How to Use BitcoinDecember 8, 2014 | By: Sean Murray
The best way to get comfortable with bitcoin is to just try using it yourself. Even though there are many technological, mathematical and confusing layers to bitcoin, the currency aspect of it is by far the easiest to use and understand.
With that said, here’s how you can dip your toes in and become a big bitcoin kahuna:
1. Open an account on Coinbase.
2. You will need to buy/exchange bitcoins using your regular currency such as US dollars. To do this you will need to connect your bank account to Coinbase. This is what I did. Also it will ask you to enter your cell phone number for two-factor password authentication to prevent hacking.
3. Decide how many bitcoins you want to buy. I bought 1 whole BTC but you can buy fractions of 1 if it makes you feel comfortable. Choose whatever amount you want. You can always buy more or sell your bitcoins back into dollars.
4. Bitcoins will be deposited in your account. Coinbase will store them for you along with the private key to use them. You can choose to export your bitcoins but you don’t have to. I keep mine at Coinbase.
5. Shop anywhere that accepts bitcoin. I shopped at overstock.com.
6. On overstock.com, I selected the item I wanted and placed it in my shopping cart. For payment method, I selected bitcoin.
7. There are two ways you can initiate the bitcoin payment to overstock:
— A. Manually send bitcoins to the address provided. A random receiving address is created for each transaction.
— B. Use your Coinbase wallet (the option on the left. This is easiest and what you should do)
8. If you used option B above, Coinbase will automatically transfer the bitcoins to overstock.com and your order will be placed instantaneously.
All finished. You’ve officially joined the world of bitcoin!
Need to send a payment manually? It’s easy!
1. Log on to Coinbase.
2. Click “My Wallet” on the left hand side.
3. Click “Send”
4. Make sure you know the recipient’s bitcoin address. If you are making a payment to advertise here on debanked.com, this is an address I will supply you with. Some parties create a unique receiving address for each transaction but they can be reused.
5. Internet connected bitcoin miners around the world will automatically facilitate the transaction. This should take about 10 minutes at most. There is nothing you need to do other than wait for the receiving party to confirm. It is impossible for them to deny receipt of the bitcoins as all transactions are verified and public in the Bitcoin Blockchain.
All finished. You’re now a pro!Last modified: December 8, 2014
Sean Murray is the founder of deBanked, a 10-year veteran of the merchant cash advance industry, a casual Lending Club and Prosper investor, the co-founder of Daily Funder, an alternative lending speaker, consultant, writer, and enthusiast. Connect with me on LinkedIn or follow me on twitter.