People discredit Bitcoin as being too confusing simply because it's new and they don't understand it. Here's how simple it can be getting started with Bitcoin.
So, you've heard about Bitcoin, AKA "The Currency Of The Future," in the news.
You know it's important.
You know it has something do to with the Internet.
You may even know that it has gained value at a rate that is four times faster than the Russian Ruble.
But other than that...you really don't know a whole lot about it.
You've thought about getting started with Bitcoin, but you just want a little bit more of an understanding of what you're getting into.
We get it: a lot of the press surrounding Bitcoin is confusing. But in reality, the process of getting started with Bitcoin isn't nearly as tough as it's made out to be.
In this post, we'll break down in plain English just how simple getting started with Bitcoin actually is.
We'll also help to define more of what Bitcoin is, and why it's a great time to start getting involved with it.
Let's start demystifying Bitcoin now!
Before we talk about getting started with Bitcoin, let's first do a little history lesson.
Bitcoin first started in 2009. It was created by a person named Satoshi Nakamoto.
OK, so, that's not their real name.
We still don't know.
But that's really not important.
What matters more is understanding how Bitcoin works, and why it's so valuable.
It's a cryptocurrency, which means it's digital/virtual money.
Also, it's decentralized. That means, in the words of Nakamoto, that there is "no server or central authority." Essentially, it's a peer-based network, with exchanges between users.
This also means that getting started with Bitcoin won't require Bitcoin holders to use the currency under their real names.
There are no "Bitcoin banks" and therefore, zero transaction fees.
Since Bitcoin's exception, many other cryptocurrencies have been created. You might hear them referred to as "altcoins" - an alternative to Bitcoins.
The next step in getting started with Bitcoin is understanding why so many people want to use them.
After all, when you invent an entirely new currency and make it available only on the Internet, anonymously - you're bound to raise suspicion.
However, the reality is that the vast majority of Bitcoin use isn't bad at all.
You know just how much of a concern privacy is in today's world - epsecially online.
Changes being made to Internet privacy laws, the possibilities of selling your information, and more are always in the news.
Bitcoins mean that you can buy what you want to online anonymously. They got their start as the regularly accepted currency of the Deep Web.
In a nutshell, the Deep Web is known for the ability to let you buy what you need to without anyone looking over your shoulder.
Bitcoin is also super helpful to those who need to make frequent payments to international vendors and companies. Since Bitcoins aren't the currency of a single country, they don't fall under any restrictions.
Other people (smartly) see Bitcoins as an awesome investment opportunity.
Smaller businesses use them because they're sick of paying crazy high credit card fees.
Some people just use them because - let's face it - they're cool.
The reality is that Bitcoins are a convenient, smart way to do business - and today, more and more businesses accept them, across a variety of industries.
Yes, even your favorite pizza place.
Now that you know about why Bitcoins are so popular, and understand more of how they work (see, it wasn't that hard!) let's talk about actually getting started with Bitcoin.
Obviously, the first step you'll take on the exciting road of getting started with Bitcoin is finding where you can get the coins themselves!
But first, let's back up.
Where do you keep your "regular" money? In your wallet, of course!
Well, with Bitcoin, it's exactly the same idea. You need to get a Bitcoin Wallet.
To do this, check out sites like Coinbase - they're totally beginner-friendly.
Your wallet is actually software, and it's how you store and spend your Bitcoins.
Think of it as a kind of digital bank account - that is most definitely not FDIC insured!
These wallets can either be stored in your computer, or in a digital cloud for safekeeping.
Once you get your Bitcoin Wallet, you'll also be given a unique Bitcoin Address.
This is essentially an email address, except instead of getting emails, you're getting Bitcoins sent to your Bitcoin Address.
OK, so it's not exactly like an email address - but the concept is the same.
It really looks more like a password or a barcode. Your Bitcoin Address is a longer string of numbers and letters beginning with either a 1 or a 3.
Now that you've got your wallet and you're Bitcoin Address, let's discuss how you can get your hands on the currency itself!
Just like there are lots of things you can buy with Bitcoin, there are also lots of ways to get your hands on them!
You can find Bitcoins for sale on Bitcoin Exchanges, and you can buy as many Bitcoins as you want using the currency of your choice in most cases.
On average, a Bitcoin is valued currently at a little over 1,000 USD.
If you don't have $1,000 just sitting around, don't panic. You can also buy fractions of Bitcoins.
Keep in mind too, when you're getting started with Bitcoin, that if you use a credit card or a system like Paypal, that you'll likely have to pay a lot higher fees.
Using traceable methods of payment, AKA "Reversible Payment Types," can put your seller at risk.
Remember that the whole point of getting started with Bitcoin is to keep things anonymous.
If possible, it's much better to use what's called an "Irreversible Payment Type."
That would be something like a wire transfer.
That way, your seller - and you - are both much more protected in the marketplace.
Another aspect you need to understand in the beginning is the concept of Bitcoin "mining," which is a term you'll hear thrown around a lot when you're getting started.
Mining is basically a competition that allows you win Bitcoins.
How can you win them?
By mining them - AKA, solving crazy-intense mathematical problems and logic puzzles. This is part of what makes the Bitcoin world so much fun.
