use for personal spending certainly use for trading and investing. I think that's what most folks in this course are looking at. You're looking at crowdfunding are helping to finance businesses and for charitable giving as well. Cryptocurrency because of those easy transactions and those worldwide transactions are really good. All for these areas and really some strong benefits from benefits from there. So let's take a look at each of these four areas pretty quickly here. So first off personal spending so you can use Crypta you can use cryptocurrency to purchase almost anything a particular bitcoin because that was first they had the first mover advantage and they're really the leader in there so far as the purchasing power or ease of use of purchasing and spending Bitcoin really stands out. But others will catch up. But bitcoin is for sure the leader as far as using it for personal spending at least at this point in time. And you can use it to buy products or services or use it for travel and the list is growing all the time. And this is also from the investor standpoint the more the list grows and the more people get comfortable in using it the more established it'll be the better all before us as investors think about credit cards. Way back when you know Visa MasterCard American Express These are companies so to invest in those companies people have to think like is this going to work out or people could use these credit cards. And if they do well then there's some great potential there. Same thing for us for investors. We want people to use it for personal spending. And we want that the list to grow. And here's a couple of examples of some companies that use cryptocurrency for her personal spending particularly Bitcoin and things like Wordpress like Web sites or stock dotcom was really one of the early leaders in this too. So Overstock Virgin Galactic cheap error. Expedia is well-known to use as far as online travel booking and this also can vary by where you live too. They might not offer it in every country but in many countries and you can use your regular currency or you might use something like let's say Bitcoin. But here's some of the early folks that are using it. Some more folks buying gift cards and who's going to buy gift cards Dell steam the gaming platform paying where you live once again. People use bitcoins in there and even some local places are starting to do that too like a pub in London. I'm going to butcher the Nemer Pembury tavern or the FULDE Fitzroy in Australia. You know these are places that can use bitcoins which is kind of unusual. So the more that these places use bitcoin at the local level the better it is for everyone member was crazy to use credit cards that so long ago. And now we at Apple and Google pay. And these are relatively new technologies as well. It's all fulfilling that need and all make it easier for consumers. So once again we're early stages here with these cryptocurrency is really still. And so it's an emerging type market another area where beyond personal spending is of course trading you know people say ah I want to make some money off these currencies just like I could you know hold dollars or hold euros and then trade them and sell them and you know every day the value of the dollar or the euro or the rupee water changes in comparison to other currencies up and down. Same thing with cryptic currencies they all change in relation to each other and relations to these fiat currencies because you can trade these currencies for these crypto currencies for other crypto currencies. But you could also trade them for fiat currency as well. Like I could trade my bitcoins in for dollars or or rupees or whatever it might be. So trading isn't my idea of being very profitable for both professionals but also beginners. I mean is the whole idea right. If you invest in a mutual fund or exchange traded fund you're investing you may not be actively trading you might be buying certain products and maybe you're trading or sudden those products periodically so that's in effect trading trading or investing is a key part of it. Of cryptocurrency as well. I suspect many of you are here because of that aspect primarily obviously and because of the growth areas for this so cryptocurrency is good for buy and hold investors where you buy cribber crates and then hold it for a long time through ups and downs because they have wide swings cryptocurrency very volatile a lot a lot of swings up and down. But if you hold through a period of time the idea is that you buy and you hold it you know grow over time and then years down the road you might solve McChrystal currency cuz of that constant motion that constant volatility in this period of time is also good for folks that would call daytraders people who are watching the markets constantly throughout the day and they're kind of moving in and out of positions all the time and trying to get a little bit that margin on each trade. So it's good for the traders as well too. So whether you want to be a day trader buy and hold type investor it can work for both of you. The thing is the market is new. You know it's a really new and emerging market. And so there's lots of opportunities for taking advantage of the margin on the small trades or the buy hold investor and it's been trading becoming more widely available too. And that's a good thing too because more people come into the market. You know more people to trade with that helps you know established a market. It also helps to grow the market as the growth of demand of the market and growth and demand for our particular cryptocurrency is good for us as maybe an early investor and I can say by looking at this course right