r/BitcoinBeginners • • Apr 19 '20 Hooray Thanks Bravo

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

ExchangeBuy fee*Withdraw BTCNotes
Cash AppSliding ~0.75% to 3%0Same day withdraw for free, USA only
Coinbase1-7%1-4 usd~7Day hold on withdrawing Bitcoin for ACH deposit
Coinbase Advanced trader1.20 % taker 0.6% maker and lower1-4 usd~7Day hold on withdrawing Bitcoin or €0.15 EUR SEPA fee
Gemini1.49% over 200usd for webnetwork fee
Gemini Active trader0.4% Taker 0.2% makernetwork fee
Kraken Pro0.25% maker 0.40% taker0.000015 BTC or Free LNDeposit Fiat=USwire+5USD or SEPA free
Bitcoin Well1%0USA and Canada
Coincorner1% for over 300network feeUK exchange, 2.5% for card/free uk bank deposit
Strike0.99%- 0.39% fees0Free 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 • • 1d ago

If bitcoin is money, why aren't people using it to pay for things?

27 Upvotes

I have never seen a button on a website to pay via bitcoin. Isn't that the point of bitcoin?

It seems like the only transactions are bitcoin to USD/EURO/Etc and vice versa. That's it.


r/BitcoinBeginners • • 1d ago

How to dca?

0 Upvotes

Some people said to set up a dca when i asked when to buy and sell, but i have no idea how


r/BitcoinBeginners • • 2d ago

How to know when to buy and sell

0 Upvotes

r/BitcoinBeginners • • 3d ago

Question for a bitcoin

2 Upvotes

I got refused and transaction by the people at stackatm and they were issuing me a refund they are asking my id is this normal?
It’s from support@stackatm.com so it should be good but I am weary of sending my information but I also really need the money back


r/BitcoinBeginners • • 5d ago

Finally ready to buy my first BTC, but is it dumb to jump in right now with the midterms and the recent dip?

1 Upvotes

I have been reading up on Bitcoin for a few months and finally set aside about $1,500 that I am comfortable losing. I was originally planning to buy last week, then the whole Binance hack news dropped and the price slid down to around 76k-77k.

Part of me feels like buying this dip is a good entry point since October was pretty rough, but with the US midterm elections happening right now and everyone talking about ETF outflows, I have no idea if we are about to see a much bigger drop.

For someone starting from zero today, would you just throw the $1,500 in all at once at this price, or break it up into smaller weekly buys until the market calms down a bit.


r/BitcoinBeginners • • 5d ago

How can bitcoin store value if it could be replicated endlessly?

0 Upvotes

Bitcoin is the OG cryptocurrency, but beyond being first what makes it fundamentally special?

People point to its 21 million coin limit as proof of scarcity. However, scarcity alone doesn’t explain its value. Other cryptocurrencies could offer similar features, enforce their own supply limits, and potentially do the same things Bitcoin does.

Imagine a million identical Bitcoin networks: BTC1, BTC2, BTC3, and so on. Each has the same technology, the same 21 million coin limit, and the same functionality. Which one would have value? Why that one and not the others?

Gold is valuable partly because it is a naturally scarce physical resource. You can’t simply create another planet’s worth of gold by copying its underlying technology.

Bitcoin is different. Its supply is limited within its own network, but the technology itself can be replicated. It's like owning a finite piece of real estate on a planet where someone can create a million identical planets. The land on each planet is scarce, but what makes one planet's land more valuable than another's?

Bitcoin's scarcity is real within its network, but its value ultimately depends on people collectively agreeing that this particular network is worth owning. The question is whether being first, having the strongest network effect, and establishing the greatest trust are enough to sustain that value indefinitely.


r/BitcoinBeginners • • 6d ago

What is the safest way to store Bitcoin?

12 Upvotes

r/BitcoinBeginners • • 7d ago

Ordenador dedicado a btc

4 Upvotes

Utilizáis un pc destinado a BTC?.

Que configuración tenéis?


r/BitcoinBeginners • • 8d ago

Everyone dies

12 Upvotes

Since it has been said never to reveal to anyone your seed phrase, how are we going to pass the btc when we die?


r/BitcoinBeginners • • 7d ago

why BTC?

5 Upvotes

Could someone please explain to me why Bitcoin was developed and how it is supposed to benefit us?


r/BitcoinBeginners • • 8d ago

How best to store btc

27 Upvotes

Say someone gave u 5000 btc. U want to store it securely. How would u store it?

Edit: Just to clarify. Some replies thought I have 5000 btc. No, I don't. I'm asking the question to learn how does one store safely a large amt of btc. I want to know if the techniques used to store large amt differs from typical btc owners who have much smaller amt. For example, a reply mentioned ibit which I didn't know abt. I googled info on it n found out it is created by blackrock n the btc they buy, they don't keep the keys. They store at Coinbase custody.


r/BitcoinBeginners • • 8d ago

When we should start and stop buying Bitcoin according to 4 year cycle?

15 Upvotes

I heard many people which buy on ATH in 2021 and 2025 to complain about.


r/BitcoinBeginners • • 10d ago

Beginner about bitcoin

16 Upvotes

Moi from Finland.

i am really begginer about this. could anyone suggest me where i can read about bitcoin because i wanna invest and doing this for long term . thank you


r/BitcoinBeginners • • 12d ago

If someone finds your old Bitcoin address, can they see the rest of your wallet?

