As part of the bitcoin system, those who own bitcoin keep their holdings in a software folder known as a bitcoin wallet.
This bitcoin wallet keeps an up-to-date record of the block chain and provides a secure digital location for storing bitcoin. You can store your bitcoin wallet on your own hard drive, or you can utilize one of the online services that provide bitcoin-wallet hosting. As always, do your homework before entrusting your bitcoins to an exchange or a wallet-hosting service.
When you are ready When you are ready to make a purchase with bitcoin, you simply move your bitcoin to the wallet of the seller.
If the seller does not accept bitcoin payments directly, there are services that provide bitcoin-based gift cards. Gift cards can be purchased in any amounts, and they can be used to convert bitcoin to USD based the current value of bitcoin.