Bitcoin’s popularity makes almost everybody desire to have it. But, how do you use your Bitcoin after you’ve earned it? Most people know that Bitcoin refers to electronic money. That means you can’t have Bitcoins in your pocket.
What’s more, you can’t withdraw Bitcoin via an ATM or bank. It’s only available as virtual money. So, how do you use Bitcoin? Here are excellent ways you can use your cryptocurrency once you have it in your digital wallet.
Send Bitcoin to Somebody Else
Most people use platforms like advfn.com to purchase Bitcoin. Such a crypto exchange allows you to own a fraction of Bitcoin. However, you need a Bitcoin address to send this cryptocurrency to your digital wallet after purchasing it. The address is not something you can interpret or read. It’s a string comprising random alphanumeric characters.
A Bitcoin user has a private key for accessing their wallet. This key prevents other people from accessing and stealing your Bitcoins. Essentially, every Bitcoin address comes with a private key for accessing it. Therefore, keep your private key secure to ensure that nobody can access your Bitcoin. Otherwise, somebody else can steal your Bitcoin.
Manage and Store Bitcoin in Your Digital Wallet
Tracking all Bitcoin addresses and keys can be time-consuming and quite confusing. However, you don’t need to do this with Bitcoin wallets. These programs track all Bitcoin addresses for you. Thus, you don’t need to write down the addresses.
Managing Bitcoins requires a digital wallet. That’s because the blockchain network needs to notice and record every transaction. The Bitcoin network recognizes that you have unspent Bitcoins in your address when everybody in it agrees. And that’s where Bitcoin’s value lies. The value of this cryptocurrency is because users put a price tag on it. A giant ledger or the blockchain holds the entire Bitcoin network’s status.
Every Bitcoin wallet signals this network to record every transaction on this ledger. And this shows the flow of Bitcoin from one address to another. Thus, Bitcoin software confirms and records every transaction on this ledger.
Manage Your Bitcoins
A Bitcoin user can download a digital wallet and use it to access their funds with ease. This wallet handles all Bitcoin addresses while allowing the user to send funds to other people. A Bitcoin wallet can force you to copy-paste another person’s address when sending money.
It may also require you to scan the recipient’s Bitcoin address displayed in the form of a QR code. And you can use your smartphone’s camera to scan the QR code when sending money.
Pay with a Bitcoin Wallet
Bitcoin users have varying types of wallets to consider. A wallet can be a software-based platform that runs on a desktop computer. This system can store private keys and Bitcoin addresses. Thus, you can easily access crypto addresses on your computer’s hard drive. You can also have a digital wallet that runs on a mobile device. Another one can be a hardware wallet that compares to a USB drive where you store private keys.
Many wallets come in a smartphone version. Thus, you only point the camera of your phone at a QR code to pay for a product or service using Bitcoin. Once the software has scanned the code, you will need to click a “Send” to complete the payment.
Online wallets are also another option. With these wallets, users store private keys and Bitcoin addresses in secure servers. And when set up correctly, these wallets prevent the loss of public keys and Bitcoin addresses since they are not like hard drives that can be misplaced or crashed.
Bitcoin exchanges allow people to purchase Bitcoins online. After buying your Bitcoins, you can spend, send, or store them in your crypto wallet. Bitcoin users should select their wallets carefully and learn to use them securely to avoid losing their funds.