now today as is still a relatively early investor in crypto currencies maybe a little less so with like Bitcoin has been a little bit more established but still real real new. And there are new currencies coming out every single day. It's crazy it's coming all the time. There's lots of opportunity as horse traders. If you're looking at some of them that might be volatile but an emerging in maybe an exciting market for you. The thing with trading is they have this very little barrier to entry right. You can go and you can go out and buy Bitcoins will show you how to buy Bitcoins through a wallet system or exchange or even hate him and crypto currencies are global types currencies that can be done very fast and easy to think about. Before we had technology and stuff how hard it might be to do trading of dollars and rupees in euros and all that with all this currency you know now we can do that much more faster with technology and cryptocurrency builds on top of that builds on top of that with a decentralized network with the block chain so global transactions are fast and easy and they can be propagated or be you know be reflected in the network within minutes evading people who would complain like I sometimes takes me 10 minutes or my confirmation in which they were even faster and some are within seconds. Right. You know so it shows how fast it really really is because think about it's virtual currency. But on top of a peer to peer network so it can be very very fast so you can get in and out of positions quickly if you want to or buy hold it for a long period of time. And then when you want to sell it's very liquid or what we call liquidity. You can sell it real easily. It's not like selling a house that might take a month or two to sell. You can do it within seconds and get out of something and then use that money somewhere else. More investing or by something like a car or house or something nice buy something nice for yourself with big garden or whatever. So the currencies have a monetary properties too from a trading standpoint is there is a controlled supply. And so by controlling the supply and how we decentralize you know has the opportunity for the value to rise over time. You know governments responsible governments control supply too that's what's called monetary supply or monetary policy. But you know sometimes governments need to print money for whatever reason and when they do that devalues the current money that people have. So you know by limiting crypto currencies we have the ability for a rise in prices which we bought low and we can maybe then sell high I need to have more control too. I mean you own the currency it's your money it's in your account and you decide what you want to trade for you decide if you want to hold it. You decide if you want to get in or you want to get out you are part of the system. You are a key part of the system you are the system in effect. We're all part of the system. I mean think about that versus really good products out there like exchange traded funds or mutual funds actively traded mutual funds where you have a fund manager who makes those decisions for you you buy the fund and then they make all the trading decisions or maybe you have a broker who buys and sell stocks for you. You know they're making decisions they may consult with you but really they're making decisions they're watching it for you with cryptocurrency you're in charge. That's good and bad. But if you are in charge it's good that you're in control but might seem a little scary to know where we're going to learn some stuff here. We learned it here pretty quick here about some ways to become better investors with cryptocurrency but it certainly is a key way that people use cryptocurrency and as underpinning of an additional personal spending of why cryptocurrency is here to stay. Why it's established and why it's growing and new currencies are coming all the time. So with that new currency coming all the time too by the way there's big potential for boom and bust right. There's you know a boom and bust type type of aspect to it especially as new ones come in might be great. And then they go down and they kind of Boster whatever you know very similar to like the Internet you know the dawn of the hundred years and years ago you know we had companies that really came up quickly and became well established. And you had others that were less so. And you hear stories about like like here's one of this Eric Feynman guy who is a teenage Bitcoin miliary bottom back in 2011 right way back. And there were 12 bucks and now they've grown you know so much more and he's a million a million multimillionaire probably now with bitcoin so right you buy early and then Boy look at what happens to a and what is the next Bitcoin. It might be a theory and that's where he's got a lot of talk or there might be another alternative corner of coin that's out there wonder. Remember New coins are coming all the time. We'll talk about different coins here in a moment. Understand sometimes there's opportunities for riches but there's also a lot of opportunities for scams and get rich quick schemes to see just got to be careful. But our standard trading is a real key component of it. Last two components are crowdfunding and charitable giving. Crowdfunding you probably heard the crowdfunding systems and things like Kickstarter campaigns to help you know get donations and money for maybe a business that wants to get off the ground instead of going to a venture capitalist or a bank. You know they go out to the people they go out to the wider net out there and they get people to send them money through these crowdfunding services. Well Bitcoin and crypto