You curse yourself seeing the all-time highs of bitcoin. You wish you had entered the markets when it was cheap.
Should you give up? Are there ways today to still get into Bitcoin and succeed? The short answer—yes!
With the US dollar diminishing in value, it has become increasingly more popular to take value in Bitcoin. There are a few options at our disposal. We can earn, store, or spend bitcoin.
Earning and storing are responsible, but spending is more fun isn’t it?
Let’s dive in for a closer look, shall we?
How to Save Bitcoin
When deciding to save (or store) bitcoin, a few options are available to you. If you look at the traditional model of storing fiat currency (USD), most people opt for a bank. With our lives online these days, our options increase with the likes of Cash App, Venmo, or PayPal.
You are used to having a wallet or pocketbook when you’re on the go, to store your funds. When dealing with crypto and bitcoin, you store your bitcoin in a wallet as well.
There are hot and cold wallets. Hot wallets or software wallets are ones connected to the internet, such as one on your smartphone or computer. Cold wallets or hardware wallets are more secure devices that are meant to be stored offline.
To HODL or Spedn
Whether you decide to hodl (hold) or spedn (spend) is entirely up to you. Some swear by bitcoin as a store of value. Many bitcoin maximalists see it as gold 2.0.
Just like with any currency, digital or fiat, the choice is up to you when you decide to store or save bitcoin. It is all situational and dependent on your current beliefs and lifestyle choices.
It is always wise to live below your means and invest what you can. As you learn more and more about bitcoin and cryptocurrencies, you’ll have a better understanding of which to use and at what times.
One reason that prevents a lot of people from spending bitcoin, is the high fee attached. Depending on your viewpoint, you may or may not agree. Bitcoin’s whitepaper states it as “a peer-to-peer electronic cash system”.
How to Spend Bitcoin
There are a few different options for you when you decide to spend bitcoin.
Mobile wallets are an amazing option for most people. With a smartphone, we can easily send and spend bitcoin to whomever you wish in the World! You can either copy and paste someone’s bitcoin address or scan their QR code and click send.
Private keys allow you to spend bitcoin. In most cases, you will receive a seed phrase consisting of 12 words or more. You must store your private keys in a safe place offline.
Remember the mantra—not your keys, not your crypto.
When in “the real world”, we may not have the option to pay for things with bitcoin as easily just yet. To connect the physical and internet worlds, we now have cryptocurrency debit cards.
You spend crypto debit cards, the same way you’d normally use your debit cards. With your bitcoin loaded up on your card, you essentially trade it for fiat at the point of sale. With Visa and Mastercard issuing these crypto cards, this makes things a lot simpler for users and merchants alike.
You can even use these crypto debit cards at ATMs as well, and some even offer cashback incentives. Below is a list of some of the more popular crypto debit cards today.
When to Spend Bitcoin
It is difficult to determine when exactly is the best time to spend your precious bitcoin. If you scour the internet and Crypto Twitter, you’ll find varying opinions. The good news is that due to the very nature of Bitcoin, you are in control of your money.
One way to think of Bitcoin is as a store of value. With many similarities to gold, Bitcoin takes the store of value game to the next level.
There are two primary factors to consider for deciding when to spend bitcoin.
- Dollar-Cost Averaging (DCA)
- When you want to spend bitcoin
With dollar-cost averaging, you are treating Bitcoin more as a savings account. For example, you could take $1,000 over 6 months and dollar-cost average into bitcoin. With cryptocurrencies such as bitcoin know for their volatility, dollar-cost averaging will take some risk and emotion out of this financial game.
You’ll know when it’s time to feel more “spendy” when the price of bitcoin is above your dollar-cost average.
With all that said, you can spend bitcoin anytime you wish. See some clothes you like? Spend bitcoin. Is it time to refill the fridge with some groceries? Spend bitcoin. Have bills that need to be paid? Spend bitcoin.
Our bitcoin must come from somewhere, right? Before you can spend bitcoin, you can either buy some or earn it somehow. Mining is always an option, but let’s explore some alternative ways today.
As an elegant solution to earning a percentage of your income in bitcoin, Bitwage steps in. The method is simple, as you would set up an account with Bitwage. From there, they would provide you with a routing and account number.
As you normally would, give this number to your employer for direct deposit. You’ll be earning bitcoin in no time! What could be easier than that!
Using Lolli is easy. You install their extension and shop as you normally would. Each purchase you make will earn you some satoshis.
Lolli is partnered with over 1,000 top brands such as Nike, Microsoft, and Sephora. You will earn up to 30% back in bitcoin!
When spending your dollars on gift cards, you’ll earn satoshis with Fold. Fold now offers a simpler solution with their Visa bitcoin card. With every swipe, you’ll be stacking sats.
With all your satoshis stacked, you’ll want to try your hand at the best Bitcoin casinos!
Where to Spend Bitcoin
Bitcoin is all the buzz in the media landscape. With all-time high, it is no wonder why everyone wants a sat of the action. Many companies are starting to accept bitcoin as a means of exchange.
You can think of OpenBazaar (desktop) and Haven (mobile) as an open and free eBay or Etsy. Users can create their stores without any need for a third party. Due to the decentralized nature, store owners can earn cryptocurrency including bitcoin.
Purse.io is your go-to when shopping Amazon with bitcoin. When you use Purse.io, you’ll be saving anywhere between 5-15% when spending bitcoin. There is a slider, so the more you want to save the longer it’ll take to get to you.
Bitrefill is an excellent option for spending bitcoin. No account is necessary if you’d like to remain private. By creating an account you’ll get rewards on every purchase.
Bitrefill allows you to purchase gift cards from over 750 merchants. You can even top up prepaid phones!
We hope you enjoyed our guide on how to spend bitcoin. With any piece of new technology, it is best advised to do your own research.
You’ll want to enjoy your earnings, but also have fun at the same time.
In the meantime, information is everywhere. Why not take a breather and indulge in the rest of our blog? You’ll be an expert in whatever you desire in no time!