Three basic fact you would love to know about bitcoin

[SatoPrincess]

But I also do think, that even long timers here are still storing some of their stash inside crypto-exchanges especially now of the high fees involved.

The high fees is tiring, everyone are trying their best to avoid paying high fees for their transaction. But I don’t think old timers would risk storing their bitcoins in crypto exchanges for long term. We have too much experience in the crypto space to make such silly mistakes. I believe any coins that is moved to an exchange is going to be spent almost immediately.

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[serjent05]

Bitcoin is a digital asset that can be stored at a cryptocurrency exchange or in a digital wallet.

Hmm, that's good, OP, but unfortunately, everyone here knows these Facts.

Nevertheless, I will elaborate on this little bit: we cannot store Bitcoin in Exchanges because now days all the top exchanges are centralized, Despite centralized exchanges, there is no trust that they will really keep your assets safe or not. Beside that, these exchanges can steal your funds, i.e., Bitcoin, by collapsing. The past is full of such cases where, when investors put their funds in exchanges to store them, the exchange took advantage of the opportunity, among which Mt-Gox is at the top.

It is not that we cannot store Bitcoin in exchanges but it is not advisable to keep our Bitcoins on exchanges due to the given reason.  It is a fact that Bitcoin can be kept either on a custodial wallet or a non-custodial wallet but as I stated, there are underlying risk if we keep our Bitcoin on centralized exchanges just like what the earlier replies stated.

So, therefore, I believe that keeping funds or assets in exchange is inappropriate for users who have an investment in Bitcoin. So OP I didn't agree with you that storing Bitcoin in exchanges. Stored Bitcoin only in hardware wallets because only wallets give you the guarantee of your assets in terms of privacy. So guys, use your wit and don't keep your assets in exchanges instead of a hard wallet.

@OP stated the possible ways to store Bitcoin and not recommend people to store their cryptocurrency on exchanges.  It is more on giving information than advising or suggesting people on what to do.

But I also do think, that even long timers here are still storing some of their stash inside crypto-exchanges especially now of the high fees involved.

There is nothing these "long-timers" can do if they are into trading.  They have to keep their trading coins to the exchanges but I am sure when their trades is done majority of them withdraw them to their own wallet.

[boyptc]

3. Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialised software.

IMHO.

These tips and guides should do better about telling where to keep your Bitcoins for newbies. There are other wallets that you can mention and about the latter description, it's like a normal description as per computers users, of course you need a harddrive to keep your files, software etc.

Why don't you guys suggest some typical desktop wallets for desktop users and name the brands like Electrum, Samourai, Bluewallet, etc.

[Dr.Bitcoin_Strange]

@OP, The information you have shared in this thread is not new to many people on this forum.

As a matter of fact, it seems you are not aware of one very important Bitcoin rule, which states, "Not your key, not your coin." Telling us that we can store our coin on a centralized exchange like coin-based, which you mentioned, is not really a wise decision that a crypto enthusiast should adhere to. You did not mention the risk that is attached to this decision.

In the past, some exchanges have been hacked, and a few have also collapsed, which has caused some investors to lose their investment. It was really a hard lesson to learn and a warning that no crypto enthusiast should consider storing their assets on a CEX. The best place to store your coins is offline, in a self-custodial wallet. You can use an electerum wallet, exodus wallet, or a hard-wear wallet.

[GreatArkansas]

1. The coins are created by users who "mine" them by lending computing power to verify other users’ transactions which use blockchain technology.They receive Bitcoins in exchange.

Among the list, this is the fact that I am really amazed. Because of this, we solve the traditional problem we have in finance where having a third party to send or receive money or even having your own bank. With this, it makes Bitcoin decentralized, and no need to require any centralized third parties, especially the government.

[Assface16678]

But I also do think, that even long timers here are still storing some of their stash inside crypto-exchanges especially now of the high fees involved.

The high fees is tiring, everyone are trying their best to avoid paying high fees for their transaction. But I don’t think old timers would risk storing their bitcoins in crypto exchanges for long term. We have too much experience in the crypto space to make such silly mistakes. I believe any coins that is moved to an exchange is going to be spent almost immediately.

Exactly, I think because of the recent high transaction fees, investors in crypto currency, especially bitcoin, choose to just store their bitcoin in a wallet and not in an exchange, especially if they will not do anything to it just to hold the assets. This is because they will avoid the high transaction fees. Instead of frequent transfers or sending of assets, they will choose to do it in one transaction so that the fees are worth it. I personally avoid the high transaction fees. That's why if I need to send an asset from one wallet to another, I'm waiting for the fees to get low, as we know the fees may change every day, so if I'm not in a hurry, then I will do the waiting game. I'm sure many investors are also doing this if the transaction is urgent, but if it is urgent, then it will be painful for the sender as he will be the one to shoulder the transaction fees.

