When it comes to cryptocurrencies like Bitcoin, many of us wonder how we should actually use it. This is a relevant question and not a very easy one to answer. Bitcoin is nowhere close to fiat currencies like the US dollar. For all those who are still new to the concept of cryptocurrency, here’s how Bitcoin works and how you should make your BTC transactions.
1. Getting A Bitcoin Wallet Address Is The Key To All Bitcoin Transactions
First things first, you need to choose the right Bitcoin wallet before you go ahead and spend your Bitcoins. There are a number of Bitcoin wallets to choose from, but it is advisable to opt for a user-friendly wallet such as Coinbase. You can opt for a hardware wallet/software wallet/online wallet/paper wallet as per your preference and whichever suits your needs. Also, when we say your wallet ‘stores’ BTC, it does not mean that it literally holds your coins. Bitcoin has no physical form like paper currencies and hence it is impossible to hoard your Bitcoins. Your wallet basically stores your public and private keys which are crucial to accessing your digital currency. It is advisable not to use an exchange wallet as you may run the risk of losing your hard-earned BTC. When you use an exchange wallet, you are partially losing control of your public and private keys as you are basically depending on a third party to seek your keys safe.
2. Send and Receive Bitcoins
Your Bitcoin wallet allows you to send and receive Bitcoin by providing you with the wallet address. You must provide your wallet address to your peers (this is similar to providing your e-mail address to your network) so that they can send you Bitcoin.
3. Purchase Bitcoin From Exchange Platforms
Now that you have a wallet address, you can go ahead and purchase Bitcoin from reputed exchange platforms such as Coinbase, Changelly, CoinMama, Bittrex and the like. You can either make a bank wire transfer or pay via PayPal or Credit/Debit Card.
4. Take Part In Bitcoin Trading
You can also participate in Bitcoin trading on popular exchanges. If you do not wish to invest a hefty sum, you can also take part in Bitcoin CFD trading on some popular Forex trading platforms like Plus 500.
5. Use Bitcoin to Pay Merchants
There are a number of renowned merchants worldwide who accept payments in Bitcoin for goods and services. If you are travelling, you many also make transactions though Bitcoin ATMs. These ‘vending’ kiosks have gained a lot of popularity in the recent times.
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