How to Get Bitcoins
Decide on a type of wallet., Keep your wallet secure., Understand prices are volatile and payment is irreversible.
Step-by-Step Guide
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Step 1: Decide on a type of wallet.
In order to obtain bitcoins, you need to set up a bitcoin wallet where they can be stored online or on your desktop.
There are several options for your bitcoin wallet.
A "wallet" is what your account to store bitcoins is referred to as.
It's more or less an online bank account where bitcoins are stored.
There are various types of wallets that provide different levels of security.There are three main types of bitcoin wallets: a software wallet, stored on your hard drive, an online wallet, or an offline mobile wallet you download on a smartphone that uses a number of keys to protect your account.Storing bitcoins locally on your computer can protect you against hackers, but you also may lose your bitcoins is your computer crashes.
Back up your wallet frequently if you go this route.Mobile wallets are convenient as you can pay with bitcoins on the go, and can sometimes just tap your phone near a register as payment.
However, they tend to take up a great deal of space on your phone and you can only store so many bitcoins at a time.
An online wallet is highly convenient in that your bitcoins can be accessed from anywhere and you can use your bitcoins for a variety of online purchases.
However, online wallets are susceptible to hackers.
Also, the organization you go through to set up your wallet will have access to your account and there have been cases of bitcoins getting stolen by private organizations.
For example, the bitcoin exchange Mt Gox was discovered to have been manipulating prices and committing fraud, stealing large numbers of exchange users' bitcoins.Make sure you choose a reputable provider if you set up a bitcoin account online. -
Step 2: Keep your wallet secure.
Regardless of the wallet type you choose, you need to keep your bitcoin wallet secure.
There are a variety of safety precautions you can take to keep your wallet from getting compromised.
As previously stated, be very careful with online services.
Security breaches are common and online services generally do not provide security.
Choose your online services carefully and require many different types of authentication to access your wallet.Do not keep too many bitcoins in any one wallet at once.
Part of the reason bitcoin wallets are referred to as wallets is because it's important to think of your bitcoins as cash.
Just as you wouldn't go shopping with thousands of dollars in your wallet, it is probably unwise to store large amounts of bitcoins in your wallet.
Keep some bitcoins on your mobile, online, or desktop wallet but store other amounts in a more secure environment.Always back up your wallet if it's on your desktop.
If you back up your wallet online, encrypt any back ups to prevent hackers.Always use a strong password and write your password down somewhere safe so you will not forget it.
A strong password should be at least 16 characters long with a variety of letters, numbers, and punctuation marks.
Avoid using words easily linked back to you in your password, such as names of friends, family members, or pets., Bitcoin is still a relatively new technology, so prices are volatile.Once you purchase bitcoins, you cannot return them.
The average price of a bitcoin can increase and decrease unpredictably.
For example, in one week in November, 2015 Bitcoin went from $318 on a Monday to $492 on a Wednesday, falling back under $400 by Thursday.Do not put too much money into bitcoin, as it's seen as a high-risk asset.
Only buy enough bitcoins to make convenient online purchases.Any transactions you make with bitcoins are irreversible.
You should only do business via bitcoins with organizations you trust.
If you make a bad transaction or do not receive a product for your payment, you cannot get your bitcoins back. -
Step 3: Understand prices are volatile and payment is irreversible.
Detailed Guide
In order to obtain bitcoins, you need to set up a bitcoin wallet where they can be stored online or on your desktop.
There are several options for your bitcoin wallet.
A "wallet" is what your account to store bitcoins is referred to as.
It's more or less an online bank account where bitcoins are stored.
There are various types of wallets that provide different levels of security.There are three main types of bitcoin wallets: a software wallet, stored on your hard drive, an online wallet, or an offline mobile wallet you download on a smartphone that uses a number of keys to protect your account.Storing bitcoins locally on your computer can protect you against hackers, but you also may lose your bitcoins is your computer crashes.
Back up your wallet frequently if you go this route.Mobile wallets are convenient as you can pay with bitcoins on the go, and can sometimes just tap your phone near a register as payment.
However, they tend to take up a great deal of space on your phone and you can only store so many bitcoins at a time.
An online wallet is highly convenient in that your bitcoins can be accessed from anywhere and you can use your bitcoins for a variety of online purchases.
However, online wallets are susceptible to hackers.
Also, the organization you go through to set up your wallet will have access to your account and there have been cases of bitcoins getting stolen by private organizations.
For example, the bitcoin exchange Mt Gox was discovered to have been manipulating prices and committing fraud, stealing large numbers of exchange users' bitcoins.Make sure you choose a reputable provider if you set up a bitcoin account online.
Regardless of the wallet type you choose, you need to keep your bitcoin wallet secure.
There are a variety of safety precautions you can take to keep your wallet from getting compromised.
As previously stated, be very careful with online services.
Security breaches are common and online services generally do not provide security.
Choose your online services carefully and require many different types of authentication to access your wallet.Do not keep too many bitcoins in any one wallet at once.
Part of the reason bitcoin wallets are referred to as wallets is because it's important to think of your bitcoins as cash.
Just as you wouldn't go shopping with thousands of dollars in your wallet, it is probably unwise to store large amounts of bitcoins in your wallet.
Keep some bitcoins on your mobile, online, or desktop wallet but store other amounts in a more secure environment.Always back up your wallet if it's on your desktop.
If you back up your wallet online, encrypt any back ups to prevent hackers.Always use a strong password and write your password down somewhere safe so you will not forget it.
A strong password should be at least 16 characters long with a variety of letters, numbers, and punctuation marks.
Avoid using words easily linked back to you in your password, such as names of friends, family members, or pets., Bitcoin is still a relatively new technology, so prices are volatile.Once you purchase bitcoins, you cannot return them.
The average price of a bitcoin can increase and decrease unpredictably.
For example, in one week in November, 2015 Bitcoin went from $318 on a Monday to $492 on a Wednesday, falling back under $400 by Thursday.Do not put too much money into bitcoin, as it's seen as a high-risk asset.
Only buy enough bitcoins to make convenient online purchases.Any transactions you make with bitcoins are irreversible.
You should only do business via bitcoins with organizations you trust.
If you make a bad transaction or do not receive a product for your payment, you cannot get your bitcoins back.
About the Author
Debra Brooks
Debra Brooks has dedicated 3 years to mastering museums libraries. As a content creator, Debra focuses on providing actionable tips and step-by-step guides.
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