[philipma1957]

But I also do think, that even long timers here are still storing some of their stash inside crypto-exchanges especially now of the high fees involved.

The high fees is tiring, everyone are trying their best to avoid paying high fees for their transaction. But I don’t think old timers would risk storing their bitcoins in crypto exchanges for long term. We have too much experience in the crypto space to make such silly mistakes. I believe any coins that is moved to an exchange is going to be spent almost immediately.

Exactly, I think because of the recent high transaction fees, investors in crypto currency, especially bitcoin, choose to just store their bitcoin in a wallet and not in an exchange, especially if they will not do anything to it just to hold the assets. This is because they will avoid the high transaction fees. Instead of frequent transfers or sending of assets, they will choose to do it in one transaction so that the fees are worth it. I personally avoid the high transaction fees. That's why if I need to send an asset from one wallet to another, I'm waiting for the fees to get low, as we know the fees may change every day, so if I'm not in a hurry, then I will do the waiting game. I'm sure many investors are also doing this if the transaction is urgent, but if it is urgent, then it will be painful for the sender as he will be the one to shoulder the transaction fees.

You do realize that a major exchange will allow deposits and withdrawals vi its LN wallet. KRAKEN does this as does nicehash.

So a simple kyc with a small cash deposit allows endless LN transfers cheaply.

I am thinking all this will be a boon for exchanges that offer LN wallet access.

[thecodebear]

But I also do think, that even long timers here are still storing some of their stash inside crypto-exchanges especially now of the high fees involved.

The high fees is tiring, everyone are trying their best to avoid paying high fees for their transaction. But I don’t think old timers would risk storing their bitcoins in crypto exchanges for long term. We have too much experience in the crypto space to make such silly mistakes. I believe any coins that is moved to an exchange is going to be spent almost immediately.

The only reason someone would care about fees is if they are actively moving bitcoin around. "long timers" presumably means people who generally hold long term, so aren't even having to deal with fees, unless they DCA regularly but then they can just send their bitcoin off exchange to a wallet every once in a while.

Also it's not like fees have been relentlessly high haha. I feel like people have complained about the fees nonstop since like January of last year, but the vast majority of the time fees have been under $5, as they currently are. If someone has bought say a few thousand, or even a few hundred, dollars of bitcoin and is moving it off an exchange for long term holding, they don't really care about a $3 or $4 tx fee, and if its one of those odd times when the fees are temporarily $20 they can just wait a few days or a week or two if the fees are bad for an unusually long time.

Fees are only really a problem for people who are moving a very small amount of money around, like for perhaps people in poor countries (or just low income people in general who barely have any extra money) who are just saving in Bitcoin maybe a few dollars or a few dozen dollars at a time, or for that small number of people who actually spend their bitcoin. And even then its only a problem if they urgently need to move their bitcoin and can't wait for cheaper fees. Yes it absolutely can be a problem for some people, but people overexaggerate the issue considering that the vast majority of people in Bitcoin are only going to rarely even be making a transaction and if the fees happen to be high for a few days they can usually wait fees to get back to the normal $2-$4.

Only time fees in crypto have ever bothered me (a "long timer", passed 10 years in the space a couple months ago) was on Ethereum back in 2021 when I was doing a few DEX swaps between ETH and tokens and it usually cost $100+ each time. Now THAT was annoying haha. Bitcoin fees typically at like $3 and every once in a while at $20 for a few days ain't that bad for Bitcoin's current majority use case - long term savings/investment/store-of-value. Bitcoin spenders need to be using the LN anyway, and real low income bitcoiners yeah either need to use custodied services or only move their bitcoin into their own wallets every once in a while once they have enough to make paying a $3 fee worth it.

[Reatim]

It is believed that crypto currency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.

No doubt enthusiasts here in my country use Bitcoin to buy mobile load or pay services offered by one of our local wallet and exchange but when the ordinals came into action, things changed. I agree that most people still don't understand how beneficial Bitcoin is because their negative thoughts still stuck on their heads maybe because of FUD.

and also now that Bitcoin spot ETF have been approved  then we may expect more added chances of adoptions from each
country and with this not just Mobile load but will also merchant from here and there will accept bitcoin.

https://www.reuters.com/technology/bitcoin-etf-hopefuls-still-expect-sec-approval-despite-social-media-hack-2024-01-10/

now that it is all over the news so I assume that longer we have to expect best result ?

I wanted even 7/11 companies will finally accept bitcoin and of course Gas Stations all the fact given are valid but
the longer effect is what we need to wait about this approval .

[Blitzboy]

Bitcoin is remarkable. Combining security and supply generation with "mining" to validate transactions and create new coins is amazing. A self-sustaining ecosystem!

