Learn how to use bitcoin in 6 easy steps

Bitcoin is both a currency and a means of payment.

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Bitcoin works as a payment system and as a currency. This technology, full of novel and complicated concepts to understand, promises to completely change the global financial system. This is why many are wondering: how to learn how to use bitcoin (BTC) in a few steps? how to buy bitcoin in a simple way?

Contrary to popular belief, using bitcoin does not require technical knowledge. You don’t need to be a computer genius to make or receive a payment from bitcoin, a crypto-based currency. On the contrary, this method can be easier to use and provide greater security than other forms of exchange to which we may be accustomed. First step: find outThis is the official logo of Bitcoin (BTC). There are currently a lot of cryptocurrencies similar to bitcoin. Source: Wikipedia.

Resistance to change is something innate of the human being. Changing the way we understand and use money can be difficult, so being informed is the first step we need to take.

That is why in CriptoNoticias we give ourselves the task of collecting and keeping updated an Encyclopedia, where anyone can start learning about the world of Bitcoin.

In our “Cryptopedia” you will find articles such as:

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• What is Bitcoin
• Bitcoin White Paper
• What is a block chain
• Bitcoin White Paper

As well as many more. Step Two: Choose a Bitcoin Wallet

The bitcoin wallet, wallet, wallet or wallet, whatever you call it, is the analogue to your bank account. This is where you will be able to manage your funds.

When choosing a bitcoin wallet we can find an immensity of options, where each of them adapts to different demands of users. We can divide them into three categories.

• Hardware-type bitcoin wallet: These bitcoin wallets or cold wallets store the private key (the mathematical proof that those bitcoins belong only to you) on a separate device. With them you can sign transactions (send BTC to someone else) without being connected to the Internet. This makes it one of the most secure bitcoin wallets. Some examples are:
  • Trezor
  • Ledger

Hardware wallets are devices that connect to the computer only at the time of sending funds. Source: Pinterest.

• Bitcoin wallet type App (software): these are applications that you can install directly on your mobile device or computer. The private key on this occasion is stored and encrypted within the device where the App is installed. Some examples are:
  • Coinomi
  • Bitpay
  • Putting green
  • Electrum

These are some of the bitcoin wallets that you can find within the Google Play Store. Source: Google.

• Bitcoin web wallets: as their name specifies, they are web services that allow users to manage their funds. In these sites the private key is handled directly in the web portal. Some examples are:
  • Binance
  • Blockchain
  • Bitpanda
  • Poloniex

Blockchain works as a hybrid between a web wallet and a software wallet. Source: Blockchain.com.

If you want to learn more about how to choose a bitcoin wallet we recommend the following article from our Cryptopedia. Similarly, in the Tutorials section of CriptoNoticias we have a wide catalog of articles that will teach you how to use the different cryptocurrency wallets. Tips when choosing a bitcoin wallet

The wallet you choose should fit your day to day. Whether you use bitcoin frequently or simply use this cryptocurrency as a means of saving. Here are some tips to make it easy to take steps to use bitcoin:

• You can use different wallets and have the amounts you want of each one, there is no limitation.
• Consider separating your funds depending on usage. You can have small amounts in your phone’s wallet for your daily expenses, and to secure large amounts, such as your savings, you can consider investing in a hardware wallet.
• There are wallets that work for all operating systems, such as Coinomi, which allows you to have control of your bitcoins, with the same wallet, on any device.
• Question, don’t be left with the doubt. It is not too much to ask for the opinion of someone with experience in cryptocurrency wallets.

Third step: set up your wallet

When you use a bitcoin wallet, you are responsible for its security. Protect the mobile device or computer where you use the wallet and recovery keywords (or seed). Keep these tips in mind: Wallets like Bitpay allow you to customize different aspects of the wallet that improve the user experience. Source: Bitpay.

• If your wallet uses recovery seed, preferably by writing it down on paper and storing it in a safe, moisture-free place where only you have access. This step is vital for the protection of funds.
• Some applications allow you to activate an extra layer of security, with a password or fingerprint scan. Remember that this method is not linked at all with the recovery seed.

Other aspects you can explore in your portfolio:

• If you allow you to modify the mining commission, you can decide how much to pay at the time of shipment. The higher the commission payment, the faster your transaction will be confirmed.
• Configure the national currency in which the amounts will be seen, be it dollars, euros, pesos, etc. The final exchange value between bitcoin and the selected currency will depend on the exchange that uses the wallet as a reference.

Fourth step:a start receiving bitcoins

Receiving bitcoins is a simple task, all you need to do is share a public address that will generate your wallet. Look for the Recibir button and you will find something like what is shown in the image below:Screen receiving funds in a bitcoin wallet; shows public address and associated QR. Source: Coinomi.

The string corresponds to the public address. The QR code corresponds to its abstraction in this format, so that in this way it can be scanned using the camera of some device.

Bitcoin addresses can be found in 3 formats.

• Legacy addresses (the first of the protocol), which are those that begin with “1”, like the one we see in the image above.
• Compatibility and multi-signature addresses, which begin with “3” and maintain the same format as legacy addresses:

• The native Segwit addresses (a protocol update), starting with “bc1”:

Whatever address your wallet uses, they all serve the same function: receiving transactions.

It is important to note that the addresses are unique, and only you, through your wallet, can generate them. Unless you know what you’re doing, you shouldn’t share addresses to receive bitcoins that don’t belong to you or haven’t generated you directly.

Tip: every time youneed to receive, generate a new address, if your wallet allows it (some do it automatically). In this way you will be giving a layer of privacy to the total of your funds. 

Fifthstep: buy bitcoins

Maybe at the time of buying you say “I do not have to buy 1 BTC”. Don’t worry, you don’t need to buy a full unit. A bitcoin can be divided up to 100 million times, with 0.00000001 being the least amount of BTC you can have. So buying a few dollars or pesos will not be a problem.

See where you can buy bitcoin in each country in Latin America and in Spain:

• Spain
• Argentina
• Colombia
• Ecuador
• Costa Rica
• El Salvador