The best way to understand about bitcoin, is 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 is usually, getting bitcoins is a lot easier and safer than you may think. In a lot of ways, it is probably easier than opening a merchant account at a normal bank. And, given what has been happening in the banking system, it really is probably safer too.
There are a few what to learn: getting and utilizing a software wallet, learning how to receive and send money, learning how to buy bitcoin from a person or an exchange.
Before getting started, you will have to get yourself a wallet. You can do this easily enough by registering with one of many exchanges that will host wallet for you. And, although I think you will definitely want to have one or more exchange wallets eventually, you need to start with one on your own computer both to get a better feel for bitcoin and because the exchanges remain experimental themselves. When we get to that stage of the discussion, I am advising that you will 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 solution to store your bitcoins. Specifically, it really is software that has been made to store bitcoin. It is usually run on your pc, laptop, mobile device (except, as yet, Apple) and can also be produced to store bitcoins on things like thumb drives. When Bitcoin Invest are concerned about being hacked, then that is clearly a great option. Even the Winklevoss* twins, who’ve millions committed to 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 media site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
What do you have to know about having a bitcoin wallet on your computer?
Below you can download the initial bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They’ll receive, store, and send your bitcoins. It is possible to create a number of addresses with a click (an address is really a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where you could 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 may also create a QR code that may let someone have a picture with an app on their 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 kind of wallet acts both as a wallet for you personally and as portion of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number over the entire system (and therefore every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your individual 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 take as much as a day for the wallet to sync with the network. That is normal, does not harm your computer, and makes the system as a whole more secure, so it’s advisable.