Buying Bitcoin – Step One

The best way to learn 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 harmful it can be, getting bitcoins is a lot easier and safer than you might think. In a large amount of ways, it is probably easier compared to opening an account at a traditional financial institution. And, given what has been happening in the banking system, it is probably safer too.

There are a few things to find out: getting and using 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 will need to get yourself a wallet. You can do this easily sufficient by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have a number of exchange wallets eventually, you should begin with one on your own computer both to obtain a better feel for bitcoin also because the exchanges are still experimental them selves. When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money plus coins off the exchanges or diversifying across exchanges to keep your money safe.

What is a wallet?

It is a way to shop your bitcoins. Specifically, it is software that has been designed to store bitcoin. It could be run on your desktop computer, laptop, cellular device (except, as yet, Apple) and can also be made to store bitcoins upon things like thumb drives. If you are worried about being hacked, then that is a wise decision. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment decision on hard drives which they then put into a safety deposit box.

*The Winklevoss twins are the ones that originally had the idea for an online community site that became Facebook. They will hired Mark Zuckerberg who got their idea as his own plus became immensely rich.

What do you should know about having a bitcoin wallet on your computer?

Below you can download the original bitcoin wallet, or client, in Home windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can develop 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 such as this from a person you want to send money to and off it will proceed directly into that person’s wallet. You may also create a QR code which will allow someone take a picture with an app on their phone and send you a few bitcoin. It is perfectly safe to give these out – the address and QR code are both to get my donations page. Feel free to donate!

NOTE: This type of wallet acts each as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is transmit and recorded as a number throughout the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any personal computer with the right software can be section of that system, checking and assisting the network. This wallet serves as your personal wallet and also as an assistance for that system. Therefore , be aware that it will require up 8-9 gigabytes of your pc’s memory. After you install the budget, it will take as much as a day for the finances to sync with the network. This is normal, does not harm your computer, plus makes the system as a whole more secure, therefore it is a good idea.

Bitcoin Qt

The original pocket.
This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and support your wallet.
Outside of the time it will take to sync, this is a very easy to make use of option.
Search for Bitcoin Qt pocket download to find their site.
Armory

Runs on top of Bitcoi Qt, therefore it has all of the same syncing needs.
Armory allows you to back up, encrypt, as well as the ability to store your bitcoins away line.
Search for Bitcoin Armory Pocket to find their site.
If you don’t wish to have that much memory used or have a tendency want to wait for your wallet in order to sync, there are good wallets that do not make you sync the entire good bitcocin:

Multibit

A lightweight wallet that syncs quickly. This is very good for new users.
Search for Bitcoin Multibit Wallet to find their site.
Electum

In addition to being quick and light, this particular wallet allows you to recover lost data using a passcode.
Search for Bitcoin Electum Wallet to find their site.
Once you get the wallet set up, take a few minutes clicking around. Things to look for:

u There will be a page that shows you how a lot of bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller sized pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0. 00000001 any Satoshi, named after the pseudonymous inventor of bitcoin).

o There will be the showing what your recent dealings are.

o There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code nearby want it, but if you run a business and you want to accept bitcoin, after that all you’ll need to do to accept transaction is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have the separately labeled address from each of your payees.
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o There will be the with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other available choices and features, but to start out along with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course , want to test them out.

The very first place to go is http://faucet.bitcoin.st/.

It is a website that gives out small amounts associated with bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two commercials a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number that you can receive an SMS. These people send out an SMS to be sure that people are not continuously coming back for more because it costs nothing to create a bitcoin deal with. They will also send out once or twice a month advertisement to support their operation. The total amount they send it trivial: 0. 0015 BTC (or 1 . five mBTC). However , they process almost immediately and you can check to see that your tackle and wallet are working. It is also a serious feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you are using them. I simply think they are a good way to get your feet wet).

Congratulations! You might have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a variety of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can generate a few extra bitcoins this way, however it is important to remember that these are companies that get paid when people click on the hyperlinks on their sites. They are essentially kicking back a portion of what they get compensated to you. There is nothing illegal, or even immoral about this (you might like that which you see and make a purchase! ), but they are frequently flashy and may not be completely straightforward. All the ones that I possess tried (particularly bitvisitor. com) possess paid out as advertised. It is fascinating to experiment with these, but even with the particular likely rise in the value of bitcoin, you will not become a millionaire doing this. So , until you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Search engines “free bitcoins” or something similar to that and you will find numerous sites.

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