Quidax Logo

Lesson 2:

What are Cryptocurrencies used for?

Every cryptocurrency has an exchange rate like Naira → Dollar. This exchange rate is always changing. So you can buy a cryptocurrency with your local currency at this exchange rate and sell it when the rate increases. There are so many different cryptocurrencies to trade at different prices.

The types of trading include: 

  • Day trading: buying and selling crypto daily to stack up profit.
  • Scalp trading: buying and selling crypto over hourly intervals to take tiny profits

Some people prefer to buy a cryptocurrency and hold it for a long time before selling it. This is more like an investment that you can benefit from later. For example, Bitcoin was less than $500 in 2014. 7 years later, it was worth more than $20,000.

If you choose a reliable cryptocurrency, it could pay off in the long run. The most popular choice for investments is Bitcoin because it has been around for a long time. It also doesn’t swing up and down as much as other cryptocurrencies. 

If you have an unstable currency, you can protect your money by storing it as a Stablecoin like USDT.  Like we discussed in the previous lesson, USDT maintains the same value as the US dollar. So: 

$1 = 1USDT. 

This means that instead of going through the stress of currency conversions, you can just buy USDT. The best part is that you can change it back whenever you want. 

Cryptocurrency can also be used to send money to other people.

  • It is fast
  • It is easy to use if you already have an exchange account
  • It doesn’t need any bank interference.