The best way to learn about bitcoin, is to jump in and get several in your “pocket” to get a feel for how they work.
Despite the hype about how exactly difficult and dangerous it usually is, getting bitcoins is easier and safer than you may think. In plenty of ways, it really is probably easier than opening an account at a normal bank. And, given what has been happening in the bank operating system, it really is probably safer too.
There are a few what to learn: getting and utilizing a software wallet, learning how exactly to send and receive money, learning how exactly to buy bitcoin from a person or an exchange.
Preparation
Before getting started, you need to get yourself a wallet. You can certainly do this easily enough by registering with one of many exchanges that may host wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you need to start with one on your own computer both to have a better feel for bitcoin and as the exchanges are still experimental themselves. When we reach that stage of the discussion, I am advising that you will get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.
What is a wallet?
It is a way to store your bitcoins. Specifically, it really is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. For anyone who is worried about being hacked, then that is clearly a great option. Even the Winklevoss* twins, who’ve millions committed to bitcoin, put their investment on hard disks which they then put 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 their own and became immensely rich.
What do you have to know about having a bitcoin wallet on your pc?
Below you can download the initial bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are in fact the main bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is really a number that appears like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where one can copy and paste a number like this from a person you would like to send money to and off it will go directly into that person’s wallet. You can also create a QR code that may let someone take 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 kind of wallet acts both as a wallet for you and as part of the bitcoin system. The reason why bitcoin works is that each transaction is broadcast and recorded as a number over the entire system (and therefore every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be section of that system, checking and supporting the network. This wallet serves as your individual wallet and also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of one’s computer’s memory. Once you install the wallet, it will take as much as a day for the wallet to sync with the network. That is normal, does not harm your personal computer, and makes the system all together more secure, so it’s a good idea.
Bitcoin Qt
The original wallet.
That is 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, that is a very easy to utilize option.
Seek out Bitcoin Qt wallet download to get 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 ability to store your bitcoins off line.
Seek out Bitcoin Armory Wallet to get their site.
If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, you can find 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 get their site.
Electum
In addition to being quick and light, this wallet allows you to recover lost data using a passcode.
Seek out Bitcoin Electum Wallet to find their site.
After you obtain the wallet set up, take a few minutes clicking around. Things to look for:
o There will be a full page that shows you just how many bitcoins are currently in your wallet. bitcoin paper wallet Keep in mind that bitcoins can be split up into smaller pieces, so you might see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named following the pseudonymous creator of bitcoin).