currencies are a nice way to easily and with less fees. Send money to these crowdfunding things or for charitable giving same kind of thing you're still donating to a cause whether it's a business or traditional charity you're donating money to help these organizations out because I have an interest in these organizations are you really like these are organizations you know might be helping make our world world a better place for example. So if you don't go through these systems you know you can have it actually set up through the type of cryptocurrency like you were talking with some critic currencies where you could put some controls on it. You know your donation funds won't be released until they meet the criteria. You know you can do things like that we can set up that way like I will donate but I'm not going to have my money actually go to you or be released until you get to this stage in a project for a crowdfunding campaign or I'm not or until you maybe raise enough from other people with the charitable giving campaign. You don't have to. But the advantage of cryptocurrency is it can give you those types of controls depending on the cryptocurrency depending on the arrangement out there. But otherwise it's just easy to send money around to anyone in the world you know really you can send it to anyone in the world and you can send it instantaneously and there's no middleman and there's no excessive fees or anything that might be some fees depending on if you use an exchange or something. But there's no banks or things adding on costs into the system itself. So it's a great way to maybe help fund somebody in another side of the planet that you are really interested in. From a business or from a charitable giving type thing or could be an individual person it could be a family member it can be a friend. And the easy way to transfer money back and forth so suddenly that anywhere in the world other couple of benefits too is includes everyone in the financial system so not only people have access to modern day banking but really anywhere in the system that you can get an internet connection or you can get a connection and you can be able to send money around the world to without having to establish a bank account or really be you know really in deep in the financial system that's really really exciting. You know that's you know so many folks don't have access to that across the world. And you think by now they can have access that they can access those funds. They can be a part of the world where banking might be a little bit more maybe incorrupt or might be a little bit more suspect or harder to participate in or there's fees or corruption or whatever. Now they can use things through a cryptocurrency to get funding for themselves that might help them with their new business new venture or just to get money transferred. So anybody can be part of the financial system using cryptocurrency and you can build on top of this block chain and really change the way that we use and interact with money. And we can use it for just typical currency exchanges are buying things we can use for trading or we can use it for a lot of different ways and building on top of that block chain and using that technology. And really that's sort of the last part is that decentralized network where you can start building and things like smart contracts or building and framework for applications that go beyond just the actual currency or monetary aspect. But you can be investing using types of crypto currency that are designed to work within these certain applications are designed to work within a subset of let's say the economy and you can really kind of participate in that and use these types of coins to really narrow your field there and really narrow that part of the economy to coins that work within a specific field versus something like let's say Bitcoin that has universally in it's designed to be a worldwide currency. Other currencies like your theory are designed to be built on top of things and can be have more framework and there's others that are really these alterum term coins all coins that are really specific to things like you know gaming health care all sorts of things that are out there. So there's a lot of uses and a lot of benefits to cryptocurrency. And remember for us as owners of cryptocurrency they have value and we would like to have that value go up even if we're not an active trader just like if you own your own home currency you know fiat currency you know the currency goes up and down in value and if you travel on the value of your currency is less you know then you won't have as much buying power. Maybe if you're traveling to another country. Same thing with cryptocurrency. We want that value to rise because we want to get if we're not actively trading or an active investor we still own that money. It's still money it still has value. We want to exceed inflation all that too. And so these benefits and the fact that people are using it is real real critical and we want to see that grow and we when we invest in particular cryptocurrency we're looking at adoption rates of those currencies and how much they're growing How much are being used is a critical factor in that. And then looking for some you know possibly some new stars that might may come up because of the way they've designed their cryptocurrency they'll lead to adoption lead to use and really deliver a tangible benefit. So lots of great uses for crypto currency and you should you know how you use it it's up to you. But there's a great ways from personal spending to trading to charitable giving. A lot of great ways and in a lot of great ways that cryptocurrency can be used and adopted.