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How to use Bitcoin

How to use Bitcoin

The general public, businesses and even traditional financial institutions are all taking an increasing interest in the world of crytocurrency. The benefits are becoming better understand and therefore it is growing in popularity. Not least as the early adopters - who seized early manifestations of Bitcoin - are now beginning to report fortunes made. However, Bitcoin is rising in usage not just due to potential investment opportunities. It is also an increasingly favoured method for buying and selling goods and services online. Impossible to counterfeit, it is also a universal currency system throughout the world. Transactions can be completed in real time, without fees or delays.  Perhaps the biggest advantage is that it is a currency that needs no “middle man” or physical process. Bitcoin is impossible to lose or steal. All of this is going to ensure that Bitcoin and other cryptocurrencies gain even more ground. Other blogs in this series provide easy to follow summaries and more information about what Bitcoin actually is, and how to acquire it. This overview is designed to answer questions you may have about how to use Bitcoin, for a growing range of financial transactions.

Setting up to use Bitcoin

The other two things you need in order to use Bitcoin are an internet connection and the initial capital to start to use this decentralised and worldwide payment and sales method. As covered in more detail in a previous blog, you first need to buy Bitcoin by any one of a number of means. This includes purchasing them from a trusted Bitcoin Cash exchange. Sometimes, this involves paying a trader a small service charge to provide you with an initial start-up amount. They will also ensure it is stored digitally for you. Larger amounts can be purchased through a trading exchange. It is straightforward to open an account with a chosen Bitcoin trading exchange, just as you would with a bank. There are also Bitcoin ATMS – places you can convert cash into Bitcoins. These are increasingly available in city locations throughout the world. You could buy Bitcoin for someone else via the internet or offline, though it is imperative to check the credentials of anyone you deal with, just as you would with any other financial service provider. It is becoming increasingly possible to earn Bitcoin as part of an employment contract too. And of course, you could offer products or services in exchange for payment in Bitcoin. Incidentally, you may come across the term “mining Bitcoin” and hear of people converting complex computer programmes and mathematical equations to create new Bitcoins. In the early days, this was more common. It is now something only highly specialist companies with complex mining hardware tend to do, not least as there are considerable risks involved. Mining is also sometimes used to refer to the processing of Bitcoin transactions.

How to use a Bitcoin wallet

However you choose to acquire your Bitcoin, you are going to need somewhere to keep it. Some people simply keep Bitcoin in the account where it was created. However, for security and ease of use, many more prefer to transfer it to their own personal control and storage system. This involves having a Bitcoin "virtual" wallet. The form this wallet takes depends on your own preferences and likely usage. There are various options and it all comes down to what you think would work best for you. A wallet is a personalised storage system for Bitcoin that can sit on your mobile or computer. It is therefore based on a mobile app or web software. These options are usually free to download.

What is a Bitcoin public address?

From your chosen software, you will generate an individual security code for your wallet - a public Bitcoin address. This is a string of characters that are unique to you and that provide you with a colossal amount of security. It is similar to the concept of an email address but far longer and more random-looking, with around 30 distinct symbols. You may also hear this referred to as your Bitcoin “signature”, or even as a “key”. It provides you with a digital identity, but not one that carries with it any method to trace your actual contact details. In other words, with a Bitcoin address, you are contactable but also totally anonymous. This address is also your mechanism to spend Bitcoin and a place other people can send cryptocurrency to you. You could send an amount of Bitcoin to your public address, from your wallet. Once there, you have the option to “send” or “withdraw” your Bitcoin. One of the reasons you have this public address is that one of the pivotal features of Bitcoin is that all transactions are stored transparently and permanently on the internet. Anyone who wants to check the validity and movement of Bitcoin can access digital records of its history and movement.

Ready to use Bitcoin?

Having got to this stage, you are now in a position to spend, donate or invest your cryptocurrency. Remember, this is an instant and global transaction system. No matter where you are in the world, you can use Bitcoin wherever they are accepted. There are numerous exciting developments in the acquisition and use of cryptocurrency. This includes the fact that the methodology for spending it is embracing an increasing number of innovations. One option is to purchase a Bitcoin debit card (third parties charge a fee for this method of spending your cryptocurrency). This could be loaded with Bitcoin funds for you to use as you would any other debit card. Which means that in this context, you can use Bitcoin to buy almost anything you can afford. Otherwise, much of your use of Bitcoin will be for online transactions. When you make a Bitcoin transaction, including purchasing goods or services, this will appear on the peer-to-peer computer network. This is where it will be confirmed before it is finalised. In this way, measures are in place to ensure that the cryptocurrency you use is unique and that it is a bona fide sale. Within a few minutes, you will receive confirmation that the transaction can proceed. Each software uses a different system for your Bitcoin wallet, but each will give you a confirmation score for the transaction. This will rank reliability. It provides you with a valuable added security feature. You should only finalise the transaction when the score indicates that this is a reliable exchange or sale - unless you know the person well and can ignore a low-reliability count.

