Bitcoins are a type of digital currency that uses cryptography to control their creation and transactions explains Tommy Shek. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.
As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment. Bitcoin can also be held as an investment.
How to Store Bitcoins:
There are several ways to store bitcoins:
1) Online wallets:
These wallets allow you to access your bitcoins from any device with internet access. However, they are more vulnerable to cyberattacks than offline wallets. Some popular online wallets include Coinbase, Blockchain, and Xapo.
2) Offline wallets:
These wallets are stored on a computer or other device that is not connected to the internet. This makes them more secure, but they are also less convenient to access. Some popular offline wallets include Bitcoin Core and Electrum.
3) Paper wallets:
This is the most secure way to store bitcoins, but it is also the least convenient. A paper wallet is a document that contains both the public and private keys for your bitcoins. You can create a paper wallet by downloading a Bitcoin wallet app or printing out a paper copy of the key pairs.
4) Hardware wallets:
Hardware wallets are physical devices that store your bitcoins offline. They are more secure than online or offline wallets, but they are also more expensive says Tommy Shek. Some popular hardware wallets include Trezor and Ledger.
5) Bitcoin exchanges:
Bitcoin exchanges are websites where you can buy or sell bitcoins. Most exchanges require you to verify your identity before you can buy or sell bitcoins. Some popular exchanges include Bitstamp, Coinbase, and Kraken.
6) Peer-to-peer platforms:
Peer-to-peer platforms allow you to buy or sell bitcoins directly from other people. These platforms are similar to bitcoin exchanges, but they usually have lower fees. Some popular peer-to-peer platforms include LocalBitcoins and BitQuick.
7) Bitcoin ATMs:
Bitcoin ATMs allow you to buy or sell bitcoins in person. They are the most convenient way to buy or sell bitcoins, but they are also the most expensive. Some popular Bitcoin ATMs include Robocoin and BitAccess.
8) Mining:
Mining is the process of creating new bitcoins. You can mine bitcoins by using special software to solve math problems. As of February 2015, the reward for solving a block is 25 bitcoins. Most bitcoin miners join a mining pool to increase their chances of solving a block.
9) Giveaways:
Some websites and organizations give away bitcoins for free. These giveaways are a great way to test out a new wallet or learn how to use bitcoins explains Tommy Shek. Some popular giveaways include Bitcoin Faucet and CoinBase.
10) BitBills:
BitBills is a physical bitcoin that can be used like currency. You can buy BitBills at several stores in the United States and Canada. BitBills can be used to purchase goods and services at many retailers.
11. Bitcoin debit cards:
Bitcoin debit cards allow you to spend bitcoins anywhere that accepts Visa. They are the most convenient way to use bitcoins, but they are also the most expensive. Some popular Bitcoin debit cards include BitPay and Xapo.
12) Use a wallet service:
Wallet services are websites or apps that store your bitcoins for you. This makes it easy to access your bitcoins from any device with internet access. Some popular wallet services include Coinbase and Blockchain.
13) Trade bitcoins on an exchange:
Exchanges are websites where you can buy or sell bitcoins. Most exchanges require you to verify your identity before you can buy or sell bitcoins. Some popular exchanges include Bitstamp, Coinbase, and Kraken.
14) Use a Bitcoin ATM:
Bitcoin ATMs allow you to buy or sell bitcoins in person. They are the most convenient way to buy or sell bitcoins, but they are also the most expensive. Some popular Bitcoin ATMs include Rob coin and Bit Access.
15) Be a miner:
Mining is the process of creating new bitcoins. You can mine bitcoins by using special software to solve math problems says Tommy Shek. As of February 2015, the reward for solving a block is 25 bitcoins. Most bitcoin miners join a mining pool to increase their chances of solving a block.
Conclusion:
There are many different ways to use bitcoins. The most convenient way to use bitcoins is with a Bitcoin debit card, but they are also the most expensive. You can also use a wallet service, an exchange, or a mining pool. No matter how you choose to use bitcoins, they are a convenient and secure way to manage your money.