How to Spend or Hold Cryptocurrency?

Lucy Walton  2019-09-13 01:38:21

Cryptocurrency relies on secret codes to verify transactions. While Bitcoin has entered the mainstream, there are actually more than 700 types of cryptocurrency. To use cryptocurrency, buy some from an online exchange. You can save it or use it to purchase goods and services by exchanging your secret codes.

  1. 1Keep your private keys secure until you're ready to spend your cryptocurrency. When you go to spend your cryptocurrency, you do so by giving the merchant or other person your private key. Anyone who has your private key has control over the cryptocurrency. Once someone has your private key, they can send your cryptocurrency wherever they want. Don't give anyone your private key unless you are paying for goods or services.
    • 2Use cryptocurrency for purchases from online retailers. Many online retailers large and small accept various cryptocurrencies. More popular and established cryptocurrencies, such as Bitcoin, are typically more widely accepted. Tech retailers and service providers, such as Microsoft, are more likely to accept cryptocurrency. However, other online shopping sites, such as Overstock, take cryptocurrency as a method of payment.
      • 3Buy goods or services from local merchants who accept cryptocurrency. There are some small businesses that have started accepting various cryptocurrencies. If you've set up a mobile wallet, you can exchange cryptocurrency for goods and services from these merchants. The process works similarly to how you would pay with your phone using a credit or debit card. To determine whether a merchant accepts the type of cryptocurrency you have, look for a logo near the cash register. This will generally be in the same place where a merchant would display logos for the credit cards they accept.
        • 4Build an investment portfolio with your cryptocurrency. Rather than spending cryptocurrency, many people choose to hold it in the hopes its value will increase exponentially. If you're thinking about doing this, keep in mind that any cryptocurrency is a relatively risky investment. Including cryptocurrency in a diversified portfolio could be successful. However, balance your cryptocurrency with more conservative investments to avoid a significant loss.