Everyone is familiar with the concept of bitcoins. Though the whole idea of virtual currency seems exciting, the use of them is unclear. This is because the cryptocurrency system is still not fully established or has reached widely like hard cash. there is a whole process to go through before one may use bitcoins. To be able to use them, a user needs to have a sufficient amount of bitcoins in a fund to start with.
Bitcoins require the usual account, balance, exchange systems like regular currency. Perhaps the only difference between the two systems is the platform; regular money is handled in physical banks and other financial institutions, while digital money is based on online processes.
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How to Use Bitcoin
Getting a Bitcoin Address
Before using any bitcoin, a person needs to have a bitcoin address. This is a set of numeric algorithms, unreadable and generated by anonymous. After getting the address, a private key is given, for security purposes of the bitcoins. This key will grant access to the address. It is restricted to the user only, so the address can’t be used by others. It ensures the safety of the bitcoins from fraudulence. The key is also algorithm characters.
Making Bitcoin Wallet
The use of bitcoin address and the key to getting bitcoins may sound complex like the system itself, but there is another way of doing this. Bitcoins are collected using bitcoin wallets. Like a regular wallet keeping the money, it manages and stores the number of bitcoins, easing the process of using the address that has been created to use bitcoins.
A bitcoin wallet is a program designed especially for this function. It manages the transaction of bitcoins, giving information to the bitcoin network for keeping track. This would allow the user to check their balance periodically and know about any misused bitcoins.
The bitcoin network known as blockchain technology has all the information about the user’s address and records the use of bitcoins. This ensures that there are no scams in the network. The bitcoin wallet informs about bitcoin transfers which are then confirmed by other bitcoin software so that the information is stored in the blockchain ledger.
The user needs to have a bitcoin fund for digital currency transactions. Bitcoins are available online to be bought. They are either bought with a credit card or by the bitcoin exchange. Some exchanges accept PayPal payments with an additional charge. This method is simply to use the bank account to exchange the money into bitcoins. An account is required for this trade exchange.
This is known as the liquefication of money. Backup of bitcoin address and private is essential for safety purposes and offline use. Otherwise, the bitcoin account would be at a huge risk.
Ways to Get Bitcoins
After these procedures, it is finally the time to gain bitcoins. Since bitcoin wallet is a software, it can be downloaded online. This will allow the user to add and collect them from their funds. The user will also be able to make purchases using bitcoins. Bitcoin wallets are available in various kinds like software for computers.
Others are usable on mobile phones or other devices like USB. The ones that designed for devices other than computers work using a QR code. The QR code is scanned using a camera on the phone and the bitcoin address would be visible. Like free apps online, there are online wallets. Some of the mobile wallets include Copay, Atomic Wallet, Airbitz, Breadwallet, etc.
For hardware wallets, the user may download COLDCARD Wallet, Ledger Wallet, etc. These also have the user’s bitcoin addresses and keys which are then used. These are useful for cases when there are problems with hardware as the data won’t be lost and remain safe with proper settings of the online services. However, these may increase the risks of scams since they are available over the internet. So the bitcoins need to be secured well and carefully.
Use of Bitcoins
To make purchases using it, the user needs to type the address of the receiver on the program desired for use. There the amount to be sent is typed and then both the address and amount are confirmed. The bitcoin is finally sent for making a purchase. It is important to choose the appropriate bitcoin wallet and exchange option.
Instead of buying them, one may gain them as payment for sale products rather than hard cash. This only works for salesmen using a bitcoin merchant account. The sender would make payments to this account by bitcoins. However, others may simply connect to someone to trade hard cash with them.
Bitcoin miners also have the privilege to increase their assets. By investing, mining might be done to earn rewards that would be added to the funds. The system is quite difficult, but there are great mining systems that would eventually increase profits with proper mining by dedicated servers.
Earning Free Bitcoins
- Online games may help to earn bitcoins. This is a fun way to gain them, from the advertisements given. There is also a bitcoin casino for gambling for bitcoins.
- By doing various jobs on websites one may earn bitcoins. The companies would pay for the jobs in bitcoins and some even give reward points.
- Online games and jobs are popular and there is a competition to get to these. Instead, users may read online to earn bitcoins. There are companies with bitcoin wallets that pay for reading books available on their websites.
- Finally, there is the chance of earning bitcoins by writing. People are paid with them for writing pieces mainly on crypto-currency online.
Bitcoins are getting popular for easy transactions. However, certain factors require to be kept in mind before using them. They are still developing, so the investments aren’t going to be stable. The price fluctuates, and the transactions made are unchangeable. Although bitcoin debit or cards are safe and easy to use, the entire system is based on a network, with no management party.
So there aren’t certainties about bitcoin wallets and the transactions. There are also issues of governmental taxes. Therefore, if one has plans to use bitcoins for financial activities, they need to plan and choose the best types of systems and apps for safe bitcoin usage.
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