Bitcoin is thriving despite everything

Since it’s now in vogue, I’d like to announce that I’m launching my own cryptocurrency next week.

Let’s call it “kingcoin”.

No, it’s too useful.

How about “mothercoin”? I always had a soft spot to mixed breeds.

Yes, it’s perfect – everyone loves dogs.

This will be the biggest since the restlessness.

Congratulations! Anyone who reads this will get one matcoin when my new coin is released next week.

I’m going to evenly distribute 1 million matcoins. Feel free to spend them anywhere (or where anyone will take them!).

What is it? The cashier at Target said not to accept our matcoin?
Tell those who doubt that mutcoin has scarce value – there will ever be only 1 million matcoins. In addition, it is backed by the full faith and merit of 8GB of RAM on my desktop computer.
Also, remind them that ten years ago bitcoin couldn’t buy you even a pack of chewing gum. Now for one bitcoin you can buy a lifetime supply.
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And, like bitcoin, you can safely store mutcoins offline, away from hackers and thieves.
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In essence, this is an exact copy of the properties of bitcoin. Muttcoin has a decentralized book with cryptography that cannot be hacked, and all transactions are unchanged.

Are you still not sure that our mutcoins will be worth billions in the future?
Well, that’s understandable. The fact is that launching a new cryptocurrency is much harder than it seems, if not impossible.

That’s why I believe bitcoin has reached these heights in spite of everyone. And because of its unique network of users it will continue to do so.
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Of course, there were setbacks. But each of these failures eventually led to higher prices. The recent 60% drop will be no different.

The miracle of bitcoin

The success of bitcoin lies in its ability to create a global network of users who are either willing to make transactions with it now, or keep it for later. Future prices will be determined by the growth rate of the network.
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Even in the face of wild price fluctuations, the adoption of bitcoins continues to grow exponentially. There are now 23 million wallets worldwide, chasing 21 million bitcoins. In a few years, the number of wallets could increase to include 5 billion people on the planet connected to the Internet.
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Sometimes the motivation of new cryptocurrencies was speculative; other times they sought to accumulate value away from their own national currency. In the last year, the emergence of new applications, such as Coinbase, has made it even easier to include new users.
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If you haven’t noticed when people buy bitcoin, they talk about it. We all have a friend who bought bitcoin and then kept quiet about it. Yes, I’m to blame for that – and I’m sure quite a few readers too.

Perhaps subconsciously owners become crypto-evangelicals because persuading others to buy serves their own interests in increasing the value of their possessions.

The evangelization of bitcoin – the spread of the good word – has miraculously led to a rise in price from $ 0.001 to the recent price of $ 10,000.

Who would have thought that his pseudonym, fed up with the global banking oligopoly, launched an intangible digital resource that in less than a decade equaled the value of the world’s largest currencies?
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No religion, political movement or technology has ever seen such growth. Again, humanity has never been so connected.

The idea of ​​money

Bitcoin started as an idea. To be clear, all the money – whether it was money used by primitive islanders, a gold bar or the US dollar – started as an idea. It’s the idea that a network of users values ​​it equally and will be willing to part with something of equal value for your form of money.
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Money has no intrinsic value; its value is purely external – only what others think it is worth.

Take a look at the dollar in your pocket – it’s just a gorgeous piece of paper with a one-eyed pyramid, a portrait and signatures of important people.

To be useful, society must view it as a unit of account, and merchants must be willing to accept it as payment for goods and services.

Bitcoin has demonstrated an amazing ability to reach and connect a network of millions of users.

One bitcoin is worth all that the next person is willing to pay for it. But if the network continues to expand at an exponential rate, limited supply argues that prices can only move in one direction … higher.

The result

The nine-year rise of bitcoin has been marked by huge bouts of volatility. In January 2015, there was a correction of 85%, and in some others – more than 60%, including a whopping 93% of the drawdown in 2011.
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However, through each of these fixes, the network (by the number of wallets) continued to expand rapidly. As some speculators saw their price go down, new margin investors saw the price and became buyers.
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Abnormal volatility levels have actually helped bitcoin networks grow to 23 million users.

