Content

• To step
• Method 1 of 3: Purchase Bitcoin
• Method 2 of 3: Setting up your Bitcoin Wallet
• Method 3 of 3: Spend or invest Bitcoin
• Tips
• Warnings

Bitcoin was the first digital currency without a broker. By bypassing banks and payment processors, Bitcoin developed a decentralized, global market that only requires an internet connection to participate. To start, purchase some of the currency and set up a digital wallet in which you want to keep it. From then on, you can use or spend your Bitcoin stock as an investment wherever Bitcoin is accepted as a payment method.

To step

Method 1 of 3: Purchase Bitcoin

1. Buy small amounts of Bitcoin directly online. On some websites, such as Indacoin or SpectroCoin, you can directly buy small amounts of Bitcoin with a regular credit card.
   • The limit to the amount of Bitcoin you can buy differs per website. Indacoin, for example, limits your first transaction to € 50. After four days, you can make a second transaction up to € 100.
   • If you want to buy small amounts of Bitcoin without registering or creating an account, these types of transactions are a good choice.
2. To buy large amounts of Bitcoin, use a trading platform. Online trading platforms such as Coinbase or Kraken allow you to open an account to buy and sell large amounts of Bitcoin. The platforms work the same as stock exchanges, with bid and demand spreads.
   • Opening an account on a trading platform is very similar to opening a bank or investment account. You provide your real name and contact information. Once your identity has been verified, deposit the money you want to use to buy Bitcoin into your account. Different platforms have minimum amounts for an account.
   • Once you buy your Bitcoin through a platform, you can keep it in your trading account. However, this can be risky as the amount of Bitcoin flowing through major platforms makes them a beloved target of hackers.
3. Exchange cash for Bitcoin at a Bitcoin ATM. Bitcoin ATMs, which are increasingly seen in major cities around the world, allow you to deposit money and purchase Bitcoin. The device puts your purchased Bitcoin into an online wallet where you can withdraw them or prints a paper wallet with a QR code, which you can scan to withdraw your Bitcoin.
   • To view the map of Bitcoin ATMs near you, visit https://coinatmradar.com/.
4. Earn Bitcoin online with products and services. If you already sell products or services online, you may be able to add Bitcoin to your online store or website as an accepted payment method.
   • If you own a website and want to accept Bitcoin, you can download promotional graphics at https://en.bitcoin.it/wiki/Promotional_graphics.
   • Bitcoin auction sites, such as OpenBazaar, allow you to open a store, just like on eBay, and sell products for Bitcoin.
5. Buy Bitcoin offline from someone else. Just like with other currencies, you can just meet up with someone and trade cash (or other merchandise) for Bitcoin. Visit https://localbitcoins.com/ to meet someone near you who is interested in an offline transaction.
   • Just be careful and only agree to purchase small quantities until you are sure you can trust the person. Do not walk around with large amounts of cash in your pocket. For safety, meet in a public place or in the parking lot of the police station near you.
6. Use a mining program to mine Bitcoin. You usually need expensive mining equipment and software, as well as dedicated servers, to successfully mine Bitcoin. Some cloud mining companies let you mine with them, but in general it is most cost effective to just buy Bitcoin on the platforms instead of trying to mine them yourself.
   • In the early days of Bitcoin, it was still possible for individuals to mine Bitcoin in a profitable way. As of 2018, however, most profitable mining operations are done by large, specialist companies.

Method 2 of 3: Setting up your Bitcoin Wallet

1. Use a mobile wallet if you want to be able to access your Bitcoin. Mobile wallets are smartphone apps for both iPhone and Android. These apps are user-friendly and probably the best choice for beginners, especially if you only have a small amount of Bitcoin and want to be able to access it.
   • Popular Bitcoin wallet apps include Airbitz and Breadwallet. Unlike Breadwallet, Airbitz manages accounts with usernames and passwords, but doesn't actually store or access your Bitcoin.
2. Create a web wallet for online use. If you plan to mainly use your Bitcoin for online purchases, a web wallet is probably the best choice for you. They're handy and easy to use, so you don't have to be a tech wizard.
   • A web wallet works the same as any other online account. You register, transfer your Bitcoin and log in to manage your wallet.
   • Because of the security risks with web wallets, it is better to go for a hybrid wallet, such as Copay, which you can use on different devices and offers multiple security layers that you don't get with regular web wallets.
3. Download a software wallet if you want more control. With software wallets, as the name suggests, you need to download software to your computer. Once the software has been downloaded, you are no longer dependent on third parties to complete Bitcoin transactions. Depending on your connection speed, it can take up to two days for the blockchain to be downloaded. It might be a good idea to download the wallet on a dedicated computer.
   • Bitcoin Core is the "official" wallet for Bitcoin, but can be frustrating to use due to the lack of usage options and slow processing speed. It does, on the other hand, offer better security and privacy, as it does not require external servers and all transactions run through Tor
   • Armory is a secure software wallet with more usage options than Bitcoin Core, but it is technologically complex and can be intimidating.
4. Invest in a hardware wallet for more security. Hardware wallets, also known as "cold storage", are small devices specially designed as Bitcoin wallets. Since no software can be installed on them, they offer the most security.
   • Hardware wallets can be purchased from around € 100. You don't necessarily have to buy the most expensive hardware wallet for the most protection. The Trezor, one of the highest rated hardware wallets, costs only € 100.
   • If you still have an old iPhone lying around, you can empty it and just install a mobile wallet app like Breadwallet on it and use it as a cold storage device.
5. For long-term storage, use a paper wallet. Paper wallets are inconvenient if you plan to use your Bitcoin often and in the short term. But if you bought your Bitcoin mainly to keep it as an investment for a longer period of time, they are safest in a paper wallet.
   • With a paper wallet, the public and private addresses for you Bitcoin are stored on a piece of paper in the form of a QR code. Because your Bitcoin is so completely offline, they are completely protected from hackers. You have to scan the codes to access your funds.
   • While a paper wallet protects your Bitcoin from hackers, keep in mind that it remains paper, which is vulnerable to fire, water, and anything else that can destroy paper (such as your guinea pig or a biting puppy). Keep your paper wallet in a locked, safe place.
6. Keep your wallet safe. However protected your wallet may be, you can always make it even more secure. Make regular backups of your Bitcoin wallet, and keep multiple copies in different places, so that if one is lost, you can still access it.
   • For example, you could keep a backup of your wallet at home, and another at work (if there is a suitable place there). You could also keep a copy in the glove compartment of your car. You may also want to consider having a copy kept by a close, trusted friend or family member.
   • Any backups you keep online must also be encrypted. Use a strong password and always use two-step verification if possible.

