The best way to learn about bitcoin, would be to jump in and get a few in your “pocket” to get a feel for how they work.
Despite the hype about how exactly difficult and dangerous it is usually, getting bitcoins is a lot easier and safer than you may think. In plenty of ways, it is probably easier than opening a merchant account at a normal bank. And, given what has been happening in the banking system, it really is probably safer too.
There are a few what to learn: getting and utilizing a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.
Preparation
Before getting started, you need to get yourself a wallet. You are able to do this easily enough by registering with one of many exchanges that may host wallet for you. And, although I think you are likely to want to have a number of exchange wallets eventually, you should start with one by yourself computer both to acquire a better feel for bitcoin and as the exchanges are still experimental themselves. When we reach that stage of the discussion, I will be advising that you get in the habit of moving your cash and coins off the exchanges or diversifying across exchanges to help keep your money safe.
bitcoin mixer What is a wallet?
It is a solution to store your bitcoins. Specifically, it really is software that has been designed to store bitcoin. It really is run on your pc, laptop, mobile device (except, as yet, Apple) and can also be produced to store bitcoins on things such as thumb drives. In case you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard disks which they then placed into a safety deposit box.
*The Winklevoss twins will be the ones who originally had the theory for a social media site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
What do you have to know about having a bitcoin wallet on your computer?
Below you can download the initial bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are in fact portion of the bitcoin network. They’ll receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go straight into that person’s wallet. You can also create a QR code which will let someone have a picture with an app on the phone and send you some bitcoin. It is perfectly safe to provide these out – the address and QR code are both for my donations page. Feel free to donate!
NOTE: This type of wallet acts both as a wallet for you and as section of the bitcoin system. The reason why bitcoin works is that every transaction is broadcast and recorded as lots across the entire system (and therefore every transaction is confirmed and made irreversible by the network itself). Any computer with the proper software can be section of that system, checking and supporting the network. This wallet serves as your personal wallet and in addition as a support for that system. Therefore, remember that it will require up 8-9 gigabytes of your computer’s memory. Once you install the wallet, it will require as much as a day for the wallet to sync with the network. That is normal, does not harm your computer, and makes the system all together more secure, so it’s advisable.
Bitcoin Qt
The original wallet.
This can be a full-featured wallet: create multiple addresses to get bitcoins, send bitcoins easily, track transactions, and back up your wallet.
Outside of the time it requires to sync, this is usually a very easy to utilize option.
Seek out Bitcoin Qt wallet download to find their site.
Armory
Runs on top of Bitcoi Qt, so that it has each of the same syncing requirements.
Armory allows you to back up, encrypt, and the capability to store your bitcoins off line.
Search for Bitcoin Armory Wallet to find their site.
If you don’t want that much memory used or don’t desire to await your wallet to sync, there are good wallets that not make you sync the complete history of bitcocin:
Multibit
A lightweight wallet that syncs quickly. This is good for new users.
Search for Bitcoin Multibit Wallet to find their site.
Electum
In addition to being quick and light, this wallet enables you to recover lost data using a passcode.
Seek out Bitcoin Electum Wallet to get their site.
After you get the wallet set up, take a few minutes clicking around. Things to look for:
o There will be a page that shows you just how many bitcoins are currently in your wallet. Understand that bitcoins can be split up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).