How to spend Bitcoin

You will find that, in the coming months, increasing numbers of merchants will accept cryptocurrency as a payment for goods and services. There are already many online stores that are early adopters of bitcoin transactions. This includes some major e-commerce and technology companies, such as Expedia. PayPal, Microsoft and Dell. However, it is apparent that physical retail outlets are also beginning to jump on board, in order to fight for market share. This includes, for example, Subway. So you will find increasing numbers of stores in your locality who will accept Bitcoin payments.  There have been sizeable purchases made using Bitcoin in recent times, such as high-end property. There are even basic health service providers, such as dentists, willing and able to receive Bitcoin payments. International health service providers such as specialist private hospitals also offer the option of paying in Bitcoin. You can use your Bitcoin to purchase gift cards. Among the companies offering this service are Amazon and US firm Sears. Or, you could use the Bitcoin as a gift in itself. Giving a quantity of cryptocurrency to someone for a birthday or wedding gift, for example, still carries a novelty value and provides the recipient with an instant investment opportunity. To give someone Bitcoin as a gift you would need their public address, and then you could transfer the required amount online.

How can you make money from Bitcoin?

Largely the answer to that lies in patience. As there are only a limited amount of Bitcoins created, they will rise in value as more people use and exchange them. Hold on to your bitcoin, and it should become a good investment. Once familiar with the world of cryptocurrency, it is also possible to trade Bitcoin in order to make money. There are also opportunities to invest in Bitcoin mining initiatives. It is important to emphasise that using Bitcoin as an investment is not easy or without its perils. You need to do research and understanding its risks, choosing any partners with the greatest of care.

Using bitcoin for your business

Another important way to use Bitcoin is to add it to the ways in which customers can pay for your products and services if you are in business. Providing this alternative payment method gives your customers another option, and looks set to be an increasingly important way to keep a competitive edge. You would set up Bitcoin reserves, a wallet and a public address as outlined above. Then, anyone wishing to pay in cryptocurrency would be provided with your public Bitcoin address. They transfer the required amount into your wallet from their own Bitcoin wallet. Converting bitcoin back to currency If required, you can use Bitcoin as a way to store some of your savings, drawing on it for purchases as and when needed. You could also convert it back to cash at a later date. This could include taking physical currency out of Bitcoin ATMs. (This may involve a fee, so check the terms of the ATM carefully) You can also convert cryptocurrency back to cash by selling it.

The science and other notes on using Bitcoin

You may be wondering how Bitcoin works in terms of the actual mathematics and computer science. If that was easy to understand, we could all create our own version! In a nutshell, it is like a huge digital public ledger. This is called a blockchain. All confirmed transactions are included as ‘blocks’ of data. As each block is created, it becomes transparent on a peer-to-peer computer network of users. They validate it. The fact that the network can see it is one of the ways it has inherent security and 100% reliability. Bitcoin transactions are public, and therefore it is impossible to sell Bitcoin twice, or steal it. When you carry out a transaction using Bitcoins, the fail-safe systems used will ask for confirmation at least once (see above for scoring reliability). You could be asked to confirm the transaction up to six times. This is to avoid transfer of cryptocurrency involuntarily or without clear agreement. Just one other important note on the topic of how to use Bitcoins.

You need to keep in mind that cryptocurrency transactions are binding. They are impossible to undo or reverse. This means it is imperative that you only use Bitcoins to invest, spend or sell, when you are dealing with a trustworthy business or individual. If you do use your Bitcoin and find you have been scammed or made a mistake, there is no form of help available. It is irreversible and you are “on your own”. Remember also to back up your wallet on a regular basis. Just as with any other digital information, you need to be sure you are not leaving yourself vulnerable to its loss if you have your laptop or smartphone stolen or broken beyond repair. It is possible to store some of your Bitcoin in an offline wallet too, so you can still access it without Wi-Fi, or if you lose your ability to connect to your online wallet for any other reason. Another thing to keep in mind is that Bitcoin is a fast evolving entity. Though the core premise and benefits stay the same, its application and usage change rapidly, which means you need to keep checking back on this website for new tips on how to acquire and use Bitcoin and of course, for insights on how to make money from cryptocurrency investment.

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SoftBank CEO believes bitcoin will be useful in the future but “not any time soon“

SoftBank CEO believes bitcoin will be useful in the future but “not any time soon“

Quick take

1 minute read

  • Crypto adoption is on the rise recently since the leading cryptocurrency of bitcoin has been doing the rounds when it comes to bullish momentum. 
  • But not everyone yet understands fully what bitcoin is or how it works. 

