Learn a Little about Bitcoin
Bitcoin, Bitcoin, Bitcoin! More and more people are talking about it these days. I am far from a blockchain developer, but I know enough to help anyone interested in knowing more jump into learning — especially now that Ally Drez accepts cryptocurrency, Bitcoin (BTC) and Bitcoin Cash (BHC) specifically!
I continue to stumble onto a vast amount of information to be learned in the realm of blockchain technology. Today quite a few companies use it for a variety of different reasons. If you do some research, you will quickly learn this technology isn’t brand new and dates back to the early 1990’s. To see more about that, search for “Stuart Haber and W. Scott Stornetta.” This will provide you plenty of resources to learn of the first use or form of blockchain.
In 2008, Satoshi Nakamoto emerged with Bitcoin, the digital ledger application, and blockchain began to gain recognition. This digital currency was designed as a “peer-to-peer electronic cash system.” If you are interested in reading the Satoshi Nakamoto white paper, here is a link. Fun fact: We don’t know if Satoshi is a person or a group!
In my opinion, blockchain technology is changing our world! I have personally experienced the effects, so maybe this is why I enjoy learning more and more about it. I love starting my day with a cup of coffee and a talk show that provides low-level information while bringing it home in laymen terms — the important part being “laymen terms!” I will recommend some of my favorites below.
If you are like me, you want to understand as much as you can before you try anything new. Therefore, I will share some videos on what blockchain is and how to purchase (although I am not recommending you do so). And lastly, I’ll share some resources I use for learning.
I watch videos on the LBRY, which is a great way for you to experience blockchain in action. Here is my personal invite link: click here!
You don’t have to ditch YouTube, but as you get to know blockchain, it’s fun to experience one of the many new ways it’s valuable besides Bitcoin. If you want to learn more visit the FaQ section of the LBRY website.
Blockchain: How does it work?
I am a firm believer in understanding, at least from a top-level, what I spend my money on. What I have discovered in my journey toward understanding is how this power horse known as Blockchain is used for so much more than the cryptocurrency it spits out. Watch some videos on the topic to kick start your learning!
Where do I buy Bitcoin?
You can use an Exchange to buy, sell or store coins. However, anybody can have cryptocurrency sent to their private wallet.
Private Wallet
A private wallet can be installed directly on your device (mobile or computer). There are a variety of companies that provide them, such as Electrum or Electron Cash, which are computer only. If you use one of these sources, upon installation, you will be provided with your “seed.”
Important: The seed is a sequence of 12 random words. If you take away anything from this it should be this: NEVER give this sequence out and NEVER lose it! If you do, and you loose access to your wallet, you can sadly say goodbye to the coins you had there. There is no customer support, it will just be gone.
Pros: You can send and receive using your wallet. Your coins are safe with you and only you.
Cons: You can’t buy, only receive. If you lose your seed, you lose your coins
Exchange
An exchange is owned by an entity, so when picking one be extremely mindful of who that entity is. I have heard some horror stories from the early days of cryptocurrency of exchanges diappearing, along with the person’s coins. I mean no offense to the way things are done in other countries, but due to living within the United States, I tend to prefer companies subjected to the same laws I am. This is why the two exchanges I buy and sell coins on are incorporated U.S.-owned.
With an exchange, you can easily send and receive money. However, if you want to spend currency at a store easily, you will want to make sure that the exchange offers a mobile wallet. Otherwise, you will have to manually enter in the address. The two exchanges I mentioned have a mobile version.
Pros: You don’t have to remember your password. You can actually have a reset link emailed to you, although you absolutely want a 2-factor authentication setup. You don’t have to manage the wallet (keep it backed up or updated).
Cons: Your investments are within someone else’s resoponsiblity. Some people will actually keep their coins in a private wallet, and only keep that which they want to buy/sell in the exchange.
Resources: Listen to experts and learn!
Like anything, the more you dive in and absorb the language, the more you will start to understand. I spend most mornings with a cup of coffee and a podcast or video on one of the various topics I like to engage. I still have so much to learn within the sphere of blockchain and its potential. However, the more I learn the more I trust my investments. Disclaimer: I am not encouraging anyone to purchase cryptocurrency or to rely on or use any sources that I have provided. I am only writing an article to share what I have learned and or personally do.
I watch many other resources, but for now, here are three I want to share. This list might grow as I become more comfortable with the understanding I have.
For the nerds out there: @3blue1brown