A Bitcoin guide for beginners
Getting embarked with Bitcoin is relatively effortless. At a glance, it may seem like “magic internet money” but it’s unique te nature and offers a peer-to-peer system of banking that does not rely on any central authority to function.
A ideal payment option: Credit Cards were not meant to be used online spil a payment option, spil they need critical private information that can be lightly stolen. Bitcoin, on the other mitt, only requires you to send funds to a Bitcoin address and you’re good to go. You cannot charge-back a Bitcoin transaction spil you can with Credit Card transactions or other common payment options (unless both parties agree). This is good since you don’t have to worry about third parties committing fraud after a payment has bot ended.
Decentralized: Spil previously mentioned, Bitcoin’s main selling point is it not being dependent on any central authority. You control your funds spil you desire without any limitations whatsoever set by banks.
Pseudo-anonymous: There’s no way to listig your Bitcoin address (your pseudonym) to your identity spil it doesn’t contain any private information about you. It’s not fully anonymous however, every transaction is saved on the Blockchain, a digital ledger where all the transactions and addresses are shown transparently. This makes it possible for an address to be tracked, but this can be lightly solved by having numerous addresses.
Permanently growing: Bitcoin has a limited supply and permanently enlargening request spil more people get into it, which means that investing early will possibly benefit you ter the long run. You may end up with a terugwedstrijd of four times or even more of your initial investment – This is just speculation, but chances are pretty high te this regard given Bitcoin’s history.
Getting your Bitcoins
The best way to get Bitcoins is by buying some, you could acquire some by mining, but this process is slow and costs electric current, so it’s not truly optimal for beginners.
LocalBitcoins is a peer-to-peer trading webpagina where you can trade contant for Bitcoins, it’s safe and usually quick. Paxful is another p2p exchange with even more payment options.
Other good alternatives are Losbreken, which supports USD, CAD, EUR and even JPY handelsbank deposits and withdrawals, and? BitStamp, which offers similar options to Kritiseren but includes credit card support.
Choose the one that makes the most sense for you and gives you the best rates to get the most out of your money.
Securing your Bitcoins
This is an essential step, spil some make the mistake of relying on an online wallet to secure their funds. For puny quantities, this can be done te some cases, but it’s recommended to have a wallet where you are the one te utter control of the private keys.
There are Three types of wallets excluding online wallets that you might want to use:
Software wallets: Thesis are wallet applications you download and install into your Private Laptop or mobile devices.
Bitcoin Core and Electrum are pretty solid options spil Desktop Wallets. Core is a total knot client, meaning that it helps with verifying and transmitting Bitcoin transactions and blocks across the network and, unless pruned, stores a copy of the entire Blockchain. This process can be very slow at very first but offers better security & privacy since Core doesn’t have to rely on gegevens from outer servers or other peers on the network. Electrum, on the other forearm, is a lightweight wallet that is lighter to use and has other features like multi-signature wallets, integration with hardware wallets, and more.
Mycelium and CoPay are also superb options for Android and iOS respectively. Mycelium is an HD (hierarchical deterministic) wallet with many advanced features, like support for hardware wallets from TREZOR and Ledger, watch-only accounts, cold storage spending, and more. CoPay is ordinary to use and multi-platform, making it effortless for you to use the same wallet or accounts across numerous devices and platforms.
Hardware wallets: Thesis are physical devices designed specifically to store Bitcoin and other cryptocurrencies.
The Ledger Nano S offers everything you need te a hardware wallet: the capability to send, receive, check and manage numerous addresses for a multiplicity of cryptocurrencies (Bitcoin, Litecoin, Ethereum and more) from the same device, and offers slew of security measures and backup. All private keys are stored on a brainy chip and never get leaked outside of the device, all signing happens internally.
Paper wallets: Thesis are private keys that can be printed out on a chunk of paper and can be used spil long term storages, once they are claimed they should not be reused.
Bitcoinpaperwallet is a good option, it permits you to generate paper wallets offline ter case you’re worried about malicious software, and it’s recommended to do so.
Significant note: ALWAYS back-up your wallets and private keys. Do not use just one address to store all your coins and split up your funds for a lesser risk of losing them.
The next step
Once you have your coins, there are a duo of things you can do with them. They not only do serve spil a fine payment option, you can also use them for trading, gambling, investing, etc. This is entirely optional and has its risks, just holding Bitcoin has a thick benefit of its own.
Trading is all about speculating where prices will go and buying and selling accordingly, research is key when trading with cryptocurrencies. Bittrex is an exchange with detailed charts and numerous cryptocurrencies to choose from. Losbreken is also a solid exchange with less multiplicity of coins but offers you the option to trade for fiat currencies directly.