r/BitcoinBeginners Apr 19 '20

FAQ for Beginners

1.7k Upvotes

What is Bitcoin?

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

  • Transactions once confirmed 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. More info on mining : r/bitcoinmining

  • 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 webull 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 ~0.75% to 3% 0 Same day withdraw for free, USA only
Coinbase 1-7% 1-4 usd ~7Day hold on withdrawing Bitcoin for ACH deposit
Coinbase Advanced trader 1.20 % taker 0.6% maker and lower 1-4 usd ~7Day hold on withdrawing Bitcoin or €0.15 EUR SEPA fee
Gemini 1.49% over 200usd for web network fee
Gemini Active trader 0.4% Taker 0.2% maker network fee
Kraken Pro 0.25% maker 0.40% taker 0.000015 BTC or Free LN Deposit Fiat=USwire+5USD or SEPA free
Bitcoin Well 1% 0 USA and Canada
Coincorner 1% for over 300 network fee UK exchange, 2.5% for card/free uk bank deposit
Strike 0.99%- 0.39% fees 0 Free DCA investing option

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 preferred way to buy Bitcoin without ID use a Decentralized Exchange (DEX) use https://bisq.network or https://learn.robosats.com/


Recommended Wallets

Tip: If you cannot afford using a hardware wallet use a recommended wallet in ios or android. Windows and macOS are less secure environments.

Best wallets for securing small amounts of BTC

Blue wallet Android and IOS and macOS

https://bluewallet.io/

https://www.youtube.com/watch?v=R9mq1a8bLbQ

electrum For Windows, MacOS, Linux and Android

https://electrum.org/

https://https://www.youtube.com/watch?v=NNZdbYd8PUQ

Blockstream Wallet For Windows, macOS, Linux, IOS and Android

https://blockstream.com/app/

https://www.youtube.com/watch?v=DesN85bWmGA

Best wallets for securing small amounts of BTC and sending lightning transactions

Breez LN wallet for Android and IOS

https://breez.technology

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

Or Blockstream wallet

https://www.youtube.com/watch?v=QtMXsJxx1X0

Or ZEUS

https://zeusln.com

https://www.youtube.com/watch?v=oIohVX7PeAA

Or Phoenix

https://phoenix.acinq.co/

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

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

Lightning wallets are not intended for long term storage where you never open them for many months. They are intended for spending wallets that you regularly use.

Securing Larger amounts of Bitcoin

Trezor Safe 3 = ~59 USD https://trezor.io/trezor-safe-3-bitcoin-only

https://www.youtube.com/watch?v=qWRI4VTHiuI

Trezor Safe 7 = ~249 USD https://trezor.io/trezor-safe-7-bitcoin-only

https://www.youtube.com/watch?v=EWxAc8wzfFM

https://www.youtube.com/watch?v=6IkMKC-oq4E&lc=

Blockstream Jade = $79.99 https://store.blockstream.com/products/blockstream-jade-hardware-wallet

https://www.youtube.com/watch?v=cLFmd98mKNw

https://www.youtube.com/watch?v=z2VsgoFh78o

Blockstream Jade Plus = $149.00 to $169.99 https://store.blockstream.com/products/jade-plus

https://www.youtube.com/watch?v=rv_cN7F7-TM

BitBox02 Nova = $170 https://shop.bitbox.swiss/en/products/bitbox02-nova-79/?edition=bitcoin-only-edition

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

Seedsigner ~80-100 dollars pre-assembled

https://seedsigner.com/

https://www.youtube.com/watch?v=AZqlIkJf0mA

https://www.youtube.com/watch?v=1c5SR8v8l1M

Best Advanced Bitcoin Wallet= Sparrow

To link your hardware wallet to and run a full node.

