A lot of people want to know how to get Bitcoin and how to pay with Bitcoin. One of the easiest and fastest methods to obtain Bitcoins is through a debit card or credit card where it enters your Bitcoin Wallet almost instantly.
You might have entered the cryptocurrency market as a newcomer, but to fully understand the concept, we think you should know a couple of things. First, Bitcoin differs from traditional currencies. Governments do not issue the currency or anyone else. Typically, Bitcoins are mined with a special computer that uses complex mathematics.
Similar to gold, Bitcoin has a distinctive amount of coins on the market. For example, the cap was set at 21 million Bitcoins, and currently, this currency’s miners have taken over 13 million. No one controls this digital currency, which made it popular among many forward-thinking groups who want to pay with Bitcoin.
What Is Cryptocurrency?
Cryptocurrency involves complicated encryption techniques where you generate a number of units and verify fund transfers. It operates outside the confines of a centralized bank. Some people have gone so far as to call it the dollar of the future because it works independently of third parties. Not many people actually realize how cryptocurrency emerged in 2008 at the spawning of another invention from Satoshi Nakamoto, an anonymous name for an inventor.
Originally, Nakamoto intended to develop a “Peer-to-peer electronic cash system.” Bitcoin employs a peer-to-peer network to stop double spending. In fact, a lot of people believe Bitcoin to be anonymous, but the system can go back to find everyone who ever used the cryptocurrency.
Who Uses Bitcoin?
When two researchers from the University of Illinois Urbana-Champaign collected data from the responses of more than 1,200 Bitcoin users, they discovered how this currency offers much privacy to its users. Because no centralized agency regulates it. The report found that the typical user was 33 years old, and almost half of the users lived in the United States.
Many times, we believe in Bitcoins users as young innovators, but statistically speaking, Bitcoins looks a lot like other currencies. For example, the wealth increases as you age, and it plateaus in the mid to upper 50s. About half the Bitcoin users are 45-year-olds.
How to Pay with Bitcoins and Use Them?
Bitcoins lets you take direct control of your cash. Instead of running it through a third party such as Paypal or a bank, you create a Bitcoin Wallet. Before you know how to pay with Bitcoin, however, you should understand how you cannot refund a transaction.
Therefore, you should only do business with those you trust. With Bitcoin Wallets, you have several available from a mobile wallet like Breadwallet to Mycelium and Airbitz. For maximum security, use Armory, especially when you store big amounts of Bitcoin.
For a more hybrid wallet choice, you might pick Copay. This comes through multiple platforms, and you can use the same wallet across numerous devices. Copay has a friendly interface for newcomers, and business has taken a liking to it because of the shared account feature. If you decide to buy this cryptocurrency, understand the price fluctuates rapidly.
Even once you have bought Bitcoins, you have to ask yourself, “Where can I pay with Bitcoin?” The answer depends on finding vendors who specifically accept the cryptocurrency. Many of the larger stores accept this payment method online.
Tips on How to Pay with Bitcoin
Tip #1: Back It Up!
Assuming you have chosen the desktop client to store your Bitcoins, you should also make use of the option to back your wallet up. The instructions on how to do this depend on the client you have installed. Like how to pay with Bitcoin, backing up has equal importance because you do not want to lose your hard-earned money.
When you make use of backup, the wallet saves to a file. Luckily, that’s all the bitcoin wallet needs to retrieve your balance because the actual value attaches to the Bitcoin address. In fact, the information stores the data on the block chain over the wallet.
Tip #2: Don’t Keep Your Savings in a Web Wallet
In recent years, numerous cases have emerged where web wallets were hacked and emptied. Web wallets might sound more convenient, but you should only use them like a checking account where you have money for use in the near future. In that way, even if a hacker empties your wallet, you suffer minimal losses.
Tip #3: Bitcoin Address—What Is It?
A bitcoin payment looks a lot like a bank transfer. Every person will have their own account, referred to as an address where the Bitcoins can be stored. People can have as many Bitcoin wallets as they want.
Tip #4: Buy Gift Cards
Tip #5: How to Pay with Bitcoin
One of the faster methods for how to pay with bitcoin has been to look for a payment processor that provides a QR code when you check out. The code represents the payment amount and the address, and you simply scan the QR code for it to send Bitcoins to the requested address.
Tip #6: Mobile Payments Made easy
When you pay with bitcoins for the mobile, you have a simple two-step system where you don’t have to swipe your card. You simply display the QR code to the wallet and send the payment.
When it comes to how to pay with Bitcoin, it is not extraordinarily difficult. You simply locate a vendor that allows for Bitcoin payment and take advantage of it. In many ways, you could compare the process to sending an email. Have you ever paid with Bitcoin? How did you do it? Share your comments below for active discussion.