how to buy bitcoins for dummies

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I would like to introduce a number of people that are not necessarily tech-savvy to Bitcoin and instruct them how to make their first payments.

Timothy Stranex, who founded BitX and now works for international Bitcoin solutions company Switchless, says: “To get your first bitcoins, typically you would open an account at a Bitcoin exchange, transfer normal money to the exchange by EFT, and then buy some by placing trade orders.
“I put in a buy order and when somebody puts in a sell order, I get money … well, I get bitcoins, and I can transfer them from my BitX account into my personal Bitcoin wallet.” For more on wallets, see below.
Similarly, you can buy a bitcoin or two, or you can invest in hardware and download software to turn your computer into a bitcoin “miner”, searching for the secret codes that create bitcoins.
The market in South Africa is minuscule compared with the rest of the world, with Kola estimating that about 10 to 20 bitcoins are sold per day and BitX reporting that 40.41 were sold in a single day in February (see “Bitcoin numbers”, below).
There is also a Bitcoin community on Google+ that carries information on who is accepting bitcoins, and Bitcoin Payments (bitcoinpayments.co.za) has a “featured merchants” section with 20 names, although it says that more than 12 000 businesses and charities accept bitcoins through BitPay.
When a computer mining bitcoins hits the jackpot (after 1 789 546 951 attempts, on average), a box appears on the screen confirming that all the code crunching has produced, not one newly minted bitcoin, but a block of 25, because bitcoins do not emerge singly.
Bitcoin is a “crypto currency” – in other words, as defined by Investopedia, a digital or virtual currency that uses very complex cryptography for security and is thus difficult to counterfeit.
Indeed, I think we have built up the single best BitCoin page on the Internet as we’ve spent a lot of time building up the Scutify bitcoin page, to include all the latest bitcoin news, tweets and prices and it’s quickly becoming one of our site’s most popular pages, as interest climbs.
Even if you’ve been a bitcoin skeptic so far, what would it take for you to change your mind? I’ve written about bitcoin quite a bit in the past year here on Marketwatch’s The Cody Word, and you can see my evolution from skeptic to buyer.
As I noted in this week’s Revolution Investing, I’ve had bitcoin in my portfolio since earlier this year, but I don’t know anybody but me and maybe a couple of my TradingWithCody.com subscribers who own any bitcoin.
We’ve also been working on the different methods of buying bitcoin, and let me tell you first and foremost — it’s not easy to buy bitcoin yet.
Obviously, I think there’s still more upside and potential for bitcoin in years to come and I’m investing time and energy in the digital currency too.
I’ve been slowly but surely buying more bitcoin when it crashed and I have been accepting bitcoin as payment at TradingWithCody.com to build up even more.
I see bitcoin on the front page of Marketwatch a lot lately and there’s a lot of debate about bitcoin on our Scutify BitCoin page.
Maybe I’m nuts, but if you’d moved like I did to put 1% of your portfolio into bitcoin when I first suggested doing so, you’d already have more than a triple on your hands.
To buy bitcoin , we’ve used several different platforms, but Coinbase.com will allow you to buy them directly from your bank account and that was probably the easiest route we found so far.
Local Bitcoins allows sellers and buyers who are located nearby to meet and exchange Bitcoins through various methods including cash, wire transfer, Money Bookers, Skrill and more.
BitBothers LLC allows customers and bitcoiners to purchase bitcoins by either sending in cash, money orders, cashiers checks, or MONEYGRAM to a designated location.
BitBrothers LLC allows customers and bitcoiners to purchase bitcoins by either sending in cash, money orders, cashiers checks, or MONEYGRAM to a designated location.
expresscoin.com (info) allows customers to buy Bitcoin with a bank wire transfer.
The following websites can be used to find direct sellers online Bitcoin OTC, Local Bitcoins or the Currency Exchange Forum Section.
You can store bought Bitcoins on your own address, or using a safe multi-signature Bitcoin wallet on Bitalo, for free.
Customers, who must supply an identity card and proof of address for anti-money laundering regulatory compliance, will be able to purchase bitcoins for cash.
Local Bitcoins offers a Bitcoin escrow service that holds the funds until the transaction is complete, therefore reducing fraud.
The reason this method works is because you do not buy Bitcoins with Paypal directly, you only buy SLL with Paypal (which is acceptable by Paypal’s TOS) and then exchange your SLL to Bitcoin.
bitXoin (info) Buy bitcoin via online ordering and bank deposit, cash over the counter at most banks throughout Australia.
VirWox – The Virtual World Exchange accepts all major credit cards (via Paypal or Skrill) and allows you to buy SLL which you can then trade to Bitcoin.
When they receive the items the bitcoin buyers receive the bitcoins that were held in escrow during each transaction.
