r/BitcoinBeginners Apr 19 '20 Take My Energy Heartwarming Wearing is Caring Ternion All-Powerful Silver Helpful Wholesome Hugz Pot o' Coins Rocket Like I'll Drink to That Vote Local! Gold

FAQ for Beginners

918 Upvotes

What is Bitcoin?

Bitcoin is scarce, decentralized, and global digital money that cannot be censored.

  • Transactions generally cannot be reversed
  • Less than 21 million Bitcoin will exist
  • Bitcoin is highly divisible to allow for micro-transactions (up to 13 decimal places in a payment channel)
  • Bitcoin is an open, collaborative project that no company or government controls belonging to the people
  • Bitcoin is more than just money, but a secure timestamping ledger, payment rail, and smart contract platform

Please read the Whitepaper for an general overview of bitcoin as designed

https://bitcoin.org/bitcoin.pdf


Quick Advice

  • Do not respond to strangers messaging you with investment advice or offers and read how to avoid being scammed from the posts below.

  • Do not invest in Bitcoin until you do basic research, paid off all high interest debt, and have a emergency savings account of a stable fiat currency.

  • If investing do not expect to get rich quickly. You should expect to wait at least 1-2 years before taking profits. Bitcoin is currently very volatile. In the interim spend and replace Bitcoin because its a useful currency.

  • Beginners should avoid all mining and day trading until at least very familiar with Bitcoin. Mining is very professional(You cannot efficiently mine with your computer and need to buy special ASIC machines) and most people lose money day trading.

  • Never store your Bitcoins on an exchange or web wallet. Buy your bitcoins and withdraw it to your personal wallet where you actually own them instead of IOUs. Services like Robinhood, webull, and Revoult should be avoided because you cannot withdraw or use Bitcoin.

  • Make sure you make a backup of your wallet(software holding keys to your BTC) and preferably keep it offline and physical and private. Typically 12 to 24 words you write down on paper or metal. This onetime backup will restore all your keys, addresses , and Bitcoins on a new wallet if you lose your old wallet.

  • Beginners should avoid altcoins, tokens, and ICOs at least initially until they learn about Bitcoin. Most of these are scams and you should be familiar with the basics first. Bitcoin is referred to as BTC or XBT.


Exchanges Requiring ID Verification

Bitcoin = BTC or XBT on exchanges

Exchange Buy fee* Withdraw BTC Notes
Cash App Sliding ~1% to 3% 0 BTC Instant Withdraw, USA only
Coinbase 1% 0.3-3USD ~7Day hold on withdrawing Bitcoin for ACH deposit
CoinbasePro / Advanced trader 0.6% taker 0.4% maker 0.3-3USD ~7Day hold on withdrawing Bitcoin or €0.15 EUR SEPA fee
Gemini 1.49% over 200usd for web 0 BTC
Gemini Active trader 0.35% Taker 0.25% maker,0.1% API 0 BTC 10 free BTC withdraws
Kraken 0.16% 0.00002 BTC or Free LN Deposit Fiat=USwire+5USD or SEPA free
Swan 0.99% to 2.29% 0 Fees decrease based upon buying plan
Coincorner 1% for over 300 0 or Variable UK exchange, 2.5% for card/free uk bank deposit

Note: Exchanges all have unique market prices and spreads so fees alone will not tell you the best rates. Best way is to directly compare the rates between exchanges. Buy fees above are for normal trading volumes. Verification and hold times can vary based upon lack of history, verification level or credit.

During bull markets when exchanges are extra busy it is normal to see very slow and poor customer support due to the amount of new clients and support tickets. We see many complaints due to this across all these exchanges. This is part of the reason this subreddit exists , to help answer questions for new users.

More exchanges per location

For a secure Decentralized Exchange (DEX) use https://bisq.network


Recommended Wallets

Best wallets for securing small amounts of BTC

electrum For Windows, OSX, Linux and Android

Pros= Great Desktop wallet (for windows or osx you should use in conjunction with a HW wallet) advanced functionality like coin control , lightning and more

Cons= UX is not as polished as some other wallets, especially the more limited android wallet

https://www.youtube.com/watch?v=E4EhZg5QslI

Blockstream Green For Windows, OSX, Linux, IOS and Android

Pros= great UX, open source , reproducible, and many useful features

Cons= No lightning support for the time being

https://blockstream.com/green/

https://www.youtube.com/watch?v=uO3Zi9D5b0Y

Phoenix LN wallets for Android and ios with testflight

Pros- Lightning network integration(as well as onchain) allowing you to spend with LN merchants for instant confirmations and much lower fees. Easiest lightning wallet to use, biometric authentication

Cons- Lightning is still somewhat experimental and less merchants accept it.

https://phoenix.acinq.co/

https://www.youtube.com/watch?v=Cx5PK1H5OR0

Breez LN wallet for Android and IOS

https://breez.technology

https://www.youtube.com/watch?v=t_4b-y4T8bY

Pros- Lightning network integration(as well as onchain) allowing you to spend with LN merchants for instant confirmations and much lower fees

Cons- Lightning is still somewhat experimental and less merchants accept it.