Hey, maybe we just need some price volatility in matcoins to attract new users …


A brief introduction on how to buy bitcoin as a trading currency these days

Being a popular form of currency, bitcoins are gaining worldwide recognition today, as a result many people have shown interest in buying them. Although many financial executives are urging people not to indulge in this form of cryptocurrency because of its value fluctuations, it is being adopted at a rapid pace. To purchase bitcoin, you can register for free in the wallet system by filling out all the details online or download the mobile application and start investing in them. Once people receive this simple bank payment method, you can use it for their exchange. However, since security is a major factor, it is essential that these wallets remain secure, and for this reason one should be able to choose a bitcoin service, such as coin-based wallets that meet high standards and are easy to use.
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While an online wallet is a convenient way to buy bitcoins, there are several other options such as choosing a bitcoin trader. It is also important to choose correctly, because there are traitors, and you need to be careful with them. Although there are many established exchanges that offer wallet services to users looking for a bitcoin wallet system, a person should choose one that has a multi-signature feature. Users can also use bitcoin exchange search on relevant computers or mobile phones and by entering some general information, for example by entering the name of their own country, a person can learn a wide range of available exchanges around the world and check his current status. Users can also use the liquid money they have because there are various options on the market, such as local bitcoin services, that help users exchange them for cash. Such zones allow users to visit the nearest bank branch to deposit cash and after a while get a bitcoin.
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Many people believe that bitcoins represent a new era of digital currency and are often confused with them. However, because the bitcoin chain system is fully computerized, buying and using them is quite simple and easy, especially they are cheap when it comes to international transactions. Because exchanges require different payment processes, such as credit or debit cards, buyers can also buy online by opening an account depending on the respective geographical location. Once exchanges receive payments after verification, they will store bitcoins on behalf of individuals and send them to the appropriate wallets. For this they charge some fees. The whole process can take a long time. Many people who are learning to buy bitcoin can also use the PayPal method for financial interactions.

Easy ways to buy and invest in bitcoin

What is Bitcoin?

Bitcoin is a decentralized peer-to-peer digital currency system designed to enable Internet users to process transactions using a digital exchange unit known as bitcoin. In other words, it is a virtual currency.

The Bitcoin system was created in 2009 by undisclosed programmers. Since then, bitcoin has attracted a lot of attention as well as controversy as an alternative to the US dollar, the euro and commodity currencies such as gold and silver.

Growth to popularity

Until 2009, bitcoin did not attract much attention in the world of business and finance. He became famous in 2011-2012, when he scored more than 300%. Since August last year, the value of bitcoin has risen by 400%. As a result, venture capitalists and investors around the world continue to attach importance to cryptocurrency.

In the first half of 2014, venture capital companies invested $ 57 million in bitcoin in the first quarter, and another $ 73 million in the second quarter, for a total of $ 130 million, up 50% from $ 88 million last year. This is the complete opposite of the 2012 scenario, when bitcoin firms raised a relatively meager $ 2.2 million.

This statistic undoubtedly proves that bitcoin is worth your investment, and the question arises, how can you buy and invest in bitcoin?

A Guide for Beginner Bitcoin Investors

The easiest and least difficult way to invest in bitcoin is to buy bitcoin. There are many established firms, mostly in the US as well as abroad, engaged in buying and selling bitcoins, abbreviated BTC.


If you live in the US, Coinbase is the place you are looking for. Coinbase provides its customers with BTC with an approximate markup of 1% of the current market price. Residents of the United States have the ability to sync their Coinbase wallets with their bank accounts. As a result, future payment transfers go smoothly. This company also gives you the ability to automatically buy bitcoins from time to time. For example, if you want to buy $ 50 in bitcoins at the beginning of each month, Coinbase allows you to set up an automatic purchase for that amount.

Please read the terms and conditions before using this service. If you have subscribed to an automated bitcoin service, then you will not be able to control the price at which BTC is bought every month. Note that Coinbase does not function as a Bitcoin exchange, meaning you buy and sell coins directly to firms. Because the firm has to supply coins to other buyers, you may face delays or failures when placing orders during rapid market movements.


