How to store and spend bitcoins
Bitcoin is gradually becoming a mainstream digital currency and payment system.
You’ve already heard or read a lot about Bitcoin. However, you might not know the safest ways to store or spend your cryptocurrency, and that’s why you’re reading this article.
Satoshi Nakamoto, an anonymous group or individual, created Bitcoin in 2009. Although Bitcoin was the pioneer and the most successful digital currency, it’s among the many cryptocurrencies in the world today. This virtual currency uses blockchain technology to run on a decentralized finance network.
Perhaps, this is another trait distinguishing Bitcoin from fiat currency, other than lacking control or regulation by any centralized authority. What’s more, the modern world sees Bitcoin as a currency and a tradable commodity.
That’s why people purchase Bitcoins on platforms like https://thebitcoincode.io/ and hold them in their digital wallets, waiting for their value to increase. Today, the world has many crypto wallets holding Bitcoins worth millions of US dollars.
But people new to Bitcoin don’t know how to store or spend their tokens. This guide explains how you can hold your Bitcoins and eventually use them.
How to Store Bitcoins
People use Bitcoin wallets to hold the private keys they need to access their addresses. Without the private keys, you can’t claim Bitcoin ownership, meaning you can’t spend the tokens in your digital wallet.
Ideally, your Bitcoins need storage like a physical wallet or bank account for fiat money. A digital wallet is computer software connected to the Bitcoin network, like an account number for your bank card. Therefore, a digital wallet has a unique address that you can share with people who want to send you money.
And this address is a short, usable version of a public key, comprising 26 to 35 random characters. Every number and key in the address is vital. Therefore, Bitcoin users should double-check the address when receiving and sending funds.
Apart from a public key, Bitcoin addresses have a private key. As the name suggests, Bitcoin users should never share it with other people because anybody with a private key can access your crypto wallet and transfer your funds. Also, losing the private key means you can’t recover the tokens in your wallet.
A Bitcoin wallet can be hot or cold. A hot wallet has an internet connection, meaning you can access it on a smartphone or computer because it’s typically available online.
On the other hand, a cold wallet doesn’t have an internet connection. Thus, you can use it to store Bitcoins securely offline. This storage involves physical devices like a USB stick.
How to Spend Bitcoins
Although Bitcoin can serve a similar purpose with fiat money, you can’t use it to pay for items or services anywhere. Nevertheless, several places allow customers to pay with Bitcoin. Here’s how you can spend your Bitcoins.
- Bitcoin gift cards and debits: Some retailers allow customers to buy gift cards and use debit cards online to spend their Bitcoin holdings. Some companies now offer crypto debit cards that enable people to spend Bitcoins in their digital wallets on standard debit cards. Also, people can use the cards to withdraw funds at Bitcoin ATMs.
- Shopping: Some local and online merchants take Bitcoin payments. Search engines enable Bitcoin users to find Bitcoin-friendly retailers and products.
- Donation: You can also donate your Bitcoins to a charity organization. This option enables you to support a reasonable cause and enjoy tax benefits.
- Remittances: Using Bitcoin for remittances is also a reasonable option because of its fast transactions and low transaction fees. Thus, you can reduce the time the people back home have to wait for the funds and the cost of sending the funds.
Bitcoin is gradually becoming a mainstream digital currency and payment system. Try the above methods to hold and spend your Bitcoins.