Bitcoin can be a great way to send money to friends and family

 

How to use Bitcoin (BTC) and their top several ways

 

 

How to Use Bitcoin (BTC)?

 

BTC is an efficient and secure way to digitally hold and transfer value from one person to another, and this peer-to-peer (P2P) system makes Bitcoin work much like cash in the real world, with the main differences from Traditional Finance (TradFi) of not needing to use the same type of currency or an intermediary, such as a bank.

 

Top Ways to Use Bitcoin:

 

Buying and Holding Bitcoin as an Asset

 

As an asset class, Bitcoin and other cryptocurrencies has become a staple of many portfolios. As the world started to understand the concept of crypto in the 2010, more and more people began trading it, leading to a boom in the value of Bitcoin, Ethereum, and many others.

 

If a trader buys Bitcoin at a certain price, they could realise either a gain or loss according to its value at the time they sell. Traders who buy and hold Bitcoin through these fluctuations generally believe it will continue to appreciate in value over the long term. These traders may be looking to hold their Bitcoin for years or even decades.

 

Dollar Cost Averaging (DCA)

One strategy long-term Bitcoin traders employ is cost averaging, best known as ‘Dollar Cost Averaging’, though it can be initiated with any currency. In this strategy, participants commit a certain amount of funds on a regular basis to purchase Bitcoin regardless of its price. This may be a weekly, monthly, quarterly, or yearly investment, steadily accumulating additional amounts of the cryptocurrency over time. Since long-term market participants believe the price will continue to rise, they are not concerned about shorter-term price fluctuations; they see dips in the price of Bitcoin as opportunities to accumulate more of the cryptocurrency at a more attractive price.

 

Recurring Buy

Since Bitcoin can be bought in fractions, or Satoshis, which represent one hundred millionth of a bitcoin, users can begin buying in very small increments and still participate in Bitcoin’s price movement.

 

 

Trading Bitcoin

 

Those who are looking to be more active in their asset management often try to take advantage of price fluctuations in Bitcoin by trading, which involves buying and selling Bitcoin and other cryptocurrencies at faster intervals. A trader might buy Bitcoin when they think the price is about to go up and then sell once they’ve realised an appreciation in price.

 

Traders use a variety of research strategies, such as fundamental analysis, technical analysis and news catalysts, as they try to time and capture price changes in a specific direction. Traders even participate in the options of the price of Bitcoin and other cryptocurrencies dropping.

 

It’s important to point out that trading is risky. Timing price movement and direction is difficult, and traders typically risk higher amounts of capital over shorter time frames. Traders must have a defined risk strategy and discipline to execute trades according to their plan and accept losses as part of the cost of doing business.

 

 

Sending and Receiving Bitcoin

 

Bitcoin can be a great way to send money to friends and family. Bitcoin blockchain transactions are secure and can take place directly from one cryptocurrency wallet to another, almost like handing cash directly to someone.

 

How to use Bitcoin to send someone money:

 

• Every cryptocurrency wallet has a public address for receiving cryptocurrency, and a separate, private address for sending it.

 

• The public address is safe, and users are able to provide it to anyone who wishes to send them money. There is very little legitimate risk that the sender could access the user’s wallet or its holdings by having their public address.

 

 

• Most wallets provide an easy way for individuals to share their public address, such as a link or QR code. This is most likely the way someone will provide their public address information.

 

 

Select the amount of money to send. The wallet app will make this simple by converting from the main currency to an equivalent amount of Bitcoin. Look for a transaction confirmation. This will take place in the wallet app, but users may also get additional confirmations via email or text message, depending on their wallet and configuration settings.

To receive money, the steps are reversed. All a user needs to do is provide their public address to the sender. Sending and receiving Bitcoin is simple and secure!

 

 

Using Bitcoin to Make Purchases

 

A large number of vendors accept Bitcoin as a form of payment, from e-commerce companies to subscription services. While some early adopters stopped accepting Bitcoin payments over the years for various reasons, others are stepping up. Coinmap listed over 15,000 retailers accepting Bitcoin as showed that 75% of retailers expected to start accepting cryptocurrency as a form of payment over the two years.

 

 

Using Bitcoin to Make Donations

 

Many charities accept Bitcoin and other cryptocurrencies, such as organisations seeking to develop treatments for disease, protecting wildlife, providing clean water, and feeding the hungry.  A comprehensive guide to charities that accept Bitcoin or some other form of cryptocurrency is available at The Giving Block. For favourite charities not listed, visit their website for an official public wallet address.

 

 

Using Bitcoin to Get Paid

 

For those who own a business, it’s easy to accept Bitcoin. To get started, all that is needed is a public wallet address, which can be shared via link or QR code.

 

 

Earning Rewards With Bitcoin Mining

 

Mining is a way to help Bitcoin’s blockchain ledger operate while also releasing new bitcoins into the supply in a metered way. It was relatively easy to mine Bitcoin with a regular laptop or desktop. But as the value of Bitcoin increased, more people began mining, and competition skyrocketed. It became harder to mine and took much longer, and eventually the mining process moved from the computer’s central processing unit (CPU) to the Graphics Processing Unit (GPU).

 

Alternatives to Bitcoin Mining

There are other options to gain exposure to Bitcoin mining. Several companies with a dedicated mining infrastructure offer mining pools, and cloud mining services offer the option to rent a portion of an existing hardware setup for portioned earnings. Other mining pools allow individuals to invest in new hardware and share in the rewards.