Benefits Of Having Digital Currency in Your Portfolio
Diversification, Real World use cases, return on investment
Of course you should diversify your assets, that goes without saying. Many people have a portion of their wealth in digital currency because it offers unique opportunities, albeit with some risk.
If you are considering doing this, you should understand not only how it works so you can manage risk, but also what applications it can be used for in the real world so you can see why it has value.
Actual and Theoretical Uses of Blockchain Technology
- Direct payments - nearly free and instant, cross-border, available 24/7/365
- Self custody wealth storage
- Control and ownership of your digital identity and personal information
- Track shipments through the supply chain and verify authenticity of high value items
- Prove ownership and transfer rights to physical goods
- Automated micropayments integrated with website browsers for fair and direct compensation to content creators, open source developers, news organizations, etc.
- Simpler ticketing platforms for live events - control abusive scalping
- Own and control your own health records, allow access as you deem necessary
- New voting, polling, and election systems
- Digital collectibles and video game integration
- Cheaper and transparent trading of securities, bonds, commodities, etc.
- Increased access for regular people to investments normally reserved for high net worth individuals and organizations
- Personalized marketing, tailored consumer experiences, unique customer engagement opportunities
- Fair and transparent online gambling platforms
- Proof of collateral reserves by financial service providers
- Holding governments and public organizations to higher standards of honesty and preventing fraud and corruption
Generate Income and Participate in the Crypto Ecosystem
Now that there is a robust infrastructure of many proven blockchain networks with a vast array of strengths and capabilities, the next big step forward will be to improve the user experience.
As this happens, and it is currently underway, it becomes easier and more intuitive for casual users to interact with the blockchain. And most of these tools can generate returns and earn rewards for the user.
What this means is that there are several ways to earn a return on the digital assets that you hold, even without exchanging them for government-backed currencies. But this must be done with knowledge of best practices in order to mitigate the risks involved. Some of these techniques include:
- Staking
- Yield farming
- Providing liquidity
- Air drops
- Delegating