The best way to learn about bitcoin, would be to jump in and get several in your “pocket” to obtain a feel for how they work.
Despite the hype about how difficult and dangerous it could be, getting bitcoins is a lot easier and safer than you may think. In a lot of ways, it is probably easier than opening an account at a traditional bank. And, given what has been happening in the banking system, it is probably safer too.
There are a few things to learn: getting and utilizing a software wallet, learning how to send and receive money, learning how exactly to buy bitcoin from a 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 among the exchanges which will host wallet for you personally. And, although I think you are likely to want to have a number of exchange wallets eventually, you need to start with one all 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 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 solution to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It usually is run on your pc, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things such as thumb drives. For anyone who is concerned about being hacked, then that is clearly a good option. Even the Winklevoss* twins, who’ve millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.
*The Winklevoss twins will be the ones who originally had the theory for a social media site that became Facebook. They hired Mark Zuckerberg who took their idea as their own and became immensely rich.
What do you must 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 actually the main 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 you can copy and paste a number like this from a person you intend to send money to and off it will go straight into that person’s wallet. You can even create a QR code which will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to provide 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 and as the main bitcoin system. The reason why bitcoin works is that every transaction is broadcast and recorded as lots across the entire system (meaning that 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 personal 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. Once you install the wallet, it will require as much as each day for the wallet to sync with the network. This 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.
It 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 takes to sync, this can be a very easy to use option.
Search for Bitcoin Qt wallet download to get their site.
Armory
Runs along with Bitcoi Qt, so it has all the same syncing requirements.
Armory enables you to back up, encrypt, and the capability to store your bitcoins off line.
Offline paper wallet Search for Bitcoin Armory Wallet to get their site.
If you don’t want to have that much memory used or don’t want to await your wallet to sync, you can find good wallets that not make you sync the complete history of bitcocin:
Multibit
A lightweight wallet that syncs quickly. This is good for new users.
Search for Bitcoin Multibit Wallet to get their site.
Electum
Not only is it quick and light, this wallet enables you to recover lost data utilizing 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 full page that shows you just how many bitcoins are in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you might see a decimal with plenty of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).