Bluetooth is a wireless technology that allows for the exchanging of data. This exchange of data can cover short distances (i.e., just a few yards), up to 30 feet (10 meters) via radio waves, depending on the class of Bluetooth. Bluetooth devices became popular when paired with cell phones because you could put a Bluetooth device on your ear and thereby be able to use it to communicate wirelessly with your phone. It's possible, though, to use Bluetooth technology with computer systems as well. For example, you could use Bluetooth with wireless headsets, mice, keyboards, etc.
There are different standards for Bluetooth and different data rates. The way to use Bluetooth with your computer is to ensure that your Bluetooth device (e.g., a headset) is compatible with its corresponding adapter that's plugged into your computer. Because it is wireless, it frees you from dealing with wires and cables for your peripheral devices. And you can be more mobile (so long as you stay within the Bluetooth range).
This tip (13055) applies to Windows 7, 8, and 10.
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