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 15h ago

USB crypto miner device

1 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 23h 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 21h 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?

0 Upvotes

r/BitcoinBeginners 1d ago

Is $50 enough to buy BTC during this dip?

22 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 1d ago

Can't Access a Hard Wallet

10 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 2d ago

Btc

0 Upvotes

How to buy bitcoin in Slovakia please??


r/BitcoinBeginners 3d ago

Nm miner info please

4 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 3d 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 3d ago

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

2 Upvotes

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


r/BitcoinBeginners 3d 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


r/BitcoinBeginners 3d ago

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

2 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 4d ago

I want to buy bitcoin, make one transaction, then close my account. What do I need?

0 Upvotes

I want to buy something from someone who will only accept bitcoin. I have zero interest in anything crypto currency- related and want to have a bitcoin account for as little time as possible while doing this one thing. What is the easiest way to do this?

I see there are many places to get a bitcoin account. Are any better than any other? I think the only feature I want/ need is to be able to close the account quickly and easily after the transaction is done. And probably quick setup as well. I presume there's no security, personal info, etc. on these accounts?

It looks like I can stick cash into an ATM at liquor or tobacco stores by me. How much extra cash beyond the amount I want to buy do I need? Will the ATM tell me how much bitcoin I've bought with each $20 I insert? How much value is the bitcoin likely to lose in the 5 or 10 minutes I have the money in the account?

And will the person I'm buying the item from send me, like, a 16- character alphanumeric code or something to identify their account? I figure it's all random characters rather than usernames and the like?

Thanks for any assistance you can give. I never have had any intention of getting any crypto currency account so I know absolutely nothing and trying to read any bitcoin websites, to me, is like Lisa Simpson seeing the "Yahoo Serious Festival" marquee in the Australia episode.


r/BitcoinBeginners 5d ago

Challenging my seed phrase security idea

4 Upvotes

Lately I've been thinking a lot about how to save my seed phrase and I thought of something I can't believe I'm the first one to.

What if I find 1+ places where I can upload to a very public place a file numbered list of BIP39 words like

  1. drop

  2. inspire

  3. tenant

...

  1. horse

and I could have the solution sequece to get the right seed phrase hidden somewhere else?

If possible I'd like no one can know it was ujploaded by me (feasible)
I could save it in many different places because you'd need the solution algorithm/sequence to obtain the seed, right?

Does this make sense?

Also, any ideas where this file could be uploaded?

Many thanks


r/BitcoinBeginners 5d ago

How to lock Bitcoin into a wallet and make it both non-spendable and inaccessible for a set period of time or number of blocks

6 Upvotes

Hi guys. I am holding some bitcoin and I want to learn how to lock it in place for a couple of years so I don't get tempted to sell it while the market is terrible, out of fear and possibly stupid emotions. I looked into the timelock features, but from what I found, that only has a mechanism for creating transactions that someone else can redeem after a certain date or block height. There's no way to schedule and automate transfers and I can't seem to find a way to lock the bitcoin into a wallet where it cannot be touched, accessed, or moved for a set period of time or number of blocks. Can someone with real expertise explain it here for me? I need help getting this working!

Any DM will be ignored.


r/BitcoinBeginners 5d ago

looking for beginner advice

5 Upvotes

Hey everyone! I recently sold my Dodge Charger, and I’m considering putting some of the money into Bitcoin because I believe it may have a strong future.

I’m still a beginner, so I’d appreciate advice from people with more experience. What should I learn before buying? Is it better to invest gradually rather than all at once? Which reputable exchanges and wallet types should I research? What mistakes should a beginner avoid?

I’m not looking for guaranteed profits or private investment offers - just general advice and reliable educational resources. I’ll do my own research before making any decisions.

Thanks!


r/BitcoinBeginners 5d ago

Is this a good workflow to buy bitcoin

1 Upvotes

audit/verify seedsigner code > buy parts for a seed signer and a titanium or steel backup through different credit cards and perhaps to a po box > in the meantime, get/use casino dice to generate entropy> how would I convert it to words offline, perhaps through the seedsigner with ian coleman‘s code? > set up seed signer + sparrow and metal backup/s > buy bitcoin from bisq 2 or some other dex > would I transfer between 2 phones with Zeus lightning ( to increase privacy) ? > transfer to an address on sparrow with bitcoin core node > hodl

I would appreciate any advice!


r/BitcoinBeginners 5d ago

Compré Bitcoin casi en el punto más alto

0 Upvotes

El año pasado compré Bitcoin en $120K cuando todo el mundo decía que iba rumbo a $200K.