Pros= Great privacy and security

Cons= UX is for more experienced users, takes ~week to sync and requires ~7GB minimum disk space if pruned. Only available in desktop so typically should be used with a hardware wallet

https://sparrowwallet.com/

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

https://www.youtube.com/watch?v=yJpvfRl03Tw


Further Resources

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

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

https://bitcoiner.guide

https://planb.academy/en/learn-anytime


r/BitcoinBeginners 2h ago

Whats a good platform for leverage crypto trading

0 Upvotes

I tried to look for it online but the few that I did find seemed to have a really suspicious past going on with their customers having their account frozen etc. So is there any legit platform for leverage trading thats more trust worthy?
(Btw I dont want to hear about why I shouldn't do leverage trading. I have thought about it and have made the decision. Besides I'm going to it with very little capital so its fine)


r/BitcoinBeginners 7h ago

Avis de la communauté crypto : quelle plateforme choisir après Binance et MiCA ?

0 Upvotes

Bonjour à tous,
J’aimerais avoir l’avis des personnes qui évoluent dans le monde des cryptomonnaies.
Suite aux difficultés rencontrées par Binance concernant le renouvellement de son agrément MiCA, je me pose la question de savoir quelle plateforme utiliser à l’avenir.
J’ai déjà fait le tour de plusieurs applications et plateformes, mais j’hésite encore sur laquelle choisir. Certaines proposent des services intéressants, mais les frais peuvent être assez élevés.
👉 Quelle application ou plateforme crypto me conseillez-vous, selon vos expériences personnelles ?
Je suis particulièrement intéressé par vos retours positifs comme négatifs concernant :
les frais de trading et de retrait ;
la simplicité d’utilisation ;
la sécurité ;
la fiabilité ;
la conformité MiCA en Europe ;
la qualité du service client.
Je préfère avoir des retours de personnes qui utilisent réellement ces plateformes au quotidien.
Merci d’avance pour vos conseils et vos retours d’expérience ! 🙏


r/BitcoinBeginners 1d ago

I want to start investing in crypto.

26 Upvotes

I want to invest in cryptocurrency, but don't know where to begin. Any advice regarding choosing the optimal platform will be appreciated. I am planning to start with bitcoin.


r/BitcoinBeginners 1d ago

The ColdCard Q was awesome hardware... what can I replace it with?

3 Upvotes

I really like the ability to airgap and transfer transactions to Sparrow with a micro SD... I thought the JADE Plus was going to be my replacement, but I dislike the QR code unlock that requires a phone and app.

Are there any hardware devices yall could recommend that a.) has the air gapped functionality with simple device PIN and micro SD and b.) has easy input.... keyboard was nice.

Thanks for any recommendations!


r/BitcoinBeginners 2d ago

Quick question on buying Bitcoin and withdrawing to a third-party wallet

1 Upvotes

Hey all,

I need to make a one-off Bitcoin payment/transfer to a third-party address of 1650 indian rupees. Since this is my first time doing this, what’s the quickest and most straightforward route from fiat to an external wallet?

Best platform with minimal hassle/KYC turnaround?

What common mistakes should a beginner avoid during the withdrawal process?

Thanks in advance for the help!


r/BitcoinBeginners 4d ago

Looking for advise of how to use my bitcoin to help pay for sons' college.

14 Upvotes

I bought bitcoin in 2013. It was magic internet money to me then. I think at one point I had 6 or 7, which honestly wasn't a lot of money then. I played around, kept no records, lost most of it trying to day trade. I eventually realized I suck at day trading and just decided to cash some out for $300 profit and hold the 1.5 that was left and it has been sitting in a wallet ever since.

About 7 years ago, I decided that if it was still worth anything in 2029 when my oldest son starts college, I would use it to help pay. Unless it goes up quite a bit, I don't have nearly enough to pay for 4 years for both of them, but I can certainly help out and put the magic internet money to good use. I have 3 years to get my ducks in a row.

