My Bitcoin Tutorial – The Basics of Bitcoin
Recently, you may have heard about Bitcoin and other cryptocurrencies. They're all the rage right now, and for good reason – they hold a lot of potential for the future. So, what are they, exactly? How do they work?
In this tutorial, we'll break it down for you. We'll cover the basics of Bitcoin, how to buy and sell Bitcoin, and some of the potential risks and rewards associated with this new type of currency. By the end of this post, you'll have a basic understanding of what Bitcoin is and how it works – enough to start using it yourself!
What Is Bitcoin?
So you want to know what Bitcoin is? In short, it's a digital currency that allows for instant payments anywhere in the world. It's based on blockchain technology, which is a distributed database that allows for secure, transparent and tamper-proof transactions.
Bitcoins are created by "mining," which is essentially running a computer program that verifies and records transactions on the blockchain. As more and more people use Bitcoin, the difficulty of mining increases, so you need special hardware and software to participate.
But don't worry, getting started with Bitcoin is not as difficult as it sounds. In this tutorial, I'll show you the basics of how to use and store bitcoins.
What is Fiat Currency?
If you're not familiar with Fiat currency, it's basically any currency that is not backed by a physical commodity. So, for example, the US dollar is Fiat currency.
The value of Fiat currency is determined by the government, and it can be changed at any time. This is in contrast to commodities-based currencies, like Bitcoin, where the value is based on the market and is much more stable.
History Of Bitcoin
Bitcoin has been around since 2009, and in that time, it's gone through a few ups and downs. But despite the volatility of the cryptocurrency market, Bitcoin has remained one of the most popular options.
Why is Bitcoin so popular? Well, it all comes down to trust. Bitcoin is a decentralized currency, which means that there's no central authority controlling it. Transactions are verified by miners, who use cryptography to secure the network and prevent fraud.
This system has worked well for Bitcoin, but it's also caused some problems. In the early days of Bitcoin, for example, there were cases of people using it to buy drugs and other illegal items on the dark web. But overall, the system has proven to be reliable and secure.
How Do You Get Bitcoin?
You can get Bitcoin in a few different ways. The first way is by mining for it. Mining for Bitcoin is when you use your computer to help process Bitcoin transactions. This is how new Bitcoin is created.
Another way to get Bitcoin is by buying it. You can buy it through exchanges, or you can buy it from people who have it. You can also get paid in Bitcoin for certain tasks, like completing a survey.
Bitcoin Wallets
So you want to know about Bitcoin? Well, the first thing you need to understand is that Bitcoin is a cryptocurrency. What does that mean? It means that it's a digital currency that's used for online transactions.
Bitcoin is decentralized, meaning that it's not controlled by any government or financial institution. And that's what makes it so popular—people who don't trust central banks or traditional currencies love Bitcoin because it's not subject to inflation or manipulation.
The other thing you need to know about Bitcoin is that it's stored in digital wallets. A Bitcoin wallet is basically just a digital address that stores your Bitcoins. There are a lot of different wallets to choose from, but my personal favorite is Coinbase.
Coinbase is a secure online platform that allows you to buy and sell Bitcoins, as well as store them in a digital wallet. They also offer a great mobile app, so you can access your Bitcoins on the go. Plus, they're one of the most popular Bitcoin exchanges out there, so you can be sure that your transactions will be safe and secure.
What Can You Do With Bitcoin?
You can do a lot with Bitcoin. You can buy goods and services, you can hold it as an investment, or you can use it to trade for other cryptocurrencies.
But probably the most popular thing to do with Bitcoin is to use it to buy goods and services. A lot of companies are starting to accept Bitcoin as payment, and there are even some brick-and-mortar stores that let you pay with Bitcoin.
So why is this such a big deal? Well, for starters, it's a great way to avoid paying transaction fees. And it's also a great way to keep your information private. When you use your credit card, you're giving the store all sorts of personal information, like your name, your address, and your credit card number. But when you use Bitcoin, you're just giving the store the code for your Bitcoin wallet, and your name is never revealed.
