How To Bitcoin
HOW TO BITCOIN
What is bitcoin cryptocurrency?
Bitcoin is a peer-to-peer electronic payment system called a cryptocurrency. It’s sovereign money that is neither issued by any government nor does it require using a bank or custodian; instead it’s decentralized, open-source computer software running on thousands of nodes around the world handling the bitcoin transactions. Anybody can use this innovative system to pay anyone, anytime, without any permission, friction or hassle.
Where do I get cryptocurrency?
Obtain bitcoin via a cryptocurrency exchange (aka fiat on-ramp), such as LUXOLO, where you exchange US dollars directly for cryptocurrency. This is very similar to any currency exchange transaction. Receive your bitcoin or USDC money as a deposit to your wallet’s public key. Your funds will be immediately visible and spendable on your smartphone wallet.
How do I store my cryptocurrency?
Store your bitcoin or USDC in a wallet, available in 1) the practical form of a smartphone app for daily access, or 2) a web-based multi-signature wallet for occasional access, or 3) a hardware device wallet for long term ‘cold storage.’ In any case, the wallet technology consists of two sides: a public key (for deposits/balance check) and a private key for spending. Although the software makes it difficult to make this make, we’ll say it emphatically: don’t ever show or give your private key to anyone!
To conveniently store use bitcoin or USDC, consider installing an encrypted software wallet on your smartphone. Consider using a trusted smartphone wallet such as Exodus, CoPay, or Coinomi, or a trusted physical wallet such as Ballet, or a trusted but somewhat less user-friendly USB hardware wallet such as Trezor or Ledger.
IMPORTANT: If you received your funds via a smartphone app or other convenient spending device, then we strongly urge you to 1) immediately backup your 12 or 24-word seed phrase on paper and store it safely, 2) utilize both a strong password on your device, plus a separate password on the wallet app, and 3) use 2-Factor Authentication on the app, if available. We would never want to hear of a customer losing funds due to lax security practices, which are fully avoidable.
How do I use cryptocurrency?
You can now easily make a payment of bitcoin or USDC to a friend or business via your smartphone app. Open your wallet app, scan the QR code of your desired recipient, type in the amount expressed as either $USD or BTC, and hit send. Voila!
The transaction is immediately signed, broadcast and placed in the network queue for “mining” which is also referred to as confirmation. You have made a payment which will be recorded on the bitcoin blockchain, a public ledger permanently showing all historical transactions and viewable by anyone. See any historical bitcoin transaction including yours on Blockchain.com or BlockCypher.
How do I invest my cryptocurrency?
In addition to just holding your bitcoin and waiting for it to appreciate in value, now you can also put your bitcoin to work as an investment!
Emerging now are investment markets for bitcoin and cryptocurrency investments, including interest bearing accounts, passive income via staking, cloud mining, and more. Of course, there is a wide spectrum of such investments which all carry varying levels of risk/reward and are not suitable for all investors. And, many or most of these require taking custody of your digital currency, which introduces a whole additional tier of risk consideration.
Talk with our Exchange Desk Advisor today about these options.
Looking for more?
LUXOLO – Detailed Bitcoin FAQ
Found on the LUXOLO Blog, learn more technical details as well as legal, legislative and governmental considerations.
The official site of the Bitcoin Foundation, a non-commercial, non-profit community of bitcoin core developers.
“The leading non-profit research and advocacy center focused on the public policy issues facing cryptocurrency and decentralized computing technologies like Bitcoin and Ethereum.”
Relatively fair and balanced reporting of the latest cryptocurrency industry news.
By popular demand, we’ve created this concise, easy to read booklet to help you understand bitcoin. It’s so simple, even your 8-year old will get it. Satisfaction guaranteed or we’ll send you a free bitcoin bumper sticker.