HOW are bitcoins stored?

[BitNerd]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

[1714965819]

1714965819

[TKeenan]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

Sorry, the Bitcoin system isn't a good place for morons to store their wealth quite yet.  Wait about 5 more years and it will be far better for use by idiots.  Presently, it requires some understanding of concepts which are somewhat abstract and complex.  

Probably the first thing you should know is there aren't any bitcoins and as such you can't store them anywhere.  They are merely an abstraction.  What is really funny is, there aren't really any bitcoin even in the abstraction!  There is merely a long list (ledger) of entries which basically say: "Fred mined 2 bitcoins and sold them to Sally who gave 2 bitcoins to Jim, then jim gave 1 to mike, .5 to sam and .5 to himself".  The ledger doesn't really note anything like the serial number of some 'bitcoin' - rather it just marks in an indelible manner the ownership as they (bitcoins) moved from one owner to another.  So you can't just 'copy' a bitcoin with cut and paste. 

Get it?

[biodieselchris]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

"The coins themselves are not discrete things which need storage." This explanation is good. If you copied your wallet file you'd simply have a duplicate copy of a file that accesses the same information on the blockchain, not duplicate coins.

[turvarya]

Short version:
Bitcoin are not stored on your PC only, they are stored in the blockchain, a file everybody has, who uses a Bitcoin-client, but you are the only one, who has the private key, which is basically a (super long, super safe) password, that is impossible to hack, even with all the super computers in the world. You need your password to access your Bitcoins. So, you can copy your private key, but not the Bitcoin. When your private key gets stolen, the thief can move your Bitcoin.

The long version involves learning about cryptography. You can look up, why cryptography is safe, to understand why your Bitcoin are safe.

[linuxnewbie]

I use electrum (electrum.org). My private keys are derivable from 12 words. If you can safely store 12 words--which means not only not losing them, but also keep them from prying eyes--you can store BTC. Electrum can turn the 12 words into your wallet file, which contains many addresses, and allow spending from them.

You can copy wallet files endlessly, but you can only spend a satoshi (one hundred millionth of a BTC) once.

[turvarya]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

Sorry, the Bitcoin system isn't a good place for morons to store their wealth quite yet.  Wait about 5 more years and it will be far better for use by idiots.  Presently, it requires some understanding of concepts which are somewhat abstract and complex.  

Probably the first thing you should know is there aren't any bitcoins and as such you can't store them anywhere.  They are merely an abstraction.  What is really funny is, there aren't really any bitcoin even in the abstraction!  There is merely a long list (ledger) of entries which basically say: "Fred mined 2 bitcoins and sold them to Sally who gave 2 bitcoins to Jim, then jim gave 1 to mike, .5 to sam and .5 to himself".  The ledger doesn't really note anything like the serial number of some 'bitcoin' - rather it just marks in an indelible manner the ownership as they (bitcoins) moved from one owner to another.  So you can't just 'copy' a bitcoin with cut and paste. 

Get it?

I don't know, what is wrong with people like you.
Yes, even an idiot can use Bitcoin. You can teach everybody to make a paper wallet or use something like Trezor to store your private key safely.
Not everybody who uses Bitcoin is a computer scientist.

[Minecache]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

Basically the blockchain is your friend. Instead of trying to read up about bitcoin focus first on the blockchain. Everything else will fall in place. Good luck.

[Kimowa]

this will help https://en.bitcoin.it/wiki/Private_key

[BitNerd]

I reported TKeenan´s post, who implied I am a "moron" and an "idiot" to the moderators. I will also not answer the rest of his post, although I want to, because I refuse to talk to someone so impolite.

"The coins themselves are not discrete things which need storage." This explanation is good. If you copied your wallet file you'd simply have a duplicate copy of a file that accesses the same information on the blockchain, not duplicate coins.

So, what I get so far is that a BTC (does BTC mean a bitcoin?) is nothing more than a quantitative information stored on the blockchain and associated to your BTC address, right? But if that´s true then what prevents the total number of bitcoins from exceeding 21 million?

