Step By Step Instructions How To Start Trading Bitcoin

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Contents

How to Get Started with Bitcoin

Getting Started with Bitcoin Is Easy! Follow Our Step-By-Step Instructions →

Bitcoin has never been as popular as today. Demand increases as more and more understand the benefits and opportunities with the cryptocurrency. This is a guide to help you get started with Bitcoin.

What is Bitcoin? Why should you use Bitcoin? How to get started with Bitcoin? Where do I buy Bitcoin? We will answer these questions and explain everything you need to know.

This is a brief review of the digital currency to get started quickly. We have simple step by step instructions, and at the end of the guide, we help you to buy Bitcoin instantly.

There are people who say they don’t use Bitcoin because they don’t understand the underlying Blockchain technology. A common excuse for not getting started with new technology.

It’s easy to buy and use Bitcoin, and you don’t need to understand the technology to use it (even though that is good). It was the same at the beginning of the Internet. However, today all use the Internet even though everyone doesn’t understand the technology.

Bitcoin is here to stay, and it’s proven that the technology works and is safe. The only question is how long you will wait before you buy the cryptocurrency. Have you been thinking of buying Bitcoin but hasn’t because of the high price? You’re not alone. However, remember that the price was also expensive at $10, $100 and 1000 dollars.

Past performance is no guarantee of future results. But there will never be more than 21 million bitcoins. If you only buy one bitcoin, you always own more than about 99.85% of the world’s population. (You can, of course, buy less than one bitcoin).

What? Why? How? If you can answer these questions, you already have more knowledge about Bitcoin than 99% of the population. Time to stop procrastinate and getting started with Bitcoin!

BUY BITCOIN NOW

Overview

What Is Bitcoin?

Why Use Bitcoin?

Get Started with Bitcoin (4 Steps)

Important Security Information!

Buy Bitcoin! (eToro Buying Tutorial)

Explore and Learn More

Invest in Bitcoin here!

Frequently Asked Questions

Join The Discussion!

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Do you want to jump to any section?

What Is Bitcoin?

Why Use Bitcoin?

Get Started with Bitcoin (4 Steps)

Important Security Information!

Buy Bitcoin! (eToro Buying Tutorial)

Explore and Learn More

Frequently Asked Questions

Welcome to CryptoRunner! I’m David Andersson, co-founder of this site.

We understand that cryptocurrencies can be confusing and frustrating. That’s why we are here to help you.

What Is Bitcoin?

Bitcoin was the first decentralized digital currency, also called cryptocurrency. It works like cash or gold that can be transferred on the internet across the globe. You can transfer money as easily as sending an email.

This means that you can send money person-to-person without a middleman or involvement of any third party. In other words, you avoid expensive fees and long waiting times as at the bank.

We can briefly describe Bitcoin as follows: Bitcoin is an independent, global and public ledger used to transfer and store value.

  • It’s independent because no state, bank or institution can control or manipulate Bitcoin.
  • It’s global because everyone can send money fast and cheap 24/7 to anyone on earth.
  • It’s public because all transactions are stored in a common ledger. At the same time, Bitcoin is anonymous because everyone can participate without having to identify themselves.

Bitcoin is secure because it is based on cryptography and mathematics. All users decide together over the Bitcoin network and its rules. There is no central bank that can print more and more money to reduce the value.

Protection against inflation is one of the benefits with the cryptocurrency. Read about more benefits and why everyone should use Bitcoin in the next section.

This is a brief description of Bitcoin. If you want to learn more, we have detailed guide about Bitcoin. There we go through what money is, where bitcoin comes from, why the cryptocurrency has value and much more.

Why Use Bitcoin?

Why should I use Bitcoin instead of my credit/debit card or cash? There are many answers to that question because Bitcoin has many different uses. Below we summarize the main benefits of using Bitcoin.

  • Fast payments globally: With Bitcoin, you can transfer money around the world in just a few seconds. Bitcoin is the first global currency.
  • Extremely low transaction fees: It costs almost nothing to transfer bitcoin. In addition, fees are voluntary in the network.
  • Bitcoin is a secure system: Bitcoin is impossible to counterfeit and is secure with the help of math and cryptography. The current financial system is secured by laws which will always contain loopholes.
  • You don’t need to trust any third party: There is no intermediary that can deny your transaction or demand expensive fees. All payments are made person-to-person without having to rely on any company. You control your own money.
  • Bitcoin is anonymous but also transparent: It’s anonymous because you don’t need to identify yourself in the Bitcoin network. It’s transparent because the ledger of all transactions is public.
  • The Bitcoin network is decentralized: The digital currency is decentralized in the same way as the internet. Bitcoin is more fair because no single group can control or manipulate it.
  • Protect your money against inflation: Perhaps the biggest advantage of Bitcoin is that your money is protected against inflation. Bitcoin has a limited supply to preserve the value of your money.