How to Buy Bitcoin
You're interested in buying Bitcoin, but you're not sure how to do it. Maybe you've tried to search for information online, but you just get overwhelmed and don't know where to start.
Don't worry, we're here to help. In this tutorial, we'll walk you through the basics of buying Bitcoin. We'll cover things like:
- How to create a Bitcoin wallet
- How to buy Bitcoin with a credit or debit card
- How to buy Bitcoin with a bank transfer
- How to store your Bitcoin safely
So let's get started!
Buying Bitcoin Tutorial
Buying bitcoin as a beginner. You hear about bitcoin, all around you, and you've made the decision to buy it? Great. It used to be quite complicated, but now it's very easy.
However, there are some peculiarities to buying bitcoin and we will see all of them here, don't worry.
I'm writing this article really as if you've never had bitcoin and even as if you don't know about this crypto-currency yet, not at all.
Of course, I know that when you type in "buy bitcoin" you get a lot of information and it can give you a headache. Often, in addition, you are not given all the practical information that you are looking for. They even recommend sites that are not optimal for beginners! I explain in this article, the different platforms because it will depend mainly on what you want to do with your bitcoins.
Here, I assume that you don't have any bitcoin and you want to buy it in the easiest (and most secure) way.
So, from this guide, I'll show you all the steps you need to take to buy bitcoin, to secure your bitcoins and also (and of course), how to sell it when it's peaked.
Yes, yes, I'll explain it all in this article.
What payment methods can I use to buy Bitcoins?
The good news is that you can buy bitcoins with almost every possible method there is on the market. You can buy them by credit card, bank transfer, Paypal, in physical ATMs etc.
🙂 Most of the time, people prefer to buy bitcoins directly by credit card because it is the fastest method. As soon as you buy bitcoin, hop, you see the amount in bitcoin displayed on your wallet. It's fast and instantaneous. That's why people choose to pay by credit card.
That said, you can also choose to buy bitcoin by other methods. Feel free to browse this article as a whole, because at the end I indicate how to buy bitcoins with other payment methods than credit cards.
On which sites can I buy bitcoins?
Ah, that's the killer question. Honestly, maybe you don't realize it, but in the end, knowing where to buy bitcoins is pretty much the same question as knowing where to buy your Adidas sneakers. Should you go to such and such a store in Paris or buy them online? Or buy them from such and such a dealer, on a market or in the official store. Yes, what I mean by that is that there are really a lot of sites.
Of course, we can only advise you to go to a site that sells bitcoins that is recognized and reliable. For that, there are three very used and very reliable sites. For example, you have Coinbase, Bitpanda, Coinhouse to mention only the most known. I give you, below some explanations for each of the sites, do not worry.
😯 And, if you want to know the particularities between the different sites to buy bitcoins, go to the section below.
If you are a beginner and just want/need to buy bitcoin, on a simple platform, without bothering with charts, graphs and trader interfaces, these are the three sites I recommend. They are more than enough and most of them also have trading platforms that you can use once you are more familiar with this world.
BitPanda : The most complete site
Seriously, this is one of the first sites I tried. And, really, there's nothing to say. You can buy bitcoin or other cryptocurrencies very easily. You can buy, sell, exchange directly on the site. Also, the application is very functional. So you can store your bitcoins, spend them or send them elsewhere, with a simple click. It is for me, when you start, one of the best sites, there is no photo.
Buying on Coinhouse
I must say that I like this site a lot. On the one hand, the headquarters is based in Paris, which can reassure people who want to go there physically. The company is French and offers complementary services. For a beginner who wants to buy bitcoins in a safe way with guidance, this is really one of the best options. The only disadvantage of Coinhouse is that you can't buy several other cryptocurrencies. You can only buy bitcoin and ethereum. But, hey, for a beginner and for someone who only wants to buy bitcoin, this is a great site.