Your emphasis on online exchanges and offline hard drives for Bitcoin storage is vital for new users. It shows Bitcoin's accessibility and security, responding to user preferences and risk tolerances.

Bitcoin is Bitcoin's acceptance depends on educating people about its benefits and features. It represents a decentralized financial future, not just a money.

[AprilioMP]

Bitcoin is not an asset, bitcoin is a hedge.

Bitcoin becomes an asset for people who make it an asset in investing.
People who invest in Bitcoin are called Bitcoin investors so their investment assets are Bitcoin.
Bitcoin is used by Bitcoin investors as an investment asset because Bitcoin is able to act as a hedging asset against fiat currencies which experience a decline in value.

Bitcoin is basically, as stated in the whitepaper, a peer-to-peer electronic cash system which functions for ease of transactions without involving certain parties or does not involve financial institutions like the fiat bank transaction system.

You should explain the meaning of your statement which says Bitcoin is not an asset, Bitcoin is a hedge in order to provide a good understanding to readers who don't understand Bitcoin, not just write about it.

[fuguebtc]

It is believed that crypto currency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.

No doubt enthusiasts here in my country use Bitcoin to buy mobile load or pay services offered by one of our local wallet and exchange but when the ordinals came into action, things changed. I agree that most people still don't understand how beneficial Bitcoin is because their negative thoughts still stuck on their heads maybe because of FUD.

and also now that Bitcoin spot ETF have been approved  then we may expect more added chances of adoptions from each
country and with this not just Mobile load but will also merchant from here and there will accept bitcoin.

https://www.reuters.com/technology/bitcoin-etf-hopefuls-still-expect-sec-approval-despite-social-media-hack-2024-01-10/

now that it is all over the news so I assume that longer we have to expect best result ?

I wanted even 7/11 companies will finally accept bitcoin and of course Gas Stations all the fact given are valid but
the longer effect is what we need to wait about this approval .

As I understand it, a bitcoin ETF means that bitcoin is considered a security, so that does not pave the way for bitcoin to be used as a currency or means of payment in stores, companies, etc. The SEC approves bitcoin spot ETFs, meaning bitcoin is recognized as a tradable asset and its chances of becoming a currency are even more remote with this decision. Furthermore, given bitcoin's transaction fees, I actually think it is not suitable as a means of payment , it is more suitable as an asset.

[BTCdragosfera]

Bitcoin is a digital asset that can be stored at a cryptocurrency exchange or in a digital wallet. Each individual coin represents the value of Bitcoin’s current price, but you can also own partial shares of each coin. The smallest denomination of each Bitcoin is called a Satoshi, sharing its name with Bitcoin’s creator. Each Satoshi is equivalent to a hundred millionth of one Bitcoin, so owning fractional shares of Bitcoin is quite common.


Below are facts you would love to know about bitcoin

1. The coins are created by users who "mine" them by lending computing power to verify other users’ transactions which use blockchain technology.They receive Bitcoins in exchange.

2.The coins also can be bought and sold on exchanges with US dollars and other fiat currencies(the physical money we use every day in our bank accounts).


3. Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialised software.



It is believed that cryptocurrency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.


Hope you enjoyed it.

4) It is a very important fact that more people should know that BTC price is not random over the long term but it is PREDICTABLE.

It should be known as the BTC Scaling Law or  Fair Value Price=10^-17 * (days from Genesis Block)^5.82. This formula gives the "true" value of BTC and it can be used to predict future values and if the market value of BTC is above or below its "fair" value.

It is also fundamental to understand this is not ANOTHER model for the price of BTC but a fundamental characteristic of BTC itself. Power Laws are very important in nature and man-made phenomena, like river formation, mountain growth, metabolism rates in animals, brain size vs body size, GPD vs population, and so on. See here this talk to understand the relevance and importance of Power Laws:

https://www.youtube.com/watch?v=XyCY6mjWOPc

[macson]

1. The coins are created by users who "mine" them by lending computing power to verify other users’ transactions which use blockchain technology.They receive Bitcoins in exchange.

Bitcoin is not created by miners but is mined by miners, the same thing as gold, which is not created by gold miners, but the gold already exists.  So to process Bitcoin transactions, validation is needed from a device, Bitcoin miners are tasked with processing these transactions and for every successful transaction the miner gets Bitcoin, so they never create Bitcoin.

2.The coins also can be bought and sold on exchanges with US dollars and other fiat currencies(the physical money we use every day in our bank accounts).

That's right, almost 99% of fiat currencies around the world have BTC pairs ^{(poor countries, developing countries or developed countries)}, Bitcoin has become part of the world economy now so everyone around the world is free to transact with Bitcoin using the pair their own country's fiat currency.

3. Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialised software.