It also explains why it's so popular among serious tech types.
This "mining" process also helps to actually generate the Bitcoins themselves.
If you think it's impossible, or that people rarely "win" these mining competitions, think again!
In fact, about once every 10 minutes, someone out there wins about 25 Bitcoins by doing some seriously good mining.
There are tons of tips and tricks related to successfully mining Bitcoins (hey, we happen to think a lot of them are accessible right on our awesome website.)
The truth is, nobody really knows!
We think that's part of what makes getting into the Bitcoin game so exciting.
Right now, many feel that we are living in the "Golden Age" of Bitcoin.
Because, as we mentioned earlier, the market is totally unregulated and not subject to any form of government control.
That means - you guessed it - zero taxes.
Who doesn't love that?
But like all good things, many believe this incredible market isn't going to stay the way it is now forever.
That's why there is no time like the present to get your Bitcoin Wallet and Address, buy and mine as many Bitcoins as you can, and start your Bitcoin investment early.
Of course, to invest, mine, save and spend your Bitcoins well, you're going to need expert advice.
But there aren't exactly a ton of Bitcoin brokers out on Wall Street - at least, not yet!
So, where can you find valuable advice, market reports and up-to-the-minute news about all things Bitcoin?
Well, Bitcoin started online, didn't it?
That's where we come in...
We're the people you can trust, and who have the experience to help you make smart choices and stay informed.
We hope this 101 guide has cleared up all the confusion surrounding Bitcoin.
As you can see, getting started with Bitcoin really isn't as difficult as it's made out to be.
However, we know that Bitcoin is always evolving and we want to make sure we're always there to guide you!
That's why we created a user-friendly website designed to take the guesswork out of Bitcoin use.
We've got posts and breakdowns on a variety of Bitcoin subjects.
As you can see form this post, Bitcoin isn't all that complicated - and there are many benefits to using it.
Learn more about us and spend some time on our website, and you'll become a Bitcoin expert in no time flat!
Using Bitcoin to pay and get paid is easy and accessible to everyone.
Paying and getting paid is so much easier using Bitcoins since it is convenient and readily accessible to everyone.
1. Educating yourself first. Not everyone is familiar with Bitcoin as well as it is not commonly used every day so it is far from what you have perceived. There are important things you need to go over beforehand to safely use it and prevent having mistakes in using Bitcoin.
2. Have a wallet. Since a Bitcoin wallet is needed, you can have it with your mobile for everyday use or you can just use your computer for your online transactions such as payments. Either way, wallet choosing can be done in just a swift!
3. Start acquiring Bitcoins. You can gain Bitcoins simply through payments from goods and services purchased, buying from someone who has one or if you have your bank account, have it from an exchange.
4. Now you are ready to use your Bitcoins. An increasing number of merchants and services are already available that accepts Bitcoins as payments around the globe. Upon doing this,, it is good to leave a rate or comments to these business so as to help not only them but also the customers in having a reliable and trustworthy service.
In accepting Bitcoin, you just have to bear in mind some few things to safely use it as well as prevent common pitfalls. In processing payments, you can do invoices and payments personally or using merchant services by depositing money in the local currency or in Bitcoins. Most business use a cellphones or a tablet for their customers to pay with their own cellphones.
The prices that merchants usually deposit and display is in the local currency. There are instances however that Bitcoins functions just like a foreign currency. A qualified accountant can be hired to know appropriate information about tax compliance in your designated district.
Since there is an increasing number of Bitcoin users and of course, looking for ways to spend it, it is wise for businesses to submit details in online directories for them to found easily. A logo can also be used to display in your own website.
Bitcoin has been increasingly popular nowadays. Although there are a lot of uncertainties as well as controversies about cryptocurrency, this didn’t prevent more than a thousand businesses globally to use Bitcoin for payments - perfect exampls is Newegg. It also didn’t hinder a ton of people in arising markets from having Bitcoins take over their country’s currency.
While writing,one Bitcoin is already valued at $222.93. Though it’s still far from a thousand, given that it has been trading almost a year now, there’s a big chance for it to rise more in value. And right now is the perfect time to hoard since it’s still at a low-priced value.
Despite wanting to acquire Bitcoins by using a miner digging for it the whole day, I know a much easier means to have it at this perfect time before it’s become too late.
But before everything else, I’ll share these information that you need to know:
1. The safety and security of your Bitcoin wallet is very important, just like having a real wallet.
2. The price of Bitcoin is volatile
3. Payments using Bitcoin can be reversed
4. There’s no anonymous with Bitcoin
5. Quick transactions are never secure
6. It’s not proven and tested yet
7. There’s a tax and certain policies on Bitcoin for some governments
Education is vital before you engage yourself with Bitcoins. Or else you will be caught with surprises along the way. But if you have confidently understood the risk that comes with it, you’ll feel comfortable when you start using it already.
Step 1: Bitcoin Wallet Choosing
Having a Bitcoin wallet signals that you can already start acquiring Bitcoins anytime you want. But there are certain things you should remember before taking on board in the cryptocurrency world by the time you make an account with top website you found upon searching in Google.