Buying on Luno
So, to tell you the truth, this is clearly one of the easiest platforms to buy bitcoin. However, this is still more than enough, especially if you are new to this world. The important thing is to first familiarize yourself with bitcoin and crypto-currencies.
Ways to buy bitcoin
Frankly, the easiest way is simply to go to the sites mentioned above. Register, transfer money and purchase your Bitcoins, exactly like you would buy anything else. Keep them in your wallet to ultimately spend or resell afterward . Also, there are now easier ways to buy Bitcoin.
That method is bitcoin bank cards. In fact, these are debit or prepaid cards for the most part that work exactly like a regular bank card. So you have your application, your euro account and a bitcoin account. You can instantly exchange your bitcoin for euros. And that's it, you've credited your crypto bank card. You can use it everywhere, online or offline, just like your classic card.
How do you choose the ideal site to buy cryptocurrencies?
Again, you have a choice. Keep in mind that you can start buying bitcoin on one platform, and then transfer them to another, later on. Nothing is permanent. Opening a bitcoin wallet is easy, as you've seen.
I'm talking about the best sites according to several important criteria:
- The fees ( depending on the sites, the fees vary, even if it is very often equivalent)
- The ease of use (yes, some sites have not very user-friendly interfaces, personally, I prefer the simplest and most visually pleasing platforms).
- Security (there are more reliable and secure platforms than others. Buy bitcoins only on recognized platforms.
How to secure and store your bitcoins?
You should know something very important when you want to buy bitcoins. It is the question of security. The sites I mentioned above are sites that allow you to buy bitcoins in a simple way.
The sites that hold your information, this has advantages and disadvantages. The biggest disadvantage is that if the site is hacked, you can lose your bitcoins. But, then, no need to panic.
The companies have guarantees and they also have strong security systems. There have been cases of hacking in the past, but this tends to become exceptional. You can nevertheless, for even more security, opt for offline wallets, which are the most reputable, as with a Ledger for example.
How to sell your bitcoins?
You know, the interesting thing about bitcoin is that you can buy it with a click and you can also sell it with a click. That's the big advantage. All the sites that offer you to buy bitcoin also offer you to resell it. That is to say, you can sell it in euros or you can also exchange it for other cryptocurrencies.
When you sell your bitcoins, you'll directly take the original amount in dollars or any other currency. You'll also have to transfer these dollars to your bank account. In general, the same account that you used to buy your bitcoins will be used to transfer your euros. Practical, isn't it? For example, in my case, I sell my bitcoins on Coinbase and make a direct bank transfer to my account.
Additional questions to buy bitcoins:
Here is the list of questions most often asked when you want to buy bitcoins. I tried to gather all the questions that I am most often asked. I also put myself the questions I was asking myself when I started and I couldn't find the information I was looking for.
👉 How to buy bitcoins cheaply, without fees?
It turns out that on most sites, to buy bitcoin at no cost or with the least amount of fees, it is recommended to use bank transfer. Yes, this means that you will transfer from your bank account an amount directly to your crypto account.
This is how you will reduce the fees. Of course, if there is an advantage to buying bitcoins without fees, you should also know that the bank transfer usually takes 3 or 4 business days depending on the bank. So there are less fees, but it takes longer. That's if you wanted to know how to reduce the fees.
👉 I need to have a specific wallet to buy bitcoins?
Certainly, you must have heard about the different types of bitcoin wallets. In fact, now that buying bitcoin has become commonplace, the wallet issue is not as important. Let me explain.
Before, there was no intermediary to buy bitcoins. You had to download the "bitcoin software" and create addresses on it. We had a public address (the one used when we want to receive bitcoin) and a private address (the one that allows us to access our wallet).
It was quite complicated and you had to be careful not to lose your addresses to get access to your wallet. Many people have lost their keys… But, today, the sites we are talking about, are sites that take care of this part.
👉 Where can you buy bitcoins physically, offline?
