After acquiring some, deciding what to do with one’s bitcoin is the all-important question. Bitcoin holders have a variety of options for how to use their coins.
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Simply holding bitcoin is one of the most common strategies for all types of different bitcoin owners. Today’s market of hardware wallets offers a wide variety of reliable products. It’s not uncommon to own multiple wallets of the same model and to buy several different types of hardware wallets.
For new bitcoin owners, here are a few wallet options to consider:
Multiple financial services companies now provide bitcoin owners the ability to put their coins to work by lending them to borrowers. Before lending bitcoins, a potential lender should perform due diligence on the financial institution offering borrowing and lending services and thoughtfully consider the potential risks of surrendering custody of their coins when lending.
For new bitcoin owners, here are a few popular bitcoin lending services:
Sell or Trade
It’s generally inadvisable to transfer freshly minted bitcoins to exchanges. But transferring to an exchange to swap for a fiat currency or alternate cryptocurrency is simple if a miner wants to convert their bitcoins to a different asset.
- Follow all recommended steps in registering and securing a new exchange account.
- Be aware of the taxable events that occur when swapping bitcoins for another asset.
Please note that some exchanges do not give full control of a Bitcoin address to the customer when created. It’s considered a best practice to move mining funds onto a customer controlled wallet before moving funds onto an exchange.