Bitcoin is the first cryptocurrency which was introduced in 2009 through a whitepaper written by Satoshi Nakamoto, a pseudonym. With it, it also bought the concept of blockchain. From there, we have seen a lot of growth both in terms of technology and adoption. Today, we will be learning more about Bitcoin and what it has to offer.
We have divided our education section for Bitcoin learning according to the user’s experience level. So, it doesn’t matter if you are a beginner, moderate or proficient, we got you covered.
Welcome to our guide on Bitcoin education. We learn every day, and it is not wrong in learning something new at any stage of your life. After all, learning gives you a better perspective of the surrounding world.
If you continue with this guide, you will soon be advising others about blockchain or bitcoin in general. So, without any delay, let’s get started.
Bitcoin is exciting because it shows how cheap it can be. Bitcoin is better than currency in that you don’t have to be physically in the same place and, of course, for large transactions, currency can get pretty inconvenient. — Bill Gates, Co-founder of Microsoft.
WARNING: When using and storing cryptocurrency, you are in effect are becoming your own bank. It’s your responsibility to protect yourself and your funds. There is no one to help you if you lose your passwords, make a mistake, get hacked, etc.
There is a lot to learn for a beginner. If you are reading this, you also don’t have much idea about blockchain, the technology behind Bitcoin. But, don’t worry as we are going to cover blockchain in detail as well.
The links that are shared are no paid and only offers knowledge and information to our users including tools, resources and essential knowledge.
Websites for getting an overview of cryptocurrency valuation markets. Some of the most important information to know when investing in a cryptocurrency is market cap (total coins in circulation compared to current price), price (in a fiat currency like USD and a major crypto like BTC), volume (fiat value of currency traded in a day), supply (circulating supply of a coin), social media buzz, and what exchanges it trades on.
There are four types of trading exchanges; broker exchanges, decentralized exchanges (DEX) and P2P exchanges.
Broker Exchanges – A broker exchange is one that allows you to buy cryptocurrencies exchanging your fiat currency (dollars, euro, yen) for cryptocurrency or sell your cryptocurrency back for fiat. This is the best cryptocurrency exchange type for beginners.
Popular Broker Exchanges in the US:
It’s a Big World! – Directory of exchanges by country/region: https://exchangewar.info/
Decentralized Exchanges – DEX’s allow you to trade cryptocurrencies with other people through the blockchain directly. Unlike a centralized exchange, there is no central authority (middleman) or main server required to make a transaction.
P2P Exchanges – P2P (peer-to-peer) exchanges allow you to buy or sell cryptocurrency without ID verification. You can even buy or sell crypto with fiat or cash. These are for experienced users.
Popular P2P Exchanges: LocalEthereum
As you are your own bank, you need a wallet to store and access your Bitcoin. The wallets act as a gateway to access your coins on the blockchain.
You can go to Bitcoin official site and choose your wallet. They let you select wallet type and operating system.
Warning: Always buy hardware wallets from the official manufacturer.
Bitcoin Blockchain Explorers
Blockchain explorer acts as a gateway for you to check details about your transactions. With bitcoin blockchain explorer, you can easily confirm or validate transactions. For example, you can check if a transaction is successful or not. You can also check the balance of your wallet.
Misc. Useful Tools & Links
Nice! You made it to the next level. By now, you must have bought some Bitcoin or thinking of buying it. If you do, you are now ready to use the coins either for value storage or expenditure. This part of the guide tries to tackle a more important aspect of Bitcoin that you should know. Let’s get started.
Inventor of Bitcoin
Even though we wanted to discuss the topic in the beginner section, but we decided against it as it is confusing for the most part. The inventor of Bitcoin is Satoshi Nakamoto. It is the pseudo name, and no one knows the true identity of the man who is behind Bitcoin. However, many online resources discuss the topic.