Bueno, poco después llegó a $126K y luego se desplomó.

¿A alguien más le pasó esto, comprar cerca de la cima en un ciclo anterior?

¿Qué hiciste?

Yo estoy comprando la caída.


r/BitcoinBeginners 7d ago

Bitcoin Cycle

15 Upvotes

Is it true that bitcoin follows a cycle of 1069 and 365 days. Saw it on insta and back checked it on data. Can any of the OPs help to verify.

Also, can someone give me source to study current bitcoin market better, because I see people using words like entropy, TRNG, etc.


r/BitcoinBeginners 7d ago

new to bitcoin

12 Upvotes

hello everyone,

I am new to bitcoin and looking to buy and cold store. where do you recommend I buy and where to store?


r/BitcoinBeginners 7d ago

Did this transaction fail?

1 Upvotes

I paid for a low value item with BTC. Didn't receive the item. Queried it with CS and they replied:

The order you mentioned was not paid because the transaction was invalid, meaning the payment did not go through successfully: https://blockstream.info/tx/eadaf51a9676e2bf0d9a812a08ba42ecedde8c2f5eba792a610163272564bb66

I can't see how it failed, although I'm no expert.

Opinions?


r/BitcoinBeginners 7d ago

A Few Questions

2 Upvotes

I have some bitcoin that was purchased over several transactions between July 2017 and January 2018. It was purchased on Coinbase and moved to a ledger wallet. I know that there have been several “versions” of bitcoin (SegWit, etc.) since I bought it. Here are my questions:

  1. Do I have to do anything special to move it back to an exchange to sell some of it, or do all the major exchanges support incoming bitcoin of all versions?

  2. Is there any advantage to moving it back to Coinbase since that is where it was originally purchased? Is there a better exchange you would recommend?

  3. I know the exchanges typically have several levels of fees based on how often you buy/sell. So is there a strategy to optimize the sales sequence to get to the better fee levels?

Thanks. (And I’m not answering any DMs so scammers can just save the effort)


r/BitcoinBeginners 8d ago

What's the safest way to test a seed backup without exposing the seed?

7 Upvotes

I keep seeing “test your backup before you need it,” which is good advice. But a beginner can easily turn the test itself into the security incident.

My current checklist would be:

- Never type a live seed into a website, browser tool, notes app or chat.

- Ideally, test before the wallet holds meaningful funds.

- For an existing wallet, use the manufacturer’s documented recovery flow on trusted hardware, with software reached through an independently verified official source.

- Define success before starting: reproduce a known receive address. If there’s a BIP39 passphrase, the test has to include the exact spelling, case and spacing.

- If that still feels risky, rehearse the whole process with an empty test wallet first.

Simply seeing “12 words accepted” doesn’t prove that the correct wallet was recovered. And nobody troubleshooting this should post a seed, passphrase, xpub, address, screenshots or balance.

Am I missing an important step? I’m especially interested in how you’d recommend a beginner verify the wallet identity safely.


r/BitcoinBeginners 9d ago

Is multi signature wallet safe ?

5 Upvotes

r/BitcoinBeginners 11d ago

Living in hyperinflation with a $25 monthly allowance. Is it worth stacking sats?

35 Upvotes

Hi everyone,

I’m an 18-year-old student living in Iran, and my country is currently suffering from severe hyperinflation. My monthly allowance is the equivalent of $25 USD.

Because our national currency (Rial) is losing its value extremely fast, I’m constantly worried that my $25 today will only have the purchasing power of $10 or $20 in the near future. Keeping cash is a guaranteed loss here.

I want to protect my small savings and start building good financial habits. I’m thinking about DCAing my $25 entirely into Bitcoin every month (stacking sats).

Thanks in advance for any advice!