And ok, so a wallet does not actually contain bitcoins, it just contains your code needed to move bitcoins from your blockchain address to another address, right? Then why does the wallet show your number of bitcoins and why can you move bitcoins from a wallet to another? If the code is the same, how can bitcoins be moved through wallets?

[Minecache]

This is one of the best videos to help get you up to speed:

http://m.youtube.com/watch?v=Um63OQz3bjo

[EternalWingsofGod]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

Bitcoins are stored in a ledger, people run nodes which record these transactions.
In simple words

Think of it as a book some people keep copies of these books on their computers.
Whenever someone adds a page to the book they all recieve it at the same time and add it to their copies.

Since everyone has the same book and is in agreement on the number of pages and of what is written in the book their is a consensus.
Bitcoins are stored as a history of transactions over time.

[BitNerd]

This is one of the best videos to help get you up to speed:

http://m.youtube.com/watch?v=Um63OQz3bjo

I had already seen it. I get that bitcoin amounts are stored in the blockchain, but then what are wallets used for? What does a wallet actually contain? How can you move bitcoins from a wallet to another? Why people say they stored their bitcoins online and they were stolen? Can anyone answer those specific questions?

[jonald_fyookball]

This is one of the best videos to help get you up to speed:

http://m.youtube.com/watch?v=Um63OQz3bjo

I had already seen it. I get that bitcoin amounts are stored in the blockchain, but then what are wallets used for? What does a wallet actually contain? How can you move bitcoins from a wallet to another? Why people say they stored their bitcoins online and they were stolen? Can anyone answer those specific questions?

Wallets hold the private keys to spend the coins.  you move coins from one wallet to another by spending the coins (signing transactions with the private keys).  Theft happens when someone gets hold of your private keys.

[DannyHamilton]

If you haven't read it yet, then you really need to read the bitcoin whitepaper before you ask any more questions.  Here's a link to it for you.
https://bitcoin.org/bitcoin.pdf

Once you've read that, let me know if you have any additional questions.

I had already seen it. I get that bitcoin amounts are stored in the blockchain, but then what are wallets used for?

The wallet stores your private keys.  Electronic wallets also provide a user friendly way to create, sign, and broadcast transactions that re-assign the value that is associated with the bitcoin addresses that are generated from the private keys.  Most wallets also provide a way to keep track of how much value your private keys provide control of.

What does a wallet actually contain?

At a bare minimun, your private keys.  Most wallets also contain the bitcoin addresses that are generated from the private keys so that they don't need to be re-generated every time you need to use them.  Electronic wallets (and wallet software) generally keep track of all the unspent transaction outputs that provide value that the wallet has the ability to re-assign.  Some wallets also provide a way for you to create notes to yourself that can be attached to addresses or transactions to remind you later what they were for.

How can you move bitcoins from a wallet to another?

The typical way is to use the wallet software from the first wallet to create a transaction that assigns the value to an address under the control of the second wallet. The wallet software handles using the private key to generate a digital signature that authorizes the transfer and handles broadcasting that transaction to the network.  Eventually the transaction makes it into the blcokchain and the value is then under the control of the second wallet.

Why people say they stored their bitcoins online and they were stolen?

There are services online that will offer to hold the bitcoin for you.  Essentially you transfer control of the value to the service, and then you trust them to send it back to you (or to send it anywhere else that you ask them to send it) whenever you request it.  Many of these services have turned out to be scams.  After the users transfers control of the value to the service, the person that runs the service disappears and keeps control of the bitcoins for themselves.

Can anyone answer those specific questions?

Yes.

[DannyHamilton]

Is this considered an acceptable behavior in this forum? Is this how new users are normally treated?

The moderators generally don't put to much effort into preventing people from picking on each other here.  If you don't like something someone is saying, you can just click the "ignore" link under their userID next to their post.

[jonald_fyookball]

I reported TKeenan´s post, who implied I am a "moron" and an "idiot" to the moderators. I will also not answer the rest of his post, although I want to, because I refuse to talk to someone so impolite.

I'm glad you found parts of the post useful - you moron idiot.  (This time I didn't 'imply' but stated explicitly so you could understand even better)

Don't really get the point of insulting people who are seeking more information about Bitcoin.
To me, that is moronic.

