How To Get Started With Bitcoin

BitcoinIf you’ve been following whistle blower or hacker related news, you may have noticed that some group websites have started to accept donation in a form called Bitcoin. Now what exactly is Bitcoin? I’m going to explain what the coin is and I’m going to demonstrate how to start using it yourself.

So what is Bitcoin? Bitcoin is a digital currency parred by a peer to peer network used primarily for internet transactions. So what are the benefits of using Bitcoin? Well it’s as anonymous as cash. It’s impossible to charge back, unlike PayPal or a credit card. It’s not controlled by central government and it is impossible to inflate by mass printing. So let’s get started using bitcoin.

Well the first thing we have to do is get a wallet, which is a program that is used to store our Bitcoin. There are desktop wallets available and there are online wallets that are available. The most popular desktop wallet is available at Bitcoin.org. And just go ahead and download the client for your operating system.

So once the client is installed, you can go ahead and go to start, all programs and Bitcoin and launch the Bitcoin software. And once you launch it, you will see the Bitcoin program. Go ahead and note your Bitcoin address as you will need that for use in your Bitcoin transactions.

Now if you would prefer a online wallet go ahead and open up your web browser. And go ahead and navigate to myBitcoin.com and go ahead and sign up for this website. And once you sign up you will see your payment address on your front page and go ahead and note that.

So once you have bitcoins, we’re going to go ahead and show you how to get some free coins were to that. Go ahead and proceed to open up a web browser. Then go ahead and navigate to the free Bitcoins.appspot.com, also known as the Bitcoin faucet. This website will provide point zero zero zero one Bitcoins to any user who just clicks. Get some now. I have already grabbed some but if you go ahead and click it you will see a prompt to put in your coin address.

Now there is one more way that I’ve seen to get free coins and this is a possibile if you open up a web browser navigate to dragons.tl and download this game. This is a casino style game that even though I do not recommend gambling, it will provide you with free Bitcoins by going head to the twenty four statues in the game and examining them and receiving free of BTM.

So once you have point zero one zero BTM, you’ll be able to withdraw the coins. So go ahead and copy your Bitcoin address from your wallet and head over to the utility and then click withdraw coins and then in here just go ahead and click control v or paste in your Bitcoin address and type in your amount that you want to withdraw. And then go ahead and click on OK. And then all you have to do is wait about ten minutes to a half an hour or so for a transaction to be confirmed and you should see that coins added to your account.

Those are only two of the ways to get free Bitcoin but they are currently the most popular way of getting coins is buying them through a currency exchange and because Pay Pal doesn’t allow this kind of stuff, we need to use a different middleman to bring our currencies into the exchange. The most popular popular one used is Dwolla. So go ahead and navigate to Dwolla.com and sign up for an account. Then once you go ahead and log in and insert your bank account information to set up a wire transfer.

So go ahead and click on add bank account  and add in your banking information. So once you have set up wire transfers and it’s verified. Go ahead and sign up for a Bitcoin exchange. And then proceed to click add funds.

Once you’re here open up Dwolla as a new tab. Next add some funds and you can do this by putting in the account number into details at the exchange site. Next, go ahead and type in the amount that you want to add to the exchange. And under source, be sure to choose your bank accounts and payment type as services and assume the costs.

So once you have added some funds to the exchange go ahead and click on trade. And once you click on trade go ahead to choose the amount of coins that you want to buy and click on buy coins. Once you have bought the coins go ahead and withdraw them to your bitcoin wallet using your Bitcoin address.

One more way of getting coins is through Bitcoin mining. Mining is the process of generating blocks used to record Bitcoin transactions over the network and blocks are necessary to prevent double spending. Now blocks are generated by Bitcoin miners and here are some benefits for Bitcoin mining.

Whenever you generate blocks, which by the way requires a large amount of G.P.U. or C.P.U. power, you are awarded fifty BTM or Bitoins per block plus any transaction fees that are sent to the network. Note that one block is generated every ten minutes.

So in order to do some Bitcoin mining we’re going to go ahead and open up a web browser and sign up to join a mining pool. Now one I’ve seen that’s very easy to use for beginning miners is bitmining.com. So go ahead and sign up for this website. And once you’ve signed up go ahead and add a new machine and add in your Bitcoin payment address. And then you’re going to want to proceed to go to tools and download the coin mining tool. And please know that you’re going to need Java to run this Bitcoin miner.

Now that you have download the program you go ahead and enter in your log in credentials. Next click on engine start. And then you should be mining bitcoins. If you have a more up to date graphics card and processor you should be able to mine coins.

I’ve explained how to get your own coins. And now one more thing that I have to show you is how to make payments and this is whenever you do any transaction over the Internet using Bitcoins to make a payment.

We’re just going to use our coin wallets and depending on which client you use there should be a place to send your coins. So go ahead and click that button or link and paste in the address that you want to pay coins to and type in the amount. Depending on the amount you may be required to pay a transaction fee and this is to pay for the miner because miners are making the blocks for you. Go ahead and adjust it appropriately and pay for transaction fees and then that’s it. You’ve successfully sent coins to the specific person that you’ve done business with.

So now what. Well, there’s many things that you can do a Bitcoins. If you still don’t know what to do with them while they are very good investment. In fact that coin has bruises from pennies in value in 2002 to around fourteen or $240 a coin today.