Getting Started: How To Safely and Securely Use Bitcoin Tokens

Bitcoin (BTC) is somewhat synonymous with cryptocurrency as nearly everyone learning about the sector usually begins with the asset. As its popularity increases, more people become willing to participate and start to seek ways to buy and use Bitcoin either for its function as a medium of exchange or as a potential investment channel. The asset has now become so popular and mainstream that it has found use in several sectors.

For instance, online casino operators now provide crypto support for customers interested in playing with Bitcoin. Crypto-forward gamblers can deposit, bet, or withdraw Bitcoin on crypto casinos instead of using popular fiat options. This exposes casinos to a global audience and gives players more payment options than usual. Anyone looking to enjoy the benefits of Bitcoin can enter the market by following these simple steps:

Do Some Research

For beginners, gaining some knowledge of the Bitcoin and crypto sector before spending money is important. Newbies are advised to start by learning simple concepts, including blockchain technology, wallets, crypto exchanges, trading platforms, and security measures. Learning about Bitcoin is easy as there are already several online resources people can find, including articles, tutorials, and explainer videos. Beginners may also find online forums to ask questions about complex concepts.

Find a Reliable Exchange

The next step is to choose a reputable trading platform like a cryptocurrency exchange. An exchange enables the purchase and sale of Bitcoin and other cryptocurrencies. While there are many popular options, including Binance, Coinbase, KuCoin, and Kraken, users must consider several factors before choosing. For instance, some exchanges may not be legally allowed to operate in specific jurisdictions. In such cases, anyone who chooses to do business with them may have no legal recourse if something goes wrong. Users should consider exchanges with positive online reviews, high liquidity, and multiple trading options, such as a direct exchange and a peer-to-peer (P2P) marketplace.

Register and Create an Account

Creating an account typically requires users to provide know-your-customer (KYC) information, usually for the exchange to comply with regulatory requirements. However, this information is not required at decentralized exchanges (DEXs), which are much more complex than centralized exchanges (CEX) like Binance. Beginners looking to use DEXs should take time to understand how they work before spending any money. While registering an account, strong security measures, including a unique password and two-factor authentication (2FA), are crucial. Users should ensure these things are in place to reduce the risk of unauthorized access.

Crypto exchanges usually offer free wallets with addresses for all the supported assets and networks. However, a hardware wallet like Ledger or Trezor is a much safer option for online asset safe-keeping. This option eliminates the chance of security breaches because the devices cannot be remotely accessed. However, traders who prefer hardware wallets should note that there are no recovery options if the wallet gets lost or damaged.

Buy Bitcoin

After creating an account and setting up a wallet, it is time to buy Bitcoin. Depending on the exchange, customers can buy directly from the platform or use the P2P market to purchase tokens from an advertised seller. Beginners must review transaction details and ensure the amounts inputted are accurate—a critical security measure for P2P trades. After a successful transaction, users typically have their accounts credited with the amount of BTC purchased.

Transfer Bitcoin

With Bitcoin in the wallet, transfers may begin as required. These transfers may be to wallets designated for savings or investments, or simply another wallet that helps to maintain a financial plan or personal goal. Bitcoin transfers may also go to merchants or service providers as payments for goods and services. 

Anyone making these transfers must be careful to ensure transaction details are correct. For instance, people almost always send BTC tokens over the Bitcoin network. However, if the intended receiver specifies a different network, the sender must select the correct network when initiating the transaction. In addition to network details, the wallet address should also be accurate. The best way is to simply copy and paste the wallet address, instead of rewriting, to avoid mistakes. Users should note that tokens sent to the wrong wallet or over the wrong network may be lost forever.

Conclusion

Although buying and using Bitcoin may seem intimidating for beginners, following the above steps simplifies the process. Nonetheless, users should note that personal security measures are essential when transacting on the Bitcoin network to avoid mistakes that may lead to permanent loss of funds. With enough patience, willingness to learn, and good security habits, Bitcoin transactions are easy and can open up a new world of finance to the average interested user.