If you want to learn more about the advantages of using Bitcoin, read this guide. Now it’s time getting started with Bitcoin →

Get Started with Bitcoin (4 Steps)

Good, now you know what Bitcoin is and why you should use it. Then it’s time to get started with the cryptocurrency. If you follow our guide with step-by-step instructions, it only takes a few minutes.

First, we show you how to create or buy a secure Bitcoin wallet. Then we will help you buy your first bitcoin. Thereafter we will explain how to protect and store your bitcoin.

The final step is to send and receive bitcoin, so you learn how to use the cryptocurrency. We will help you all the way to avoid common beginner mistakes.

It’s easier than many think with Bitcoin. But since it’s about your money it can feel safe with guidance. Here are four steps to start using Bitcoin today:

Step 1: Create a Bitcoin Wallet

Step 2: Get Your First Bitcoin

Step 3: Secure Your Bitcoins

Step 4: Send and Receive Bitcoin

As you can see, getting started with Bitcoin is easy! In the following sections, we will go through all the steps in detail. We end with important about safety along with some tips and advice.

NOTE! It is important that you read the security information!

1. Get a Bitcoin Wallet

A Bitcoin wallet is needed to receive and send bitcoins. It’s easy to create a Bitcoin wallet, but there are many different types with various security.

With Bitcoin, you have a private and public key that you keep in a wallet. Simply explained, your public key acts as your email address and your private key as your password.

This means you need to protect your private key and not show it to anyone. That’s why you need a secure Bitcoin wallet.

If you want to buy Bitcoin for a smaller amount, you can use an online wallet. That is automatically created when you open an account at a Bitcoin exchange. We help you choose a secure Bitcoin exchange.

However, we strongly recommend buying a hardware wallet if you want to buy bitcoin on a regular basis or for a larger amount. That is the best type of Bitcoin wallet because it’s both easy to use and very secure.

If you create your own online wallet or software wallet, you should back up your private key and keep it offline. You don’t need to think about that with a hardware wallet because it protects your private keys for you.

2. Get Your First Bitcoin

You can get Bitcoin in three different ways. The most common and usually easiest is to buy Bitcoin on a marketplace. But you can also sell a product or service in exchange for Bitcoin.

The third way is to earn Bitcoin through Bitcoin Mining. Then you install software on your computer to verify transactions and get rewarded with Bitcoin. However, it’s hard to make money with mining, and it requires great knowledge and a lot of resources.

We recommend that you buy your first Bitcoin on a trustworthy exchange. There are many places to choose from, but not everyone is safe and reliable.

We will help you choose the best exchange for you. Is it the first time you buy Bitcoin? Do you want to buy Bitcoin instantly with your credit/debit card?

You will get help with all this in our beginner’s guide about Bitcoin exchanges. We have reviewed and compared all the best exchanges. There are simple step-by-step instructions. Do you want to buy Bitcoin instantly? No problem →

eToro is the Best Bitcoin / Cryptocurrency Exchange. You can buy Bitcoin and cryptocurrency easy, instant and secure. Their exchange platform has received our highest rating. Open an account and start trading now!

eToro is the Best Bitcoin / Cryptocurrency Exchange. You can buy Bitcoin and cryptocurrency easy, instant and secure. Their exchange platform has received our highest rating. Open an account and start trading now!

3. Secure Your Bitcoins

Have you bought Bitcoin? If the answer is no, scroll up! If the answer is yes, congratulations! Welcome to the future financial world where you can be your own bank.

The next step is to secure your Bitcoin by taking control of your private keys. Now you need a secure Bitcoin wallet that we helped you with in the first step.

When you buy Bitcoin on an exchange, the money (private key) is kept in your account at the exchange. This is risky as the company stores and controls your Bitcoin.

The whole purpose of Bitcoin is to control and protect your own money. If you keep your Bitcoin on an exchange, your account may be restricted or blocked. In the worst case, you lose your Bitcoin if the company goes bankrupt.

For your Bitcoin to be secure, you need to transfer them from the exchange to a secure Bitcoin wallet. Once you have bought Bitcoin on a marketplace, we strongly recommend that you transfer them to a secure hardware wallet.

Read our Bitcoin wallets guide to learn more about different types of wallets and safe storage of Bitcoin.

4. Send and Receive Bitcoin

The easiest way to learn about Bitcoin is to use Bitcoin. Therefore, you should make at least one Bitcoin transaction. We recommend that you send Bitcoin between two of your own wallets to learn how to send and receive Bitcoin.

You will learn this if you buy Bitcoin at an exchange and transfer them to your private Bitcoin wallet. To receive Bitcoin, you only need to share your public Bitcoin address. It consists of a code between 27-34 letters and numbers. The address can look like this:

Your private key looks similar but is shorter. Be sure to never share your private key! Most wallets create QR codes of the keys, to make it easier to send and receive Bitcoin.

