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How to use Bitcoin

Bitcoin, one of the leading digital currencies, is adored for its anonymity, cryptography and financial expedience. Before the Bitcoin era, people would have to wait for financial institutions and banks to exchange money. Exchanging money through such middlemen was not only time consuming but also restrictive and somewhat expensive compared to the exchange made using Bitcoins. From this article, you will learn how you can start using Bitcoin, and a little about what is an ICO, so that you can consider newer tokens as well.

Get Bitcoins

The first step is to get Bitcoins to use in transacting. Many methods of obtaining Bitcoins exist, and it would be appropriate that you go through all of them to know the one that best suits you. The first way is for those who want to buy Bitcoins below a certain price. If you need Bitcoins in small amounts, you will need to use a combined wallet with one of the established exchanges like Coinbase or Xapo. They will store the coins for you in their servers but will deduct a minor fee with each transaction.

Set up a Bitcoin wallet

A Bitcoin wallet is a store for the Bitcoins that you have bought. If you feel that you do not have the technical know-how to handle the wallets, then it is better to leave them in the exchange account. The best thing about this option is that with hardware cold storage wallets, hackers will not have access to the money. There are different wallets that you can choose from depending on the features you wish to use. There are mobile wallets that you manage on your mobile device; these include Airbitz and Bitpay. You can also make use of the web wallets which are more conveniently accessible, the main one that many people use being blockchain.info. Other wallets include hardware wallets, paper wallets and advanced wallets like Armory and Multibit.

bitcoin and other cryptocurrencies

Use the Bitcoins to Shop, Make Payments or Donations

Many people prefer to invest in Bitcoin, rather than actively trading it. Just like the stock exchange market, if many people continue to use Bitcoin, the value will keep on rising. The trick with this approach is to buy Bitcoins, keep studying the market and sell them at the appropriate time, rather than holding or HODLING as it has become known. You can also shop using Bitcoin. Many shops allow their customers to make payments using BTC and other cryptocurrencies now. If you are a philanthropist, you can also donate part of your Bitcoin holdings to charity. Many organizations accept Bitcoin as a form of donation. The list of things that you can do with Bitcoin is endless; the main one that people like however is simply holding on to it and watching the value rise. Investment is ideal for most people because the value of Bitcoin has been increasing in value over the years, even though it has also experienced significant short term corrections.

Bitcoin trading has become a lucrative venture for most people. To be successful, it is essential that you take time to study how this particular market works before you buy Bitcoin for trading purposes. Also, you should get skills you can use to predict the behavior of Bitcoin by analyzing the underlying technical factors that affect daily price fluctuations.