Since there are several forms of wallets available for desktop, web, mobile and hardware that also comes with different features, it is really important to take time in studying and researching, to be able to find the perfect one for you. By the time you have determined your best choice, it will on take some minutes to set up your wallet.
Coinbase, Blockchain and ChangeTip are the top three famous Bitcoin wallets.
Step 2: Put Some Bitcoin in Your Wallet
If you’re done creating your wallet, it’s a perfect time to start purchasing some Bitcoin. There a lot of ways to do it just like in creating a wallet.
1. From payments of buying goods as well as services
2. Receiving from friends or from anyone near you
3. Purchasing it from an exchange
Buying Bitcoin from an exchange is the considered the safest way buy you need to see to it that the website is secured enough for such transaction. Know also the identity of the person involved in transferring your funds for future necessities like cases where in there’s a need to undergo some legal action. This is very necessary when it comes to dealing with money.
Stick to acquiring Bitcoins from a legit exchange and avoid having it someone you’re not secured or a third party.Bitcoin services are surely not regulated so there are exchange operators that exist t despite being unsescured. It’s totally risky but really safe if you know the things that you are dealing with.
Coinbase, Bitfinex and Cryptsy are the top three famous Bitcoin exchanges.
Step 3: Start Using Bitcoin
We may have known people who got rich because of Bitcoin but it’s not that simple as you think it is. Unless you have the capabilities and resources to take it like in the stock market, it’s difficult to think Bitcoin as a form of investment. The profitability will never be guaranteed that’s why you have to be careful in choosing where to put your money.
Several people uses Bitcoin because they think it’s a very good choice of a digital payment. But since a lot of merchants are arising nowadays, we may feel safe to use Bitcoin with anyone who is willing to accept it. No laws exist on ways that merchants should accept Bitcoin so you acquire it only from stores that uses a trusted and reliable gateway for payment.
BitPay is known to be the most secured option for payment today. Newegg as well as other business and organizations more than 50,000 in number around the world relies on it.
BitPay is even good enough for companies such as Microsoft, Wordpress and other countless companies in the business we deal with, how much for us.
BitPay guarantees any store who uses it for Bitcoin transaction to be safe and secure. But since there are still a number of available payment gateway out there, remember to use something that is legit. If you’re not so sure, then better do some background check.
Aside from Bitpay, gocoin and WooCommerce Bitcoin Payments are the top three famous gateway for Bitcoin payments.
Step 4: Spend it Wisely
If you are able to honor the guidelines mentioned above, there’s should be no problems in dealing with Bitcoin. All you have to remember is to see to it that all the company, merchants, people you deal with along the way are legitimate to minimize or avoid certain risk. Bitcoin is actually enjoyable if you are already comfortable and confident with it.
Another prominent and tremendously good way to spend Bitcoin is by using ChangeTip. It made tipping people for their service rendered, a simple way and can make fund transfer to any person anytime and anywhere they are. And it’s definitely a free service to use.
People are still trying to study the know-how of Bitcoin technology since it’s still in the early stage. But a tech enthusiasts can easily understand the works of it. May this simple quick guide help you to start using Bitcoins!
Educate yourself. Using Bitcoin can be confusing at first since it differs from any other currency you may have used before. That is why it is very vital to know important key points. Not like the money issued by the government that undergoes inflation at will, Bitcoin’s supply limits only to 21,000,000 Bitcoins which will never change.
Counterfeiting or inflation can never happened in Bitcoins. It can be used for money sending and receiving with anyone and anywhere across the globe for a very cheap price. Bitcoin is everywhere. It can’t be blocked and you cannot freeze Bitcoin wallets as well. In short, Bitcoin network can never be stopped and it is uncensorable even if you turn off the all the internet around the world.
Using Bitcoin need users to be more responsible , aside from it delivers unparalleled freedom, the results will all be worth it as well. You can have a 20% savings on everything in Amazon because of Bitcoin. Try to know more about this or you can ask questions to Bitcoin users in the forum.
The Need To Have a Wallet. Although there are several various options, deciding for a wallet is just simple. What is essential is to know is your self control ability when it comes to keeping your Bitcoins just like a real cash in your wallet or the need the help for someone else to hold it instead.
Both ways have positive and negative impacts but generally we opted for users to hold it personally. You can own as much Bitcoin wallets as you can but it would be good to start with having a wallet for your Android or iPhone devices so it is readily available everywhere you are. Wallets can be chosen here.
Start Acquiring Bitcoins. Acquiring Bitcoins just like having any other currency works by selling something that you own for them. You can be paid by your current employer with Bitcoin upon their permission. A payroll service which is Bitcoin based, like Bitwage can be readily used without having to inform your employer.
It can also be used as a medium for payment with your business. But above all, you can easily have Bitcoins through buying from any legit Bitcoin exchanges.
Perks of Using Bitcoins. Who doesn’t want to spend Bitcoins? A 20% discount is available for everything at Amazon through Purse.io and also a 20% off in every Starbucks transaction through WeUseCoins.com will also guide you to look for a near local place that accepts Bitcoin. There are endless possibilities for Bitcoin so better start now!