A Bitcoin can be divided into one-hundredth of a million (0.00000001), also called a satoshi. When to transfer Bitcoin, the wallet usually recommends a transaction fee which varies depending on the market. The higher the fee, the faster the transaction is completed.

The number of stores and services that accept Bitcoin is growing every year. To pay or send Bitcoin is also simple but requires a few more steps:

  1. Open your wallet and navigate to the “Send” page.
  2. Fill in the recipient’s public Bitcoin address (or scan the QR code).
  3. Enter amount (many wallets automatically convert the bitcoin price to normal currencies).
  4. Make sure the address and amount are correct.
  5. Send!

The transaction is usually done directly, but it may take a few minutes. If you’re transferring a large sum of money, you should wait for at least 6 confirmations to be 99.99% sure that the transaction is not canceled. Here you can learn more about How Bitcoin Works.

Now you know how to get started with Bitcoin! Don’t forget to read the security information →

Important Security Information!

If you follow our guidelines, you’ll get started with Bitcoin without any problems. To make sure that you haven’t missed anything we will repeat some critical security information.

There are a variety of Bitcoin exchanges and services on the market. You should carefully evaluate products and services before using them. Beginners who are not aware of the security can lose their money.

However, it’s important to point out that Bitcoin is secure because it is based on mathematics. You can’t trick math. Likewise, you can’t trick Bitcoin. You only risk your Bitcoin if you use non-trusted exchanges and services.

Below we have listed important information to protect your Bitcoin. If you are aware of this and follow the guidelines, there is nothing to worry about.

  • First of all, you need to know that Bitcoin transactions cannot be refunded. In that way, it works like digital cash. Bitcoin offers more freedom but at the same time more responsibility.
  • Secondly, a Bitcoin transaction is only valid if it has been confirmed on the network. To complete a large transaction, we recommend that you wait for 6 confirmations to be on the safe side. The number of confirmations is usually displayed in the wallet or exchange.
  • Bitcoin is pseudo-anonymous. This means that you can send and receive money without having to identify yourself. However, if your identity is linked to a wallet, you can map all transactions to it. All transactions are stored in a shared ledger and users can either be public or anonymous.
  • There are many different types of Bitcoin wallets to choose from. But if you are serious about Bitcoin and want to protect your money properly, you should buy a hardware wallet. This is the safest way to protect and store Bitcoin. Read more about Bitcoin Hardware Wallets.
  • There are hundreds of different cryptocurrencies and even more exchanges. Firstly, there are many unreliable exchanges that are not secure. Second, never store Bitcoin at an exchange, but instead transfer them to a private and secure wallet. At the end of the guide, we have listed popular exchanges where you can easily and safely buy Bitcoin. Read more about Bitcoin Exchanges.

Buy Bitcoin! (eToro Buying Tutorial)

eToro is the Best Bitcoin / Cryptocurrency Exchange. You can buy Bitcoin and cryptocurrency easy, instant and secure. Their exchange platform has received our highest rating. Follow our step-by-step instructions below and buy Bitcoin (BTC) now!

1. Create Account

First step is to Open Your eToro Account. Follow this link, enter your information, and click on “Start Trading“! →

2. Verify Email & Sign In

Next step is to verify your email to access your eToro account. Follow the email link, enter your information, and click on “Sign in” →

3. Complete Profile

First, let’s remove the deposit limitation by answering some questions. (Don’t worry, this is standard for all exchanges, and your private information is secure). Click on the button “Complete Profile” and follow their steps →

4. Make a Deposit

Now it’s time to make your deposit. Click on the button “Deposit Funds” and select amount / payment method →

5. Select Bitcoin

Now you just need to select Bitcoin (BTC). Click on the buy button

6. Buy Bitcoin!

Last step is to enter the amount and click on “Open Trade” →

Congratulations, you have now bought Bitcoin!

Explore and Learn More

Good job! Now you know the basics of Bitcoin, but there is always more to learn. The cryptocurrency is changing and evolving all the time. Technology is improving every year, and new applications are continuously developed.

To avoid mistakes, you need to stay up to date. For example, more cryptocurrencies are created, and some use Bitcoin in its name. This can be confusing for new users and lead to mistakes.

You should keep track of the Bitcoin price and other cryptocurrency prices. If you want to learn more we have many beginner-friendly and detailed guides. Bitcoin is just one of many cryptocurrencies. Learn something new, read one of our guides!

Bitcoin is here to stay. You can transfer money easily, quickly and cheaply. There are no geographical restrictions or closing times. Everyone on earth can transfer money 24/7 for extremely low fees.

We have many guides and reviews to help you navigate the crypto space. You can also subscribe to our newsletter below to stay up to date and get exclusive offers.

