Cryptocurrency is now a part of everyday conversation, and bitcoin maintains the lead as the most well-known among them. With the introduction of cryptocurrency more than a decade ago, the then-niche idea of a decentralized digital currency has now become a way to participate in the future of how people conduct commerce. But how do you get started with bitcoin? Keep reading if you want to learn how to send and receive bitcoin.
The basics of sending and receiving bitcoin
If you want to send and receive bitcoin, here’s what you’ll need:
- A digital wallet: This is how bitcoin and other cryptocurrency is sent, received, held, and oftentimes exchanged. There are two types of wallets – hot wallets connected to the internet and cold wallets that are not connected to the internet.
- A bitcoin address: Your public bitcoin address is your unique identifier used to receive bitcoin. It is most often just used one time and associated with a single transaction, though it can be used for multiple transactions if needed. This is often displayed as a QR code or a long string of numbers and letters.
If you’re new to crypto, some of these terms might not make sense, so let’s unpack them.
How to send bitcoin
The exact method of sending bitcoin is dependent on the type of digital wallet you use, but don’t worry, we’ll explore that later. However, the most important information you’ll need to successfully send bitcoin is the receiver’s bitcoin address. A bitcoin address is kind of similar to an email address, except it’s a random string of numbers and letters.
Most of the time, an address is used for only a single transaction, though it can be used multiple times. The address goes in the “send field” of your wallet. When including the amount you want to send, most wallets allow you to switch back and forth between bitcoin and your local currency. Since bitcoin transactions are irreversible, always remember to quadruple-check the address! A smart way to confirm the address is to check that you’ve copied and pasted the first four digits and the last four digits of a bitcoin address correctly. It can also be helpful to try a test transaction first with a small amount of BTC before conducting a large transaction.
(Example bitcoin address: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa)
Current bitcoin price
How to receive bitcoin
Receiving bitcoin is as simple as opening your wallet and selecting “receive” when someone wishes to transact with you. To receive crypto, you’ll need to share the public address associated with your wallet, which can be accessed by providing the string of letters and numbers or by displaying a QR code.
How to pay someone with bitcoin
We’ve covered sending and receiving bitcoin, but what about using it as a way to pay for goods and services? Major companies like Tesla and AT&T have started accepting cryptocurrency as a form of payment. Paying with bitcoin is just like any other send transaction! Different retailers may have their own way of accepting your transaction, so just be sure to follow their guidelines!
What are bitcoin network fees?
To understand bitcoin network fees, also called transaction fees, first, we have to understand mining. This is the process that validates and records bitcoin transactions to ensure their successful completion and their security. Bitcoin miners are usually rewarded for their service through a transaction fee or a block reward (newly minted bitcoin), this Coinme blog covers network fees in full detail! The cost of the fee determines the hierarchy of transaction confirmations, so, usually, the higher the fee, the quicker the transaction is completed. Some cryptocurrency wallets may give you the option of deciding the network fee you pay when sending crypto, however this involves risk if you set the fee too low.
What’s the difference between Hot vs. Cold Wallets?
There are many different kinds of wallets that you can choose from, but they typically fall into two camps: hot wallets and cold wallets. Hot wallets are a popular choice since it’s connected to the internet and they are usually provided by an exchange. A cold wallet is not connected to the internet, making it more secure but less accessible or easy to use. Cold wallets can be hardware wallets and typically live on devices that resemble USB sticks.
Get bitcoin easily with Coinme
Coinme makes buying and selling bitcoin with cash a breeze. Visit one of thousands of Coinme locations in almost every state! In most states, up to $2,500 USD can be purchased per day. All you need to do is visit your local Coinme location, whether it be a bitcoin kiosk or bitcoin teller near you. Have your smartphone and ID ready if needed. To make things even easier, we suggest you create a Coinme account before your trip! Your purchase or sale will be reflected in your Coinme bitcoin wallet almost instantly.
Coinme believes in empowering everyone with access to cryptocurrency with low fees, ease of use, and friendly customer service. To get started, find a Coinme location near you.