With Brawker bitcoin buyers buy items at online merchants for people interested in paying with bitcoins.
Either download the Bitcoin software, being careful to secure your PC, or use an online service such as blockchain.info. The wallet comes with a code that is your address for receiving bitcoins.
In January, there was a live bitcoin trading event held at Old Spitalfields popup shop in Shoreditch, spent a week letting customers buy bitcoins over the in the past few weeks – despite of mega bitcoin exchange Mt Gox month – London businesses ranging online theatre ticketing sites to and media firms have started the digital currency as payment.
The log is authenticated by end-users through hashed ECDSA digital signatures (similar to a username and password) and confirmed by intense calculations of varying difficulty, performed by dedicated servers called bitcoin miners.
Bitcoins can be exchanged through a computer or smartphone locally or internationally without an intermediate financial institution.In trade, one bitcoin is subdivided into 100 million smaller units called satoshis, defined by eight decimal points.
The money supply is automated and given to servers or "bitcoin miners" that confirm bitcoin transactions as they add them to a decentralized and archived transaction log approximately every 10 minutes.
Bitcoin (sign: BTC) is a decentralized digital currency based on an open-source,peer-to-peer internet protocol.
That, and a recent self-feeding cycle of public curiosity, explains how the value of Bitcoin in dollar terms has soared to more than $200 from mere cents at its inception.
Financial wonks are shouting from various corners of Wall Street about the regulatory pitfalls and the volatility, highlighted by a tumble in valuation that brought Bitcoin to the world’s attention.
Programmers have written software, which can run in the background on PCs, to rapidly check possible combinations of letters and numbers one by one in the hopes of stumbling on an unclaimed Bitcoin.
Bitcoin has been around since 2009, but it started as an obscure project that computer hobbyists experimented with.
You can unlock more of them if you discover a hidden series of letters and numbers that matches up with the Bitcoin security keys specified by Nakamoto.
After starting as a hobby among computer geeks, Bitcoin is going mainstream.
The format, where it becomes more difficult and expensive in terms of power to discover Bitcoins over time, was designed to keep the currency’s growth rate — or inflation — steady and predictable.
While some enthusiasts have issued bills and coins that serve as physical proxies for the currency, Bitcoin was designed to be purely digital.
Techies are trumpeting a so-called virtual currency called Bitcoin that they say could revolutionize global trade.
As a result, Bitcoin is becoming a popular vehicle for laundering money and buying illicit items on the Internet.
Serious miners have multiple computers running to team up on the task, and there’s even a computer virus going around that turns victims’ PCs into digital slave laborers.
Some tech-savvy companies are starting to accept payments in Bitcoin, most notably WordPress, which makes blogging tools.
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… no government manipulation … given that traditional money (fiat money) isn’t backed in gold any more, central banks print at their will making the currency eventually unstable or loose its value but, in the Bitcoin economy, the generation is predictable and regular and the real value is settled only by the market.
… you can buy goods or trade them for cash… once you have some BitCoins in your wallet, you can now find online retailers who exchange them for real goods, or you can trade them for cash in several ways, face to face, over the counter or using a major bitcoin trader such as MTGox, TradeHill or many others.
… BitCoin is a digital currency … so it is not just another digital currency: a) it is backed by trust as it is based in cryptocurrency; b) it is decentralized, so no central authority can shut it down; c) it is worldwide accepted; and d) there are no, or very low, fees in comparison with whatever other payment method available.
… generated and earnd by any PC … so when a PC gets lucky in guessing the hash, a bitcoin block is generated with 50 BitCoins as reward, but as almost no one mines alone, this is next split between all the miners in the mining pool.
Bitcoin For Dummies “BitCoin is a digital currency generated and earned by any PC, connected into the bitcoin network, that guesses an “almost impossible” code.
With regards to mining: Why do miners need an ultra complex setup rig before they can start mining? I have seen people post pictures of their "mining rigs" for Bitcoin and they often post a complex-looking computer setup complete with huge fans and stacks of, umm, servers I guess? Why do they need to do that and where can I download a so-called "Bitcoin miner" application? On the video at weusecoins.com, it says "Bitcoins are generated all over the internet by anybody running a free application called a Bitcoin miner." so I am thinking that it's safe to assume that if you have a constantly running Bitcoin miner, you can pretty much generate money on your own? It also tells about the transaction being permanently and anonmyously stored in the network.
How do Bitcoins work?Bitcoins are bit more different than a standard currency since it has it's own built in transaction system through its mining process.  If the dollar, gold and visa had a baby we'd call it Bitcoin.
you’ll want to say that you are paying a bill, decline phone number (or put it in whatever you want), enter the 4 digit receive code from the slip (first time I heard this I was a little confused, but it’s just a way to identify zipzap for their system), enter the 9 digit account number that is unique to your zipzap transaction.