Now it’s time getting started with Bitcoin! Buy Bitcoin Now →

eToro is the Best Bitcoin / Cryptocurrency Exchange. You can buy Bitcoin and cryptocurrency easy, instant and secure. Their exchange platform has received our highest rating. Open an account and start trading now!

eToro is the Best Bitcoin / Cryptocurrency Exchange. You can buy Bitcoin and cryptocurrency easy, instant and secure. Their exchange platform has received our highest rating. Open an account and start trading now!

Frequently Asked Questions

Is your question not answered here? Ask your question below!

What Is Blockchain Technology?

Blockchain is the underlying technology that allows Bitcoin to work. It is a distributed database of nodes that automatically verify changes to the database. Bitcoin was the first blockchain that was created. Blockchain technology uses a network of nodes along with math and cryptography to protect the database. In addition to being able to transfer money online, there are many more opportunities. More and more cryptocurrencies are created for smart contracts, cloud storage, private messages, gaming companies and much more. The crypto market is booming!

Is Bitcoin Safe to Use?

Yes! Bitcoin is safer than the current financial system. The cryptocurrency is protected by cryptography and mathematics instead of laws and regulations that contain mistakes and deficiencies from humans. There are and will always be loopholes in laws. However, you can’t trick math.

Who Controls Bitcoin?

There is no individual or group that controls Bitcoin. The system is designed to be independent of states, banks, and companies. There are built-in security measures to prevent anyone from gaining control over the network. To update the Bitcoin protocol, a consensus is required. This makes Bitcoin both decentralized and democratic.

Yes! It is completely legal to use Bitcoin. Individuals are allowed to use which currency they want as long as both parties agree on the same means of payment. However, there are countries that have indirectly or partially prohibited Bitcoin. The reason for this varies, but generally, the government wants more control over the financial market. Here is a list of all countries’ laws about Bitcoin.

What is Bitcoin? [The Most Comprehensive Step-by-Step Guide]

What is Bitcoin and how does it work?

Definition: Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer bitcoin blockchain network without the need for intermediaries.

Updated April 2020

If you want to know what is Bitcoin, how you can get it and how it can help you, without floundering into technical details, this guide is for you. It will explain how the system works, how you can use it for your profit, which scams to avoid. It will also direct you to resources that will help you store and use your first pieces of digital currency. If you are looking for something even more in detail please check out our blockchain courses on bitcoin.

What is a Bitcoin and how does it work?

Small wonder that Bitcoin emerged in 2008 just after Occupy Wall Street accused big banks of misusing borrowers’ money, duping clients, rigging the system, and charging boggling fees. Bitcoin pioneers wanted to put the seller in charge, eliminate the middleman, cancel interest fees, and make transactions transparent, to hack corruption and cut fees . They created a decentralized system, where you could control your funds and know what was going on.

Bitcoin has come far in a relatively short time. All over the world, companies, from REEDS Jewelers , a large jewelry chain in the US, to a private hospital in Wa rsaw, Poland, accept its currency. Billion dollar businesses such as Dell, Expedia, PayPal, and Microsoft do, too. Websites promote it, publications such as Bitcoin Magazine publish its news, forums discuss cryptocurrency and trade its coins. It has its application programming interface (API), price index, and exchange rate.

Problems include thieves hacking accounts, high volatility, and transaction delays. On the other hand, people in third world countries may find Bitcoin their most reliable channel yet for giving or receiving money.

Key Metrics:

Key Highlights

  • October 31, 2008: Bitcoin whitepaper published.
  • January 3, 2009: The Genesis Block is mined.
  • January 12, 2009: The first Bitcoin transaction.
  • December 16, 2009: Version 0.2 is released.
  • November 6, 2020: Market cap exceeds $1 million USD.
  • October 2020: Bitcoin forks for the first time to create Litecoin.
  • June 3, 2020: Block 181919 created with 1322 transactions. It is the largest block to-date.
  • June 2020: Coinbase launches.
  • September 27, 2020: Bitcoin Foundation is formed.
  • February 7, 2020: Mt. Gox hack.
  • June 2020: BitLicense gets established. This is one of the most significant cryptocurrency regulations.
  • August 1, 2020: Bitcoin forks again to form Bitcoin Cash.
  • August 23, 2020: SegWit gets activated.
  • September 2020: China bans BTC trading.
  • December 2020: First bitcoin futures contracts were launched by CBOE Global Markets (CBOE) and the Chicago Mercantile Exchange (CME).
  • September 2020: Cryptocurrencies collapsed 80% from their peak in January 2020, making the 2020 cryptocurrency crash worse than the Dot-com bubble’s 78% collapse.
  • November 15, 2020: Bitcoin’s market cap fell below $100 billion for the first time since October 2020.
  • October 31, 2020: 10-year anniversary of Bitcoin.

Understanding Bitcoin – What is Bitcoin in-depth?

Understanding Bitcoin – What is Bitcoin in-depth?

