You’ve learned what Bitcoin is and how it works. So now, why not actually commence using bitcoins? It’s exceptionally effortless to send and receive BTC, and this guide will vertoning you how to get setup spil a regular Bitcoin user or a Bitcoin merchant. Let’s get commenced.
Your Bitcoin Wallet
Spil with all forms of currency, you need a place to keep your money. With traditional (fiat) currency, most people keep a puny amount of money te a wallet or purse while keeping the surplus of their savings at the bankgebouw. Let’s see how to do something similar with bitcoins. While there are many different ways to store bitcoins, this guide will examine some of the easiest methods for fresh users.
Ter simplest terms, bitcoins are stored te digital wallets. A Bitcoin wallet is simply a chunk of software that can store, send, and receive BTC. However, there are many different wallets to choose from, each with its own pros and cons. Regardless of what you choose, it’s a good idea to keep two wallets – one for spending and one for your savings. Bitcoin doesn’t rely on financial institutions like banks, and instead, users have accomplish control overheen their money. While this might sound like a gigantic responsibility, this guide aims to vertoning how effortless it is to be your own bankgebouw.
Your Spending (Hot) Bitcoin Wallet
Your very first wallet will be used for day to day transactions, similar to the physical wallet te your pocket or purse. This type of wallet is also sometimes referred to spil a “hot wallet,” meaning that it is connected to the Internet. One very popular and effortless to use hot wallet is Blockchain.informatie, a wallet that can conveniently be accessed from anywhere te the world on any device spil long spil you’re connected to the Internet. To commence using Blockchain, simply navigate to this pagina, and create an account. Te just a few ordinary steps, you’ll have your own Bitcoin wallet!
After logging ter to your freshly created wallet, you should see something like this, minus the $31k.
Notice the QR code on the left and the text next to it. This is your Bitcoin address. If anyone wants to send you money, they send it to your unique address. If you want to send someone money, you go to the “Send Money” tabulator and come in that person’s address and the amount of bitcoins you want to send. It’s that effortless.
Sending money has never bot simpler. You can send bitcoins to anyone anywhere ter the world without expensive fees.
You may have noticed something interesting. You are encouraged to share your Bitcoin address. A Bitcoin address doesn’t need to be kept private and protected the way a credit card number does. Instead, a Bitcoin address functions much like a mailing address. Anyone can send you mail, but only you have the key to access the mail te your mailbox. Similarly, anyone can send bitcoins to your address, but only you have access to the coins you receive.
Compare this to a credit card number or a debit card number.If you want to make a transaction, you have to give the merchant total access to your funds, and trust that he/she will only withdraw the amount authorized. But with Bitcoin, you send the money rather than having the merchant take the money from your wallet. Spil you will see, Bitcoin eliminates the need to trust third parties (albeit te some instances it can be convenient to trust one), and is te many ways a loterijlot safer than traditional money.
Speaking of third parties, is Blockchain safe? The brief response is, yes. Blockchain’s source code is available for anyone to examine, meaning that users can be sure that the service isn’t doing anything suspicious behind the scenes. Furthermore, Blockchain does not have access to users’ private keys and is considered reasonably secure by most te the Bitcoin community. Of course, for the truly paranoid, you could download a desktop wallet client such spil Bitcoin Core or Electrum. Since the software would be on your own rekentuig rather than Blockchain’s servers, it could be considered more secure. However, the downside would be that your wallet would only be accessible from your pc. Services like Blockchain provide both convenience and reasonably good security, which is significant for an everyday wallet.
Your Savings (Cold) Bitcoin Wallet
Now this is where you want to make spil few compromises spil possible regarding security. Your savings wallet will be similar to your savings account at the bankgebouw. Since you’ll be keeping most of your bitcoins here, you’ll want to use the best possible security. One of the ways to achieve this is by making your savings wallet a “cold wallet,” meaning that it’s not connected to the Internet. By remaining offline, a cold wallet is far less vulnerable to hackers. A very effortless to use cold storage solution is Coinbase Vault.
Coinbase’s Vault offers effortless to use long-term storage for bitcoins.
Without getting into the technical details, the way the Vault works is that Coinbase stores your bitcoins offline te various secure locations around the globe. Withdrawing coins from the Vault requires numerous layers of verification, and withdrawals are time-delayed by 48 hours, meaning the transaction can be cancelled during that 48-hour window. Coinbase has bot independently audited by trusted members of the community, and is used by vooraanstaand companies such spil Dell, Expedia, and DISH Network.
But of course, spil mentioned above, you don’t need to trust a third party like Coinbase. It just might be more convenient, especially for newer users. To truly be your own bankgebouw, you can generate a paper wallet or use an offline hardware wallet. But thesis are beyond the scope of this guide.
Using Your Bitcoins
So you’ve got your wallets set up. Now it’s time to begin using those bitcoins! If you don’t have any BTC, you can buy some from a Bitcoin exchange. There are also some free ways to get bitcoins. But of course, the most basic feature of money is that it can be used to buy things. So where can you actually spend bitcoins? The list might verrassing you: