Wow....Bitcoin is COMPLEX

[Istaria]

Hello again forumites,

I've been a veteran of Bitcoin now for nearly a week, and consider myself fairly expert in all sorts of Bitcoin-related stuff.

Goddamn autocorrect.

That sentence SHOULD have read:

I've been reading about Bitcoin for a bit now (a couple of weeks, I guess - no more), and have recently joined the forum here so I can ask questions. I am utterly, utterly clueless, and am hoping to learn enough not to get the little pants roasted off me during my time playing with Bitcoin.

I used the word "playing" there. I hope that doesn't sound disrespectful, and I know that the movement behind Bitcoin is, in the main, dead serious. But for me, at this point, it's playing about with small amounts of money to see what I can and can't do. I aspire to someday being as serious as the vets And what I mean by that is that I hope someday to KNOW some fraction of what they know.

But hey, I'm a newblet. So my perspective is all I have to work with. And my debit card. Yeah, gotta try not to be too blaze with that. Story of my life.

So....does there exist, anywhere, a...what's the word I want here...."manual", I guess, that explains the various technicalities, opportunities, mechanics, pitfalls and all that other stuff to do with Bitcoin, from a completely uninitiated point of view?

I don't need to know about the SHA256 eliptical curve (that phrase is probably wrong), the methods used to encode these into bitcoin addresses and their private keys (that's probably wrong too), how transactions work, what mining is for, what mining IS, and why I need to inscribe my private key onto 4 equal parts of a palladium octagon, shoot it into space, and give my relatives the trajectories in the case of my untimely death.

I'm a consumer. I want to know how to buy it, how to buy stuff WITH it, and how to keep my coins safe.

Anyone point me in the right direction, or do I need to write the thing myself?

Ist.

PS: I am not being as facetious as I might seem. I am very seriously considering trying to write the newbie manual to Bitcoin, aimed at the regular Joes on the street who never heard of it til yesterday, but want to spend it or earn it today. Also, can I ask you PLEASE not to direct me to the wiki for Bitcoin? I am slowly making my way through it but from a non-IT person's point of view, it's hard going.

EDIT: Spelling-fails abound. I am blaming this cheap keyboard, but am not ruling out the wine.

[L]

Actually the wiki is a good place to start and where you can learn a lot.

You should learn some of the technicalities of Bitcoin in order to keep your coins safe.

A good way to start is to make a TODO list:

• Earn your first bitcoin
• Buy one bitcoin
• Sell one bitcoin
• Gamble with bitcoin
• Buy something with bitcoin online
• Pay something with bitcoin IRL (if you have the chance)
• Make a secure wallet (offline wallet)
• Install Bitcoin Core (and backup)

After all this and some more you'll be more than apt to use bitcoin.

[gentlemand]

Spending several hours on this forum will turn up pretty much every question ever asked. I still learn something new every time I peruse it and it's by far the greatest repository of information and experience.

Obviously there's a huge amount of noise but you'll bat from subject to subject in no time.

https://www.reddit.com/r/Bitcoin/ check the side bar here for some links.

https://www.reddit.com/r/Bitcoinbeginners is devoted solely to newcomers but it doesn't look all that useful to me.

If you want to know about the mechanics of buying and using then start off by letting everyone know what country you're in. It's a whole lot more straightforward in certain places.

[Mikestang]

Personally I find stocks, bonds, and fiat currencies way more complex because there are not fixed sets of rules and they're all based on mumbo jumbo and what some guy in a suit in a fancy building says.  Like literally, some dude (i.e. chair of the Fed) will say something and currency markets change.  That makes no sense to me.

For a great read on a currency that does make sense, check out Mastering Bitcoin by Andreas Antonopoulos.

[NUFCrichard]

I'm a consumer. I want to know how to buy it, how to buy stuff WITH it, and how to keep my coins safe.

I have a blockchain.info wallet with bitcoin deposited.  I have a strong password on this account and I use 2 factor authenticfication, in this case Google Authenticator, this keeps my Bitcoin safe as they can be online.
I have the blockchain app on my phone.  This is locked with a code, as is my phone.  When I want to buy something with bitcoin, I open the app and scan the 2D barcode.  It then confirms the amount that will be deposited on my phone, I click accept, and I have bought something using Bitcoin.

I have done this to buy Pizza online, Coffee in a cafe and a meal in a Bar in the last month.  All worked perfectly and quickly, were secure and I would happily do again.

The main thing for security is that you have 2FA, a strong password, you never show your private key to anyone, keep your antiviruses and firewall upto date and don't click on any dodgy links related to bitcoin or the bitcoin forum.

[koelen3]

the methods used to encode these into bitcoin addresses and their private keys

Before bitcoin addresses were produced manually
known as V1 BTC addressesBtc V1 address


The private key is a random 256 bit number.  Every 256 bit number is a private key, but some are safer than others.  You should use the strongest entropy source that you can get your hands on to generate them.
Nearly every 256-bit number is a valid ECDSA private key.

A private key is everything for a Bitcoin address and it shall never be shared with anyone.
Read this for more info

How transactions work

Read This!

What mining IS,
What mining is for.

Mining is solving of difficult mathematical problems through the power of your GPU/CPU , in start simple PC's were able to do it but as more and more people joined the BTC community and Mining , the difficulty started increasing and thus special Hardware's were made to Mine it efficiently known as Miners.
Bitcoin Mining

Mining is for mining/creating and solving mathematical problems which posses the reward of some bitcoins which is Halved every 4 years.
It also helps in confirmation of your bitcoin transaction and thus security too

Why I need to inscribe my private key onto 4 equal parts of a palladium octagon, shoot it into space, and give my relatives the trajectories in the case of my untimely death.

You can use a Multisig wallet , where the wallet is protected by three Different keys and if you want to transfer funds , you need atleast two keys, incase someone dies , the other two people having the keys can have access to the wallet

[AtheistAKASaneBrain]

Bitcoin is SIMPLE. True, you don't need to know how it works beyond buying and selling as a consumer. With time it will only get more simple. I think we will lose the ugly address thing over time and make it all nicely gui based.

Just search for youtube tutorials and theres everything thats needed for a noob.

[Amph]

i don't see nothing hard about bitcoin, even the protocol is simple(now with supernode there is something new to learn, but it's still a very basic stuff)

mining is just the operation of exacting bitcoin, like when you dig gold

transactions are just bitcoin that keeps moving from one block to another(see block as a big strongbox

the rest require to much write, you can consult wiki for that, or the technical zone on this forum

[Brewins]

i don't see nothing hard about bitcoin, even the protocol is simple(now with supernode there is something new to learn, but it's still a very basic stuff)

mining is just the operation of exacting bitcoin, like when you dig gold

transactions are just bitcoin that keeps moving from one block to another(see block as a big strongbox

the rest require to much write, you can consult wiki for that, or the technical zone on this forum

the tech is not simple.

The crypto alone took some centuries to develop, and to learn to code the things you need some solid knowledge in different areas.


Only if you really want to stick to the very basics it will be relatively simple

[DannyHamilton]

- snip -
I'm a consumer. I want to know how to buy it, how to buy stuff WITH it, and how to keep my coins safe.
- snip -
I am very seriously considering trying to write the newbie manual to Bitcoin, aimed at the regular Joes on the street who never heard of it til yesterday, but want to spend it or earn it today.
- snip -

There are two significant problems that you are going to discover when you start to write your "manual".

1.  This technology is in its infancy.  New stuff is getting created by innovators and entrepreneurs every day, and old stuff is failing, being abandoned, or otherwise disappearing.  As such, by the time you've completed your "manual", much of it will no longer be accurate and very quickly it will become out-date missing the most recent innovations.

2. The right answer for you isn't necessarily the right answer for someone else.  Questions about how to exchange your local currency for bitcoins ("how to buy it") will depend on, among other things, where you are located and what method of payment you have available to you.  Questions about how to buy stuff with it and how to keep it safe will depend on which of more than a dozen services or wallets you choose to use.

One of the first decisions you'll need to make will be if you want your own bitcoin wallet, or if you want a bitcoin account provided by some service. Then you'll need to decide which wallet (or service) you intend to use.  How you'll use it and how you'll keep it safe will depend a lot on those two decisions.

I'm sure I'm missing several, but here's a list of some of the most popular wallets and services I can think of off the top of my head:

Wallet:

• Bitcoin Core
• Armory
• Electrum
• MultiBit
• Bitcoin Wallet
• Mycelium
• Trezor
• blockchain.info/wallet

Bitcoin Account:

• Coinbase
• Circle
• localbitcoins
• BitStamp
• BitFinex
• BTC-e

Keep in mind that, just like you might have multiple places that you store your local currency for various purposes (your wallet, a bank account, a safe, an envelope in a dresser drawer), you might also choose to have multiple wallets and/or services that you use for storing and using your bitcoins.

[ChuckBuck]

I'm a consumer. I want to know how to buy it, how to buy stuff WITH it, and how to keep my coins safe.

To Buy Bitcoins, here are you options:

https://www.coinbase.com/

https://www.circle.com/

https://localbitcoins.com/

How to buy stuff with it:

http://www.gyft.com/bitcoin/

http://www.overstock.com/

http://www.dell.com/

http://www.newegg.com/

http://www.expedia.com/

http://www.microsoftstore.com/

https://purse.io/

https://brawker.com/

How to keep your coins safe:

https://www.bitcointrezor.com/

https://www.ledgerwallet.com/

https://bitcoinpaperwallet.com/



Boom, go Bitcoin now!!!

[Possum577]

Hang out in this forum in the Marketplace section (goods or services) and you'll find all sorts of information about where to spend your precious BTC!

[Lorenzo]

When I was first becoming interested in Bitcoin in 2011, I used a site called Weusecoins.com (previously Weusecoins.org) which I found to be quite helpful. They have a video on the main page that explains what Bitcoin is and a "Getting Started" guide here that lists some of the wallets to choose from and different places to get bitcoins (strangely, I don't see any mention of Electrum in the list of wallets although Multibit is there).

Personally I find stocks, bonds, and fiat currencies way more complex because there are not fixed sets of rules and they're all based on mumbo jumbo and what some guy in a suit in a fancy building says.  Like literally, some dude (i.e. chair of the Fed) will say something and currency markets change.  That makes no sense to me.

I have to agree with this. Bitcoin might seem more complex for non-technical people to understand but its design is elegant. Everything has a purpose in the overall design. The same is not exactly true for our economy.

[ranochigo]

I'm a consumer. I want to know how to buy it, how to buy stuff WITH it, and how to keep my coins safe.

I have a blockchain.info wallet with bitcoin deposited.  I have a strong password on this account and I use 2 factor authenticfication, in this case Google Authenticator, this keeps my Bitcoin safe as they can be online.
I have the blockchain app on my phone.  This is locked with a code, as is my phone.  When I want to buy something with bitcoin, I open the app and scan the 2D barcode.  It then confirms the amount that will be deposited on my phone, I click accept, and I have bought something using Bitcoin.

I have done this to buy Pizza online, Coffee in a cafe and a meal in a Bar in the last month.  All worked perfectly and quickly, were secure and I would happily do again.

The main thing for security is that you have 2FA, a strong password, you never show your private key to anyone, keep your antiviruses and firewall upto date and don't click on any dodgy links related to bitcoin or the bitcoin forum.

Trust is needed for most online wallets whether or not you control the key. Multiple incidents has happened on blockchain.info, once is the reusing of 'k' value which allowed hackers to bruteforce the private key easily. Even though they say it is opensourced, they do not need your approval before adding a new feature or updates which may open new vulnerability.

[Abdussamad]

DannyHamilton's answer is very nice, but I will try a different approach. Here's my quick start guide:

• Download electrum https://electrum.org/. If you are using Windows download "Windows installer".
• Install it
• Run electrum and it will display a wizard for creating a new wallet. Two things to be mindful of are:
   
  • Write down the 13 word seed on a piece of paper and put in a safe place. This is your backup and it is all that is needed to get access to your bitcoins should you forget your password from the next step. The seed is a secret so don't reveal it to anyone.
    
  • Set a password which you will be asked for when spending your bitcoins.

• Once the wallet is setup you can use the "receive" tab to get a bitcoin address. Share it with anyone or any entity that wants to send your bitcoins. You can use any of the addresses on the receive and addresses tabs to receive bitcoins. You can use the same address over and over again or a different address per transaction. The latter is recommended but not required.
• When you want to spend bitcoins use the send tab and enter the recipient's address and the amount you want to send

[Agestorzrxx]

Yes, bitcoin is complex for average people.
If we want more people adopt it, the wallet should be more easier to use.

[steveturk]

my advice would be firstly to understand the distinction between Bitcoin (capital B - the technology/protocol) and bitcoin (the currency / application )

[Slark]

I'm a consumer. I want to know how to buy it, how to buy stuff WITH it, and how to keep my coins safe.

To Buy Bitcoins, here are you options:

https://www.coinbase.com/

https://www.circle.com/

https://localbitcoins.com/

How to buy stuff with it:

http://www.gyft.com/bitcoin/

http://www.overstock.com/

http://www.dell.com/

http://www.newegg.com/

http://www.expedia.com/

http://www.microsoftstore.com/

https://purse.io/

https://brawker.com/

How to keep your coins safe:

https://www.bitcointrezor.com/

https://www.ledgerwallet.com/

https://bitcoinpaperwallet.com/



Boom, go Bitcoin now!!!

I was trying to use Microsoft store to buy something for bitcoin but I seem to miss bitcoin payment option. Do you know where I can find it? After completing my order my available methods of payment are only: Visa, MasterCard and Paypal. Maybe it is due to I am browsing from EU? And Bitcoin payment are available only in US?

[najzenmajsen]

Glad you've discovered bitcoin!
you should google new to bitcoin , there's alot of helpful videos.
atleast that's how i got started : )
you should also check around on this forum and please feel like it's your home!

[dothebeats]

Hello there! If you need to know the basics, this might be a useful site. This was the first site I've visited regarding bitcoins that really sparked my interest even more.

https://bitcoin.org/en/

The basics are in there, and there are useful tips and advice within that site that may be of help to you.