How to use bitcoins? All available ways to spend your virtual money

How to use bitcoins? All available ways to spend your virtual money

If one had the cryptocurrency, he or she would without anybody’s help decide how to use bitcoins! Many are confident of it, but in fact, the sphere of cryptocurrency application is not so extensive. Of course, it depends more on the region of your residence or location. In some countries, even including Europe, cryptocurrency transactions are still considered a curiosity, when in other regions using BTC you can buy fashionable clothes, pay in a restaurant or become an investor.

Table of content:

  • Investments is the best way to earn on the crypto
  • Arbitration is for experience traders and beginners
  • ICO participation: find your ideal project
  • Buy goods and pay for services with your bitcoins
  • Charity, donations and gifts
  • How to get, store and transfer BTC
  • Conclusion: be aware of your security!

Investments

Let's start right away with serious things, not with buying branded jeans, gadgets and movie tickets. We'll talk about this later, but for now let's move on to the market. So, having some bitcoins, you can make investments. This cryptocurrency is universal, i.e. with other kinds of coins are bought on the exchanges. There are a lot of promising altcoins that are likely to rise in price in the future. Who would have thought several years ago that bitcoin and ethereum became the most expensive cryptocurrencies in the world?

Arbitrage transactions

Here we again come to the exchange, but in a different role. Arbitration is the work of professionals. It is necessary not only to be able to use the functional of the service, but also to feel the situation, have intuition and find profitable offers on parallel exchanges. The essence of arbitration is the difference in rates at different services. Buy profitable and sell at a higher rate, to make money on this is the most important task of each trader.

ICO projects

Purchase of tokens from the company, which is an organizer of the Initial Coin Offering, is made not only with fiat money, but also for cryptocurrencies. Bitcoin and Ethereum are the most demanded coins in this respect. You transfer funds to the account of ICO owners, and in return receive their domestic currency. After the end of sales of tokens, it can be used not only for the needs of the project, but also exposed on the exchange and significantly rise in price. There are many such examples of ICO history.

Goods and services

And now let's move on to the most interesting field. Every person is, to some extent, a shopaholic. With bitcoins "in your pocket" it is easy to buy almost everything. We are talking about food and drinks, branded clothes, gadgets, perfumes, cosmetics, books and much more. Stores install terminals for payment and willingly accept virtual currency.

This situation is observed in the US and in some countries of Asia, where people are very keen on cryptocurrency. But don’t forget that BTC is prohibited in China. This payment method in quite new and unusual in many part of the world, so cryptocurrency is used for small payments. For example, cafes or hotels attract the visitors with a sign "We accept Bitcoins". This is a very catchy advertisement, isn’t it?

Donations and gift certificates

Various funds and organizations are ready to accept cryptocurrency as a donation. Young talents, interesting technical startups need help of various kinds. There are even political activists who will not refuse to receive donations from their adherents in bitcoins. Moreover, the latter can easily be changed for fiat money.

How to use bitcoins? Technical side of the question

Choosing a wallet

To spend bitcoins, you must first buy them, earn or exchange. For these tasks, the user will need a special wallet. There are several types of these services. The fastest and easiest is online, which involves storing keys on a remote service. You can also install a special program on your PC and get a desktop wallet at your disposal. It can be of two types. The first is an easy one without downloading all the blockchain on the hard drive. The second is called “thick” and needs the whole blockchain installation. It takes much time and space on your hard drive. The reliability and safety of cold storage is undeniable. We are talking about hard wallets. There are also paper wallets that can be created and printed out within a minute.

How to use bitcoin address

Having created a wallet, you will become the owner of a public and a private key. The latter must be stored in a safe place without access of the third parties; otherwise you will lose all your savings forever. Wallets generate addresses so that you can get virtual funds from other users. The interfaces of wallets are simple and convenient, so even an inexperienced user of cryptocurrency will find the necessary option Withdraw and Send. Those who want to get BTC from your, in their turn, give their address to you. It is as easy as someone give his or her email address. It is not necessary to type a long code consisting of different characters manually. You can copy it or use the QR-scanner camera..

Where to take bitcoins

Bitcoins with the same ease are bought and sold, as well as any other currency, including fiat money. There are several ways of making sales transactions:

Conclusion

How to use bitcoins? This question is interesting for many people who are just acquainted with the world of cryptocurrency. In fact, everything is much easier than it might seem. The use of virtual coins is not more difficult than dealing with web-banking, credit cards and non-cash transfers. The temptation to use bitcoins as a payment tool to purchase banned goods and services is quite strong. Despite the anonymity and storage of information in an encrypted form, there are ways to track payments - many exchanges require passport data when registering, there are bank card numbers left on the network while dealing with online stores or exchanges, etc., so do not risk being involved in questionable transactions.



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