At its simplest, Bitcoin is either virtual currency or reference to the technology. You can make transactions by check, wiring, or cash. You can also use Bitcoin (or BTC), where you refer the purchaser to your signature, which is a long line of security code encrypted with 16 distinct symbols. The purchaser decodes the code with his smartphone to get your cryptocurrency. Put another way; cryptocurrency is an exchange of digital information that allows you to buy or sell goods and services.The transaction gains its security and trust by running on a peer-to-peer computer network that is similar to Skype, or BitTorrent, a file-sharing system.

Bitcoin Transactional properties:

1.) Irreversible : After confirmation, a transaction can‘t be reversed. By nobody. And nobody means nobody. Not you, not your bank, not the president of the United States, not Satoshi, not your miner. Nobody. If you send money, you send it. Period. No one can help you, if you sent your funds to a scammer or if a hacker stole them from your computer. There is no safety net.

2.) Pseudonymous: Neither transactions or accounts are connected to real-world identities. You receive Bitcoins on so-called addresses, which are randomly seeming chains of around 30 characters. While it is usually possible to analyze the transaction flow, it is not necessarily possible to connect the real world identity of users with those addresses.

3.) Fast and global: Transaction is propagated nearly instantly in the network and are confirmed in a couple of minutes. Since they happen in a global network of computers they are completely indifferent of your physical location. It doesn‘t matter if I send Bitcoin to my neighbor or to someone on the other side of the world.

4.) Secure: Bitcoin funds are locked in a public key cryptography system. Only the owner of the private key can send cryptocurrency. Strong cryptography and the magic of big numbers makes it impossible to break this scheme. A Bitcoin address is more secure than Fort Knox.

5.) Permissionless: You don‘t have to ask anybody to use cryptocurrency. It‘s just a software that everybody can download for free. After you installed it, you can receive and send Bitcoins or other cryptocurrencies. No one can prevent you. There is no gatekeeper.

The creator of bitcoin figured out a way to let two entities confidently trade directly with one another, without the need to rely on all these intermediaries. The key is mathematics. As long as we both trust in math, we can be confident the exchange to occur as expected.

Bitcoin uses public key cryptography and an innovative approach to bookkeeping to achieve the authorization, balance verification, prohibition on double spending, delivery of assets and record inalterability described above. And it happens in near real time at no cost.

Cryptography ensures authorization. You need a private key to transact. And your key is complex enough that it would take the best computer longer than the earth has existed to crack it. In other words, it’s essentially unhackable.

– Director of Communications at Overstock.com and Chief Evangelist at t0.com

Where can I find Bitcoins?

First, we would recommend you read this in-depth guide for buying Bitcoin.

You can get your first bitcoins from any of these four places.

  • A cryptocurrency exchange where you can exchange ‘regular’ coins for bitcoins, or for satoshis, which are like the BTC-type of cents. Resources: Coinbase and Coinsquare in the US & Canada, and BitBargain UK and Bittylici o us in the UK.
  • A Bitcoin ATM (or cryptocurrency exchange) where you can change bitcoins or cash for another cryptocurrency. Resources: Your best bets are BTER andCoinCorner
  • A classified service where you can find a seller who will help you trade bitcoins for cash. Resources: The definitive site is LocalB i tcoins .
  • You could sell a product or service for bitcoins. Resources: Sites like Purse .

Caution! Bitcoin is notorious for scams, so before using any service look for reviews from previous customers or post your questions on the Bitcoin forum .

How does Bitcoin work?

“Unlike traditional currencies, which are issued by central banks, Bitcoin has no central monetary authority. Instead it is underpinned by a peer-to-peer computer network made up of its users’ machines, akin to the networks that underpin BitTorrent, a file-sharing system, and Skype, an audio, video and chat service. Bitcoins are mathematically generated as the computers in this network execute difficult number-crunching tasks, a procedure known as Bitcoin “mining”. The mathematics of the Bitcoin system were set up so that it becomes progressively more difficult to “mine” Bitcoins over time, and the total number that can ever be mined is limited to around 21 million. There is therefore no way for a central bank to issue a flood of new Bitcoins and devalue those already in circulation.”

To see how the system works, imagine someone called Alice who’s trying out Bitcoins. She’d sign up for a cryptocurrency wallet to put her bitcoins in.

The Bitcoin Wallets

There are three different applications that Alice could use.

  • Full client – This is like a standalone email server that handles all aspects of the process without relying on third-party servers. Alice would control her whole transaction from beginning to end by herself. Understandably, this is not for beginners.
  • Lightweight client – This is a standalone email client that connects to a mail server for access to a mailbox. It would store Alice’s bitcoins, but it needs a third-party-owned server to access the network and make the transaction.
  • Web client – This is the opposite of “full client” and resembles webmail in that it totally relies on a third-party server. The third party replaces Alice and operates her entire transaction.

You’ll find wallets that come in five main types: D esktop, mobile, web, paper and hardware. Each of these has its advantages and disadvantages .

