How to use bits in Twitch?

Hello there, could you please explain in detail how exactly one can utilize bits on Twitch? I'm a bit confused about the process and how it benefits both streamers and viewers. Specifically, I'd like to know how to acquire bits, how to cheer with them, and if there are any rewards or bonuses associated with doing so. Additionally, I'm curious about the conversion rates and whether there are any limitations or restrictions when it comes to using bits. Thank you in advance for shedding some light on this matter.