What is it? And where do I start?
Definition of Bitcoin from Investopedia.com
Bitcoin is a digital currency created in 2009. It follows the ideas set out in a white paper by the mysterious Satoshi Nakamoto, whose true identity has yet to be verified. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by a decentralized authority, unlike government issued currencies. There are no physical Bitcoins, only balances associated with public and private keys. These balances are kept on a public ledger, along with all Bitcoin transactions, that is verified by a massive amount of computing power.
So what can I do with it?
So far, even with still being in its early stages, there are many,many uses for bitcoin. First off, some people use it as a form of investment. With price fluctuations still varying greatly, this comes with great risk, but also the possibility of a hefty reward. Secondly, more and more people are starting to use it for everyday online, and offline transactions. As more, and more online stores, as well as public venues, start accepting bitcoin as a form of payment, the possibilities grow greater by the day.
OK, I’m ready to go, whats the first step?
The very first step for anybody getting into bitcoin is to get a place to store it. These are known as bitcoin wallets. There are multiple sources to obtain your wallet from, services for online wallets, physical items with “keys” printed on them for offline storage,and exchanges with wallets included for transactions. Of course the most secure way to store your bitcoin would be an offline version of a wallet, but with this form of wallet its known as “cold storage”, more for the investment type. If you’re into the commerce side of things, an online wallet, or “hot storage” wallet is the way to go. My recommendation for an online wallet is blockchain.info , very simple setup, easy to use, and so many extras other than a wallet, definitely worth a look!
I’ve got my wallet, now I need bitcoin!
Ok, so you’ve got a way to store your bitcoin, now to get the bitcoin! Being as this is BitcoinMinerSupply.com! The first way of getting bitcoin well talk about is mining! To start mining your very own bitcoin you’ll first need to join a mining “pool”, a mining “pool” is a group of “miners” collectively working together to mine faster and achieve a “reward” quicker. The “reward” which is currently 25 BTC is what mining bitcoin is all about. Mining, is actually confirming bitcoin transactions that are happening on the blockchain, transactions come in the form of “blocks”, with each block that is mined a “reward” is given evenly to the miners that confirmed those transactions.
The mining “pool” that I recommend is BitMinter , comes with its on stand-alone mining software, thats nice to look at, and works just as good as it looks. So after you’ve setup your account at BitMinter come back over to the Shop and start mining now!
The second way to obtain bitcoin is to just flat out buy it. To do this you need an account at one of the many online exchanges. The exchange I recommend and use at BitcoinMinerSupply.com is Coinbase . This is an exchange, merchant service, and wallet all in one(plus a whole lot more!). Here you connect your bank account to buy and sell bitcoin at its current live price at Coinbase .
Now you know the basics, welcome to the world of bitcoin!
Official Bitcoin Website - bitcoin.org