Bitcoin Basics

Things you need to know

Important Bitcoin Basics and How It All Works

➲ No Central Command

Bitcoin isn’t owned by anyone. Think of it like email. Anyone can use it, but there isn’t a single company that is in charge of it. Bitcoin transactions are irreversible. This means that no one, including banks, or governments can block you from sending or receiving bitcoins with anyone else, anywhere in the world. With this freedom comes the great responsibility of not having any central authority to complain to if something goes wrong. Just like physical cash, don’t let strangers hold your bitcoins for you, and don’t send them to untrustworthy people on the internet.

➲ Secure Your Wallet

There are several different types of Bitcoin wallets, but the most important distinction is in relation to who is in control of the private keys required to spend the bitcoins. Some Bitcoin “wallets” actually act more like banks because they are holding the user’s private keys on behalf. If you choose to use one of these services, be aware that you are completely at their mercy regarding the security of your bitcoins. Most wallets, however, allow the user to be in charge of their own private keys. This means that no one in the entire world can access your account without your permission. It also means that no one can help you if you forget your password or otherwise lose access to your private keys. If you decide you want to own a lot of Bitcoin it would be a good idea to divide them among several different wallets. As they saying goes, don’t put all your eggs in one basket.

➲ Bitcoin Price

Like everything, Bitcoin’s price is determined by the laws of supply and demand. Because the supply is limited to 21 million bitcoins, as more people use Bitcoin the increased demand, combined with the fixed supply, will force the price to go up. Because the number of people using Bitcoin in the world is still relatively small, the price of Bitcoin in terms of traditional currency can fluctuate significantly on a daily basis, but will continue to increase as more people start to use it. For example, in early 2011 one Bitcoin was worth less than one USD, but in 2015 one Bitcoin is worth hundreds of USD. In the future, if Bitcoin becomes truly popular, each single Bitcoin will have to be worth at least hundreds of thousands of dollars in order to accommodate this additional demand.

➲ Bitcoin Exchanges

There are several ways to buy Bitcoin, but trusted exchanges are a great way to acquire Bitcoin. Because there are inefficiencies in the traditional banking system, exchanges will sometimes have slightly different prices. If the difference is too great, traders will buy low on one an exchange and sell high on another and close the gap. If an exchange constantly has substantially different prices than others, it is a sign of trouble and that exchange should be avoided. As with everything else, do your research and find an exchange you can trust. It’s also a good idea not to use an exchange as a wallet. Move your Bitcoin to your personal wallet so that you have control over your funds at all times. You can view our list of Bitcoin exchanges here.

➲ Bitcoin Isn't Completely Anonymous

Because all Bitcoin transactions are stored on a public ledger known as the blockchain, people might be able to link your identity to a transaction over time. Some companies offer various tools such as Bitcoin mixers to help achieve greater privacy, but it takes a huge amount of effort to use Bitcoin anonymously. You may want to follow your country’s tax regulations regarding Bitcoin in order to avoid trouble with the law, but you have the power not to should you choose to take that risk. To improve privacy, most newer Bitcoin wallets will use a new Bitcoin address each time someone sends bitcoins to you.

➲ Unconfirmed Transactions

Bitcoin transactions are seen by the entire network within a few seconds and are usually recorded into Bitcoin's world wide ledger called the blockchain, in the next block. While it’s possible that a transaction won’t be confirmed in the next block, in the vast majority of circumstances it is fine to accept a transaction as soon as it has been seen by the network. Unlike traditional payment systems, Bitcoin transactions are lightning fast and can be sent globally. Bitcoin is still relatively new, but with each passing day the technology becomes more reliable. It is more and more unlikely that a major bug will emerge in the system as time goes by, and people can trust the technology more with the passing of time. Each month people transact hundreds of millions of dollars worth of Bitcoin.

Bitcoin Earning Tutorial For Newbies

Bitcoin is a decentralized peer-to-peer digital currency, that can be used as an online payment system and an online store of value. It doesn’t have a central authority, therefore it can be used freely by anyone, anywhere, without any discrimination.The main website:

https://bitcoin.org 

Many newbies struggle to earn bitcoins, that is why in this tutorial will show you the methods with which you can Earn Bitcoins. Before you start earning bitcoins you should also sign up to the biggest online bitcoin community:

https://bitcointalk.org

Also here are a few important tips for newbies to keep your bitcoins safe and secure from thieves and scammers:
• Never keep the majority of your coins with a 3rd party, like an exchange, online wallet, or other online services. Many of them are scams and they will run away with your coins! 
• Keep most of your coins in a wallet that only you have access too! 
• Keep multiple backups of your wallet in safe locations!
• Don’t forget and don’t share your password with anyone!
• It is recommended to hold your savings in an offline, malware clean computer, or a hardware wallet! 
• My favorite bitcoin wallet software is: https://xapo.com/


1) Mini Earnings
Requirements: Patience.
Common Risks: Getting viruses and malware by surfing many random websites. You should protect yourself against malware before doing this!
➤ PTC Websites: Click ads and get paid in bitcoin
➤ Bitcoin Faucets: Enter captcha and get paid in bitcoin
➤Ad Watchers: Watch ads or videos and get paid in bitcoin
➤ Mini Jobs: Complete mini tasks and get paid in bitcoin
_______________________________________________________________________