BitStamp meets the requirements of a regular bitcoin exchange. Bitcoin acts as an intermediary that allows you to trade with other users rather than with the company itself. Here liquidity is higher and you always have a good chance of finding someone who is willing to trade with you. There is an initial commission of 0.5%, which can be reduced to 0.2% if you trade $ 150,000 in 30 days.

Alternative ways to purchase bitcoins

Local bitcoins

Exchange is not the only way to invest in bitcoin. Local bitcoins are often used to purchase BTC offline. The site is designed to connect potential buyers and sellers. Bitcoins are kept by the seller on deposit and can only be given to buyers.

Buying bitcoins offline is not always very reliable and secure. So it’s best to meet with sellers in the afternoon and let a friend tag you just in case.

Bitcoin is not just a modern trend. Venture capital firms consider bitcoin a worthy replacement for ordinary currency in the long run. For you, there are useless ways to enter the realm of investing in bitcoin. As mentioned earlier, Coinbase, BitStamp and Local Bitcoins are the most popular channels for investing in bitcoin in the United States. Do your homework and find out which avenue supports all your frames.

Basics of bitcoin

For those unfamiliar with bitcoins, the first question that comes to mind is, “What is Bitcoin?” And another common question that is often asked is related to the price of Bitcoin. In early 2009, it began to cost less than 10 cents on bitcoin. It has been growing steadily since then and has recently hovered around $ 4,000 for bitcoin. So when it comes to the value of bitcoin or the rate of bitcoin, this is the most excellent estimate of value that has created many, many millionaires in the last eight years.

The bitcoin market is located all over the world, and the citizens of China and Japan have been particularly active in buying it along with other Asian countries. However, recently in the news of bitcoin, the Chinese government has tried to suppress its activity in this country. This action for a short time led to a decrease in the value of bitcoin, but soon it came back and approached the previous value.

The history chart of Bitcoin is very interesting. Its creator was an anonymous group of brilliant mathematicians (using the pseudonym Satoski Nakamoto), who developed it in 2008 as “virtual gold” and released the first software for Bitcoin in early 2009 in the midst of the US economic crisis. They knew that to have lasting value, it, like gold, must have a limited supply. So by creating it, they limited the supply to 21 million bitcoins.

Bitcoin mining refers to the process by which a new bitcoin is created. With ordinary currency, the government decides when and where to print and distribute it. With Bitcoin, “miners” use special software to solve complex mathematical problems and in return issue a certain amount of bitcoins.

Then the question arises as to whether mining Bitcoin is worth it. The answer is NOT for the average person. This requires very sophisticated knowledge and a powerful computer system, and this combination of factors makes it unattainable for the masses. This is even more true of bitcoin mining 2017 than in previous years.

Many wonder who accepts Bitcoin? This question is asked in different ways: which stores accept bitcoins, which websites accept bitcoins, which sellers accept bitcoins, which places accept bitcoins and where can I spend bitcoins.

More and more companies are beginning to see the value of accepting cryptocurrency as a true payment option. Some of the big companies that do this are DISH network, Microsoft, Expedia, Shopify stores, Newegg, Payza, 2Pay4You and others. At this time, the two main deterrents – Walmart and Amazon.

Ethereum is Bitcoin’s strongest competitor in the cryptocurrency market, and many are wondering about Bitcoin vs. Ethereum. Ethereum was established in mid-2015 and has gained some popularity, but is still far behind Bitcoin in use, recognition and value.

A question that often arises is often related to bitcoin fraud. This author has a friend who made a purchase from a company that promised 1-2% growth per day. There is no contact information on the company’s website, and a couple of months later the website just disappeared one day and my friend lost all the money he had invested, which was several thousand dollars.

You need to know how to buy bitcoin, how to buy bitcoin or how to buy bitcoin with a credit card to get started. Coinbase is a very popular site for this. Their commission is 3.75% and the purchase limit is $ 10,000 per day. This would probably be the easiest way to buy bitcoin.

Others would like to buy Bitcoin using a debit card. Coinbase also provides this service and has clear step-by-step instructions on how to proceed with your debit or credit card.

There are those who would like to buy bitcoin instantly. This can be done at Paxful, Inc. and via W. Union or any credit / debit card.

