How to Use Cryptocurrency

Source: wikiHow

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In basic terms, cryptocurrency is a digital currency that isn’t regulated or controlled by any government or other financial authority. 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 and choose a digital wallet to keep it secure. You can save it, or use it to purchase goods and services by exchanging your secret codes.^[1]

1. 1 Decide what types of cryptocurrency you want. There are many different cryptocurrencies out there. Which cryptocurrency is right for you depends to a large extent on what you want to do with it. Newer cryptocurrencies may be more volatile, and likely won’t be widely accepted as payment for goods and services.^[2]
   • Bitcoin was the first cryptocurrency. It’s the most well-known and the most valuable. It’s also accepted in many places as currency, including online retailers and brick-and-mortar merchants.
   • Litecoin is also accepted by many retailers. If you want to use your cryptocurrency to purchase goods and services, Litecoin may also be a good choice.
   • If you’re looking at smaller niche cryptocurrencies, do some research first to make sure it will suit your purposes.
2. 2 Choose a cryptocurrency exchange. There are hundreds of cryptocurrency exchanges, but not all exchanges work in all countries. Different exchanges also offer different types of cryptocurrency, accept different methods of payment, and charge different fees.
   ^[3]
   • Compare 3 or 4 exchanges to choose the one that’s best for you. Make sure you understand the exchange’s interface and how to use it. Because exchanges are extremely vulnerable to hackers, carefully assess each exchange’s security.
   • On crypto exchanges, higher fees don’t necessarily correspond to better service or more protection. Generally, choose an exchange that offers the cryptocurrency you want for the lowest fees possible.
3. 3 Create a trading account. To buy cryptocurrency, you must register as a user and verify your identity. To start, you’ll provide basic information about yourself, including your name, address, phone number, and email address. You’ll need to scan both sides of a government-issued photo ID to verify your identity.^[4]
   • The exchange will send you an email with a code you’ll use to verify your email address.
   • You’ll typically also be texted a code that you’ll have to enter to log onto your account. This code is part of two-factor identification (2FA), and makes your account more secure than simply entering a username and password.
4. 4 Connect your method of payment. If it’s your first time buying cryptocurrency, you’ll have to use fiat currency, which is national currency such as dollars or euros. Most exchanges will allow you to pay by connecting your bank account, or by using a credit or debit card.^[5]
   • Some crypto exchanges accept payment through other payment services, such as PayPal.
   • Depending on the method of payment you choose, it may be 3 to 5 days before the connection is completed and you can make your first purchase.
5. 5 Place your order for cryptocurrency. Typically, you’ll specify the type of cryptocurrency you want and the amount of “coins” (or fractions of a coin) you want to purchase. You may also have the option of specifying the amount of money you want to spend. The amount of cryptocurrency you get for that money depends on the value of that cryptocurrency.^[6]
   • Cryptocurrency exchanges work similar to stock exchanges. If you’re familiar with placing an order to buy or sell stock, you shouldn’t have any trouble navigating orders for cryptocurrency.
   • You can also buy one type of cryptocurrency with another type of cryptocurrency. The values of different cryptocurrencies relative to each other fluctuate.

1. 1 Keep 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.^[7]
   • 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.
   • Your cryptocurrency will likely be safe if you keep it in your exchange account for a few days. If you’re not going…

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