What is Bitcoin And What To Do With It

Due to some big highs (and big lows), the cryptocurrency market has been in the headlines for quite some time now. And Bitcoin, as the original cryptocurrency, has become even more popular.

The economy has been struggling in 2020, but Bitcoin has shown some stability and doesn’t seem phased by the crisis. To no surprise, people want to know what is Bitcoin and what to do with it.

This article will explore some Bitcoin basics, but more importantly, how and where to use it as an alternative currency. Let’s dig in.

What Is Bitcoin And Why You Should Use It?

Bitcoin is the original cryptocurrency that was created by Satoshi Nakamoto in 2009. The goal was to counter the failure of the banking system, by releasing a universal, public and unalterable digital money system.

The result is Bitcoin – a decentralized, peer to peer digital currency that anyone, anywhere in the world can use to transfer value.

In the early days, all people could do with Bitcoin was trade it on exchanges and send it to one another.

But as time went by, merchants all around the world started accepting it as a payment method, with more users adopting it as an alternative currency every day.

Why? Well, Bitcoin offers fast transfers, low transaction fees, and is extremely easy to use, especially compared to traditional banking systems.

So it’s no secret that if you own some Bitcoin, or are planning to, it would be of great help to know what to ultimately do with it. Let’s explore some possibilities.

Where To Use Your Bitcoin?

Today, there are multiple uses for Bitcoin. Here’s a compiled list of what we think the best use-cases of Bitcoin are.

Use It As A Currency

Bitcoin was first intended as an alternative currency to traditional money. While most investors choose to hold Bitcoin for its increasing value, many want to spend it on a daily basis.

And while it used to be difficult for merchants to set up a point of sale for Bitcoin, it’s no longer the case.

Thanks to platforms like Bitpay, merchants can choose if they wish to accept Bitcoin or fiat, and use payment platforms as a gateway. Users can pay directly with Bitcoin and the seller receives their currency of choice on their bank account, almost instantly.

This feature has played a significant role for mass adoption, as Bitcoin transactions aren’t submitted to exchange rates or long transfer times.

Send it to your close ones

When you are holding Bitcoin, you are holding value. Sending some coins to your friends and family as a gift is a great way in making them take interest in this financial revolution.

Teach them how to open a wallet and how to use it. Then, when the time comes, like a birthday or similar occasion, you can send them some Bitcoin.

Why do this instead of just giving them a gift card or plain cash? Well, Bitcoin is known for its appreciating price, so your gift might double in value by their next birthday!

Trade for profit

Cryptocurrency traders make most of their profits by increasing their Bitcoin portfolio and selling it for fiat money.

They do this by trading Bitcoin for other cryptocurrencies on different exchanges like Coinbase or Binance. They buy alternate crypto at a lower price, then sell it at higher prices at a later date.

While crypto trading might appear as a high risk-high reward type of investment, it doesn’t have to be like that. Trading cryptocurrencies is similar to trading company stock.

This means that there are some prerequisites – before you start trading, your first stop would be to acquire some basic trading skills.

Next. make sure you research the alternate crypto you are buying in order to know when you can sell it for profits.

There are numerous sources out there for crypto trading, and if interested, you should definitely check it out. While risky, it can be loads of fun and profitable. Just make you never invest more than you can afford.

Travel with Bitcoin

Bitcoin has become a very popular solution for traveling, and rightfully so.

First of all, the borderless nature of Bitcoin allows users to pay for goods and services anywhere in the world, without being subject to currency exchange fees.

Additionally, platforms like Travel By Bit and Travala facilitate payment for plane tickets and holidays with Bitcoin.

Here’s a tip – If you are used to saving up for your holidays, you can now do it by buying Bitcoin throughout the year.

Why? Well, Bitcoin’s price is constantly increasing. So when the time to go on vacation comes. you might be able to afford a better arrangement than you initially anticipated!

Buy Gift Cards

If none of these options suit you, there’s still the universal solution – gift cards.

Websites like Bitrefill and eGifter will allow you to buy some of the most popular gift cards available. Amazon, Steam, Appstore, they are all there. Most of these offer very simple purchasing options that are suited for beginners.

And being able to offer something valuable to someone with your Bitcoin profits is certainly a great feeling.

Just Hold On To It

As we stated before, Bitcoin’s price is continuously appreciating over time. Since 2009, it has risen more than 3 million percent from $0.3 to $10.000 at the moment of writing.

If we analyze the historical data, Bitcoin remains one of the best-performing assets of the decade. What’s even better, the trend doesn’t seem to be stopping anytime soon.

Holding Bitcoin has proven to be a great choice for a great number of long-term investors, and it’s not too late to start now.

Conclusion

Bitcoin’s original purpose was to be used as a borderless and alternate currency to traditional money. While most people that buy Bitcoin use it as a long term investment, that’s only one of many options.

As we’ve seen in this article, you can use Bitcoin for: