The first thing you’ll need is a place to keep your currency. That would be, just like with the fiat currency, a wallet. There three types of Bitcoin wallets:
- Online wallets
- Mobile wallets
- Desktop wallets
Depending on the mobility level you’re looking for, different types of wallets will provide varying levels of mobility. Same goes for security.
Online wallets store your currency on the Web.
Pro – Availability
Con – Security
Recommended online wallets for storing BTC
Good reputation, safe and is constantly working on security improvements.
Perfect for newbies, instant transaction confirmations, good security with 2-factor-authentication.
Super safe, all deposits are insured. Offers debit card that allows users to spend BTC anywhere.
Mobile wallets are very similar to online wallets, but are supported by mobile devices.
Pro – availability, payments as you go
Con – security
Recommended mobile wallets for storing Bitcoins
Easy to use, has innovative (but effective) security techniques, offers the trading feature.
Easy to use and relatively secure, but relies on a central server. In case that the server goes down, users wouldn’t be able to spend their Bitcoins.
The oldest and most popular wallet for mobile devices. Excellent security, simple interface and can transfer BTC to other devices via Bluetooth or NFC.
Desktop wallets are installed on user’s computer. They are full-featured BTC clients, with the highest level of security and a wide variety of features.
Pro – security
Con – reduced availability
Recommended desktop wallets for storing BTC
The official Bitcoin network wallet. Offers a lot of security features, but it takes a lot of space for storing entire Blockchain locally. Relatively slow network synchronization.
Fast, lightweight and easy to set up. Weak privacy features, good security and user-friendly.
Lightweight, fast, easy to set up. Not very user-friendly. Secure, but reliance on external servers could be a potential security threat.
Now that you have a wallet, you should buy some Bitcoins. The best way to do that is to register on an exchange.
Recommended Bitcoin Exchanges
The following exchanges have some of the best reputations in the business. They are simple to use, newbie-friendly and have high trading volumes which allow an instant exchange of currency.
Fast, reliable and easy to use. It takes only a couple of minutes to register. Their support is great, and the entire website is very user-friendly. Very popular among US citizens.
Another giant exchange with low fees and user-friendly interface. Security is great, with two-factor authentication and a question used to protect individual accounts.
A really simple and easy-to-use platform. The interface is very straightforward, and it takes just a second or two to find your way around the website. Security is excellent, with obligatory changing of passwords every three months.
When you set up your account and deposit the funds, simply enter the amount of Bitcoins you want to buy and your transaction will be processed within seconds (in most cases).
The logical question that follows – how to send the Bitcoins to your wallet?
1. Open your wallet and click on the request payment button. The wallet will grant you a unique address with 26-35 alphanumeric characters.
2. Copy the address.
3. Log into your digital exchange account.
4. Click onto withdrawal.
5. Choose Bitcoin. The exchange will ask for the recipient address.
6. Paste the address and hit enter.
7. Within minutes, your cryptocurrency should appear in your wallet.
Or you can check this video:
If you’re looking to send BTC to someone or to pay for a service, just hit send payment button in your wallet. Paste the address they gave you and hit enter.
You’ve just received a payment in BTC, and you’re looking to sell them. The process is rather simple – just send the funds from your wallet to the exchange, sell it for US dollars, Euros or other supported currency and withdraw the money to your bank account. Typical wire transfer usually takes about five days to complete.
If you want to learn more about Bitcoin, check the materials below.
– books and papers about Bitcoin
– Bitcoin links and discussion on the Reddit
– information about digital currencies.