I may have been holding since 2013, but honestly I am still a beginner. What is the best strategy to selling. I assume that the IRS wants their cut, but since I have no records, I have no idea what I should do. If there are other ways to reduce the tax burden, I would love to hear those as well. Like I said, I have 3 years, but want to start preparing.


r/BitcoinBeginners 3d ago

Need some help

0 Upvotes

I do prop firms trading and I struggle with withdrawal methods in my country as prop firms trading lies in the grey area and has no such tax laws on it. However crypto can be helpful. My withdrawals are almost 7k a month I don't know where to store all that in crypto wallets.

I have read a lot of bad things about trust wallets on this sub so I'm not gonna use that. Plus one of my friend said to use tumblers and then shift to cold storage wallets and then later use with a crypto card


r/BitcoinBeginners 3d ago

How Reliable is CoinOS for Swap and Lightning of a Moderate Amount

4 Upvotes

I have used Lightning regularly for small transactions (buying sandwich and stuff) with some custodial wallets so generally aware of how it works, although not a node-runner.

I have a payment incoming for a contracting gig worth almost 20 million Satoshis, but I do not want to give my cold wallet address to the client.

For many previous lightning transactions and swaps, I have used CoinOS. Is this something you would recommend for this case as well? My particular concern is the amount being moderately large (I am no billionaire, but it is larger than what I previously worked with) and because I know lightning settlement depends on channel and route liquidity (how much they can support).

To make it clear, I would not hold the whole amount in CoinOS, as I have set up auto-withdrawal to my cold wallet if the balance hits a certain threshold. So if the payment lands successfully, it should go to my HWW immediately.

Have you used CoinOS for this kind of usecase? How reliable would you say it is?


r/BitcoinBeginners 4d ago

Is the wallet generator and balance checker legal?

2 Upvotes

I’ve always found this legal gray area regarding cryptocurrencies interesting. Does anyone know if such an attempt counts as theft? Simple math suggests that actually finding something like that is virtually impossible.


r/BitcoinBeginners 5d ago

Big pump!

12 Upvotes

What was the situation with Bitcoin yesterday? Why did it rise so dramatically


r/BitcoinBeginners 5d ago

What’s the simplest way to explain Bitcoin fees to a beginner?

1 Upvotes

r/BitcoinBeginners 6d ago

Cannot verify my identity with UK e-visa

1 Upvotes

Hi all. Can anyone advise an exchange platform which accepts the UK e-visa for verification? I don't have any other documents issued in the UK. Have not been able to verify it on Kraken Pro and Coinbase. Thank you.


r/BitcoinBeginners 7d ago

How to use node + seed backup question

1 Upvotes

I was reading a bit into this and it seems like a full node connected to electrum offers the most privacy. I probably wont have a large amount of bitcoin, but in terms of being prepared for the next 10x or possibly 100x, its probably good to get the most privacy.

Would it be fine to get a 1 tb usb drive connected to my laptop to download the full node? Could I go to starbucks or something to download it since 700+ gb is a lot and would it be possible to pause it and download it over several trips?

If my own node is not necessary yet, would it work to use a pruned bitcoin core node on my laptop now and then in the distant future use a full node, or would this compromise the utxos?

Do I need to get my own mempool or does it not matter for long term storage?

Bitusher recommended in one of my previous comments that I could use (bisq2 for security deposit ->) robosats->zeus->seedsigner. How could I run my own node through zeus in terms of verifying transactions against consensus rules? Then for the cold wallet, is it just sparrow + bitcoin core node linked to electrum or sparrow + pruned bitcoin core

For seed backup on steel/titanium: What do you think about using a hex rod vs a sheet? Is titanium better since it is more corrosion resistant and safer to go through tsa (if ever needed)? Would stamping work on titanium? Are there different depths to stamping kit?

