Maybe
you’re reading this article because you want to invest in Bitcoin or use it in
your daily transactions. While some people call Bitcoin a bubble that will
eventually burst, its adoption and acceptance have increased globally. El
Salvador, for instance, has made Bitcoin a legal tender. Also, more merchants
accept Bitcoin payments.
Globally, people use Bitcoin for online transactions, as a tradable commodity, and as an investment. For instance, you can buy Bitcoin on Bitcoin Era (Official trading Site) and transfer it to your digital wallet. Once there, you can pay other users for services or goods. Alternatively, you can sell your tokens when you think you will make a profit from the current market rates. But how do you start using this digital currency?
1. Understand Bitcoin
The
first step to getting started with Bitcoin is to understand it. Bitcoin is
digital money or electronic currency with a protocol regulating new units’
generation. Miners produce new digital coins by verifying transactions in the
blockchain.
Satoshi
Nakamoto introduced it as the first cryptocurrency. Today, Bitcoin is more
popular than all the other digital currencies. Bitcoin transactions have secret
codes that make them anonymous. Blockchain technology creates a digital public
ledger while making Bitcoin transactions irreversible. Bitcoin is easy to get
because anybody can buy it on an online crypto exchange.
2. Know Why You Buy Bitcoin
Bitcoin
is a prominent cryptocurrency with vast adoption and usage. It’s a
well-established digital currency with more merchants accepting it. Apart from
using Bitcoin for payment purposes, you can use it as an investment. Since its
inception, this virtual currency has continued to increase its value. Therefore,
some investors buy and hold Bitcoins in their crypto wallets, waiting for their
value to increase to sell them for profits.
Over
the years, this cryptocurrency has attracted many investors, some investing
millions of dollars in it. Also, trading Bitcoin is more straightforward, with
more people and enterprises buying and holding it in their treasuries.
3. Learn to Buy Bitcoin
The
first and easiest way to buy Bitcoin is via a crypto exchange. A digital
currency exchange allows people and businesses to register and purchase and
sell this cryptocurrency. Thus, you can open an account with a crypto exchange,
load money via credit card or bank transfer, and use the funds to buy Bitcoin.
Alternatively,
you can use a bank that offers a direct service. For instance, the Bank of
America allows its customers to link their accounts to crypto exchange and buy
Bitcoins directly. You can use a wire transfer service or another bank to fund
your account.
4. Learn to Spend Bitcoin
You
can spend Bitcoin like conventional money. However, you can only pay somebody
with Bitcoin if they have a digital or crypto wallet. Unfortunately, not many
merchants or organizations accept Bitcoin or have crypto wallets. That means
Bitcoin has limited use currently. But its adoption is increasing with more
merchants accepting Bitcoin payments.
Also,
you can convert Bitcoins into conventional money. Several crypto exchanges
allow users to sell Bitcoins and receive payment in fiat money. Also, you can
withdraw your digital coins in fiat currency at a Bitcoin ATM.
If
you don’t want to spend your Bitcoins, you can hold them in a crypto wallet as
an investment. Eventually, you can sell your coins at a higher price than you
bought them.
5. Keep Your Bitcoins Safe
Bitcoin
is like real money. Therefore, secure your digital coins the way you would fiat
money. For instance, please don’t share your crypto wallet’s private key
because anybody with it can access and transfer your money.
Parting Shot
Understanding
and using Bitcoin is easy. However, you require a little research to safely
buy, store or use Bitcoin. Also, Bitcoin’s volatility makes using it a risky
affair for beginners. Therefore, understand how this digital currency works to
get the most from it.
Read More: Five Easy Steps for Getting Started with Bitcoin – DailyHawker