2) Writing
Requirements: English knowledge, writing skills, possibly other languages too. Creativity needed to write about interesting things.
Common Risks: Risks associated with journalism, copyright problems. Make sure you understand how the copyright system works.
➤ Translator: Translate things for other people for bitcoin
➤ Article Writer: There are many news websites that hire journalists to write articles about the cryptocurrency events
➤ Blogger: You can create your free or paid blog, and write about anything, then just put bitcoin ads on your blog and get paid
➤ Tutorial Writer: Write any tutorial, and put bitcoin donation links in it, and then people could donate bitcoins to you
➤ Rewriter: Rewrite old articles or other manuscripts, some people will pay you for this, search the bitcoin forums or the web for this
➤ Copywriter: Write ads, marketing articles for bitcoin businesses
➤ Poet/Writer: Write your own poems or novels and sell it for bitcoin
_____________________________________________________________________

3) Forum Earning
Requirements: English knowledge, writing skills, bitcoin knowledge.
Common Risks: You can get banned for breaking their rules.
➤ Moderator: Senior bitcoin users might become moderators on a forum and they will get paid for it in bitcoin
➤ Signature Campaign: Bitcointalk.org offers this unique bitcoin earning system. You can monetize your forum signature space and get paid for posting: https://bitcointalk.org/index.php?topic=615953.0
➤ Avatar Campaign: Your forum avatar can be monetized too
➤ Look For Opportunity: Many newbies on the forum have some sort of trouble. You can offer them help, and charge them bitcoins for it
➤ Escrow: There are many scammers on a forum, so if you are a
trusted member, you can offer escrow services in a trade, and get
paid for doing it
➤ Campaign Manager: Senior and trusted members, can get hired by a bitcoin business to manage their signature or other advertising campaign, and they get paid for it
➤ Debugger: A forum, or a software made by a user can have many bugs, and if you report the bugs and help them fix it, they can reward you in bitcoins
➤ Tipping: If you give quality information or entertaining things, you can get tipped in bitcoin
_____________________________________________________________________

4) Bitcoin Mining
Requirements: Starting capital, mining technical knowledge.
Common Risks: Mining is very competitive, and the profit margin is low. Be skeptical about cloud mining, most of them are ponzi schemes!
➤ Hardware Mining: Calculate the costs, buy mining equipment and start mining
➤ Cloud Mining: Invest in a reputable mining business, and they will share their profits with you
➤ Altcoin Mining: Some altcoins, can have bigger mining profit margins than bitcoin mining, you have to calculate it yourself
_____________________________________________________________________

5) Adult
Requirements: Experience in the adult industry.
Common Risks: Make sure the adult industry is legal where you live! 
➤ Camgirl: If you are a woman, then you can host cam-shows for bitcoin
➤ Adult Movies: Create adult movies and sell them for bitcoin
➤ Adult Toys: Sell adult toys for bitcoin 
_____________________________________________________________________

6) Provide Services
Requirements: Some talent or expertise that you can provide.
Common Risks: The bitcoin community has some scammers, so you have to be careful in your transactions.
➤ Programmer: Provide your programming skills for bitcoin
➤ Marketing/Advertising: Help somebody promote his stuff, and get paid in bitcoin
➤ Advisor: Offer your advising skills to somebody and earn bitcoin
➤ Community organizer: Join a project and become a community organizer, the owner will pay you for doing it well
➤ Other forum services: https://bitcointalk.org/index.php?board=52.0
➤ Designer: Design ad banners, advertising material, videos or any other material that can easily be done for bitcoin
_____________________________________________________________________

7) Sell Products
Requirements: Find a product that has demand in the bitcoin economy.
Common Risks: The bitcoin community has some scammers, so you have to be careful in your transactions.
➤ Garage Sale: Sell your stuff for bitcoin
➤ Musician: Create music and sell it for bitcoin
➤ Video Maker: Make videos and sell it for bitcoin or host some show on a video streaming platform
➤ Other Artist: Create paintings, sculptures, craft art, etc.. and sell it for bitcoin
➤ Book Writer: Write a book or an e-book or any essay/article and sell it for bitcoin
_____________________________________________________________________

8) Entrepreneur
Requirements: Starting capital, business knowledge, risk management.
Common Risks: If you fail, you lose your invested capital!
➤ Find a product or service that is profitable to do, and do it as a full time business in bitcoin
_____________________________________________________________________

9) Investing or Trading
Requirements: Starting capital, risk management skills, market knowledge, ability to analyse news and know how it impacts the price.
Common Risks: You can lose your invested money. Beware of ponzi schemes, many investment sites are ponzi based or they steal bitcoins.
➤ Trade Bitcoin or Altcoins: Find a reputable exchange and trade bitcoins or altcoins for profit
➤ Bitcoin Based Investments: Find a reputable bitcoin investment system and invest to earn profits
➤ Altcoin investments/Smart contracts: Find a reputable investment system and invest to earn profits
_____________________________________________________________________

10) Lending
Requirements: Starting capital, risk management skills.
Common Risks: Beware of the loan scammers.
➤ Collateral Loan: You take a collateral for the loan, and offer lower interest to the borrower
➤ Non-collateral loan: Risky, but if successful, you can charge higher interest rate from the borrower
_____________________________________________________________________

11) Gambling
Requirements: Luck.
Common Risks: Make sure gambling is legal where you live. You can lose your wagered money in gambling.
➤ Luck Based: Win bets, win bonuses, or other perks in a bitcoin casino. Luck based games are not profitable in the long term but it’s always possible to win a jackpot.
➤ Skill based games: Poker, Sportsbetting, or other skill based games. It’s possible to earn here constantly, but you have to be very good at it.