What Are Cryptocurrencies, and Where Can You Use Them?

“Cryptocurrency” is a fascinating buzzword, but apart from creating exotic headlines, what exactly is it? Is cryptocurrency something that you should invest in? And if you do invest in cryptocurrency, where can you use it? If you're brand-new to the world of cryptocurrency and want to get started using it, BundleFi is a good place to start your research.

What Are Cryptocurrencies?

Think about the currency that you use every day. Whether you pay in cash or use a debit card, you're using a centralized currency that's backed by the government. Even if you pay for things with a card or check, the money you spend is backed by the government.

Cryptocurrencies work a bit like regular currencies in that they can be obtained, saved, and spent. However, cryptocurrencies are entirely digital. If you spend the equivalent of a dollar in Bitcoin, there is no physical dollar to back up the amount that you spent. Furthermore, Bitcoin and other cryptocurrencies are decentralized. While the US dollar is backed by the US government, Bitcoin is not backed by any government. This decentralization is one reason why cryptocurrency appeals to a lot of people who believe that governments and banks have too much control over personal and business finances

Where Can You Use Cryptocurrencies?

When people ask where they can use cryptocurrency, they're usually asking about one of three things: investing, storing, and spending. Let's take a look at all three.

First, where can you invest in cryptocurrency? Believe it or not, one of the best investment sources may be a local bank. Some community banks have added cryptocurrency to the services that they offer. When you get your investment help from a local bank, you invest with someone who is on your side. In addition, you help your local economy, so it's a win-win situation.

Next, where can you store cryptocurrency? Cryptocurrencies are stored in digital "wallets." You can keep a wallet online, get an app on your phone, or even get an electronic wallet to carry with you like your regular wallet. You can choose the option that will work best for you, but the key is making sure that your digital currency stays safe. If you’re worried about how to use digital wallets, think about Apple Pay, Google Pay, or even PayPal -- you probably already use a digital wallet without even knowing it. We’ll tell you more about this in another post.

Finally, there's spending. Now, it's important to note that while cryptocurrency can be spent in a growing number of places, it's usually thought of as more of an investment than a real type of currency, at least for now. Spending cryptocurrency is more difficult than spending regular currency. However, cryptocurrency can be exchanged for goods and services, and spending cryptocurrency is slowly but surely becoming easier.

One of the simplest ways to spend cryptocurrency is to put your cryptocurrency on a debit card. Some debit cards are designed specifically for cryptocurrency. Many of these cards come from mainstream credit card providers, like Visa and Mastercard. As a result, you can use these cards to spend cryptocurrency in any place that accepts Visa, Mastercard, and similar credit cards.

There is also a short list of retailers that accept cryptocurrency directly. At the moment, this list is limited to early adopters. You can look online to see which retailers currently accept cryptocurrency as a form of payment.

Using a Bank to Get Started with Cryptocurrency

Are you ready to get started with cryptocurrency? Then you're going to need a trustworthy source where people are on your side. Bundlefi has a database of community banks and credit unions that offer cryptocurrency services. Take a look at Bundlefi today to get started.