Crypto adoption is on the rise recently since the leading cryptocurrency of bitcoin has been doing the rounds when it comes to bullish momentum. But not everyone yet understands fully what bitcoin is or how it works. 

There are numerous videos and articles out there that explain it but some people will leave those articles and videos more confused than when they started!

This is a sentiment that is being shown in numerous institutional investors such as Masayoshi Son, who is the billionaire technology entrepreneur and the Chief Executive Officer of SoftBank, a conglomerate institution based in Japan. He has said that he doesn’t “understand“ bitcoin as it rises significantly in its value.

Son has said that bitcoin investment is seemingly pulling his attention away from his actual own business according to a report from business insider last week on the 19th of November.

He added that he would spend five minutes every day watching the price of bitcoin go up and down highlighting that he was told by a friend to invest 1% of his personal assets into the coin. Quick maths shows that this is around $200 million.

When discussing the future of digital currency, the CEO said that digital currencies will be useful in the future and are great for development but it will take time and they won’t go anywhere any time soon.

“I think digital currency will be useful [...] But I don't know what digital currency, what structure, and so on.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes

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As it grows, how much ground will XRP cover next year?

As it grows, how much ground will XRP cover next year?

Quick take

1 minute read

  • Is 2021 XRP’s year?
  • How adoption will result in the success of the token.

Timothy Peterson, the well-known advocate for bitcoin and manager of global macro, believes that the San Francisco-based XRP token will have its best year in 2021 since 2017. 

As previously reported earlier this week, Peterson has recently said:

“I know it doesn’t look like much but this is $XRP lowest price forward. I think people will be surprised at $Ripple’s performance in 2021. It will probably have its best year since 2017 and maybe outperform #Bitcoin.”

As many people will already be aware, the success for ripple and its token will all depend on adoption by financial institutions. They have developed numerous new products such as rippleX in order to help facilitate a seamless transaction on the decentralised ecosystem for the network. But for the tokens targeted market, only 2% of financial institutions are actually willing to use it.

The Chief Technical Officer of Ripple, David Schwartz has previously said that there are numerous obstacles that prevent adoption for the token some of which include problems with regulation. That being said, well-known traders and investors at Galaxy trading have said that the asset is proven to be resilient.

“Although it is perhaps one of the most disliked projects, it has more than once shown its aggressive nature at a time when no one is expecting it.”

They see that the coin is capable of sparking by 10 times its current price as they say:

“We believe that this moment is very close and since catching the exact bottom is something very unpredictable, our advice to all who want to invest is to start buying at these “golden” levels of support where 10X can become a reality.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

The benefits of Ethereum 2.0 will come sooner rather than later according to Vitalik Buterin

Quick take

1 minute read

  • Vitalik Buterin, has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. 
  • The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. 

Vitalik Buterin, the co-founder of one of the biggest crypto projects in the industry known as Ethereum has recently answered a number of questions from the community as a part of a “ask me anything“ session on Reddit. The co-founder highlighted many different topics but specifically said that he expects some significant and noticeable network improvements to come for the project sooner rather than later. He further said:

“TLDR: merge happens faster, PoS happens faster, you get your juicy 100k TPS faster.”

Over the years, the network for Ethereum has experienced some significant rounds of high congestion. Three years ago in 2017, the popular CryptoKitties game slowed down the network massively but with the decentralised finance space growing rapidly, the network has been seriously clogged up.

As a result of this, it has led to high fees and longer than average confirmation times.

With Ethereum 2.0 very much just around the corner, there is a significant scaling upgrade solution that is supposedly going to speed up the network rapidly. This will increase the number of transactions per second and it will also move the blockchain to a different consensus algorithm known as a proof of stake. Phase 0 for the upgrade is set to occur on the 1st of December in two weeks!

The co-founder further went on to say that “all of these changes are designed to decrease the time until eth2 becomes useful to people.” 

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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The second richest man in Mexico invest 10% of his portfolio into BTC

The second richest man in Mexico invest 10% of his portfolio into BTC

Quick take

1 minute read

  • Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. 
  • It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. 

Ricardo Salinas Pliego is the second wealthiest businessman in Mexico and the 166th richest man in the world. It was recently announced last week that he has invested 10% of his liquid portfolio into the leading cryptocurrency, bitcoin. This came after he shared a video throwing huge amounts of paper money into the garbage. Not only does it show how worthless the government-issued cash is in today’s world but it also shows how important digital assets such as bitcoin could become.

Furthermore, the video indicates the hyperinflation and how bad it got in Venezuela.

Ricardo is worth more than $11 billion at the time of writing and is the only billionaire from Mexico who seems to have benefited from the coronavirus pandemic and the economic crisis that has come as a result.

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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