You already know what cryptocurrencies are but have you ever known their utilities? Let’s learn about the main uses of cryptocurrencies through the following article!
Choose your cryptos
Cryptocurrencies abound. What you do with cryptocurrencies determines which is best for you. Newer coins may be more unstable and won’t be commonly accepted as payment.
- First cryptocurrency: Bitcoin. The most famous and valuable. Online and offline stores accept it as money.
- Many merchants accept Litecoin. Litecoin is another option for making purchases using cryptocurrencies.
- Research specialized coins to be sure they’ll work for you.
Cryptocurrency exchanges operate in hundreds of countries, but not all. Cryptocurrencies, payment methods, and fees vary across exchanges.
- Choose the best exchange from 3–4 options. Know how to utilize the exchange’s interface. Exchanges are very hackable. Therefore carefully evaluate their security.
- Higher fees on crypto exchanges don’t guarantee better service or safety. Choose a bitcoin exchange with cheap costs.
Register for trading
Register and verify to purchase cryptocurrencies. First, submit your name, address, contact information, and email. Scan both pages of a government-issued picture ID to confirm your identity.
- The exchange will provide a code to validate your email address.
- You’ll usually get a login code through SMS. Two-factor authentication (2FA) makes this code more secure than a login and password.
Link your payment method.
First-time cryptocurrency buyers must use fiat cash like dollars or euros. Most exchanges offer bank account or credit card payments.
Some crypto exchanges allow PayPal. Depending on your payment method, connecting and making your first transaction may take 3–5 days.
You’ll usually choose a cryptocurrency and how many “coins” (fractions of a coin) to buy. You may also define your budget. The value of the coin determines how much cryptocurrency you receive.
Cryptocurrency exchanges function like stock exchanges. Ordering bitcoin should be similar to ordering shares.
Buy one cryptocurrency with another. Cryptocurrency prices change.
Use or Hold Cryptocurrency
Before spending bitcoin, safeguard your private keys
You provide the merchant with your private key to spend bitcoin. Anyone with your private key controls cryptocurrency.
- Someone using your private key can transmit Bitcoin anywhere. Don’t give out your private key without payment.
- Keep your bitcoin in your exchange account for several days to protect it. If you won’t spend it, use a different wallet.
- Several wallets protect private keys. Choose the one that best balances ease and safety for you. Your bitcoin wallet depends on your use.
Shop online using cryptocurrency
There are many internet stores that accept cryptocurrency. Bitcoin, for instance, is generally more accepted. Microsoft is more likely to accept cryptocurrencies as well.
Buy from local cryptocurrency vendors
Some small companies accept cryptocurrency. These businesses accept cryptocurrencies from mobile wallets. Paying via phone with a payment card is comparable.
Check the cash register logo to see whether a merchant takes your cryptocurrency. This is usually where merchants show credit card logos.
Invest your crypto
Many bitcoin holders think its value will skyrocket. Cryptocurrencies are a tricky investment.
Diversifying using cryptocurrencies may be a key success. To prevent severe losses, balance your cryptocurrencies with more cautious assets.
Cryptocurrency Wallet Selection
Download software to control crypto transactions
Software or desktop wallets allow bitcoin transactions without service availability. Software wallets are more secure and flexible than traditional wallets.
Downloading wallet applications to a specific computer that’s offline except for transactions may increase security.
Depending on your internet speed, downloading the blockchain might take two days. Download before ordering. That way, hackers can’t access your bitcoin at the exchange.
Try a web wallet if you have a modest quantity of cryptocurrency
Web wallets aren’t secure enough for big sums of bitcoin. A digital wallet may be appropriate if you want little sums to buy online.
- Online wallets also have pretty easy interfaces and are comparable to other online accounts. Web wallets are more straightforward for non-techies.
- Hybrid wallets like Copay are safer than web-only wallets and may be used on various devices. If you want to utilize cryptocurrencies at stores, these may be useful.
Mobile wallets make bitcoin access easier
Mobile wallets provide the most bitcoin access but may not be the most secure. However, they are beginner-friendly.
iPhones and Androids have mobile wallet applications. Breadwallet allows password-protected account management. Airbitz doesn’t store your bitcoin, which adds security.
If you have a digital wallet, lock your phone even if you’re not utilizing it, and use a strong password.
Hardware wallets can store more cryptocurrency
Hardware wallets only store cryptocurrency offline. They aren’t hackable like other wallets since they can’t install the software. These $100 gadgets are better for investing in larger quantities of cryptocurrencies.
- Hardware wallets protect cryptocurrency best.
- Hardware wallets make bitcoin access difficult.
Long-term bitcoin investment using a paper wallet
A QR code paper wallet saves your secret keys. It’s hack-proof since it’s paper.
- Scanning the codes unlocks your cryptocurrency.
- To utilize bitcoin, you’ll need an online wallet to scan it into.
- Paper wallets aren’t hackable but still subject to paper dangers.
- Your bitcoin is gone if your physical wallet burns, much like cash.