The best way to understand about bitcoin, would be to jump in and get a few in your “pocket” to have a feel for how they work.
Despite the hype about how exactly difficult and dangerous it could 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 really is probably safer too.
There are a few things to learn: getting and using a software wallet, learning how exactly to receive and send money, learning how to buy bitcoin from a person or an exchange.
Preparation
Before getting started, you need to get yourself a wallet. You can certainly do this easily enough by registering with one of many exchanges that may host wallet for you personally. And, although I think you are likely to want to have one or more exchange wallets eventually, you should start with one on your own computer both to acquire a better feel for bitcoin and as the exchanges remain experimental themselves. When we reach that stage of the discussion, I will be 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 usually is run on your desktop computer, laptop, mobile device (except, up to now, Apple) and can also be made to store bitcoins on things such as thumb drives. Should you be concerned about being hacked, then that is clearly a great option. Even the Winklevoss* twins, who’ve millions committed to bitcoin, put their investment on hard disks which they then placed into a safety deposit box.
*The Winklevoss twins will be the ones who originally had the theory for a social media site that became Facebook. They hired Mark Zuckerberg who took their idea as their own and became immensely rich.
What do you need to know about having a bitcoin wallet on your pc?
Below you can download the original bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact the main bitcoin network. They will receive, store, and send your bitcoins. It is possible to create a number of addresses with a click (an address is really a number that looks like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where one can copy and paste a number like this from a person you need to send money to and off it will go straight into that person’s wallet. You can also create a QR code that may let someone have 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 absolve to donate!
NOTE: This kind of wallet acts both as a wallet for you personally and as part of the bitcoin system. The reason why bitcoin works is that each transaction is broadcast and recorded as a number over the entire system (meaning that 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. equipment serves as your individual wallet and also as a support for that system. Therefore, remember that it will take up 8-9 gigabytes of one’s computer’s memory. Once you install the wallet, it will take as much as each day for the wallet to sync with the network. This is normal, does not harm your personal computer, and makes the system as a whole more secure, so it’s a good idea.