Tue. Apr 16th, 2024
BitcoinExplain how to use Bitcoin (BTC) - Use digital currency wisely

Some people who are interested in Bitcoin / BTC may want to know how to use it. Bitcoin is a representative virtual currency and boasts high popularity both in Japan and overseas.

What is the “wallet” that should be prepared before using Bitcoin / BTC?

When using Bitcoin, it is common to prepare a “wallet”. In this paragraph, I will explain the “wallet” that you should prepare before using Bitcoin.

A virtual currency wallet is a tool that keeps currencies safe. As its name suggests, it can be used as an electronic wallet for virtual currencies.

The wallet uses a cryptographic system to protect the virtual currency stored in the wallet. What is actually stored in the wallet is not the virtual currency itself, but the so-called “secret key”.

The private key acts as a secret code for trading Bitcoin. There are many types of wallets for crypto profit, and each has different usability and security strength. Therefore, let’s use it properly according to one’s purpose. Types and characteristics of virtual currency wallets

 Wallets can be broadly divided into hot wallets and cold wallets.

Hot wallets are online and networked, so they are at risk of being hacked. Online wallets managed on the cloud, mobile wallets that use smartphone apps, desktop wallets that install the wallet on a PC, etc. are classified as hot wallets.

On the other hand, cold wallets are characterized by their high safety as they are managed offline. Hard wallets that use devices such as USB devices and paper wallets that are printed and stored on paper are classified as cold wallets.

If you want to keep your virtual currency safe, it’s common to use a cold wallet. The most expensive wallet is the hard wallet, but it has the advantage of being convenient and easy to carry.

Benefits of using a virtual currency wallet

Here, we will explain the advantages of storing virtual currency such as Bitcoin in your wallet.

Virtual currency can be distributed and stored:

The first advantage is that virtual currencies can be distributed and stored. You can also reduce the risk of hacking by choosing a wallet with a higher security level.

Remittance and balance inquiry can be done smoothly and quickly.  If you use your Smartphone wallet, you will be able to check your balance more easily.

Can reduce the risk of counterparties

The third advantage is that you can reduce the risk of counterparties. Counterparty is a crypto currency exchange or trading partner.

If a virtual currency exchange is closed due to hacking, it is possible to reduce the risk that you will not be able to retrieve your own virtual currency.

How to use Bitcoin in everyday life

In Japan, there are increasing opportunities to use virtual currency in daily life. This paragraph details how to use Bitcoin in everyday life.

Cash out

Bitcoin can be turned into cash by selling it at a virtual currency exchange or sales place. The characteristic of virtual currency is that it can be converted into various legal currencies such as yen and dollar.

You can also use the Bitcoin ATM to withdraw cash on the spot. You can google about how does a bitcoin atm work. However, the number of Bitcoin ATMs introduced is quite small in Japan as of the end of July 2019. The feature of Bitcoinmall is that it has a wide range of products

Use in physical stores

Examples of physical stores that accept payment with Bitcoin include mass-market electronics stores.

Since virtual currency has a low payment fee, the number of physical stores that accept bitcoin payments is increasing worldwide. In order to make a bitcoin payment at a physical store, you need to download the wallet application on your smartphone in advance.

The system reads the specified QR code when making a payment and sends the money to the store. Since you can make payment just by holding your Smartphone, you can use it like a Pasmo and enjoy shopping easily.

Use for online shopping

It can be said that the number of online shops that can pay with virtual currency is on the rise worldwide. Bitcoin mall is one of the online shops that support bitcoin payment.

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