Method 3 of 3: Spend or invest Bitcoin

1. Create a public and private Bitcoin address. With your public address you can receive Bitcoin from others. You use the private address to send Bitcoin to others. Public addresses are strings of about 30 arbitrary alphanumeric characters, starting with a "1" or a "3". Private addresses begin with a "5" or a "6."
   • Your wallet creates these addresses or "keys". They are usually provided as device-readable QR codes. By scanning the code, you can easily pay for products and services.
2. Make online purchases with Bitcoin. Many online merchants and service providers, such as Overstock, Microsoft, and OKCupid, accept Bitcoin as a form of payment. When poking around an online merchant site, look for the Bitcoin logo.
   • The number of sellers and service providers accepting Bitcoin is growing by the day, so if your favorite store doesn't accept Bitcoin yet, that could change soon. You could even send a suggestion to customer service asking them to start accepting Bitcoin.
3. Convert your Bitcoin into gift cards. Led by the website Gyft, there are now many gift card websites that accept Bitcoin as a means of payment for gift cards from major online and offline sellers, including giants like Amazon, Starbucks and Target.
   • Some websites, such as Gyft, offer discount and rewards to customers who purchase Bitcoin gift cards.
4. Hold your Bitcoin and wait for its value to increase. Since crypto currencies are unstable, investing in Bitcoin can be quite risky. On the other hand, if you are willing to keep a close eye on the market, you can make a profit.
   • Watch out for companies or websites that claim to double your Bitcoin, offer a lot of interest, or help you invest your Bitcoin for you with big profits. Most of these companies are scammers or pyramid schemes. You might get a decent yield for a few months for a few months, but you end up getting nothing.
   • You can day trade with Bitcoin, just like you can with stocks or other commodities. To be successful with this method you must have experience and know what you are doing.
5. Donate to charity with Bitcoin. There are numerous charities and non-profit organizations that accept donations in a variety of crypto payment methods, including Bitcoin. Many of these organizations, including the Electronic Frontier Foundation (EFF) and The Internet Archive, are committed to Internet freedom.
   • For the 2017 holiday season, Bitcoin posted on its news site (https://news.bitcoin.com/fifteen-ways-to-donate-bitcoin-to-charity-this-season/) a list of 15 non-profit organizations accept donations in Bitcoin on.
   • Just like online sellers, look for the Bitcoin logo on the donation site of your favorite charity or non-profit. If they don't accept Bitcoin yet, you might consider contacting them and asking them to.
6. Look for local merchants who accept Bitcoin. As Bitcoin becomes more common and in popularity, more and more offline sellers and service providers are also accepting Bitcoin as a means of payment. Examples are Subway and KFC Canada.
   • Smaller, local merchants are also increasingly inclined to accept Bitcoin. For example, you can pay with Bitcoin at Pembury Tavern, a pub in London, and Old Fitzroy, a pub in Sydney, Australia.
   • As with online sellers, look for the Bitcoin logo next to the logos of major credit cards on the door or at the checkout of the store.

Tips

• You can share a Bitcoin infinitely often. You don't necessarily have to buy or use 1 Bitcoin. You can also use (or send) .0000000001 Bitcoin, or even less.

Warnings

• Bitcoin is often said to be completely anonymous. However, the current version of Bitcoin is pseudo-anonymous and yet somewhat traceable. Do not use Bitcoin for illegal purposes, as the law enforcement agencies have the means to trace your purchase back to you.
• Bitcoin transactions are irreversible. Keep that in mind when you trade or make purchases with it.