Wikipedia page on Satoshi Nakamoto: https://en.wikipedia.org/wiki/Satoshi_Nakamoto
A good article by Metro.co.uk: https://metro.co.uk/2017/11/30/who-invented-bitcoin-and-who-is-mysterious-founder-satoshi-nakamoto-7119575/
Net Worth of Satoshi Nakamoto when Bitcoin hit $20,000: https://qz.com/1159188/bitcoin-price-approaches-20000-making-satoshi-nakamoto-worth-19-4-billion/
Satoshi: The smallest unit of Bitcoin
Satoshi is the smallest unit of Bitcoin. It is named after the inventor of Bitcoin. One Satoshi is equal to the hundred-millionths of one bitcoin.
1 satoshi = 0.00000001 BTC
What is Satoshi and how it is useful for traders: https://coinsutra.com/what-is-satoshi-btc-usd-converters/
Using satoshi while trading altcoins: https://www.youtube.com/watch?v=5BgNHUC8G9E
Learning about the blockchain
Blockchain technology is the reason we have other cryptocurrency and blockchain solutions and platforms such as Ethereum or NEO. It came into existence when Bitcoin was first made public.
Read the Bitcoin whitepaper: https://bitcoin.org/bitcoin.pdf
How blockchain works: https://medium.com/the-mission/a-simple-explanation-on-how-blockchain-works-e52f75da6e9a
Video about how blockchain works: https://www.youtube.com/watch?v=SSo_EIwHSd4
A more detailed video explanation by Shai Rubin: https://www.youtube.com/watch?v=93E_GzvpMA0
Different blockchain generation and its evolution: https://medium.com/@habs/what-are-the-different-generations-of-blockchains-bebf3c3ad57f
Making Transactions With Bitcoin
Bitcoin gave users the ability to do transactions without any third party intervention. This provides power back to the people where they don’t have to depend on banks. So, how do you take advantage of it and buy pizza with it? Let’s explore.
How to Send Bitcoin: https://www.wikihow.com/Send-Bitcoins
How to purchase using Bitcoin? https://support.coinbase.com/customer/en/portal/articles/1834716-where-can-i-spend-bitcoin-
How to use Bitcoin for purchases by Steve Fiorillo: https://www.thestreet.com/investing/bitcoin/what-can-you-buy-with-bitcoin-14556706
Bitcoin is the leader when it comes to coin pairing for purchasing other cryptocurrencies. It is paired with almost every other altcoin out there including the popular Ethereum. Many exchanges don’t allow cash for buying cryptocurrency. To purchase coins of your choice, you first need to transfer Bitcoin to your exchange wallet and then go forward with the purchase.
For example, you can buy ETH using the coin pair ETH/BTC. Similarly, other coins will showcase in the same format where the first coin is what you are buying in exchange for the second coin.
Directory of exchange by country/region: https://exchangewar.info/
If you want to earn more Bitcoin, you can do Bitcoin mining. Cryptocurrency mining is a simple process of lending your computation power to solve complex mathematical puzzles and help the Bitcoin network to process transactions. In return, you will be rewarded some bitcoin.
Bitcoin uses the popular Proof-of-Work(PoW) consensus algorithm.
Note: Bitcoin mining takes both time and effort. You also need to spend a lot to get a basic mining setup. As of Q2 2018, it is now not profitable to mine Bitcoin.
Mining basics: https://www.fool.com/investing/2018/03/14/the-basics-of-cryptocurrency-mining-explained-in-p.aspx
Bitcoin mining guide: https://www.bitcoinmining.com/
Noob’s guide to Bitcoin Mining by UFD Tech: https://www.youtube.com/watch?v=Q5hfr5poLl0
Bitcoin Mining Explained: https://www.youtube.com/watch?v=iyq4od8MBoE
Bitcoin can be a grey area depending on where you stay. There is a lot of things going on with Bitcoin legality. Many countries have banned Bitcoin whereas others are embracing it. We recommend reading the following informational pages to know what is the status of Bitcoin in your country or region.
Bitcoin legality by territory or country: https://en.wikipedia.org/wiki/Legality_of_bitcoin_by_country_or_territory
Is Bitcoin legal? https://www.coindesk.com/information/is-bitcoin-legal/
Legal status of Bitcoin: https://www.newsbtc.com/is-bitcoin-legal/