Other common questions that arise are the best way to buy bitcoin, the best way to get bitcoin or where to buy bitcoin online. The easiest way, probably, is to buy it through a digital asset exchange, as previously mentioned Coinbase. Opening an account with them is painless, and once you link your bank account to them, you can quite easily buy and sell bitcoins. This is probably also the best place to buy bitcoins.

You need to know what a Bitcoin wallet is and how to use it. It’s just the bitcoin equivalent of a bank account. This allows you to receive bitcoins, save them and send them to others. It maintains a collection of Bitcoin privacy keys. It is usually encrypted with a password or otherwise protected from unauthorized access.

There are several types of digital wallets to choose from. Web Wallet allows you to send, receive and store bitcoins through a web browser. The other type is a desktop wallet, and here the wallet software is stored directly on your computer. There are also mobile wallets that are designed to be used by a mobile device.

Sometimes the question arises about Bitcoin stocks or how to buy Bitcoin stocks. By far, the most common way to act in this area is to buy bitcoin directly rather than its shares.

There is one organization called the Bitcoin Investment trust, which is an investment fund designed to track the Bitcoin market flow. However, some analysts call it a risky way to get involved in this market.

The exchange rate of bitcoin in US dollars is a benchmark that has been closely monitored both on a daily basis and in the long run over the last 8 years since its appearance on the global financial market. The popular company that gets the most current bet in Bitcoin valuation is XE. They show an estimate of bitcoin in US dollars, as well as the full price of bitcoin, a chart of the value of bitcoin and a chart of the value of bitcoin in dollars. If you ask, “How much is one bitcoin?” you will always know their charts which are constantly updated.

Similar issues that arise in this area concern the history of the bitcoin exchange rate, the live bitcoin price chart, the bitcoin exchange rate to the dollar, the bitcoin dollar chart, and the 5-year bitcoin chart. The aforementioned xe website is also a good source of answers to these questions.

Regarding Bitcoin cash, i.e. to get the US dollar from bitcoin sales, Bitwol is one company that allows you to do that. WikiHow is another campaign that will guide you through this process.

The projected value of bitcoin is a topic that is often discussed. In January 2015, the cost of one bitcoin was $ 215. It’s currently about $ 5,000. This is a phenomenal growth that far exceeds what most experts predicted at the time. Currently, when considering the forecasts of experts around the world, it seems the general answer is that the highest value will be around $ 10,000, and one expert even predicted that the value would reach $ 100,000.

Bitcoin Buying Guide – An easy 3-step guide to buying your first Bitcoin

Looking for a guide to buying bitcoin? I wonder where to start? People have many misconceptions about bitcoin – the very first cryptocurrency widely known and accepted worldwide.

Many people think, for example, that they are used only by hackers and clever people. However, bitcoin is actually becoming mainstream for everyone, from TigerDirect to Expedia.com to Dell and even Subway, who accept bitcoin payments.

Why so popular?

Well, bitcoin has many advantages over other currencies. For example, you can send someone a bitcoin as payment without contacting a bank intermediary (and get extra fees). It is also much faster than sending money through a bank transfer or wire transfer. You can send bitcoin to someone and get them to get coins in seconds.

With all this, it is not surprising that many people are now trying to buy bitcoin for the first time. However, it’s not as easy as going to your bank and withdrawing bitcoin – or going to the store and earning hard-earned money.

The system works a little differently. This guide to buying bitcoin will cover a few things you need to know before you buy – so you can buy safely and securely.

First, although the price may exceed $ 2,000 per coin, you don’t need to buy a whole bitcoin. In most places you can buy portions of bitcoins for only $ 20. So you can start small and go from there when you become more comfortable with how things work.

Second, this article is for general purposes only and should not be construed as financial advice. Bitcoin can be risky, and before buying you should consult with your financial advisor to find out if it is right for you.

So, here are 3 easy steps to buying bitcoins:

# 1 Get a Bitcoin Wallet

The first thing to do before buying coins is to get a virtual wallet to store the coins. This wallet is a text string that people can use to send you bitcoins.

There are a number of different types of wallets, including the ones you download to your phone or computer, online wallets and even standalone wallets for cold storage.

Most people prefer to have a wallet on their phone or computer. Popular wallets include Blockchain, Armory, Bitgo MyCelium and Xapo.