Yes, this is basic knowledge about how to store Bitcoin safely and to avoid hacking, so far there are various kinds of Bitcoin wallets available, such as Bluewallet, Electrum, and so on, just adjust it to your needs, many also recommend holding large amounts in the long term, using a paper wallet is a wise choice.

[harapan]

The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure.Fiat currencies derive their authority from the government or monetary authorities. For example, each dollar bill is backstopped by the U. S. government.

But cryptocurrencies are not backed by any public or private entities in as much as bitcoin impact is of greater value El Salvador is the only country to accept Bitcoin as legal tender for monetary transactions as of August 2023.
Cryptocurrencies were invented or introduced with the aim to revolutionize or rehabilitate the financial system but its now in two ways.It can be the acceptance and adoption and its practical implementation and utilization.

[Ale88]

It is believed that crypto currency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.

I don't think I ever read this kind of statement anywhere. Anybody who is a minimum serious about bitcoin (and cryptocurrencies in general) perfectly knows that we still have a very long way to go, the adoption is still pretty low but there is a steady increase, so for sure we are on the right path. And the average bitcoiner is pretty patient, so I don't see problems with that.

[GiftedMAN]

Below are facts you would love to know about bitcoin

1. The coins are created by users who "mine" them by lending computing power to verify other users’ transactions which use blockchain technology.They receive Bitcoins in exchange.

2.The coins also can be bought and sold on exchanges with US dollars and other fiat currencies(the physical money we use every day in our bank accounts).
3. Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialised software.

It is believed that crypto currency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.

Hope you enjoyed it.

I really enjoyed your content but I think you need to work hard more on how you would position your write-up. All these things you have mentioned, it is something that we all know and it's never new to even the newbies. I really appreciate your effort as a newbie to have put all these information together. Bitcoin is a digital coin and it had been in existence for long now. Wallet is a digital store where we can always keep our coins whether Bitcoin or altcoins. It is like a bank where we keep money for safety and withdraw it anytime we are interested to use it.

[dezoel]

1. The coins are created by users who "mine" them by lending computing power to verify other users’ transactions which use blockchain technology.They receive Bitcoins in exchange.

Coins are not created by the miners, but they mine the blocks that have transactions in them made by the users of the blockchain, the miners then get rewarded with coins by the chain and that is how new coins come into circulation. So, coins are already created and are inside the blockchain, but they are unlocked by the miners by mining new blocks and receiving Bitcoins by the blockchain, that's how the whole ecosystem works.

3. Bitcoins have to be stored in a digital wallet, either online through an exchange like Coinbase, or offline on a hard drive using specialised software.

Well, you are right about online and offline wallets, but online wallets doesn't have to be an exchange but there are dedicated services where you can just create wallets to store your Bitcoins. Blockchain.com provides the safest one in my opinion, however, it is not recommended to keep your funds in online wallets because they are vulnerable to attacks.

[Sebas.tian]

It is believed that crypto currency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.

El Salvador was the first country that adopted Bitcoin some years ago, and Bitcoin has done so many favourable things in their country that is making people to guess that in five years time El Salvador country will be among the developed countries of the world based on some kind of investors and investment in the country. In El Salvador country, you can purchase goods and services with Bitcoin and nobody will arrest you like the way they used to arrest those that use Bitcoin in their country that is not legal tender. The reason many countries fall in love with decentralized currency call Bitcoin, because it is secure and safe in both international and local transaction which are part of some of the things that is making potential leaders in the world to adopt it for their citizens to have access like other countries that adopted it in the past.

[EluguHcman]

It is believed that crypto currency is actually used in most countries today but it has not yet been known, although bitcoin is one of the fast rising crypto currency in the world today most people still don't understand how beneficial it is.

You are right @ OP, Bitcoin is the foundation in the crytop
space industry which has globally been adopted for its purpose of inventions with the primary aim of the P2P alternative source of transactions otherwise posses for digital assets of making incomes.
It is agreed that yeah, despite the high level of bitcoins speculations and popularities, some individuals are yet to  accept the fact about the potentials of the Coin because they are either ignorance to learning or they haven't been in opportuned to be thought of it.
Although it is crystal clear that there are existences of countries whom are against the inventory due to their sentiments that grosses between them and the US dollars so, there is said to be a biased generosity of such countries accepting the adoptations of the Bitcoin at which it is pronounced an illegal technology to their world.
This has also filmed certain bridges towards the circulatory capacities of Bitcoin and of course supposed to serve an hint of its awareness on a wider spreader to individual acknowledgement about Bitcoin.

Hope you enjoyed it.

The enjoyment in Bitcoin is  being aware of it's existence, an audible acknowledgement to engage on it, learning about the basic skills and its potentialities and more say, be part of its beneficials.