The best way to learn about bitcoin, would be to jump in and get several in your “pocket” to have a feel for how they work.
Despite the hype about how difficult and dangerous it could be, getting bitcoins is easier and safer than you might think. In a lot of ways, it really is probably easier than opening an account at a traditional bank. bitcoin wallet paper And, given what has been happening in the banking system, it really is probably safer too.
There are a few things to learn: getting and using a software wallet, learning how exactly to send and receive money, learning how exactly to buy bitcoin from the person or an exchange.
Preparation
Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of many exchanges that may host wallet for you. And, although I think you are likely to want to have a number of exchange wallets eventually, you need to start with one on your own computer both to get 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 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 made to store bitcoin. It usually is run on your pc, laptop, mobile device (except, as yet, Apple) and can also be produced to store bitcoins on things such as thumb drives. In case you are concerned about being hacked, then that is clearly a good option. Even the Winklevoss* twins, who have 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 idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
What do you must 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 actually part of the bitcoin network. They will receive, store, and send your bitcoins. It is possible to create a number of addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where you could copy and paste a number like this from a person you need to send money to and off it will go straight into that person’s wallet. You can even create a QR code that may let someone take a picture with an app on the phone and send you some bitcoin. It really is perfectly safe to give these out – the address and QR code are both for my donations page. Feel absolve to donate!
NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as lots over 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 also as a support for that system. Therefore, be aware that it will take up 8-9 gigabytes of one’s computer’s memory. After 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 as a whole more secure, so it’s a good idea.
Bitcoin Qt
The original wallet.
This can be 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 takes to sync, this is a very easy to use option.
Search for Bitcoin Qt wallet download to find their site.
Armory
Runs on top of Bitcoi Qt, so it has each of the same syncing requirements.
Armory lets you back up, encrypt, and the ability to store your bitcoins off line.
Search for Bitcoin Armory Wallet to find their site.
If you don’t want to have that much memory used or don’t desire to await your wallet to sync, there are good wallets that do not make you sync the entire 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.
Electum
Not only is it quick and light, this wallet allows you to recover lost data utilizing a passcode.
Search for Bitcoin Electum Wallet to get their site.
After you get the wallet set up, take a few minutes clicking around. What to look for:
o There will be a page that shows you how many bitcoins are in your wallet. Understand that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named following the pseudonymous creator of bitcoin).