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 exactly difficult and dangerous it can be, getting bitcoins is 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 things to learn: getting and using a software wallet, learning how to receive and send money, learning how to buy bitcoin from the person or an exchange.
Preparation
Before getting started, you need to get yourself a wallet. You are able to do this easily enough by registering with one of the exchanges which will host wallet for you personally. And, although I think you are likely to want to have one or more exchange wallets eventually, you should start with one on your own computer both to have a better feel for bitcoin and as the exchanges are still experimental themselves. When we reach that stage of the discussion, I will be advising that you will get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to help keep your money safe.
What is a wallet?
It is a way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It really is run on your desktop computer, laptop, mobile device (except, up to now, Apple) and can also be made to store bitcoins on things like thumb drives. In case you are worried 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 will be the ones who originally had the theory 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 should know about having a bitcoin wallet on your pc?
Below you can download the initial bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are actually part of the bitcoin network. They’ll receive, store, and send your bitcoins. It is possible to create one or more addresses with a click (an address is a number that appears like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where one can copy and paste a number like this from the person you would like to send money to and off it’ll go directly into that person’s wallet. You can also create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It really is perfectly safe to provide these out – the address and QR code are both for my donations page. Feel absolve to donate!
Offline paper wallet NOTE: This type of wallet acts both as a wallet for you personally and as the main bitcoin system. The reason why bitcoin works is that each 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 proper software can be part of that system, checking and supporting the network. This wallet serves as your personal wallet and in addition as a support for that system. Therefore, remember that it will require up 8-9 gigabytes of one’s computer’s memory. Once you install the wallet, it will require 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 all together more secure, so it’s advisable.
Bitcoin Qt
The original wallet.
That is 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 requires to sync, this is usually a very easy to use option.
Search for Bitcoin Qt wallet download to find their site.
Armory
Runs along with Bitcoi Qt, so it has all of the same syncing requirements.
Armory permits you to back up, encrypt, and the ability to store your bitcoins off line.
Seek out 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, you can find good wallets that do not make you sync the complete history of bitcocin:
Multibit
A lightweight wallet that syncs quickly. This is good for new users.
Seek out Bitcoin Multibit Wallet to get their site.
Electum
Not only is it quick and light, this wallet permits you to recover lost data using a passcode.
Search for Bitcoin Electum Wallet to find 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 just how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be split up into smaller pieces, so you might see a decimal with plenty of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named following the pseudonymous creator of bitcoin).