A HANDY GUIDE TO BITCOIN WORLD
ATTENTION: This article is uniquely specific to Bitcoin (BTC). Bitcoin Cash (BCH) is a completely different type of crypto currency that has its own blockchain and exchange rate. Bitcoin (BTC) has a much higher exchange rate, so please double check all payments as any funds transferred in Bitcoin Cash (BCH) will be irreplaceable!
WHAT IS BITCOIN?
Bitcoin is basically digital currency. It is independent of single banks and is completely decentralized. Anyone with a smart device and internet can contribute to the bitcoin market. As the first example of a cryptocurrency, lots of potential users are very curious to learn more about Bitcoin! Check out the article below for an excellent lesson in this modern type of money!
WHY SHOULD I CHOOSE BITCOIN?
- It’s anonymous. Payments can be tendered from multiple accounts meaning that a single wallet can have several receiving and sending locations. You will still have to verify any accounts to exchange Bitcoin, but you won’t have to go through this process for personal wallets.
- It’s faster. Western Union and MoneyGram payments are processed and confirmed within two days while Bitcoin exchanges only take 10-20 minutes. This means quick shipping and delivery as well!
- It’s decentralized. No one country or authority controls Bitcoin. Western Union and MoneyGram can be blocked for a medley of reasons which will require additional time and cost to resend the payment.
- Bitcoin payments are always available. As long as you have internet, you can make payments! Bitcoin combines the convenience of PayPal with an awesome level of anonymity
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HOW BITCOIN IS ANONYMOUS?
Although all Bitcoin transactions are public and recorded at tradeblock.com, you can still maintain your anonymity. Once you verify your initial purchase of your coins, you can transfer them to other wallets that you don’t have to verify with a phone number or email with minimal fees. You can choose to use one other wallet or keep the highest level of privacy by diversifying your coins into several wallets never reusing the same address.
Additionally, a VPN solution can help keep your IP and activity safe!
NOTE: Tor is not recommended. Malicious exit nodes can intercept communications between your computer and online wallet resulting in permanent loss of all your Bitcoin!
HOW SHOULD I STORE MY BITCOINS?
Just like in the physical world, our digital currency is stored in wallets. There are several different types of wallets all tailored towards specific purposes. Check out this guide to help you choose a wallet!
Using a wallet on your computer or mobile phone, you’ll have full control over your coins. The only major difference for desktop clients is full validation versus simplified validation. Full validation requires a blockchain download (60 GB and growing). This is basically a huge database of every transaction done with Bitcoin. This offers a level of security, but if you have ordinary Bitcoin needs, simple validation will be sufficient.
IMPORTANT NOTICE: We recommend online wallets especially if you intend to use bitcoins for small occasions, if you are a client who doesn’t intend to store funds in bitcoin, or if you are a rookie.
HOW DO I CREATE MY FIRST BITCOIN WALLET?
GreenAddress.it is a great mobile wallet option for Android and iOS along with a direct browser. It uses two-factor authentication to ensure your security.
Step 1 of 4: Once you set your mnemonic passphrase, be sure to write it down or print it for safe keeping. You will typically use a fast login PIN number, but if you lose your passphrase, you won’t be able to recover it.
Step 2 of 4: Although we would recommend Google Authenticator for iOS and Android or Microsoft Authenticator for Windows Phone users, you have plenty of options for your two-factor authenticator.
Step 3 of 4: Set-up your PIN number for faster logins!
Step 4 of 4: You’re done! Click the “Take me to my wallet!” button to go to your dashboard. You also can set-up a watch-only, additional account for your wallet that will let you to check your account from any other computer without any risk of compromise. You can’t do any transactions from these external logins, so you are completely safe!
NOTE: Installing the Bitcoin client is very easy as it is similar to most installed programs you have already!
HOW DO I GET BITCOINS?
The most typical ways to get Bitcoins are through Bitcoin Exchange or Bitcoin ATMs. You can check out the links below for more information!
BUYBITCOINWORLDWIDE.COM: This website will help you find a reputable Bitcoin exchange that supports your preferred payment.
DISCLAIMER: Always compare the amount of Bitcoins you will receive with the official rate exchange as found in Preev.com. Bitcoin exchange and ATM fees have been extremely high lately, so if the amount of coins is significantly lower than the expected one please do not proceed with payment and try a different method of buying Bitcoin.
IMPORTANT NOTICE: If you prefer offering a wallet for exchanges, make sure to keep a second wallet that you refrain from using for storing funds or making payments. Breadwallet, Greenaddress, Mycelium (mobile devices) Electrum (desktop) are great second wallet options. Move any funds deposited in the wallet that you offered for exchange should immediately to your second wallet.
LocalBitcoins.com has a very informative video you can watch to learn more. Other exchanges are very similar, but LocalBitcoins allows you to buy bitcoins with cash, bank transfers, PayPal and other various payment methods.
HOW DO I SEND/RECEIVE BITCOINS?
Specific payment addresses are used to send and receive funds. A typical address will look like this.
ATTENTION: The Bitcoin address above is not valid. Please don’t use it for any payments.
You don’t have to worry about remembering it or keeping it in a safe space. You have an unlimited number of addresses for each wallet. One payment will equal one address. View the screenshots below to see how each time you receive payments, you get a new receiving address.
This is how Bitcoin looks for a desktop client. You can click the “Send/Request” button to start a transaction.
When you request a payment, the section will generate a receiving address for you. You can use it whenever you want to get your bitcoins like through a transfer.
To send payment, hit the “send” button. Enter the receiving address, and click the “next” or “finish” button. It’s that simple!
NOTE: Depending on your wallet settings, the wallet might ask for a password or two-factor authorization code. If the Google Authenticator app is enabled, you should be able to open it on your smartphone and insert a provided code. You can get the code by SMS, email, or phone call.
QR codes help to streamline the Bitcoin process. Especially useful for wallets on mobile phones, QR codes can be scanned through the camera to complete payments. You will be able to see the payment address and save it.