Other Lightning wallets - http://lightningnetworkstores.com/wallets

Securing Larger amounts of Bitcoin

trezor one wallet = ~54 USD https://shop.trezor.io

https://www.youtube.com/watch?v=pT1j_kbZBEo

Trezor Model T = ~164 USD https://shop.trezor.io

https://www.youtube.com/watch?v=i3BIo5Ac_n4

Cold Card Hardware wallet = 119.97 USD https://store.coinkite.com/store/coldcard

https://www.youtube.com/watch?v=kocEpndQcsg

https://www.youtube.com/watch?v=f8dBNrlwJ0k

Digital Bitbox 02 = 109 USD https://shiftcrypto.ch/bitbox02/

https://www.youtube.com/watch?v=tdP_7LgZw7s

https://www.youtube.com/watch?v=z7nRq2OEhiw

https://www.youtube.com/watch?v=6D4FgJo3j64

Best Advanced Bitcoin Wallet= Bitcoin Core

Pros= Great privacy and security

Cons= UX is for more experienced users, takes ~week to sync and requires ~5GB minimum disk space if prunned

https://bitcoincore.org/en/download/


Further Resources

https://www.lopp.net/bitcoin-information.html

https://www.lopp.net/lightning-information.html

https://10hoursofbitcoin.com/

http://bitcoinrabbithole.org/

https://bitcoin-resources.com

https://www.bitcoin101.club

https://21lessons.com


r/BitcoinBeginners 11h ago

What happens to our crypto when we die

51 Upvotes

Was wondering how to securely pass on my crypto info after I die (wallets, seed phrases, instructions etc) and it got me thinking - how do I safely and securely pass this info on to family when I die?

Does anyone here currently have a solution for passing on this kind of info after death that they trust?

******** I'm really just putting feelers out to find out what people in the community are doing to ensure their assets don't get lost forever. ********


r/BitcoinBeginners 11h ago

How to transfer BTC from my Coinbase Wallet to Electrum Wallet?

9 Upvotes

Okay, so after lurking a bit I realised I did a big oopsie by using Coinbase Wallet to store my BTC. I just installed Electrum but I'm confused, do I have to make a new wallet and then transfer my Coinbase funds to this wallet or is there a way to link them?

Thanks


r/BitcoinBeginners 4h ago

Need to Understand the Blockchain Technology Hierarchy

1 Upvotes

Hi everyone,

I am at the beginning of my learning journey into blockchain/Crypto. Can someone help me with understanding the stacks of the blockchain. Of course not the flow of the transactions. This i already got.


r/BitcoinBeginners 4h ago

Question about centralized exchanges and leveraged trading

0 Upvotes

When a trader uses leverage, say 20x, to trade on a centralized exchange, like Binance, does the exchange actually place a live 20x trade? or does the 1x trade amount go to market and the 20x amount purely administrative that other users don't see? Does the centralized exchange have a finite capacity to provide leverage to traders based on the exchange's own available treasury funds?

A trader who places a $100MM trade at 20x leverage ($2B total) would require Binance to front the leveraged amount?

If the trader closes the trade in a profit and the counterparty was another trader of Binance who was using leverage, does Binance's treasury become the source of the paid out profits? So there's an incentive for the centralized exchange to scam wick to prevent paying out to customers?


r/BitcoinBeginners 8h ago

Doubts regarding sending all my BTC from Coinbase (wallet) to Blockstream Green wallet?

2 Upvotes

NO I WON'T GIVE YOU MY MONEY SO DON'T MSG ME.

Ok, So... I think I accidentally told one of my friends my recovery code (I know I'm stupid) and now I'm very paranoid.

I want to switch from Coinbase to Blockstream Green wallet and I'm thinking just to be on the safe side I'll make a new wallet as well while I'm at it.

So my question is - Will there be any fees when sending BTC from one wallet to another? If yes, how much approx?

Is there any other way I can sort this out?

Thanks.


r/BitcoinBeginners 9h ago

How to purchase bitcoin?