How do I buy and sell stuff with Bitcoins?

Here’s the funny thing with Bitcoins: there are no physical traces of them as of dollars. All you have are only records of transactions between different addresses, with balances that increase and decrease in their records that are stored on the blockchain.

To see how the process works, let’s return to Alice.

Example of a Bitcoin transaction

Alice wants to use her Bitcoin to buy pizza from Bob. She’d send him her private “key,” a private sequence of letters and numbers, which contains her source transaction of the coins, amount, and Bob’s digital wallet address. That “address” would be another, this time, the public sequence of letters and numbers. Bob scans the “key” with his smartphone to decode it. At the same time, Alice’s transaction is broadcast to all the other network participants (called “nodes”) on her ledger, and, approximately, ten minutes later, is confirmed, through a process of certain technical and business rules called “mining.” This “mining” process gives Bob a score to know whether or not to proceed with Alice’s transaction.

The transaction between Alice and Bob

What is Bitcoin Mining?

Mining, or processing, keep the Bitcoin process secure by chronologically adding new transactions (or blocks) to the chain and keeping them in the queue. Blocks are chopped off as each transaction is finalized, codes decoded, and bitcoins passed or exchanged.

Miners can also generate new bitcoins by using special software to solve cryptographic problems . This provides a smart way to issue the currency and also provides an incentive for people to mine.

The reward is agreed-upon by everyone in the network but is generally 12.5 bitcoins as well as the fees paid by users sending transactions. To prevent inflation and to keep the system manageable, there can be no more than a fixed total number of 21 million bitcoins (or BTCs) in circulation by the year 2040, so the “puzzle” gets increasingly harder to solve.

What do I need to know to protect my Bitcoins?

Here are four pieces of advice that will help your bitcoins go further.

As you’d do with a regular wallet, only store small amounts of bitcoins on your computer, mobile, or server for everyday uses, and keep the remaining part of your funds in a safer environment.

  • Backup your wallet on a regular basis and encrypt your wallet or smartphone with a strong password to protect it from thieves (although, unfortunately, not against keylogging hardware or software).
  • Store some of your bitcoins in an offline wallet disconnected from your network for added security. Think of this as a bank, while you, generally, keep only some of your money in your wallet.
  • Update your software. For added protection, use Bitcoins’ multi-signature feature that allows a transaction to require multiple independent approvals to be spent.

Spending some time on these steps can save your money.

We recommend the Nano Ledger S – Hardware Wallet

Nano Ledger S is just as secure as the other two hardware wallets. It is popular because of its relatively low price of $65 compared to its competitors. Being smaller than KeepKey, it is more portable and easier to carry around. It is a hardware wallet that comes at a very competitive price.

Important Bitcoin Charts

Bitcoin Performance over the months

The chart above is a candlestick representation of Bitcoin’s price over the months. Pay attention to the last eight candlesticks. From August 2020 to January 2020, Bitcoin has had six consecutive red candlesticks. What this shows is that for those six months, Bitcoin has been in loss. However, the two latest months are green, in other words, they were profitable months.

Total Transaction fees collected in the last ten 10 days

24th April saw the most transaction fees collected with 131 BTC given away as transaction fees.

Total transactions conducted in the last 10 days

When it comes to the total number of transactions sent per day, we can make some interesting observations:

  • Total daily transactions fluctuate between 300,000 – 400,000.
  • 24th April saw the most transactions in our data set with 404,279.
  • 23rd April saw the least amount of transactions in our data set with 311,753.
  • In our data set, 24th April saw the most number of transactions and most transaction fees collected.
  • Interestingly, 23rd April didn’t coincide with the least number of transaction fees collected.
  • The least total amount of transaction fees was collected on 21st April, which also saw the second-highest number of transactions!

Average daily transaction fees for the last 10 days

Till now we have total transaction fees collected and the total number of transactions executed. Now, we can use these two to find out how much was the average daily transaction fees. The formula is simple:

Average transaction fees = Total transaction fees collected / Total number of transactions.

  • 24th April has the highest daily average transaction fees with 0.00032 BTC.
  • 21st April has the least daily average transaction fees with 0.00012 BTC, despite having the second-highest number of transactions in our dataset.
  • Upon further calculation, we discovered that the average transaction fees for the last 10 days were 0.00022 BTC or $1.13.

Total daily transaction value sent over the last 10 days

  • Right off the bat, 24th April sticks out yet again. On that day, 279,421 BTC was transferred.
  • 21st April saw the least number Bitcoins transferred with 65,431 BTC.
  • Only on 20th and 21st April was less than 100,000 BTC transferred.
  • Over the last 10 days, the average amount of BTC sent daily was 140,488 BTC.

The average value of each transaction

We can use a simple formula to calculate the average value of each transaction: Total BTC sent that day/Total number of transactions.

