Bitcoin Setup Guide
Bitcoin Setup Guide
We understand the prospect of bitcoin can be confusing as it’s a fairly fresh, but increasingly relevant form of payment. We’ve put together this effortless to go after, step-by-step guide to ease you through the process so you can benefit from the versatility and ease of using bitcoin today!
In a nutshell, Bitcoin is a currency that isn’t backed by any government, and is therefore less influenced by world politics and financial markets. It can be transferred instantly and securely inbetween any two people anywhere in the world with a few clicks. It’s fairly elementary to set up, and very effortless to use once it’s been set up.
In summary, you create yourself a wallet (like a bank account), purchase bitcoin with your credit card or bank account to put into that wallet, and then use the bitcoin in your wallet to pay for whatever your heart desires!
For the average user, we’ve outlined the basic steps to go after in order to get embarked with using bitcoin as a form of currency. If you want comprehensive technical information on how bitcoin works, you can check out a detailed movie here.
Step one – The Wallet
Your “Bitcoin Wallet” is where all your money is stored. Your wallet is basically a bank account, and has a bank account number. The only difference with a standard bank account is the bitcoin account number consists of a seemingly random string of numbers and letters, whereas a bank account number is structured based on bank, branch, transit number, etc. Bitcoin wallet “addresses” tend to look something like this:
The complexity of the wallet address makes it almost unlikely to send bitcoin to the wrong recipient. If the address is written incorrectly, it simply will not send!
Copy + Paste is your friend here
The easiest, and most common way to create a bitcoin wallet is as goes after:
- Go to Blockchain.info and click ‘Wallet’ followed by ‘Create A Free Bitcoin Wallet’.
- Pack in the relevant details and create a SECURE password.
- Click proceed and your wallet is created. Make a note of your wallet ID, it will be emailed to you as well.
- You can now access your wallet by logging in.
Begin by creating a wallet on Blockchain.info
Step two – Adding Bitcoin To Your Wallet
Before you can pay anyone with your wallet, you must very first buy bitcoin and add it to your wallet. You can’t use money you don’t have, so make sure to keep your wallet stocked up!
The wallet identifier you received after creating your wallet should NOT be collective with anyone. Next to the Send button on the main page in your wallet, there’s a Receive button, which provides a receive address you can publicly share, as well as a QR code if you’re using a phone to share your address. The receive address is what you will need to buy Bitcoin from a bitcoin exchange or vendor, and switches periodically for security reasons!
The two most popular bitcoin vendors (exchanges) in the United States are:
- Coinbase – A large US based exchange that requires ID verification and deposit via bank wire. Instant verification is possible with some banks. Coinbase is the world’s most popular way to buy and sell bitcoin.
- LocalBitcoins – One of the only places with no ID verification. You can purchase Bitcoins from thousands of different vendors in your area and pay via a diversity of means, including: bank wire, cash deposit, cash in mail, cash in person, PayPal, MoneyGram, store cards etc.
Paying for bitcoin on these sites is very similar to buying products from any other online retailer, and it’s fairly straight forward. Make sure you’ve got your bitcoin address handy!
The basic steps are as goes after:
- Create an account on one of the sites mentioned above
- Link it with your bank account, paypal, or credit card, depending on what they ask for or your preference
- When it asks you where you want to send the bitcoin once it’s purchased, put in the Receive Address (see photo below)
- Once the transaction is done, you’ll see the bitcoin in your wallet!
Note: If you determine to use coinbase, make sure to send your bitcoin to your blockchain address and not keep the bitocin in your coinbase! Most people don’t have a coinbase account and it creates a lot of complications when you attempt to send someone bitcoin directly through coinbase. Send and receive through blockchain only!!
What you’ll see in a receive dialogue box on Blockchain.info
Step three – Paying Someone
Paying someone is simply a matter of:
- Logging into your wallet on Blockchain
- Clicking the send money button
- Coming in the amount you’d like to send in either bitcoin or US dollars (specific to 0.0000000001 BTC or less than 1/Ten th of a US cent!)
- Injecting the recipient’s wallet address (recall to copy + paste!)
- Pressing send!
The payment then needs to be confirmed, which usually takes up to a half hour. This step is similar to the “Pending Authorized Transactions” step with a credit card.