It is usually as simple as downloading a wallet to your phone as a program or downloading software to your computer from the main wallet website.

# 2 Decide where to buy

There are several types of places you can buy and each one is a little different. There are online sellers who will sell you bitcoin directly for cash (either bank transfer or credit card).

There are exchanges where you can buy and sell bitcoins from others – similar to the stock market. There are also local exchanges that connect you with sellers in your area who want to sell.

There are also ATMs where you buy cash and get coins in your wallet in minutes.

Every bitcoin seller has its advantages and disadvantages. For example, ATMs are great for privacy, but they will charge you up to 20% of the current price, which is ridiculous. (At BTC $ 2000, that’s $ 400! So you pay $ 2400 instead of $ 2000).

No matter where you decide to buy, be sure to research and contact a trusted seller with a good reputation and strong customer service. The first buyers especially have questions and may need additional support to help them with the first transaction.

Take your time and explore the different places where you can buy before making a decision. Factors to consider include coin prices, surcharges, payment method and customer service.

# 3 Buy bitcoins and transfer them to your wallet

Once you have found a place to buy, prepare your funds (i.e. you can send a bank transfer or use Visa to top up your account). Then expect a good price. (Bitcoin prices always fluctuate 24 hours 7 days a week). Then place your order when you are ready.

Once your order is filled and you have the coins, you will want to send them to your wallet. Just enter your bitcoin address and get the seller to send you your bitcoins. You should see how they appear in your wallet within minutes to an hour (depending on how quickly the seller ships them).

Voila, you are now the owner of bitcoins. Now you can send coins to pay for other goods and services or stay on them for a rainy day.

And the last thing to remember: bitcoin is still in its infancy. There are huge price fluctuations, and currency can be risky. Never buy more bitcoins than you can afford to lose.

5 mistakes most Bitcoin buyers make

Nowadays, buying bitcoin is not easy. Some buyers make some costly mistakes when they try to earn a return on their investment for the first time. So you can be careful when making this purchase. Here are 5 common mistakes Bitcoin buyers make. Make sure you avoid these mistakes.

Invalid address

Make sure you enter the correct address when buying bitcoin. If the address is incorrect, it will be impossible to cancel the transaction and you will lose your money forever. Sorry, you can’t fix this error if the address you entered was incorrect.

So be sure to check your address three times to make sure there are no errors. Checking the details will not take hours. It is best to ask a friend or family member to review your details.


It’s a great idea to purchase bitcoin in person. You should transfer your hard earned money only after the transaction is completed. Even better is to get some confirmation. This way, you can be patient to make sure there are no further issues. This is even more important if you are going to invest a large amount of money.

Methods of payment

One of the most common ways to make payments online is to use PayPal or a credit card. The reason is that these methods are quite convenient. Plus, they can save you a lot of money. However, keep in mind that you will have to pay higher fees to enjoy this convenience. For example, you will have to face refund issues.

Therefore, it is better to choose a less expensive way to pay. For example, you can make a bank transfer. This is even more important if you are going to spend a large amount of money on a regular basis. In the long run this can save you a lot of money.

Missed opportunities

We know that people make a lot of money buying and selling bitcoins. However, if you are going to make this purchase just because you don’t want to miss this opportunity to make money, you need to think again.

Buying bitcoin without a solid strategy is a bad idea. As with any other purchase, you need to do your homework before investing in bitcoin. Therefore, a solid strategy is paramount.


Currently, the process of buying bitcoins and other currencies is quite simple. The reason is that there are many exchanges and many payment methods to choose from. But the problem is that we all tend to make mistakes, especially when going to buy something for the first time. So you can take your time before making this purchase.

In short, if you avoid the errors described above, you can purchase bitcoin safely and without much hassle. Just make sure you have a basic knowledge of cryptocurrencies. Hopefully this will help you make informed decisions.

Should I buy bitcoin?

As the world leader in the cryptocurrency market, Bitcoin has been in serious headlines and some serious fluctuations over the past 6 months. Almost everyone has heard about them, and almost everyone has their own opinion. Some may not understand the idea that currency of any value can be created from nothing, while some like the idea that something without government control can be traded as a valuable entity on its own.