You can buy bitcoin offline, by going to a Bitcoin ATM, for example. This will depend on your location, because although there are more and more BTMs, they are usually in larger cities. Look at the CoinATMradar map, to see where you can find ATMs. Beforehand, you will still need to have a bitcoin address, which you can get a free wallet on Blockchain.info, for example.
👉 How to buy bitcoin, remaining anonymous?
When you want to buy bitcoin, the vast majority of sites ( which show by this, also their seriousness) will ask you for a supporting document. Specifically, you will be asked for proof of identity and a piece of identification (scanned, to be sent as a pdf/png file). This is to avoid money laundering and other illegal activities.
That said, if you don't want to send in your ID and buy bitcoin anonymously, then be aware that most sites will only ask you for ID if you exceed a threshold. The threshold will depend on the site.
What is Bitcoin Mining
Bitcoin mining is how new Bitcoin is created. When you mine Bitcoin, you're actually verifying Bitcoin transactions. For every transaction that's verified, a new block is added to the blockchain.
And here's where the mining comes in: miners are responsible for verifying these blocks. They use special software to solve complex mathematical problems, and when they solve them, they're rewarded with Bitcoin.
It's a pretty complex process, but that's the basic idea behind Bitcoin mining. Want to learn more? Keep reading!
Benefits of Bitcoin
When it comes to Bitcoin, there are plenty of benefits to be had. Here are just a few of them:
1. Bitcoin is global: Bitcoin isn't tied to any specific country or currency. That means you can use it to buy things anywhere in the world.
2. Bitcoin is easy to use: You can use Bitcoin to buy things online, or you can withdraw it and spend it in person. All you need is a Bitcoin wallet and a phone with internet access.
3. Bitcoin is secure: Bitcoin is one of the most secure currencies out there. Transactions are verified by a network of miners, so it's practically impossible to hack or cheat the system.
4. Bitcoin is anonymous: Your identity isn't tied to your Bitcoin transactions, so you can keep your financial information private.
5. Bitcoin is deflationary: The number of Bitcoins in circulation is limited, so over time, the value of each coin will increase.
Bitcoin tutorials for beginners
So, you want to know about Bitcoin? Here's a basic rundown of how it works.
Bitcoin is a digital currency that's been around for a few years now. It's completely decentralized, which means there's no one person or organization in charge of it. Transactions are verified by a network of computers, and once they're confirmed, they're added to the blockchain (a public ledger).
Bitcoin can be used to purchase items online, or you can hold onto it as an investment. The value of Bitcoin has been steadily increasing over the years, so if you're thinking about investing in it, now might be a good time!
Frequently Asked Questions About Bitcoin
So you're ready to start using Bitcoin? Here are some of the most common questions people have about it.
What is Bitcoin?
Bitcoin is a digital currency that allows you to make secure payments online or in person without having to share your personal information. It's based on a technology called blockchain, which is a digital ledger that records all Bitcoin transactions.
How do I get Bitcoin?
The best way to get started with Bitcoin is to download a Bitcoin wallet. This is where you'll store your Bitcoin and conduct transactions with other users. There are several different types of wallets, so be sure to choose one that's right for you.
How do I use Bitcoin?
To use Bitcoin, you'll need to enter your Bitcoin address and the amount you want to send. You can also use QR codes to make transactions faster and easier.
What are the benefits of using Bitcoin?
There are several benefits of using Bitcoin, including:
-Security:Bitcoin is a secure payment method because it uses cryptography to protect your funds.
-Faster transactions:Bitcoin transactions are processed faster than traditional payments.
-No fees:Unlike traditional payment methods, there are no fees associated with using Bitcoin.
Conclusion
You've now learned the basics of Bitcoin! By following this tutorial, you should now know how to set up a Bitcoin wallet, how to buy and sell Bitcoin, and what the benefits of Bitcoin are.
Now that you know the basics, it's time to start using Bitcoin! There are plenty of places where you can buy and sell Bitcoin, as well as use it to pay for goods and services. You can even start accepting Bitcoin payments yourself if you have a business.
So what are you waiting for? Get started with Bitcoin today!