In addition to having a unique digital fingerprint, Bitcoins are also characterized by their position in a public ledger of all Bitcoin transactions known as the blockchain.
A single Bitcoin can be divided down to 8 decimals, and people can transact with fractions of Bitcoins, known as satoshis, so even if one Bitcoin is worth a lot, the system is still useful for very tiny transactions.
Bitcoin, by contrast, doesn’t depend on a central bank or government — people create Bitcoins through mining.
We watched breathlessly as early Bitcoin owners became millionaires and authorities seized millions of dollars worth of Bitcoins from the the Web’s notorious black market, the Silk Road.
The public address and private keys are both required to trade, sell, and spend Bitcoin.
In order to make transactions on an exchange, you must have a Bitcoin wallet (more about this later) to keep your currency in.
Bitcoin is at its core a cryptographic protocol, which is why it is also referred to as a “crypto-currency.” The protocol creates unique pieces of digital property that can be transferred from one person to another.
Transactions are currently quite difficult to trace, however, which is why Bitcoin has been associated with illicit activity, such as buying and selling drugs on the now-defunct Silk Road market.
Mining is the process of solving complex math problems (also called “hashing”) using computers running Bitcoin software.
The Bitcoin ecosystem is growing more robust and legitimate, and the movement’s evangelists are pushing hard for mainstream adoption — to turn Bitcoin into a currency rather than an asset or a financial lark and make the most of its unique capabilities.
Once exclusively the domain of tech-savvy libertarians, virtual currency bitcoin has shot to prominence after a massive rise in value and the financial crisis in Cyprus.
Bitcoin is a decentralised virtual currency, meaning neither does it exist in the physical world, nor does it have a central bank such as the Federal Reserve or the Bank of England.
The rise of bitcoin also coincided with the tipping point of the financial crisis in Cyprus, when it was announced individual savers faced a one-off levy in order for a eurozone bailout to go ahead.
Previously the domain of technology-friendly libertarians, bitcoin has shot to mainstream financial attention after its value increased by up to 1,000 per cent since the start of the year.
Bitcoin uses peer-to-peer networking and digital signatures where the money supply is automated and given to servers known as ‘bitcoin miners’.
News: Due to a recently-discovered flaw in the TLS and SSL protocols, you may want to change your password, especially if you accessed the forum using Tor.
Bitcoin Forum October 19, 2014, 03:06:01 AM Welcome, Guest.
Bitcoin is a digital currency that is being used increasingly all over the world.
Please read our guidelines before submitting your request.
Find out more about how it works and how you can use it with our straightforward guides.
Last updated on Oct 19, 2014 at 04:05 BST.
I can’t send you digital apples I don’t have, because then it wouldn’t sync up with everybody else in the system.
Plus, it’s not controlled by one person, so I know there’s no one that can just decide to give himself more digital apples.
I can even make other digital things ride on top of these digital apples! It’s digital after all.
Within the system, the exchange of a digital apple is now just like the exchange of a physical one.
This ledger, since it’s digital, needs to live in its own world and have someone in charge of it.
In fact, that’s the only way to create more digital apples in the system.
Maybe these digital apples need to be tracked in a ledger.
2) When I make an exchange I now know that digital apple certifiably left my possession and is now completely yours.
And those digital apples are the bitcoins within the system.
All the transactions that have ever happened, from all time, in digital apples, will be recorded in it.
1) It’s open source, remember? The total number of apples was defined in the public ledger at the beginning.
Sending digital apples doesn’t look like sending physical apples.
Maybe I made a couple of copies of that digital apple on my computer.
Some say it’s digital gold; some say it’s a currency.
So, cool, someone like them could keep track of our digital apples.
Unlike credit card transactions, bitcoin transactions do not require the company you’re purchasing from to know anything about you in order for them to accept your bitcoins.
You’ll need to link a U.S. bank account and go through a set of questions to confirm your identity (“Which of these streets did you live on?,” “Which of these cars have you owned?,” etc.), but once you’re up and running, it’s incredibly easy to buy or sell bitcoins.
Since bitcoins can’t be refunded by a third party like your credit card company, you’ll have less recourse in the event a business you’ve paid cheats you or doesn’t deliver what it promised.
Without getting into too much additional detail, if you’re worried about your wallet being hacked and emptied, you can also store bitcoins on paper, which you could keep in a secure location like a safe deposit box.
If this article has piqued your interest and you’d like to learn more about bitcoins, Bitcoin.org is a great place to start.
Gyft, which allows you to purchase cards for hundreds of major retailers and store them on a smartphone app, offers 3 percent off through its rewards program when you buy with bitcoins.

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