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Becoming an active Bitcoin user means going beyond long-term investment strategies. Unlike the hodler or the stacker who primarily save without spending, the active user treats Bitcoin as a real medium of exchange. They use it to pay for goods and services and actively participate in the counter-economy.
Why adopt an active user strategy?
Using Bitcoin daily offers both individual and collective advantages:
- Support the Bitcoin ecosystem through adoption:
Each transaction strengthens Bitcoin's legitimacy as a currency and encourages more merchants and services to accept it. Using Bitcoin is casting a vote for its utility. Money derives its value from its ability to facilitate trade; not barter. If no merchants accept a currency, it has no objective value. The more goods and services you can buy with it, the more useful it becomes. By choosing to pay in Bitcoin, you're directing value toward merchants who accept it. This increases their profits and may, over time, reduce profits for competitors who reject it. Across a community, this dynamic can drive broader acceptance of Bitcoin and contribute to a virtuous cycle of adoption.
- Take advantage of Bitcoin's unique features:
Bitcoin offers several powerful features, such as fast transactions through the Lightning Network, and freedom from censorship, financial surveillance, and seigniorage. Its core value lies in removing government control over the money supply and enabling uncensorable transactions. If these advantages align with your personal needs and values, you may find that the Active User profile suits you well.
- Learn by doing:
Actively using Bitcoin helps you develop real-world experience. You'll become familiar with wallet types, payment privacy, and UTXO management. Daily use becomes a practical learning environment.
Challenges include technical complexity, price volatility, and the need for good security hygiene to prevent loss of funds.
Investment plan for an active user
Adopting Bitcoin for everyday payments requires a thoughtful and structured approach. Unlike a Hodler or a Stacker, the Active User must manage both the long-term security of their funds and the convenience of daily transactions. Striking the right balance between secure cold storage and easy access to spending funds is essential to make this strategy work effectively.
1. Clear separation of wallets
Active users should use two different types of wallets to balance security and convenience:
- A cold wallet (Hardware Wallet) to secure long-term savings.
https://planb.academy/tutorials/wallet/hardware/coldcard-q-73e86d1a-6fe6-4d8b-bb15-8690298020e3
https://planb.academy/tutorials/wallet/hardware/jade-plus-green-873099a4-35ec-4be8-b31a-6e7cd6a41ec0
https://planb.academy/tutorials/wallet/hardware/ledger-flex-3728773e-74d4-4177-b39f-bd923700c76a
https://planb.academy/tutorials/wallet/hardware/passport-74e53858-3fa2-43f9-b866-573297546236
https://planb.academy/tutorials/wallet/hardware/bitbox02-6af8940f-e19b-4008-8c83-81017032608c
https://planb.academy/tutorials/wallet/hardware/portal-bd6e83f0-0100-4689-aeb3-513cca944ace
https://planb.academy/tutorials/wallet/hardware/satochip-e9bc81d9-d59b-420d-9672-3360212237ba
https://planb.academy/tutorials/wallet/hardware/seedsigner-2b274bff-6fc8-407a-92d7-f6ec4d1fadfb
https://planb.academy/tutorials/wallet/hardware/tapsigner-ab2bcdf9-9509-4908-9a4a-2f2be1e7d5d2
- One or more mobile hot wallets for daily transactions. Typically, an active user will have both an on-chain hot wallet and a Lightning wallet.
https://planb.academy/tutorials/wallet/mobile/aqua-8e6d7dd3-8c03-45cc-90dd-fe3899a7d125
https://planb.academy/tutorials/wallet/mobile/bitkit-a7224674-85c4-4045-9baf-37018d89550c
https://planb.academy/tutorials/wallet/mobile/blink-7ea5f5a4-e728-4ff9-b3f9-cf20aa6fc2bd
https://planb.academy/tutorials/wallet/mobile/blixt-04b319cf-8cbe-4027-b26f-840571f2244f
https://planb.academy/tutorials/wallet/mobile/blue-wallet-2f4093da-6d03-4f26-8378-b9351d0dbc90
https://planb.academy/tutorials/wallet/mobile/breez-46a6867b-c74b-45e7-869c-10a4e0263c06
https://planb.academy/tutorials/wallet/mobile/lipa-61019fbd-deb7-4b3c-8cda-0402a4b2e780
https://planb.academy/tutorials/wallet/mobile/nunchuk-6cbcb406-ec84-478f-afac-bb4da366a6fa
https://planb.academy/tutorials/wallet/mobile/phoenix-0f681345-abff-4bdc-819c-4ae800129cdf
https://planb.academy/tutorials/wallet/mobile/wallet-of-satoshi-39149d86-e42b-4e8f-ae9f-7e061e7784f7
Separating your funds this way helps reduce risk in case the wallet used for everyday payments is compromised.