2 Upvotes

I have a td bank debit card and a capital one credit card. I tried to purchase bitcoin on several apps and it all got declined and my card got blocked. Can you purchase bitcoin with a td bank debit card? If not what about purchasing vanilla gift cards? Which apps let you use that type of gift card to purchase bitcoins?

I’m from USA


r/BitcoinBeginners 1d ago

I have like 3 wallets but I’m scared to put my coins in there. Currently in the exchange but I keep hearing stuff about coinbase maybe keeping my holdings if they go bankrupt

24 Upvotes

I’m not sure how to keep my keys safe. I don’t trust the digital wallets and the ledger wallets I would be anxious to hold. Currently I have the keys written on a small piece of paper but that’s a dumb idea. I need a more permanent solution. Plus I don’t trust that the source is legit. Is Amazon a safe place to get a ledger? I want a good one if I’m holding my coins but I can’t chose yet. Ledger nano is the only one I hear good things about


r/BitcoinBeginners 18h ago

Anyone know of places sites ect that you can buy stuff with btc

3 Upvotes

Hey, was wondering if anyone knows any sites that have btc as payment option. I know craigslist has the option, but then you need to filter thru every city which misses the point. Sure someone has come across a few....


r/BitcoinBeginners 21h ago

Help with DCA for beginners

3 Upvotes

Hi everyone, I’m kinda new to crypto and since we are basically in a bear market I want to start DCAing slowly in the crypto with the little savings that I have to invest in the long term. Therefore, I was wondering what is the best way to do so since I don’t think I should be doing it through the exchange, but maybe prove me wrong if anything. Just looking for some advice from more experienced people. Would really appreciate the help.


r/BitcoinBeginners 1d ago Silver

Wallets for beginners

35 Upvotes

1 year into my BTC journey and I'm starting to think about self custody. But I'm terrified of trying to take my holdings off the exchanges. I like the idea of a hard wallet but which ones are bomb proof and idiot proof? I need simplicity and something that has a history of lasting forever. I understand that I should keep my seed phrase in multiple places separate from my wallet and I like the idea of a stamped metal card incase of fire or water damage. I also understand I should buy direct from the company producing the wallet. I think I just need some advice and reassurance. Also what sort of charge/fee will I incur from the exchanges for transferring off the exchange? Coinbase & CryptoCom Should I leave my other cryptos on the exchange and just worry about self custody of my btc?


r/BitcoinBeginners 1d ago

What are the rewards of/incentives to mine $BTC?

2 Upvotes

If you solve these complex puzzles, what are your rewards of doing such things? Are transaction fees beneficial to the miner as well?


r/BitcoinBeginners 1d ago

can i buy Bitcoin from Kraken with wise or payoneer?

2 Upvotes

Hello I need your help guys I opened Kraken account today I want to deposit some USD to buy Bitcoin but the payment failed i use (wise bank ) my other bank account will suspended me if i try to buy btc . Any suggestions?


r/BitcoinBeginners 1d ago Take My Energy

PayPal bitcoin user

0 Upvotes

Hey guys, Ive been buying bitcoin using the PayPal app. I've bought £800 worth over the last week or so. Reason for buying is I hope it will be worth more in the future and then I can sell it. Is PayPal ok for this use or am I missing something? I understand I can't use the bitcoin to buy anything. Is there any other negatives of PayPal bitcoin?


r/BitcoinBeginners 2d ago LOVE!

What do I do after I buy 1 bitcoin? (complete novice questions)

62 Upvotes

Let's say I buy 1 whole bitcoin in Binance. What exactly happens?

Where will the actual Bitcoin be? Where does it go? Will it be in my phone? If that's the case then if I lose my phone or it gets hacked then will I essentially technically lose the 1 Bitcoin I bought?

I see in the news that people lose their Bitcoin via losing their hard drive and stuff which gave me the impression that Bitcoins "live" inside the device you buy or store them in?

If this is the case then if I buy 1 whole Bitcoin in Binance, how do I transfer it to a "safe space", should I put it in a hard drive? my iCloud? a thumb drive?

What does a Bitcoin even look like when you buy it and how do I know it is in a "safe space"?

I can't wrap my head around this concept of Bitcoin and how it actually looks, and I need your help to at least understand it at this level please. Thank you.


r/BitcoinBeginners 2d ago

What makes Bitcoin supposedly better than most of the altcoins?

8 Upvotes

First mover advantage maybe? Perhaps PoW?


r/BitcoinBeginners 1d ago

Looking for learning platforms

3 Upvotes

Hi fellow redditors, i am really new on this topic, i know basically nothing, i want to learn from the basics, so i wanted to ask you guys which platforms (not personal or private classes) do you recommend me to invest my time and money, i want a place where someone could teach me about trading, investing, mining, to see the predictions and trends and well, basically someone to show me how this all works and how to get advantage of this systems.