Where are you sitting on “Should I buy bitcoin?” The fence probably ultimately boils down to one question: can I make money on bitcoins?

Is it possible to make money on bitcoins?

In the last 6 months alone, we have seen the price rise from $ 20 per coin in February to $ 260 per coin in April, drop to $ 60 in March and rise again to $ 130 in May. Now the price has risen to about $ 100 per bitcoin, but what will happen next can only be guessed.

The future of bitcoin ultimately depends on two main variables: its adoption as a currency by a wide audience and the lack of prohibitive government intervention.

The Bitcoin community is growing rapidly, interest in cryptocurrencies has expanded dramatically online, and new services are increasingly accepting payments in bitcoins. Blog giant WordPress accepts payments in bitcoins, and African mobile app provider Kipochi has developed a bitcoin wallet that will allow you to pay for bitcoins on mobile phones in developing countries.

We have already seen how people make millions on currency. We see an increasing number of people experimenting with life only on bitcoins for months on end, recording this experience for watching documentaries.

You can buy takeaway food in Boston, coffee in London and even a few cars on Craigslist using bitcoins. Bitcoin searches increased in 2013 with an increase in April and a subsequent drop in the value of bitcoin. Last week, the first major acquisition of the bitcoin company was made for SatoshiDice, an online gambling site, for 126,315 BTC (about $ 11.47 million) by an unknown buyer.

This rapid rise in awareness and absorption seems to continue if confidence in the currency remains strong. Which leads to a second dependency. State regulation.

Although bitcoin is specifically designed to operate independently of state control, government will inevitably be affected in some way by governments. This should be for two reasons.

First, to achieve a high level of acceptance Bitcoin must be accessible to a large number of people, which means spreading beyond hidden transactions to regular everyday transactions for individuals and businesses. Second, these bitcoin transactions can become a trackable part of taxable wealth that will be declared and regulated along with any other type of wealth.

The European Union has already stated that bitcoin is not classified as fiat currency or money, and therefore will not be regulated independently. In the United States, 50 government systems and the number of bureaucracies involved have inevitably complicated decisions that have not yet been reached by consensus. Bitcoin is not considered money as such, but it is believed to act as money.

The thriving bitcoin market in the US currently has a more uncertain future, and any final legislation in the US can have both very positive and very negative impacts on the future of bitcoin.

So, should you buy bitcoin?

The answer mostly depends on how much you are not at risk. Of course, bitcoin will not be a simple investment, but the potential of this currency is huge.

How to Buy Bitcoin – Step One

The best way to learn about bitcoin, is to jump in and get a few in your “pocket” to get a feel for how they work.

Despite the hype about how difficult and dangerous it can be, getting bitcoins is a lot easier and safer than you might 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 using a software wallet, learning how to send and receive money, learning how to buy bitcoin from a person or an exchange.


Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for bitcoin and because the exchanges are still experimental themselves. When we get to that stage of the discussion, I will be advising that you 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 way to store your bitcoins. Specifically, it is software that has been designed to store bitcoin. It can be run on your desktop computer, laptop, mobile device (except, as yet, Apple) and can also be made to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is a good option. Even the Winklevoss* twins, who have millions invested in bitcoin, put their investment on hard drives which they then put into a safety deposit box.

*The Winklevoss twins are the ones who originally had the idea 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 need to know about having a bitcoin wallet on your computer?

Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact part of the bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where you can copy and paste a number like this from a person you want to send money to and off it will go directly 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 give these out – the address and QR code are both for my donations page. Feel free to donate!

NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason bitcoin works is that every transaction is broadcast and recorded as a number 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 also as a support for that system. Therefore, be aware that it will take 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. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.

Bitcoin Qt

  • The original wallet.
  • This 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 is a very easy to use option.
  • Search for Bitcoin Qt wallet download to find their site.


  • Runs on top of Bitcoi Qt, so it has all of the same syncing requirements.
  • Armory allows you to back up, encrypt, and the ability to store your bitcoins off line.
  • Search for Bitcoin Armory Wallet to find their site.

If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, there are good wallets that do not make you sync the entire history of bitcocin:


  • A lightweight wallet that syncs quickly. This is very good for new users.
  • Search for Bitcoin Multibit Wallet to find their site.


