Using Bitcoin introduces numerous ways, but it all involves basically the same process. Here, there are three steps to use Bitcoin: managing your wallet, acquiring Bitcoin, and trading it for service and goods. For a better understanding of this, let us take a closer look at each one.
Managing your Wallet
On a network of Bitcoin, owning one simply means having a private key and an address. The private allows you to encrypt digital signatures easily.
If you don’t have a private, accessing your Bitcoin will be tough, and there will be no proof to tell that it’s yours. So, it is important to secure your private key.
A private key is received once there is an issued Bitcoin address. It has a length of data 256-bit that is also represented alphanumerically. One example of that is when people sometimes use it in a hexadecimal form, which means having 64 characters in A-F or 0-9 range. Here, the most common option will be using a Wallet Import Format (WIF) that refers to the 52 alphanumeric characters. The first number here is always 5. You can visit www.bitcoin-freedom.com for more information.
Another important thing, to lose a private key will be like to lose your Bitcoin. Once you lost your private key and become unable to retrieve it, you will never have access to your Bitcoin. Aside from that, if someone happened to retrieve your own private key, then that person has access to withdraw your kept Bitcoin.
Now, to avoid this kind of problem from happening, you can try offline alternatives. Place your private key in a flash drive. This ensures that your key is well-secured and is far from any harm.
Acquiring Bitcoin
Aside from mining Bitcoin, purchasing it is a simple yet highly-recommended action to take, and it can be done by doing an online exchange, as well as by making an OTC transaction.
Over Counter (OTC) transactions refer to the trades conducted with others, which is generally through a broker who effectively manages negotiations. Also, OTC is a favored method, especially for those who seek to buy large Bitcoin sums. The reason behind this is that exchanges do not have any liquidity for the transactions to be facilitated. Although the trades are not regulated the same with exchanges, there is a reputable broker who ensures that there will be no fraud. Some elite brokers include Richfund in China, Bitstocks in London, and Genesis Global Trading in New York.
On the other hand, ordinary users and exchangers of Bitcoin such as Coinmama, itBit, and Coinbase are the easiest and safest way to procure Bitcoin. To avoid any foreign exchange fees, it is recommended that you buy from your local exchanger, who typically directs integration with local banks.
Make Transactions with Bitcoin
Taking and making Bitcoin transactions can be done simply. If you already have a specific person whom you want to be the receiver of your money, having a Bitcoin address is the only thing you need. Using this allows you to enter the Bitcoin client. If your receiver uses the same client as you, you often need to enter the email address as it is linked to their account.
Moreover, online businesses that accept and utilize Bitcoin are usually provided with a button that, once clicked, will bring the Bitcoin wallet automatically. This also allows them to make easy and effective payments on the platform. Due to the wallets are installed on mobile devices, there is a provided QR code that can be scanned by other phones.
Now that your learnings about Bitcoin have been added, you can now explore and utilize it to make movements in the platform. Enjoy!