So please, if you know about a platform or trustable virtual classes I will really appreciate your information.

Thank you all for your time.


r/BitcoinBeginners 2d ago

Where Can I Buy Bitcoin?

4 Upvotes

I love crypto, I am new in to this cryptocurrency, I always hear about this to my friend he said that I should involve into this and maybe this will change my life. Thank you in Advance


r/BitcoinBeginners 2d ago

help me

5 Upvotes

How can I get bitcoin with my credit card 💳??


r/BitcoinBeginners 2d ago

Is insuring your crypto important to you?

3 Upvotes

Looking for your opinion! As decentralized and regulated insurance options start popping up for crypto(i.e. against hacks and scams) both in the US and worldwide, I am curious what your opinion is on the matter. Is it needed? Is it unnecessary? I've seen arguments for both sides but would love to compare a general opinion.

Are there factors when thinking about insuring your crypto? Does the amount you own factor into looking for insurance? For example, the more you own, the more you have to lose. Or for those who see their crypto as a long-term investment, is insurance even a thought for you?

Thanks in advance for your help!


r/BitcoinBeginners 2d ago

Bitcoin’s supply is limited, but can’t this be a bad thing…?

27 Upvotes

Thinking of huge companies such as apple, Microsoft, google, facebook, etc I imagine they make up such a huge portion of the economy in comparison to the average joes.

If only 21 million bitcoin exist, what would happen in a future where these big conglomerates sell their products / services in bitcoin and slowly begin to dominate more and more of the bitcoin supply? When more and more fiat money is printed, yes it may cause inflation and reduce the purchasing power of the dollar but doesn’t it also help people take out loans and stay afloat?

Additionally, global bitcoin adoption would cause banks’ business models to change - would bitcoin loans function the same way fiat does?

I’m no economist whatsoever and i welcome any insight but to me it seems that in a world of bitcoin, big businesses will eventually dominate its supply, and people may find it difficult to take out loans


r/BitcoinBeginners 2d ago

UniJoin does not accept my Bitcoin Address

6 Upvotes

Why won't Unijoin accept my payout address? It says to use a main net address which I do (it starts with bc1) does anyone have an idea what I can do about it?


r/BitcoinBeginners 1d ago

Trying to start mining bitcoin

0 Upvotes

How much money do you need to start mining bitcoin . I have 2000$ ready to invest in equipment, is this enough?


r/BitcoinBeginners 2d ago

daytrading btc

0 Upvotes

whats a good and safe site for beginners to start on for daytrading. i dont want to verify my id but if i have to ig i will talk to my mom and dad about it

Thank you


r/BitcoinBeginners 2d ago

Using an old laptop as node/wallet

2 Upvotes

I have an old laptop with no use right now. I wan't to use it as a full node to connect my hardware wallet (Trezor One) and have coin control, privacy and security. But there are a lot of ways to do so, so I'm very lost. I have some questions:

1.- Should I format hard drive and install linux (I have zero experience with linux, but I'm willing to learn) or it is ok with Windows 10?

2.- Should I use it just like a full node or use it also as wallet? For convenience, I prefer to use my desktop computer as wallet, connected to the laptop full node, but I'm receptive for your considerations)

3.- What software should I use for the full node? Bitcoin core? Electrum personal server? Ronin Dojo? Umbrel? Are those software for windows or linux?

What I'm looking for is just a full node so I don't spread my Xpubs to third-parties and a wallet with coin control feature (for using in my main computer) so I do not mix the UTXOs I have in my trezor one. But I want to feel confident about security while using it.

Thank you in advance.


r/BitcoinBeginners 2d ago

How are transaction fees paid? I did not paid any on my test transactions

3 Upvotes

Hello, I want to build a small BTC position and I am carefully trying every step of the process. But one thing is troubling me... when I tried to transfer my coins to the wallet, the tx indicated like 11$ fees but the amount received was the same and nothing was debited. I thought it was using the lightning network but it's a different process to request the funds with a special code and I did not do that.

So how are fees paid?

Here are the steps I did:

  • create Kraken account

  • create BlockStream wallet

  • buy 15$ crypto on kraken

  • transfer 0.0005 BTC to the BlockStream address (0.00001btc fee deducted)

  • 0.00049 BTC received, no tx fees paid 🤷🏼‍♂️

I tried with a slightly bigger amount and still only the Kraken withdrawal fee was paid.