Bitcoin is a cryptocurrency. It’s a new concept so it’s not heavily regulated YET – some countries consider it a currency, some countries consider it a commodity, some just issue official letters telling citizens to be careful with Bitcoin (since the transactions are irreversible) and some countries consider it a threat to their nazi little world and ban it.
Please note: we are not techies nor is this website aimed at very technical people. Everything Bitcoin-related is already pretty simple and user friendly so we are focusing on the working strategies to make money rather than concepts or science fiction.
Also, if you are a tech guru please excuse the layman’s terms we operate in. We just understand enough to use it 🙂
Think of ALL Bitcoin as a big chunk of code. Everyone who has some Bitcoin does not have anything physically, rather – what they have is an access to a certain piece of all that code.
There is a finite amount of Bitcoin but it can be split into smaller parts infinitely, that’s why you’ll see amounts like 0.0000323 BTC often. When you receive and send Bitcoin you share access to chunks of code in a form of encrypted strings.
All transactions are visible and everyone can see where the money came from and where it went. Otherwise getting a wallet and using Bitcoin is fully anonymous.
How to get bitcoin
To get Bitcoin you can a) buy it with regular money on exchanges b) get paid in Bitcoin for services or products c) receive return on investment d) win from gambling or trading. In theory you can also mine bitcoin but by now you need so much computer power to mine an ever diminishing amount of coin that a standalone miner does not have a chance.
You can either exchange regular currencies for Bitcoin, using exchanges like
– or you can get paid in Bitcoin for products and services at sites like 000insert sites000.
You need to store your Bitcoin in a Bitcoin wallet – those are electronic accounts that keep your Bitcoin info securely. You can have as many wallets as you wish, they are not tied to any documents or even emails – secret codes only.
You can get an downloadable wallet software or you can create web-based wallets in just a couple of minutes. Use these sites:
Is Bitcoin anonymous
Compared to other electronic payments – yes. But remember that all the transactions go one after the other and every actor in the blockchain technology gets notified of every transaction – the amount of Bitcoin is finite, it just changes hands and gets split or glued together. In short, every transaction is recorded in the blockchain network.
As a result theoretically one can trace back transactions and determine what wallet owned what and where they sent it. Since exchanging large amounts of fiat currencies (regular money) for Bitcoin may require identification (major exchanges ask for ID to lift limits) this may be a problem for someone worried about privacy. Fortunately bypassing that is easy with Bitcoin – you can either work with peer to peer exchanges like LocalBitcoins or use so called “Bitcoin mixer” sites. Mixers gather Bitcoins of their customers into huge pools, mix them all up and send it back to new people so no one can track what went were. The major mixer sites are:[coming soon]
Until you start working with amounts of money that could be drawing unnecessary attention ($5K equivalent in some countries, $10K in others) – this should be none of your concern. In practice though it matters very little to most people. You can be sure your Bitcoins are anonymous and safe – as long as you keep your wallet login and password safe!
Do I need a credit card or a bank account?
Hell no. See the “how to get Bitcoin” section above – you may use regular money to exchange it for Bitcoin but you by no means need it.