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The best way to understand about bitcoin, is to jump in and get several in your “pocket” to get a feel for how they work.

Despite the hype about how exactly difficult and dangerous it might be, getting bitcoins is a lot easier and safer than you might think. In plenty of ways, it really is probably easier than opening an account at a normal bank. And, given what has been happening in the bank operating system, it really is probably safer too.

There are a few what to learn: getting and using a software wallet, learning how to send and receive money, learning how exactly to buy bitcoin from the person or an exchange.

Preparation

Before getting started, you will have to get yourself a wallet. You can do this easily enough by registering with one of many exchanges that may host wallet for you personally. And, although I think you are going to want to have a number of exchange wallets eventually, you should start with one all on your own computer both to obtain a better feel for bitcoin and as the exchanges are still experimental themselves. When we reach that stage of the discussion, I am advising that you will get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.

What is a wallet?

It is a solution to store your bitcoins. Specifically, it really is software that has been designed to store bitcoin. It is usually run on your desktop computer, laptop, mobile device (except, up to now, Apple) and can also be produced to store bitcoins on things such as thumb drives. When you are worried about being hacked, then that is clearly a great option. Even the Winklevoss* twins, who’ve millions committed to bitcoin, put their investment on hard disks which they then placed into a safety deposit box.

*The Winklevoss twins will be the ones who originally had the idea for a social media site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.

What do you have to know about having a bitcoin wallet on your computer?

Below you can download the initial bitcoin wallet, or client, in Windows or Mac format. They are not just wallets, but are actually the main bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is really a number that appears like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where you could copy and paste lots like this from a person you need to send money to and off it will go directly into that person’s wallet. You can also create a QR code which will let someone take a picture with an app on the phone and send you some bitcoin. It really is perfectly safe to give these out – the address and QR code are both for my donations page. Feel absolve to donate!

NOTE: This kind of wallet acts both as a wallet for you personally and as the main bitcoin system. The reason why bitcoin works is that every transaction is broadcast and recorded as lots across the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the right software can be part of that system, checking and supporting the network. This wallet serves as your individual wallet and in addition as a support for that system. Therefore, remember that it will require up 8-9 gigabytes of your computer’s memory. After you install the wallet, it will require as much as a day for the wallet to sync with the network. That is normal, does not harm your computer, and makes the system all together more secure, so it’s a good idea.

Bitcoin Qt

The original wallet.
This is the full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet.
Outside of the time it requires to sync, this can be a very easy to use option.
Seek out Bitcoin Qt wallet download to get their site.
Armory

Runs along with Bitcoi Qt, so it has each of the same syncing requirements.
Armory permits you to back up, encrypt, and the capability to store your bitcoins off line.
Search for Bitcoin Armory Wallet to get their site.
If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, you can find good wallets that do not make you sync the complete history of bitcocin:

Multibit

A lightweight wallet that syncs quickly. This is good for new users.
Seek out Bitcoin Multibit Wallet to get their site.
Electum

Not only is it quick and light, this wallet permits you to recover lost data utilizing a passcode.
Seek out Bitcoin Electum Wallet to find their site.
After you get the wallet set up, take a few minutes clicking around. Things to look for:

o There will be a page that shows you just how many bitcoins are currently in your wallet. Offline paper wallet Understand that bitcoins can be split up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of bitcoin).