The best way to learn about bitcoin, would be to jump in and get several in your “pocket” to get a feel for how they work.
Despite the hype about how difficult and dangerous it could be, getting bitcoins is easier and safer than you might think. In plenty of ways, it really is probably easier than opening a merchant account at a normal bank. And, given what has been happening in the bank operating system, it really is probably safer too.
There are a few what to learn: getting and using a software wallet, learning how to receive and send money, learning how to buy bitcoin from the person or an exchange.
Preparation
Before getting started, you will have to get yourself a wallet. You can do this easily enough by registering with one of the exchanges that will host wallet for you. And, although I think you are likely to want to have one or more exchange wallets eventually, you should start with one all on your own computer both to obtain a better feel for bitcoin and because the exchanges are still experimental themselves. When we reach that stage of the discussion, I will be advising that you get in the habit of moving your cash and coins off the exchanges or diversifying across exchanges to help keep your money safe.
What is a wallet?
It is a solution to store your bitcoins. Specifically, it is software that has been made to store bitcoin. It could be run on your pc, laptop, mobile device (except, as yet, Apple) and can also be produced to store bitcoins on things like thumb drives. If you are concerned about being hacked, then that is clearly a great option. Even the Winklevoss* twins, who’ve millions committed to bitcoin, put their investment on hard disks which they then placed into a safety deposit box.
*The Winklevoss twins will be the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
What do you have to know about having a bitcoin wallet on your pc?
Below you can download the initial bitcoin wallet, or client, in Windows or Mac format. These are not just wallets, but are in fact the main bitcoin network. They will receive, store, and send your bitcoins. You can create one or more addresses with a click (an address is a number that appears like this: 1LyFcQatbg4BvT9gGTz6VdqqHKpPn5QBuk). You will notice a field where you could copy and paste lots like this from a person you wish to send money to and off it will go straight into that person’s wallet. You can also create a QR code that will let someone take a picture with an app on their phone and send you some bitcoin. It is perfectly safe to give these out – the address and QR code are both for my donations page. Feel absolve to donate!
NOTE: This type of wallet acts both as a wallet for you and as part of the bitcoin system. The reason why bitcoin works is that every transaction is broadcast and recorded as lots over the entire system (meaning that every transaction is confirmed and made irreversible by the network itself). Any computer with the proper software can be part of that system, checking and supporting the network. This wallet serves as your individual wallet and in addition as a support for that system. Therefore, be equipment that it will take up 8-9 gigabytes of your computer’s memory. After you install the wallet, it will require as much as a day for the wallet to sync with the network. This is normal, does not harm your personal computer, and makes the system all together more secure, so it’s a good idea.