  • On 24th April, the average value of each transaction sent was the highest at 0.473 BTC.
  • 21st April had the least with 0.167 BTC.
  • 17th and 23rd April also saw high values with 0.473 BTC and 0.477 BTC respectively.
  • If we take an average of all these values, then we get, 0.387 BTC or $2002 .
  • We can infer that for a transaction worth $2002 we only need to send $1.13 in transaction fees. So transaction fees in our data set are 0.56%.
  • For that same transaction, PayPal would have charged you $58.30 (calculated via salecalc ).

The graph above shows how many addresses own a particular range of Bitcoins. There are only five addresses that own more than 100,000 BTC. 98 addresses own 10,000-100,000 Bitcoins. A huge chunk of the addresses (45.5%) either own 0.0001-0.001BTC or 0.001-0.01 BTC

What else do I need to know?

Protect your address: Although your user identity behind your address remains anonymous, Bitcoin is the most public form of transaction with anyone on the network seeing your balances and log of transactions. This is one reason why you should change Bitcoin addresses with each transaction and safeguard your address. You can also use multiple wallets for different purposes so that your balance and transaction history remain private from those who send you money.

Your confirmation score: As said, you receive a confirmation score of about 10 minutes before you make your purchase. Different wallets have their own reading.

Government taxes and regulations: Government and local municipalities require you to pay income, sales, payroll, and capital gains taxes on anything that is valuable – and that includes bitcoins. The legal status of Bitcoin varies from country to country, with some still banning its use. Regulations also vary with each state. In fact, as of 2020, New York state is the only state with a bitcoin rule, commonly referred to as a BitLicense . As shown in the Table above, zero is the least with the number 3 being the most reliable for average bitcoin transfers. If you’re sending or paying for, something valuable, wait until you, at least, receive a 6.

What are the disadvantages of Bitcoin?

Bitcoin got off on the wrong foot by claiming an apocryphal person (or persons), Satoshi Nakamoto as its founder. Nakamoto has never been found.

Regarding more practical concerns, hacking and scams are the norms. They happen at least once a week and are getting more sophisticated. Bitcoin’s software complexity and the volatility of its currency dissuade many people from using it, while its transactions are frustratingly slow. You’ll have to wait at least ten minutes for your network to approve the transaction. Recently, some Reddit users reported waiting more than one hour for their transactions to be confirmed.

Scams to watch out for

The four most typical Bitcoin scams are Ponzi schemes, mining scams, scam wallets, and fraudulent exchanges.

  • Ponzi Scams: Ponzi scams, or high-yield investment programs, hook you with higher interest than the prevailing market rate (e.g. 1-2% interest per day) while redirecting your money to the thief’s wallet. They also tend to duck and emerge under different names in order to protect themselves. Keep away from companies that give you Bitcoin addresses for incoming payments rather than the common payment processors such as BitPay or Coinbase.
  • Bitcoin Mining Scams: These companies will offer to mine outrageous amounts of bitcoin for you. You’ll have to pay them. That’s the last you’ll see of your money (with no bitcoins to show for it, either).
  • Bitcoin Exchange Scams: Bitcoin Exchange Scams offer features that the typical bitcoin wallets don’t offer, such as PayPal/Credit Card processing, or better exchange rates. Needless to say, these scams leave you in the hang while they siphon your dollars.
  • Bitcoin Wallet Scams: Bitcoin scam wallets are similar to online wallets – with a difference. They’ll ask you for your money. If robbers like the amount, that’s the last you’ll see of your deposit. The address, in other words, leads to them, rather than to you.

Of all of these, wallet scams are the most popular with scammers managing to pinch millions.

What are the advantages of Bitcoin?

The best thing about Bitcoin is that it is decentralized, which means that you can settle international deals without messing around with exchange rates and extra charges. Bitcoin is free from government interference and manipulation, so there’s no Federal Reserve System‍ to hike interest rates. It is also transparent, so you know what is happening with your money. You can start accepting bitcoins instantly, without investing money and energy into details, such as setting up a merchant account or buying credit card processing hardware. Bitcoins cannot be forged, nor can your client demand a refund.

It’s a small wonder that users call Bitcoin “Money 2.0” or that Bill Gates called it “a techno tour de force.”

Tyler Winklevoss, co-creator of Facebook, summed it up when he said:

“We have elected to put our money and faith in a mathematical framework that is free of politics and human error.”

Rick Falkvinge, Founder of the Swedish Pirate Party, predicted that

“Bitcoin will do to banks what email did to the postal industry.”

According to John McAfee, Founder of McAfee,

“You can’t stop things like Bitcoin. It will be everywhere and the world will have to re-adjust.”

What is Bitcoin: Conclusion

Where do I go from here?

Here are various resources that will direct you to best places for finding wallets, stores that accept bitcoins, exchanges for trading Bitcoin, and Bitcoin news, prices, charts, guides and analysis among other information.

