Gone are the days when people consider Bitcoin as a trivial pursuit. There’s a growing number of businesses adopting Bitcoin as a payment method, and some countries already consider it as their legal tender. It has also gained more trust amongst traders and investors, considering how it went from zero financial value in 2009 to its all-time high price of $68,789.63 in November 2021.
If you’re here curious about crypto and want to learn how to use Bitcoin as a payment method or for investment and speculation, this article is for you. We’ll also help you start your Bitcoin journey with a step-by-step guide on how to buy Bitcoin with Ka.app.
Disclaimer: This article is for educational purposes only, and should not be seen as financial, investment, tax, or legal advice. The fluctuating value of Bitcoin carries significant investment risks, including the possibility of losing a huge amount of money. Please research, and thoroughly evaluate your financial situation, investment objectives, and risk capacity before making any investment decision.
Two Common Bitcoin Use Cases
Bitcoin’s list of use cases is continuously expanding. Let’s start with a few common ones to ensure foundational understanding:
1. Payments and Purchases
Someone made history by buying two pizzas with 10,000 bitcoins in 2010. This pizza story was a game-changer as it opened people’s eyes to the convenience of using Bitcoin as a payment method. Today, thousands of businesses accept Bitcoin for payments. For instance, some famous luxury brands accepting Bitcoin payments include Balenciaga, Gucci, Hublot, and TAG Heuer.
How to Start Using Bitcoin for Payments
Using Bitcoin for payments is easy—sometimes even easier than using local currencies, especially for international payments. The first thing you must do is to create an account on a crypto payment platform like Ka.app.
Then, you just have to buy Bitcoin on the platform and start sending it to other users. Payment methods for buying Bitcoin may vary on different platforms. On Ka.app, your options include IBAN, your credit/debit card, Google Pay, Apple Pay, and bank transfers.
2. Investment and Speculation
Bitcoin has been one of the best-performing assets in the past decade. In 2023, its value increased by 156% compared to the previous year, outperforming major asset classes such as gold, bonds, stocks, commodities, and more.
This proven ability to go through price increases within short periods (despite the potential for huge losses as well) attracts traders looking for opportunities to significantly increase their capital. Also, its decentralised nature offers a level of independence from traditional financial systems and government control that appeal to investors seeking alternatives to conventional assets like stocks, bonds, and fiat currencies.
In addition, the growing acceptance of Bitcoin as a payment method also adds to its potential for long-term growth. Some investors bank on the future adoption and utility of Bitcoin, anticipating that increased demand and limited supply can drive its upward trend.
How to Start Investing in Bitcoin
You must consider several things before trading or investing in Bitcoin: which platform you’d like to use, your goals, your risk tolerance, and how you want to invest, amongst others.
If you want to do more strategic trading, you can start by creating an account on a crypto exchange and learning how to navigate the platform. You should also review their fees, terms and conditions, etc.
How to Buy Bitcoin on Ka.app
Start your Bitcoin journey by buying Bitcoin on Ka.app, a crypto wallet for beginners. As mentioned, it offers different payment options, including IBAN, debit/credit card, Google Pay, Apple Pay, and bank transfers. It also allows you to send Bitcoin payments for free in just a few seconds.
Let’s flesh out how you can buy Bitcoin on Ka.app through IBAN and Ramp (for debit/credit card, Google Pay, Apple Pay, and bank transfers).
a. Buy Bitcoin with IBAN
- Sign up for a Ka.app account.
- Log in.
- Activate the Cash feature to use euro and create your crypto IBAN on Ka.app. We call it the Ka. IBAN.
- Transfer euros from your external bank account to your Ka. IBAN.
- Go back to Ka.app and select ‘Convert.’
- Choose Bitcoin and specify the amount you’d like to buy.
- Enter your passcode to complete your purchase.
b. Buy Bitcoin with Ramp (Debit/Credit Card, Google Pay, Apple Pay, or Bank Transfer)
- Create a Ka.app account.
- Log in.
- Click ‘Buy’ and select Bitcoin.
- The Ramp screen will load. Choose to convert euro to Bitcoin.
- Enter the amount of your purchase.
- Select your payment method (i.e., credit/debit card, Google Pay, Apple Pay, etc.) and enter the required info to proceed.
- Confirm your purchase.
Final Thoughts
Learning how to use Bitcoin is the first step towards understanding the unique blend of opportunities it offers, whether you’re planning to trade, HODL, or use it for daily transactions. However, because of market volatility and the evolving blockchain industry, it's important to approach Bitcoin with an open mind, caution, and a knack for continuous learning.
Take your time researching, understanding the risks, and determining how Bitcoin fits into your goals. Also, it’s crucial to use a reliable platform, stay informed, keep strong security measures, and connect with other users. As the cliché says, the journey is not a race, but a marathon.
Enjoy!
FAQs
How can I get started with Bitcoin?
Getting started with Bitcoin is simpler than you might think! First, you'll need to set up a crypto wallet where you can securely buy and store Bitcoin. There are many wallet providers out there, so choose one that suits your needs in terms of security, accessibility, and ease of use like Ka.app. Once you’ve acquired Bitcoin, you're ready to use it for transactions, investments, or to HODL as a digital asset.
What can I use Bitcoin for?
With its growing acceptance, Bitcoin offers a wide range of uses that extend beyond just an investment or speculative asset. For instance, you can use Bitcoin to purchase goods and services from businesses that accept it as a payment method or make donations online. It's also becoming increasingly popular for international remittances due to its low transaction fees and fast processing times.
How can I make money using Bitcoin?
You can make money with Bitcoin in several ways, depending on your risk tolerance, skills, and goals. One common method is buying and holding Bitcoin for months to a couple of years, hoping its value will increase over time. With this long-term investment strategy, you must be patient and be willing to ride out the market's volatility.
Trading Bitcoin on crypto exchanges is another option. It can offer opportunities for profit by buying low and selling high, though this requires a good understanding of market trends and has greater risks involved.
You can also mine Bitcoin, which involves validating transactions and securing the network in exchange for new Bitcoins. However, this significant technical knowledge and upfront investment in specialized hardware.
If you’re into content creation or marketing, you can get into Bitcoin affiliate programs as well.
Is it safe to use Bitcoin?
Using Bitcoin is generally safe if you follow good security practices. This includes choosing a reputable wallet provider, using strong passwords, enabling two-factor authentication (2FA), regularly updating your software, and not using public WiFi when making transactions, to name a few.
Are there transaction fees for sending Bitcoin on Ka.app?
Sending Bitcoin is free to other Ka.app users. If you’re sending to an external wallet, a service fee will apply. The fees may vary depending on the transaction amount, and if you’ve activated the discounted fees on Ka.app by locking up KASTA tokens.