  • In addition to being quick and light, this wallet allows 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. Things to look for:

o There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).

o There will be an area showing what your recent transactions are.

o There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code if you don’t want it, but if you run a business and you want to accept bitcoin, then all you’ll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address from each one of your payees.

o There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet.

There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Now that you have a wallet, you will, of course, want to test them out.

The very first place to go is http://faucet.bitcoin.st/.

This is a website that gives out small amounts of bitcoin for the purpose of getting people used to using them. The original version of this was run by the lead developer of bitcoin, Gavin Andreson. That site has since closed and this site operates by sending out one or two advertisements a month. You agree to receive those messages by requesting the bitcoins. Copy and paste your new bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuously coming back for more since it costs nothing to create a bitcoin address. They will also send out once or twice a month advertisement to support their operation. The amount they send it trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them. I simply think they are a good way to get your feet wet).

Congratulations! You have just entered the bitcoin economy.

To get your feet a little wetter, you can go panning for gold. There are a number of services and websites out there that will pay you in bitcoin to do things like go to certain websites, fill out online surveys, or watch sponsored videos. These are harmless, and you can earn a few extra bitcoins this way, but it is important to remember that these are businesses that get paid when people click on the links on their sites. They are essentially kicking back a portion of what they get paid to you. There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), but they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly bitvisitor.com) have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of bitcoin, you won’t become a millionaire doing this. So, unless you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Google “free bitcoins” or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of bitcoin. Can people easily trade them back and forth? If this can’t happen, then there can’t really be a bitcoin economy because retailers won’t be able to use it. If retailers can’t use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a hold out, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send bitcoin to whomever you want. You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

  • When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed transactions. This money becomes available to a bitcoin miner as he/she/they process bitcoin information. The miners doing the work of creating blocks of information keeps the system up to date and secure. The fee is an incentive to the miner to be sure to include your information in the next information block and therefore “verify” it. In the short term, miners are making most of their money by mining new coins (check the section on What Are Bitcoins for more information about this). In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions. You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy.
  • In clicking around your wallet, on the transactions page or linked to specific transactions, you will see a note about confirmations. When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy bitcoin like this?

  • You may have a bitcoin Meetup in your area.
  • You can check out localbitcoins.com to find people near you who are interested in buying or selling.
  • Some are trying to start up local street exchanges across the world. These are called Buttonwoods after the first street exchange established on Wall Street in 1792 under a buttonwood tree. See if there is one, or start one, in your area.
  • See if you have any friends who would like to try bitcoins out. Actually, the more people who start using bitcoin, the larger and more successful it will be come. So please tell two friends!

Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a bitcoin in your hands:

  • Cascascius Coins: These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.
  • Paper Wallets: A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like). This is highly recommended and cost effective system for keeping your bitcoin safe. Keep in mind, though, that someone could steal them or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

* There is software to make printing your paper wallets easier. bitcoinpaperwallet.com is one of the best and includes a good tutorial about how to use them.

* The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you ship coins to the wallet any time you like.

* The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins on the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.

* People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. Bitcoinpaperwallet.com gives a lot of good advice about how to print your wallets securely.

Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning.

A short history lesson: When people first started setting up actual business based on bitcoin, they used all of the tools available to any merchant. They sold by credit card and PayPal. The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of bitcoin and then sooner or later requesting a chargeback. And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

This was a big problem for the currency: How to move money between buyers and seller? Some business emerged that would credit you with bitcoin if you wired them money. Very often these businesses would give addresses in Albania, Poland, or Russia. The fact is that many of these did work and there are a lot of stories on the forums of people who bought bitcoins this way. But it took a lot of time and in the meantime the buyer just had to bite his or her fingernails wondering if they would get their bitcoins or kiss their investment goodbye.

I expect that as bitcoin becomes more acceptable and valuable, we are going to see a version of the Nigerian Prince scam. So the warning is this: we now have exchanges and other businesses that allow for moving money easily onto and off of exchanges. Never wire money for bitcoin. It was a short-lived, and well-forgotten, moment in the history of bitcoin.

Next, I will be talking about how to buy from a bitcoin exchange and give a review of the some of the best known exchanges.