is a unique new digital
money. It went up in value
especially after the Cyprus crisis.
Unlike the government issued currencies it is not issued or controlled by any state.
Introduction to Bitcoin:
Bitcoin is a new form
of internet currency. It allows for person-to-person payments
that don't go through a third party. If you want to find out more, read on,
or check this page out
operate like bank transfers. Each person has their own
called a Bitcoin Address. An address looks like this:
A person can have as
many Addresses as he wishes and store them together in an
electronic Wallet. So lets get you your first Address!
You can get an Address in a very easy way by registering at LOCAL BITCOINS
Well, an Address is
like a bank account - before you can spend any money, you need
to put some money in. You can use your Address to store more funds than you need
for just one purchase, so you won't have to do the following steps each time you want
to buy something.
As Bitcoin is a form of currency, it costs money. The easiest ways to get bitcoins are:
You may start with an
WALLET on UPHOLD.com because then
your bank account
is linked to your Bitcoin Wallet and funding and withdrawals are very easy. If you decide to sell
some coins or switch to gold instead at a certain point, it is all on the cards.
I assume you have funds on your Address now. Good!
Find out what Address
you need to pay your money TO and HOW MUCH you need to pay.
It might be as easy as sending 1 bitcoin to 1XxxXXXXXXZZZZZ35376, or a bit more complicated,
as sending 3.12345678 bitcoins to 1GauqJEVKx7mohEXXaHXnn96RFvLEGnVjV. As you most
likely will be doing this on your computer, just copy and paste everything.
Go to the website you
used to get your Address from. Find the location where you can
recipient's Address and amount and send the payment. It should be fairly straightforward.
You have some
experience with Bitcoins, but you want to find out how to use it
in a more secure way?
This part of the guide is for people who want to advance their knowledge a step further for their personal use.
eWallets are good if
you are on the go or dealing with pocket change. If you want to
control your own
security and be independent, you will need a Client. A Client is an application that manages your Wallet
independently from third party software on your computer. With it, you become your own bank.
There are many Clients
out there. The one developed by the core team is the Standard
known as Bitcoin-QT. You can download it from here. After you start it, it will synchronise itself with the
Bitcoin Network. It might be a long process and take up a couple gigabytes of your hard drive space,
but this is the way to ensure nobody is trying to cheat.
Once that is done, the
Client will control your Wallet file. Be sure to protect it with
a password and back it up
regularly. It is stored in a file called "wallet.dat" in your Bitcoin data . If you lose it or it gets stolen, you lose your money.
WARNING: The above method is very safe but needs many GIGABYTES (the entire blockchain indeed) to DOWNLOAD. T
his may take DAYS !
That is why we strongly recommend ELECTRUM.org for beginners.
There are many ways to buy bitcoins. If you have Euros or
Dollars to invest we recommend
Upload.com There you can Buy - Sell with 0% FEES via SEPA and ACH payments
from US banks easily
There is a number of
people wanting to trade bitcoins locally. You can get in contact
with them through the
Local Bitcoins website.
If you plan to move to another place, possibly another country
take your time and buy bitcoins strictly via cash, and be prepared to explain your cash-vanishing habits in a
credible and irrefutable way.
Some countries, especially the US and some European places are now very strict when it comes to moving
larger amounts of money.
Nobody can prove you
didn't spend much money and you will surely not cross any border
with it. All you
have to make sure is that you buy your Bitcoins in cash.
In the other country,
you shouldn't cash them out to a bank account also. Use LOCAL
AGENTS again or
webmoney (no US and no European Company)
All bank transactions can be tracked, as ownership can be checked on those accounts, however there is
no such verification process in bitcoins.