Bitcoin is the most common type of cryptocurrency we will cover. Units of bitcoin are expressed in decimal exponents such as BTC ("bitcoins"), mBTC ("millibitcoins") and μBTC ("bits"). In order to send, receive, or store bitcoins you must have a bitcoin address and a place to store your bitcoins. There are three main choices:

Store your bitcoins online. In order to buy or receive bitcoins, you first need to create a storage site for your bitcoins, and this is the first step to purchasing bitcoin. Currently, there are two ways you can store bitcoins online:

  • Store the keys to your bitcoins in an online wallet. The wallet is a computer file that will store your money, similar to a real wallet. You can create a wallet by installing the bitcoin client, which is software which powers the currency. However, if your computer is hacked by a virus or hackers or if you misplace the files, you may lose your bitcoins. Always back up your wallet to an external hard drive to avoid losing your bitcoins.

  • Store your bitcoins via a third party. You can also create a wallet by using an online wallet via a third party site like Coinbase or blockchain.info, which will store your bitcoins in the cloud. This is easier to set up, but you will be trusting a third party with your bitcoins. These sites are two of the larger and more reliable third party sites, but there are no guarantees about the security of these sites.

Create a paper wallet for your bitcoins. One of the most popular and cheapest options for keeping your bitcoins safe is a paper wallet. The wallet is small, compact, and made of paper that has a code. One of the benefits of a paper wallet is the private keys to the wallet are not stored digitally. So it cannot be subject to cyber attacks or hardware failures.

  • Several online sites offer paper bitcoin wallet services. They can generate a bitcoin address for you and create an image containing two QR codes. One is the public address you can use to receive bitcoins and the other is a private key, which you can use to spend bitcoins stored at that address.

  • The image is printed on a long piece of paper that you can then fold in half and carry with you.

A hard-wire wallet to store your bitcoins. Hard-wire wallets are very limited in number and can be difficult to acquire. They are dedicated devices that can hold private keys electronically and facilitate payments. Hard-wire wallets are usually small and compact and some are shaped like USB sticks.









 


Comments

Don't you think blockchain is some kind of a long con, performed on all of us? Blockchain supporters tell us about lots of pros, lack of central control and security, but who could honestly check if it's true or not?

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04/26/2017 10:10am

I read the use of bitcoin in almost every blog that I visit. It seems that bitcoin provides a way for people to earn money online. I should go check it out, since I'm trying to earn money for myself. I'm still in school, yet I want to have my own savings for the future. I'll check out your suggestion and I'll get back to you afterwards.

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I think bitcoin is a cool way to add value to your money. I would say it's a good investment. The value as of this moment really does not go lower according to my friends. I would consider adding this machine to the list of small ventures I might start to do early next year. You should do the same. It is really a new way to passively expand your options.

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04/21/2017 6:04am

Bitcoin concept is a new concept in the money. This is a solution to the problem that is involved in printing currency.I think some security steps will in need to transfer funds from one account to another.

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