How to make transactions using cryptocurrencies
As one gets deeper inside the cryptocurrency universe, one can check out how versatile they are and the amount of operations that can be managed with them. International currency transfers, loans among private individuals, investing in projects in the other side of the world, or even purchases and sales of goods and services are some of the many possibilities they offer.
If you’re new to this world and aren’t totally accustomed to using them yet, maybe the way of use isn’t totally clear for you. Cryptocurrencies mean a whole new concept when compared to fiat money, that is, currencies you usually handle in your daily life (euros, dollars, etc). The way of managing them is different, although ultimately the processes involved are rather simple.
Knowing properly their working features is important to avoid any possible problem. That’s why we at Davies want to provide you with the basics to be sure that your transactions with cryptocurrencies are fast, reliable and safe. Keep reading and note down the most important parts!
Which operations can you perform if you own cryptocoins
Among the many ways of making transactions with cryptocurrencies, these are some of the most usual:
- Buying and selling coins.
Obviously, this is the basic operation you have to master. Indeed, it’s indispensable for any other, because, no matter how obvious it sounds, you need to actually have cryptocoins in order to make transactions with them. There are several ways to acquire cryptocurrencies; some of them, like Davies, provide their own platforms, which can be accessed both from webpages and from mobile device apps in Android and iOS.
In other cases, you may get them through specialized sites such as STEX, where the different currencies are listed just like any other currency and their price varies. With all these formulas you’ll be able to buy, and then perform other operations, or to sell if you notice that the price has risen and you can obtain some profit for them compared to what you had invested.
When buying them, either via credit card or bank transfer, they’ll be stored in a virtual wallet; some currencies (Davies among them) offer their own, but you still have the possibility of using another one if you prefer. In any case, don’t forget that sometimes you may find limits on the amount of cryptocoins you can purchase or sell in a single day.
- Transfer money between private individuals
Cryptocurrencies are an ideal means to transfer money from one part of the world to another, thanks to features such as immediacy, complete digitalization, decentralization or absolute safety derived from blockchain technology. They are, therefore, a perfect way for emigrants thousands of kilometres away from their countries of origin to send part of their gains to their loved ones back home.
The process may be slightly different depending on which currency you are using, but generally its working procedure is very easy: you’ll only need to type the wallet address of the recipient and the amount you want to transfer (usually you’ll be able to write it either in cryptocoins or in the fiat currency of your choice), and the operation will be completed in only a few seconds. Be sure that said address is correct and provided by a trustworthy source to prevent scams!
The financial landscape changes completely thanks to cryptocurrencies
- Credits between private individuals
Several cryptocurrencies, Davies among them, offer this possibility, which will be a game changer in the sector by removing the dependency on traditional banks. Loaner and borrower of the money can arrange individually amounts and interest rates of the loan, in such a way that conditions are specifically adjusted to what the precise situation demands.
This feature allows, for example, to invest in business projects at any place in the world, which can be a great boost for the economies in developing countries. The exact working procedure of this kind of transaction with cryptocurrencies will depend on the protocol established by the different platforms to contact users with these necessities; there usually is a “notice board” in which both offers and requests are published and interested people start a chat to arrange details.
- Buying in online shops
Over the last few years an increasing number of online shops are accepting payments in cryptocurrencies, apart from traditional fiat money. We recommend you to use this form if you have the chance, as the process is really fast and, because of the usage of blockchain technology, there’s extra safety that probably your bank card can’t provide. Generally, the process is identical to transferring money to any other user; the only thing you must keep in mind is that the destination wallet address you’ll enter must be the one specified by the shop.
Or doing nothing at all! Cryptocurrencies are money. Virtual, you won’t notice its weigh in your purse, but money. So, in the same way you already do with your “standard” bank account, you can just keep your cryptocoins stored as a form of saving or as a reserve for the future. Remember that its value is listed in the market, that is, it changes in relation to fiat money, so if you buy, store and then sell in the appropriate moment, you may end up with great earnings! Related to this, you may find trading an interesting option; we explain its key points here.
As you can see, cryptocurrencies are really easy to use and allow a wide range of operations. You simply need to remember that everything, absolutely everything, is digitalized, and that, even if safety processes are reinforced, you must be as careful as with any other transaction you’d perform in your daily life.
If you wish to know more using possibilities and tips to handle them in an efficient way, keep following our blog and ask us any doubt you may have!