The best way to learn about bitcoin, is to jump in and get several in your “pocket” to acquire a feel for how they work.
Despite the hype about how exactly difficult and dangerous it can be, getting bitcoins is easier and safer than you may think. In plenty of ways, it is probably easier than opening an account at a normal bank. And, given what has been happening in the bank operating system, it is probably safer too.
There are a few what to learn: getting and utilizing a software wallet, learning how exactly to receive and send money, learning how exactly to buy bitcoin from a person or an exchange.
Preparation
Before getting started, you will have to get yourself a wallet. You can do this easily enough by registering with among the exchanges that may host wallet for you personally. And, although I think you will want to have a number of 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 remain experimental themselves. When we reach that stage of the discussion, I will be advising that you will get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to help keep your money safe.
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 could be run on your desktop computer, laptop, mobile device (except, up to now, Apple) and can also be made to store bitcoins on things like thumb drives. Should you be concerned about being hacked, then that is clearly 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 are the ones who originally had the theory 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 need to know about having a bitcoin wallet on your computer?
Below you can download the original bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are in fact section of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that appears like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where one can copy and paste lots like this from a person you intend to send money to and off it will go directly into that person’s wallet. You can even create a QR code which will let someone take a picture with an app on the phone and send you some bitcoin. It really is perfectly safe to provide these out – the address and QR code are both for my donations page. Feel free to donate!
NOTE: This sort of wallet acts both as a wallet for you personally and as portion of the bitcoin system. The reason why bitcoin works is that each transaction is broadcast and recorded as a number 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 part 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, be aware that it will require up 8-9 gigabytes of your 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 personal computer, and makes the system as a whole more secure, so it’s a good idea.
Bitcoin Qt
The original wallet.
This is usually 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 takes to sync, it is a very easy to use option.
Search for Bitcoin Qt wallet download to find their site.
Armory
Runs along with Bitcoi Qt, so that it has all the same syncing requirements.
Armory enables you to back up, encrypt, and the capability 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 wait for your wallet to sync, you can find good wallets that do not make you sync the complete history of bitcocin:
Multibit
A lightweight wallet that syncs quickly. This is good for new users.
Seek out Bitcoin Multibit Wallet to find their site.
bitcoin mixer Electum
Not only is it quick and light, this wallet permits you to recover lost data using a passcode.
Seek out Bitcoin Electum Wallet to get their site.
After you obtain the wallet set up, have 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. Remember that bitcoins can be split up into smaller pieces, so you might see a decimal with plenty of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).