There are many reasons you have be interested in how to use Bitcoin. Bitcoin has experienced a great deal of interest in recent months, with political events causing investors in some instances to protect their assets by transferring them into the cryptocurrency. This has also caused a surge in price, overtaking the price of gold when a unit became more valuable than an ounce. In the last couple of days, the price of Bitcoin has rocketed to above $1,700 per unit, far exceeding the previous record breaking figure that was nearer $1,000.
So given the increasing popularity of the cryptocurrency, you might be encouraged to learn how to use Bitcoin. This CBR guide will open up to you the options you have to join the hysteria surrounding Bitcoin.
Depending on your intentions and your means, you may either want a small amount or a large amount of Bitcoin to begin your experience with the cryptocurrency. This is an important factor, as there are different options for getting Bitcoin depending on the amount you want.
For getting a small amount you do not have to go very far, as there are Bitcoin traders with websites. Well known examples of these are Xapo and Coinbase; the added benefit of using one of these services is that they can also act as a wallet by storing your Bitcoin on their servers. This method is available if you are looking to buy under $2000 of the currency.
If you are looking to purchase an amount over $2000, you will need to sign up to a Bitcoin exchange, and this will involve opening up an account. This process is comparable to setting up a bank account. You should also factor in your geographical situation and currency, as these aspects will narrow down your search to find the best option for you.
In Europe Kraken is an example of an exchange suited to transferring Euros, for the Chinese Yuan, BTCC or OKCoin, and Bitfinex or GDAX for US Dollars.
You can also earn or mine bitcoin, some companies will hire on the basis of offering payment in Bitcoin, while you can mine for bitcoins using an online program. This is also looked for by certain companies.
While it is normal and acceptable to just keep your Bitcoin in the account originally used when you purchased them, but if you are already sure of how to use Bitcoin, and are more capable on a technical level, or you want to fully utilise your control over this digital currency, this could be an option.
Setting up a Bitcoin wallet means that you are not leaving your own currency in the exchange or the wallet of a trader where a large amount is stored. With cyber security proving to be a global issue, you may feel better keeping it where you have complete control and no third-parties are involved.
Web wallets are useful because they are always available to be accessed, and are widely considered easy to use and work with. Mobile wallets are another option, and as the name suggests, your mobile device forms the hub of your control in this instance.
Hardware wallets provide a high level of safety; advanced wallets are also very safe and require a local copy of the blockchain. Paper wallets are perhaps the most resilient to cyber-attacks, but they are suited to long term storage.
What can you do with Bitcoin?
Investment is most likely to be your prime motivation for finding out how to use Bitcoin, as it offers a great deal of protection from many real world impacts, and especially given some recent examples of price increase, and projections of further increases.
Bitcoin can also be used with a variety of online stores, but there are also a growing number of actual stores in which they can be put to use. Some online stores include Dell, Expedia and Overstock.com.
You can easily transfer Bitcoin to others if they have a wallet installed on their mobile device, this can be highly convenient, and it can also be useful for teaching someone how to manoeuvre the currency. There are also charities that accept donations in the form of Bitcoin.
This article is from the CBROnline archive: some formatting and images may not be present.