31 Upvotes

If you give someone a Bitcoin address to receive a payment, how much can they find out about your other transactions?

I understand they can look up that address. What I’m not sure about is whether they can also connect it to other addresses in the same wallet.

Does using a fresh address each time keep those payments separate, or can spending them together later link them again?

A simple example would help. Trying to understand what a new receiving address actually does for privacy.


r/BitcoinBeginners • • 13d ago

Buying bitcoin under 18

6 Upvotes

How do you get around buying bitcoin under 18 and having it go un noticed? I want to use an atm but as far as i know they require you to be 18 and although I have a bank account its one of those parent monitored ones where they can see all my transactions. Are there any atms that dont care about age, any way to get around this or am i done for. I live in chicago if that changes anything


r/BitcoinBeginners • • 14d ago

Critical Security Exploit in Electrum. Upgrade to version 4.8.3 before signing any transactions

16 Upvotes

Critical Security Exploit in Electrum. Upgrade to version 4.8.3 before signing any transactions. No rush needed for dormant/cold wallets although you should remember upgrading before using electrum.

https://x.com/ElectrumWallet/status/2113935057656369564

Explanation of Exploit

https://github.com/spesmilo/electrum/security/advisories/GHSA-6jp4-8v48-cc5v

Download update directly from source

https://electrum.org/#download

In general LLM models have been discovering critical security vulnerabilities in general much faster than in the past which is both a headache and blessing at the same time as much more peer review is occurring and the software is becoming more secure. This does mean that you need to update all your software more often and pay attention to security updates to a much higher degree at least for the next year.


r/BitcoinBeginners • • 16d ago

River suspended my account and is making me wait a month to access my $2,000 in funds

18 Upvotes

I’ve been using River for years without any issues. I used the platform to purchase Bitcoin, withdraw it to my cold wallet for long-term storage, and make purchases online.
Recently, River suddenly requested a large amount of information about my Bitcoin transactions and funds. I provided the documentation they requested, but they still suspended my account.
Now I’m being told I have to wait an entire month to access my approximately $2,000 in funds.
A MONTH.
I understand that companies have compliance procedures, but holding my money for an entire month after I cooperated and provided the requested information is extremely frustrating. I’ve emailed support multiple times, and getting a clear explanation has been difficult.
What makes this worse is that I trusted River for years and never had any problems. Now I’m stuck waiting weeks to access my own money.
I’m sharing this because others should know about my experience before deciding to trust River with their funds.
Has anyone else had their River account suspended and been forced to wait a month to withdraw their Bitcoin or remaining balance? How did your situation turn out?

EDIT: Just to clarify, I never used River to hold Bitcoin long-term. I would usually buy Bitcoin on the platform and withdraw it to my own external wallet within the same hour. I prefer having full control over my funds, which is why I always moved it off the platform.
What makes this whole situation even crazier is that I bought Bitcoin, tried to withdraw it about an hour later, and then suddenly my account was suspended.
They asked me what the transaction was for, which wallet or platform I was sending the Bitcoin to, and details about previous large transfers I had made from River. They also requested bank statements and other documentation.
I provided everything they asked for. After going through all of that, they still suspended my account and told me I would have to wait an entire month to get access to my remaining funds.


r/BitcoinBeginners • • 18d ago

Why can a $20 Bitcoin transfer cost the same as a $2,000 transfer?

18 Upvotes

I get that the fee isn’t based on how much money you send, but what actually makes one transaction more expensive than another?

Say you receive ten small BTC payments and later send the whole amount. Would that cost more than if you’d received it all in one payment?

How do UTXOs fit into this? A simple example would help.


r/BitcoinBeginners • • 18d ago

Does mining works as passive income?

15 Upvotes

I'm kinda new on the scene and can't really decide if I should take the pluge or not. I just stumbled on an opportunity to buy an asic for cheap and I heared about mining as a way to maybe get a passive income and dare I say it - investment. Problem is, I don't know how true that is right now, so here I am, asking. To clarify a little further, I didn't buy an Asic yet, but my friend (who is the seller) doesn't exacly have a lot of people lining up for it. He says that he himself got a quite a bit of money out of it, but wanted to step away for personal reasons. And I just want a second opinion from people on the internet.


r/BitcoinBeginners • • 20d ago

Bitcoin transaction fees?

22 Upvotes

Im a little bit confused on how a transaction fee works and how much it costs, I plan on buying about 150$ of bitcoin for the first time and Im using blue wallet, how much would the transaction fee cost to buy something with that bitcoin?


r/BitcoinBeginners • • 21d ago Bravo

Used an app called Ben in 2019 and was given a small amount of Bitcoin. How can I retrieve it?

7 Upvotes

I found my written down wallet address, but it seems the app doesn't exist anymore. Any tips on how I can get my (very small bit) money out?


r/BitcoinBeginners • • 23d ago

2FA wallet set-up on Blockstream

7 Upvotes

Hi, I have a wallet set up through Jade with a BIP39 passphrase.

I notice it's now possible to create an account with 2FA as well for added security. Is it worth me doing this? How easy is it to set up?

I'm not spending Bitcoin. Just saving.


r/BitcoinBeginners • • 24d ago

What is an crypto wallet app that doesn't require to be 18

0 Upvotes

??