Many people have heard about digital currency and want to try it, but always have a lingering question: what do you actually do with digital currency after buying it? Can you spend it? Is it only for trading? Let's clear everything up today. To get hands-on, register an account first — mobile users can download the APP for convenience.
Basic Ways to Use Digital Currency
Trading for Profit
This is how most people interact with digital currency. Similar to stocks — buy low, sell high. For example, buy Bitcoin when the price is low, sell after it rises, and the difference is your profit.
Binance offers spot trading, futures trading, margin trading, and more. Each has different risk and reward profiles. Beginners should start with spot trading.
Auto-Invest (DCA)
If you don't want to watch charts all day, use dollar-cost averaging. Set up automatic purchases of a fixed amount of Bitcoin or Ethereum daily or weekly. Over time, this smooths out your cost basis.
The Binance APP has an auto-invest feature — set it up once and the system handles the rest.
Earn Interest
Similar to bank fixed deposits, you can put idle digital currency into earn products to generate interest. Binance's "Earn" section offers both flexible and fixed-term options.
Flexible savings can be withdrawn anytime with lower interest rates. Fixed-term locks your funds for a period with higher rates.
Transfers and Remittances
A major advantage of digital currency is fast, cheap cross-border transfers. Traditional bank international transfers take days and cost significant fees. With digital currency, transfers arrive in minutes at much lower costs.
USDT in particular is widely used for cross-border fund transfers.
Payment and Spending
While using digital currency for direct purchases isn't very practical in China, many overseas merchants already accept crypto payments. Binance also offers a Visa crypto card that lets you spend directly, with the system automatically converting your crypto to local currency.
Participate in DeFi
DeFi (Decentralized Finance) lets you use digital currency for liquidity mining, lending, and other operations to earn returns. This is more complex for beginners — learn the basics before trying it.
First-Time Digital Currency Flow
Register an exchange account — Sign up on Binance and complete identity verification.
Deposit funds — Buy USDT through C2C trading using local currency. Open the app, find "C2C Trading" or "Quick Buy," select USDT, enter the amount, and pay a merchant.
Buy your desired coin — With USDT in hand, go to the spot trading page, search for the coin you want (e.g., BTC/USDT), and place a buy order.
Hold or use — Purchased coins sit in your spot account. You can hold for appreciation, put them in earn products for interest, or transfer them elsewhere.
Sell and cash out — When you want to convert back to local currency, first swap other coins to USDT, then sell USDT through C2C trading. The buyer sends money to your payment method.
Important Notes
Always verify the address and network when transferring — If you enter the wrong address or select the wrong network, your coins may be lost forever. Double-check before every transfer.
Test with small amounts for large transactions — When transferring out for the first time, send a small test amount first. Once confirmed, proceed with larger amounts.
Understand tax requirements — Different regions have different tax regulations for digital currency. If you've made profits, check whether local tax reporting is required.
Don't keep everything on the exchange — While major exchanges are very secure, keeping all assets in one place always carries some risk. Consider moving large holdings to a hardware wallet for self-custody.
Digital currency use cases are constantly expanding — from pure investment trading to payments, wealth management, and cross-border transfers. Getting started now is far from too late.