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.