2. Set up your own node
Active users often aim to reduce their reliance on trusted third parties, depending on their personal circumstances. One of the most effective ways to achieve this is by running their own Bitcoin node. This allows them to use the network independently while enhancing the privacy of their transactions.
https://planb.academy/tutorials/node/bitcoin/bitcoin-core-linux-568c13a6-8746-4d63-8e95-f4a61c5ae0ed
https://planb.academy/tutorials/node/bitcoin/bitcoin-knots-e04b2196-4df2-4246-86ef-c02269c29098
https://planb.academy/tutorials/node/bitcoin/raspiblitz-d8cdba2e-a682-46cf-9fdc-d8602fbeac02
https://planb.academy/tutorials/node/bitcoin/mynode-a481fef3-2fd3-4df3-91c0-112cffa094eb
https://planb.academy/tutorials/node/bitcoin/start9-8c8b6827-8423-4929-bcba-89057670ed6a
For those who regularly use the Lightning Network, managing their own LND, LDK, or Core-Lightning node can be a smart move. It gives them full control over opening and closing channels, increases self-sovereignty, and can even help lower transaction fees; especially when compared to automated solutions like Phoenix, or worse, custodial Lightning wallets.
https://planb.academy/tutorials/node/lightning-network/alby-hub-62e6356c-6a6d-4134-8f22-c3b6afb9882a
3. Regular Bitcoin Acquisition
Active users need to strike a balance between their long-term savings and the amount of Bitcoin kept on hand for daily use.
There are several ways to acquire Bitcoin, depending on the level of privacy you're looking for:
- Traditional purchase through regulated platforms like Bitfinex or Bull Bitcoin (ideal for topping up your cold wallet);
https://planb.academy/tutorials/exchange/centralized/bitfinex-dc306d39-bd96-4ab9-a278-a322316716db
https://planb.academy/tutorials/exchange/centralized/bitstack-29fd71be-9570-42c6-8f6f-cd355d62e746
https://planb.academy/tutorials/exchange/centralized/bitstamp-5a36c896-bff5-46d7-b505-ff069c3ac47c
https://planb.academy/tutorials/exchange/centralized/kraken-1ef03e25-9b42-49bd-a47d-249e1a13cfc6
https://planb.academy/tutorials/exchange/centralized/paymium-92603f76-b985-49ce-81e5-f4fa0df776e5
https://planb.academy/tutorials/exchange/centralized/relai-v2-30a9671d-e407-459d-9203-4c3eae15b30e
https://planb.academy/tutorials/exchange/centralized/stackinsat-5af6a380-f3c6-4246-9f81-9957a16ab066
- Non-KYC acquisition via peer-to-peer services such as Peach, Robosats, or Bitcoin ATMs; allowing you to add to your wallet without revealing personal information.
https://planb.academy/tutorials/exchange/peer-to-peer/bisq-v2-c1c6a702-6c16-4101-8b90-62c424017b80
https://planb.academy/tutorials/exchange/peer-to-peer/hodlhodl-d7344cd5-6b18-40f5-8e78-2574a93a3879
https://planb.academy/tutorials/exchange/peer-to-peer/peach-c6143241-d900-4047-9b73-1caba5e1f874
https://planb.academy/tutorials/exchange/peer-to-peer/robosats-b60e4f7c-533a-4295-9f6d-5368152e8c06
- Earning in Bitcoin, Being an active user isn't just about spending BTC; it's also about earning it. If you run a business, consider accepting Bitcoin as payment. If you're an employee, see if your employer offers the option to receive all or part of your salary in BTC.
4. Active expense management
The choice of spending bitcoins is often subject to criticism. Some Bitcoin users prefer to spend fiat currencies, which they consider of lesser quality and therefore wish to eliminate, rather than spend bitcoins.But this mindset has two key flaws: firstly, it overlooks the advantages of Bitcoin as a means of payment (see previous section), and second, it raises the question: why hold onto fiat currency, which is seen as less valuable, for spending?
A more logical approach is the "Spend and Replace" method. This means spending Bitcoin for all the reasons mentioned before, and then, instead of letting your Bitcoin savings shrink, you replace the spent sats by buying new ones with fiat currency.
To make Bitcoin spending easier, there are plenty of tools available, such as BTC Map, which shows you merchants around the world that accept Bitcoin. Some of these merchants even allow you to order online and have products delivered.
Since we're still in a transition phase where not all daily merchants accept BTC, there are some simple yet effective workarounds. For example, buying gift cards with Bitcoin is a practical solution, and many providers like Bitrefill, Coinsbee, or The Bitcoin Company offer this service.
https://planb.academy/tutorials/exchange/centralized/bitrefill-8c588412-1bfc-465b-9bca-e647a647fbc1
5. Technological Awareness and Flexibility
The Bitcoin protocol, along with layer-2 systems like the Lightning Network and the entire application layer related to these ecosystems, is evolving rapidly. As an active user, you should:
- Stay updated on new solutions that make everyday adoption easier;
- Regularly test new tools and services to improve the user experience;
- Adjust your strategy based on technological advancements and market changes.
Evaluate your active user profile
Are you cut out to be an active Bitcoin user? Here are the key traits that define this profile:
- Pragmatism and Commitment: You are motivated to integrate Bitcoin into your daily life and play an active role in the growth of its ecosystem. You recognize both the benefits and the challenges that come with it.
- Technical Proficiency: You either already have a solid grasp of how Bitcoin wallets and the Lightning Network work; or you're eager to learn. You're comfortable navigating advanced concepts like UTXO management.
- Flexibility and Adaptability: You're open to trying new tools, switching between solutions, and adjusting your practices as the Bitcoin ecosystem evolves and your needs change.
- Financial Discipline: You manage your Bitcoin spending and savings with care. You understand the importance of clearly separating your day-to-day funds from your long-term savings.
In conclusion, the active user plays a direct role in driving Bitcoin's ecosystem forward. By incorporating Bitcoin into their daily habits, they not only support its adoption but also grow their own expertise.
In the next chapter, we'll explore the final and perhaps most intriguing Bitcoin user profile: the paranoid user.