The best way to understand about bitcoin, is to jump in and get a few in your “pocket” to get a feel for how they work.
Despite the hype about how difficult and dangerous it usually is, getting bitcoins is easier and safer than you might think. In a lot of ways, it is probably easier than opening an account at a normal bank. And, given what has been happening in the banking system, it is probably safer too.
There are a few what to learn: getting and using a software wallet, learning how exactly to receive and send money, learning how exactly to buy bitcoin from the person or an exchange.
Before getting started, you will have to get yourself a wallet. You are able to do this easily enough by registering with among the exchanges which will host wallet for you personally. And, although I think you will definitely want to have one or more exchange wallets eventually, you should start with one by yourself computer both to have a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I am advising that you get in the habit of moving your cash 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 made 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 like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who’ve millions invested in 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 idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as their own and became immensely rich.
What do you should know about having a bitcoin wallet on your pc?
Below you can download the original bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are actually portion of the bitcoin network. They’ll receive, store, and send your bitcoins. It is possible to 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 you could copy and paste a number like this from the person you need to send money to and off it’ll go directly into that person’s wallet. You can even create a QR code that will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give 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 personally and as portion 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 take up 8-9 gigabytes of one’s computer’s memory. After you install the wallet, it will require as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.
The original wallet.
This is a full-featured wallet: create multiple addresses to receive 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.
Search for Bitcoin Qt wallet download to find their site.
Runs along with Bitcoi Qt, so it has all the same syncing requirements.
Armory enables you to back up, encrypt, and the ability to store your bitcoins off line.
Search for Bitcoin Armory Wallet to get their site.
If you don’t want to have that much memory used or don’t desire to await your wallet to sync, you can find good wallets that not make you sync the entire history of bitcocin:
A lightweight wallet that syncs quickly. This is good for new users.
Seek out Bitcoin Multibit Wallet to find their site.
bitcoin tumbler Electum
Not only is it quick and light, this wallet enables you to recover lost data using a passcode.
Seek out Bitcoin Electum Wallet to find their site.
After you get the wallet set up, take a few minutes clicking around. What to look for:
o There will be a full page that shows you just how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken 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 after the pseudonymous creator of bitcoin).