Bitcoin (BTC) has been one of the most talked about technologies of the past few years. Since its inception in 2009, this digital currency has made waves all over the world, establishing itself as one of the best ways to send and receive money online. Aside from being used for low-cost transfers, Bitcoin has also attracted headlines due to its potential for investors and traders.
Since 2009, BTC price has increased by an astronomical 720,000,000%. This has made it one of the most attractive prospects for investors who are looking to ride the next price rise and get rich. However, investors and traders should be careful, as Bitcoin is subject to big fluctuations in its price that go both up and down. Countless investors have lost money by selling off during crashes, and the volatility can be difficult to take.
As well as turbulent prices, using Bitcoin can be quite daunting to some. It’s relatively easy once you know how, but unlike using a bank transfer, doing something wrong could cost you a significant amount of money. Secure issues also put some people off, but these are mostly easy to avoid, provided you know what you’re doing. In this article, we’ll show you how to use Bitcoin in 2023.
Creating Your Bitcoin Wallet
Before you can start using Bitcoin, it’s advised that you first set up a wallet. Much like a bank account, the wallet will allow you to send and receive coins, as well as keep them safe. However, unlike a bank, the wallet is only owned by you, and no one else can access it unless they have your private key.
Typically, there are two main types of wallets that you can use to hold your Bitcoin. The first of these is the cold wallet, which is used to keep your coins in cold storage. These are typically offline and are more secure. However, they make using your Bitcoin a bit more complicated. A hot wallet is what you want if you’re going to be sending and receiving Bitcoin regularly, as these can be accessed online.
Of the hot wallets, you can get wallets on your mobile, desktop, or through your web browser. Some are easier to use than others, and they each have their advantages and disadvantages in terms of security and access. Whatever wallet type you use, ensure you have good security protocols in place, and don’t give anyone access to your private keys.
Buying Your Bitcoin and Sending and Receiving
Once your wallet is set up, you’re ready to purchase your Bitcoin. There are a few different ways you can do this, but the easiest and safest option is to buy through a trusted online exchange. Almost all cryptocurrency exchanges will allow you to trade fiat currency for Bitcoin, and some even allow you to purchase directly with your card.
Popular exchanges you can use safely include Kraken, Coinbase, and Gemini. Make sure the exchange is legal and trusted in your location, as some may need a license. Then, set up your trade and wait for it to complete to get your first Bitcoins. Don’t forget you don’t need to buy a whole Bitcoin, you can purchase them in fractions, and they work in exactly the same way.
Now you own your Bitcoin; you’re free to do whatever you like with it. The best option for safety and utility is sending it to the wallet you set up earlier. Simply copy your wallet address, double-check it’s correct, and then send. Once the transfer has been confirmed, you should be able to send it from your wallet to pay for things online. Beware of scams, and always make sure you check every transfer before you send.