Bitcoin has been through several obstacles recently with the Bitcoin Cash fork and SegWit implementation. Bitcoin, over the last 11 years, has truly disrupted the world’s economy and financial systems. Having said that, this is just the beginning. The Bitcoin revolution still has a lot of miles to go. It is going to super exciting to see where we are going to go on from here.

  • Blockchain.info – Blockchain info is the go-to place for checking transactions on the ledger. You can check how much money your wallet contains, or, for that matter, how much BTC is stored at any particular wallet address.
  • Bitnodes – Run by the Bitcoin Foundation, Bitnodes estimates and visualizes the size of the bitcoin network.
  • Wizbit – Wizbit shows all transactions and newly mined blocks in real-time on an eye-catching spinning globe.
  • We Use Coins – Weusecoins.com is a list of credible exchanges for trading Bitcoins worldwide or in the U.S.
  • Buy Bitcoin Worldwide – Get help finding a Bitcoin exchange.

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Its almost about that Time of the year when Bitcoin gets to Sky Rocket, so many people are ignorant, they are staying on the sideline, waiting for a move up and the right time to get in. I suspect that the rise will happen in a very short period of time, leaving those waiters behind and their reaction will push the price even higher, so that they will end up under water when btc is consolidating, I know the price will speed up more, then bleed off and have an extended winter and actually go lower than current lows. Then as it goes higher, All we need to do is invest what we’re Holding and make more profit, So we don’t feel the lost in fall of price when it happens again, I discovered a comment of someone giving Accolades to Diego Louis and also thanking him for helping him increase his Portfolio from having 3.4BTC to `*16BTC So i contacted him, Behold I have made 15 Btc in less than two month with his working strategies, if you have lost so much during fall or want to increase your portfolio like me, Reach him on Email Diegolouis000gmail .COM

Thank you so much for the detailed article. Will share it in our Tutlane.com site.

I have thoroughly enjoyed reading. Since I’m a Crypto enthusiast working a leading blockchain development company called Zab Technologies, I found this content close to heart! Cryptocurrency App Development – https://www.zabtechnologies.net/

Interesting read. Good for beginners

The Blockchain database isn’t stored in any single location and is hosted by millions of computers simultaneously. According to AWS!

Seems bitcoin investment game is booming as I can see various investment opportunities. I will surely consider something very soon. Thanks for sharing.

DO NOT PLAY BITCOIN IF YOU DO NOT KNOW ABOUT IT. There are a lot of person throw money out of the window just because they do not know the information about the Digital Currency. The new trend is always welcome, but you should be smart investors, do not let the page ads flickering comments that make you crazy insane believe. I have lost my mind, I joined the stream of bitcoin response because information will make easy money, young people sure have a few mistakes. And this mistake will probably help you a little miss. I joined the bitcoin a few years ago, Remitato floor is the floor I have chosen, after a time watching the Triggers evaluation, I decided to invest in it. With initial investment $ 1000, I bought 500 TRIG for 0.3200023 and after a few weeks worth 0.3400010, tends to go up, the newcomer saw the will to make a professional Trader Coin . But after that time the floor was hacked to make it freezing, I can not access and some other players said the number of coins in the account vanish without trace. After this incident, the TRAG has been falling completely, despite having recovered the account but the value of TRAG after several months did not go up and the floor of Remitano was disastrous despite gaining ownership. Still persist for a few weeks later hoping for the TRAG to go up but the scandal of the floor is not small. And I have since abandoned the Remitano floor. Unceasing hope, this time I have chosen Binance floor with safety and stability. Binance uses multi-layered architecture, and is committed to security for players. This time I only invested $ 500 because still worried about the safety of the floor. Binance has seen many surprises such as support Wechat software without the web plus low transaction fees, I have feelings for Binance though Binance has a little trouble can not recharge dollars As usual or payment by Visa card, Master card that need BTC or ETH, USDT. It is Binance’s safety that has created the brand, more and more people are joining Binance and the floor value is also increasing, I bought 500 BNB at the price of 0.4134003 and lost only 0.05% of the transaction fee. BNB, much cheaper than Remitato. And after a few weeks the BNB price has increased to 0.5434232 and at present BNB has increased 100 times, I have poured 500 more BNB and the value is still increasing, I predict BNB will continue to go. up. And now is a good time to buy this coin. I have had the experience of playing at Remitato for a few months and Binance for 2 years. I gave you some knowledge about the two decks that I have been playing. But above all, security is still there. I do not want only because of the security of the floor of the player that pours money into the sea. But the mistake made me more knowledge for the next time to choose Binance. The Binance retains its reputation from the beginning to the present, choosing Binance as its brightest choice. Whether you are or are thinking of playing bitcoin, you should evaluate the floor of the pros and cons altogether, but do not believe a few comments and then the wrong as my first time. This is a review article of their own. Please interact in peace, not brick. Thank you.

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