[cr1776]

I reported TKeenan´s post, who implied I am a "moron" and an "idiot" to the moderators. I will also not answer the rest of his post, although I want to, because I refuse to talk to someone so impolite.

I'm glad you found parts of the post useful - you moron idiot.  (This time I didn't 'imply' but stated explicitly so you could understand even better)

Don't really get the point of insulting people who are seeking more information about Bitcoin.
To me, that is moronic.

Agreed.  If one won't help, why join the discussion?

I miss the old ignore button with the colors showing who was ignored a lot. It was useful (but a server drain.)

[TKeenan]

I reported TKeenan´s post, who implied I am a "moron" and an "idiot" to the moderators. I will also not answer the rest of his post, although I want to, because I refuse to talk to someone so impolite.

I'm glad you found parts of the post useful - you moron idiot.  (This time I didn't 'imply' but stated explicitly so you could understand even better)

Don't really get the point of insulting people who are seeking more information about Bitcoin.
To me, that is moronic.

What?!!!  Are you kidding me?  How DARE you call me a moron!!!  I demand retraction.  I'll report you to the moderator if I can't have my written apology before the next block!  

[BitNerd]

This is one of the best videos to help get you up to speed:

http://m.youtube.com/watch?v=Um63OQz3bjo

I had already seen it. I get that bitcoin amounts are stored in the blockchain, but then what are wallets used for? What does a wallet actually contain? How can you move bitcoins from a wallet to another? Why people say they stored their bitcoins online and they were stolen? Can anyone answer those specific questions?

Wallets hold the private keys to spend the coins.  you move coins from one wallet to another by spending the coins (signing transactions with the private keys).  Theft happens when someone gets hold of your private keys.

Thanks everyone for the answers. Ok, the wallet contains private keys to spend coins. But that must mean that each wallet has a different key, right? Does that mean that each individual wallet must have a different blockchain address?

In other words, if I send 1 BTC from wallet A to wallet B, what I actually did was sending 1 BTC from blockchain address A to blockchain address B? And the wallets just store the keys to controlling the addresses?

[sobitcoin]

Excuse me, I´m new to bitcoin. I have tried to read many explanations for beginners for the last days, but there are some basic things that I still can´t understand, although I consider them essential to know before I buy my first BTC.

I read all the time about storing BTC in wallets (software, hardware and paper wallets) and I can´t understand what is meant by that. First of all, how can a virtual "thing" be stored? I can see how physical coins, gold, etc. could be stored in a box or safe, but how can a virtual coin be stored in a software, hardware, and even... a piece of paper? I still can´t grasp the logic of it. For example, if it´s just a computer file, then why can´t it be copy-pasted and turned into many files?

The reason for my question is specifically that I´ve read about many cases of stolen bitcoins, and I want to understand what makes it possible or impossible for a bitcoin to be stolen? How Can I buy a BTC and transfer it directly to a piece of paper (supposing I understand how that´s done) with zero chance of it being stolen?

Thank you very much for the help.

Sorry, the Bitcoin system isn't a good place for morons to store their wealth quite yet.  Wait about 5 more years and it will be far better for use by idiots.  Presently, it requires some understanding of concepts which are somewhat abstract and complex.  

Probably the first thing you should know is there aren't any bitcoins and as such you can't store them anywhere.  They are merely an abstraction.  What is really funny is, there aren't really any bitcoin even in the abstraction!  There is merely a long list (ledger) of entries which basically say: "Fred mined 2 bitcoins and sold them to Sally who gave 2 bitcoins to Jim, then jim gave 1 to mike, .5 to sam and .5 to himself".  The ledger doesn't really note anything like the serial number of some 'bitcoin' - rather it just marks in an indelible manner the ownership as they (bitcoins) moved from one owner to another.  So you can't just 'copy' a bitcoin with cut and paste. 

Get it?

I don't know, what is wrong with people like you.
Yes, even an idiot can use Bitcoin. You can teach everybody to make a paper wallet or use something like Trezor to store your private key safely.
Not everybody who uses Bitcoin is a computer scientist.

Right? Everyone here has a vested interest in Bitcoins success, it makes no sense to be rude and an asshat to new adopters