The best way to understand about bitcoin, is 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 plenty of ways, it really is probably easier than opening a merchant account at a traditional bank. And, given what has been happening in the bank operating system, it really is probably safer too.
There are a few what to learn: getting and using 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 will have to get yourself a wallet. You are able to do this easily enough by registering with one of many exchanges that may host wallet for you. And, although I think you will want to have one or more exchange wallets eventually, you need to start with one by yourself computer both to obtain a better feel for bitcoin and as the exchanges are still experimental themselves. When we get to that stage of the discussion, I am advising that you get in the habit of moving your cash 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 could be run on your pc, laptop, mobile device (except, as yet, Apple) and can also be produced to store bitcoins on things such as thumb drives. For anyone who is concerned about being hacked, then that is a great option. Even the Winklevoss* twins, who’ve millions committed to 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 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 must know about having a bitcoin wallet on your pc?
Below you can download the original bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are in fact the main bitcoin network. They’ll receive, store, and send your bitcoins. It is possible to create a number of addresses with a click (an address is a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will see a field where one can copy and paste a number like this from a person you would like to send money to and off it’ll go straight into that person’s wallet. You can also create a QR code that 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 free to donate!
NOTE: This kind of wallet acts both as a wallet for you and as area of the bitcoin system. Bitcoin Cash is that every 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 individual 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 all together more secure, so it’s a good idea.