As cryptocurrencies pick up momentum in modern finance, more institutions, businesses, and central governments are flirting with the idea of allowing cryptocurrencies to be used as a payment method. Although few have gone as far as to make it legal currency, there is a tolerance for these new digital assets and the blockchain technology that lays the foundation for them to exist.
Ultimately, it would be foolish to ban cryptocurrency outright, as some old-fashioned investors have suggested over the years. Even though the United States are becoming more draconian with the sector, accusing many of operating outside the law when the law hasn’t clarified what they are yet is a wild move.
Gary Gensler, the head of the SEC (Securities & Exchange Commission), appears to be leading this frontier in the battle against the existence of cryptocurrency in the United States. His language about some cryptocurrencies being similar to casinos isn’t precisely true, but it isn’t far off in some cases. There does need to be regulation to stop rogue operators from scamming retail investors and those investors not being fully protected by the law.
However, comparing all cryptocurrencies to casinos is counterproductive, especially when you can use cryptocurrencies to gamble in some casinos online, which negates the whole point he is trying to make. You can play at your favorite Ethereum casino online with no hassle, and other cryptocurrency casinos are also available.
#1 – NFTs
Non-fungible tokens are all the rage these days. Depending on the type of NFT you hold, you could be in for a significant slice of profit. But unfortunately, we may not see the dizzying floor price of NFT prices reach the levels they did during the 2021 bull run when even useless cryptocurrency projects like Dogecoin rocketed in price. There are thousands of NFT pieces of art that you can purchase using Ethereum.
Although other cryptocurrencies, such as Solana, have tried to enter this market, Ethereum is widely considered the most secure and reliable blockchain for people to buy and sell NFTs with. Although there have been plenty of people complaining about the cost of gas fees on the blockchain, and rightly so, some of the people who have made a profit on NFTs won’t be complaining too much, especially considering some of them have made millions in a short space of time.
#2 – Charitable Donations
Depending on the area of the world you reside in, donating to your chosen favorite charity using Ethereum or other cryptocurrencies may be a good idea. There are plenty of charities that will accept cryptocurrency as a donation. However, you can also cash in your digital assets and send them directly if they would rather have the contribution in traditional currency. One thing to be mindful of if you send money to your chosen charity via this method is that fraudsters acting in bad faith might be looking to steal your funds. Posing as a charity or a not-for-profit organization isn’t a new trick that these reprehensible individuals look to employ.
However, doing so under the guise of cryptocurrency is a new technique they use. In the past, if they have done this and operated their scam through bank accounts, it has been easier for law enforcement to track them down. However, because of some cryptocurrency transactions and projects’ anonymity, it can be complicated to recover your Ethereum, so please be mindful of this and perform the necessary due diligence.
#3 – Ethereum Staking
This method of digital investing has come under fire from the SEC recently, most notably through the exchange, Kraken¾the US-based cryptocurrency exchange, received a hefty fine and had to discontinue staking products on their service. However, you can find plenty of reputable exchanges that still offer this service. Therefore, this de-fi offering can be a profitable way to earn money on your Ethereum if you want to keep hold of them for a considerable period.
It works in the same way as a bank lending product. Your Ethereum provides liquidity on the chain, making the whole network more robust and reliable. In addition, you receive staking rewards for allowing your asset to be used for this service. Think of it like a savings bond. You are lending your asset to receive marginal gains from the project as they use your assets to strengthen the overall network and trust in that particular financial product.
#4 – More Liquidity
If you have made an excellent return from your Ethereum investment, you might want to shave some off and send it to your bank account to have extra cash in the bank. While it is good to hold onto your investment, especially if you can afford to ride out a cryptocurrency investment for several months or years, there’s no point holding onto it forever if you cannot spend it on your card or through your bank account. Nobody will begrudge you for holding onto your assets if they are rocketing in value. However, it is always best to keep an eye on how much your coins are worth and has an idea of what you can do with them once you have sold them on and pocketed the liquidity.
These were just a few suggestions that we glossed over today. Ultimately, Ethereum is an appreciating asset, and many analysts and experts believe it will continue to grow in value over the next decade. Cryptocurrency is highly volatile. If you operate in the space, you will be all too familiar with this fact. However, if you can stomach this volatility, some investors believe Ethereum could be the optimum cryptocurrency and the most significant project with the most utility.
Some even think it could one day “flip” Bitcoin as the number one cryptocurrency. However, for now, Bitcoin remains at the number one spot. One thing that is more or less guaranteed is that ten years from now, there will likely be many more things you can spend your Ethereum on instead of only the topics we have discussed today. Who knows, maybe you will be able to use it online at major retailers or pay for gas with it one day.