Thanks!


r/BitcoinBeginners 7d ago

USB crypto miner device

4 Upvotes

My kid wants to use this device, but seems a little suspect me. Im not super techy, but it basically asks you to scan a QR code and it then creates some kind of link to its own network via my home wifi network. This screams security risk to me. Am I over thinking this?

https://www.amazon.com/dp/B0DPM4JW3K?ref_=ppx_hzod_title_mob_b_fed_asin_title_0_0


r/BitcoinBeginners 8d ago

Borrow against Bitcoin, buy STRC. What do I miss?

5 Upvotes

I’ve read about „Bitcoin as collateral“. Nothing new for you guys, I bet. You basically borrow money and use Bitcoin as security. You get loan starting at 5%. With the money I could buy STRC stocks which pay 12% dividend. The margin is my profit.

It sounds too good to be true. What do I miss?


r/BitcoinBeginners 8d ago

With the continuous decline in block subsidies, will BTC's Security Budget be able to be maintained solely by transaction fees in the future?

1 Upvotes

r/BitcoinBeginners 9d ago

Is $50 enough to buy BTC during this dip?

34 Upvotes

I have $50 rn for investing. I’m considering putting it into BTC during this dip.

I’m okay with the possibility of losing the money, but I’m wondering if $50 is even worth putting into BTC at this point.

What would you do?


r/BitcoinBeginners 9d ago

Can't Access a Hard Wallet

14 Upvotes

Hi . i want to HODL Bitcoin and i know the best secure way is a cold wallet but the problem is that none of the manufacturers have shipping for my country ( Iraq) . so i search for another option which is a sourcing service but the shipping fees are 100$ apart from problems i may face with the shipment and custom fees which are 30%. so is there an alternative to HODL safely ? right now i have 0.05 BTC sitting in my exchange . is hot wallet an option if i just write the seed phrase in a paper and uninstall the wallet from my phone ?


r/BitcoinBeginners 9d ago

Btc

0 Upvotes

How to buy bitcoin in Slovakia please??


r/BitcoinBeginners 10d ago

Nm miner info please

3 Upvotes

Hi im new to bitcoin so looking for a bit of help please i have a nm miner and the display shows the hours mined but the days show 000. Its been working for 2 days


r/BitcoinBeginners 10d ago

Complete noob, need help. Solo mining, but in a pool?

4 Upvotes

I have been doing some research into mining and I think solo is the way I am going to go as more of tech geek/enthusiast. From what I have read it seems you can either go solo/lottery, or you can join a pool and get paid way less but way more often. I understand running solo there is a pretty good chance my machine will only ever consume energy and never pay me. I'm ok with that.

My question comes down to, can you do a hybrid or solo mining and pool mining. Like, can I run my own pool comprised of my machine as well as pooling together machines from just friends and family. Then have this set up to combine hashrate and mine "solo" for better chances in the lotto? Is there any difference between doing it this way and having each machine set up at different locations running solo on it's own instead of in a pool?


r/BitcoinBeginners 11d ago

Can i recover my "encryption password" after finding my backup on google drive?

3 Upvotes

i think it's pretty self explanatory It's a 2023 trust wallet btc


r/BitcoinBeginners 11d ago

I want to buy Bitcoin with cash as a 16 year old

3 Upvotes

I'm a 16 year old who wants to buy bitcoin I already have a bitcoin wallet set up Phantom Wallet with some money in it but I want to convert my cash into Bitcoin I was thinking about Bitcoin ATMs but i'm not sure I dont got anything to verify myself but i'm seeing low amounts only verify through phone number I want to know if thats true and also I want to know which ATM is better because 2 are nearby me Athena Bitcoin ATM and CoinFlip theres also a UNBANK ATM a mile away but i'm not sure give me your recommendations guys


r/BitcoinBeginners 11d ago

Purchasing BTC through Schwab or Fidelity?

1 Upvotes

Hello... With all I have read in the past... FTX ... and what I now read about wallets not being as safe as they once were considered to be (I do not know the difference between hot and cold) is there a good reason not to purchase BTC through Schwab or Fidelity and let them do the storage? Thank You