Bitcoin For Dummies

Bitcoin For Dummies

by Prypto
Bitcoin For Dummies

Bitcoin For Dummies

by Prypto


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Learn the ins and outs of Bitcoin so you can get started today

Bitcoin For Dummies is the fast, easy way to start trading crypto currency, with clear explanations and expert advice for breaking into this exciting new market. Understanding the mechanisms and risk behind Bitcoin can be a challenge, but this book breaks it down into easy-to-understand language to give you a solid grasp of just where your money is going. You'll learn the details of Bitcoin trading, how to set up your Bitcoin wallet, and everything you need to get started right away. An in-depth discussion on security shows you how to protect yourself against some of the riskier aspects of this open-source platform, helping you reduce your risks in the market and use Bitcoin safely and effectively.

Bitcoin uses peer-to-peer technology to operate with no central authority or banks, with transaction management and issuing of Bitcoins carried out collectively by the network. Bitcoin allows easy mobile payments, fast international payments, low- or no-fee transactions, multi-signature capabilities, and more, but the nuances of the market can be difficult to grasp. This informative guide lays it all out in plain English, so you can strengthen your understanding and get started now.

  • Understand the ins and outs of the Bitcoin market
  • Learn how to set up your Bitcoin wallet
  • Protect yourself against fraud and theft
  • Get started trading this exciting new currency

The Bitcoin market is huge, growing quickly, and packed with potential. There's also some risk, so you need to go in fully informed and take steps to manage your risk wisely. Bitcoin For Dummies is the clear, quick, easy-to-follow guide to getting started with Bitcoin.

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Product Details

ISBN-13: 9781119076131
Publisher: Wiley
Publication date: 03/28/2016
Series: For Dummies Books
Pages: 208
Sales rank: 461,516
Product dimensions: 6.10(w) x 9.10(h) x 0.70(d)

About the Author

Prypto is known as a brand for "Keeping Crypto Simple" by offering bitcoin scratchcards to resellers. Its client base is those who are new to bitcoin or those who want to try it out. Prypto sponsors all major bitcoin events, releases videos on how bitcoin can help their customers, and specializes in turnkey blockchain solutions.

Table of Contents

Introduction 1

About This Book 1

Foolish Assumptions 2

Icons Used in This Book 2

Beyond the Book 3

Where to Go from Here 3

Part I Bitcoin Basics 5

Chapter 1 Introducing Bitcoin 7

The Origin of Bitcoin 7

Getting Technical 9

Bitcoin as Currency 10

Bitcoin as a currency tool 11

Bitcoin and retailers 12

Bitcoin and consumers 13

Figuring Out How Bitcoin Works 14

Using Bitcoin Anonymously 15

Introducing third-party anonymity 16

Protecting privacy 16

Demonstrating fungibility 17

Trusting the Idea of Bitcoin 18

Trusting bitcoin technology 19

Trusting bitcoin as currency 20

Chapter 2 Buying and Storing Bitcoins 21

Getting Started: How to Obtain Bitcoins 21

Getting registered on an exchange 22

Know-Your-Customer: Passing the KYC 24

Figuring out exchange rates 24

Understanding peer-to-peer versus regular exchanges 26

Storing Your Bitcoins: Being Safe While Using Exchanges 28

Using two-factor authentication (2FA) 30

Understanding liability 31

Encrypting Your Bitcoins 33

Choosing a passphrase 33

Beware malware 34

Storing physical bitcoin 35

Buying Bitcoins in Person 36

Your bitcoin wallet address 36

Meeting in public places 38

Paying premium rates 38

Choosing a payment method 39

Hot Wallets and Cold Storage 40

Securing user funds 41

Preventing exchange hacks 42

Chapter 3 Bitcoin Pros and Cons 43

Adding Up the Pros of Bitcoin 43

Financial freedom 43

Security 47

Removing fraud 48

Transparency 50

Low fees 51

Subtracting the Cons of Bitcoin 52

Awareness and understanding 52

Trust 54

Risk and volatility 57

Limited use (for now) 58

Chapter 4 Making Money with Bitcoin 61

Mining Bitcoins 61

How bitcoin mining works 61

A short history of bitcoin mining 62

Trading Bitcoins 64

Day trading versus fiat 64

Day trading versus altcoins 66

Crowdfunding with Bitcoin 67

Understanding ICOs and IPOs 68

Offering company shares and dividends 69

Holding Bitcoins for the Future 69

Driving your investment vehicle forwards 70

Hoarding your booty 71

Earning Bitcoin 72

Earning through forums 72

Earning through jobs 74

Earning through faucets 75

Part II Banking with Bitcoin 77

Chapter 5 Your Bitcoin Wallet 79

Unlocking Public and Private Keys 79

Getting Your Hands on a Bitcoin Wallet 81

Software wallets 82

Hardware wallets 83

Paper wallets 83

Web wallets 86

Setting up a Bitcoin Address 87

Grasping Your Wallet Securely 88

Securing mobile wallets 88

Securing online wallets - or not 89

Securing paper wallets 90

Chapter 6 Bitcoin Transactions 91

Figuring Out How Transactions Work 91

Receiving Confirmations 94

Regular six confirmations 95

Double-spending 96

Zero confirmations 97

Calculating Bitcoin Fees 98

Looking at Transaction Speed 99

Understanding Mining Fees 99

Dealing with Multi-signature Transactions 100

Chapter 7 The Blockchain 103

Recording Transactions 103

Understanding Blockchain Analysis 105

Seeing Beyond "Just Transactions" 106

Working with Blockchain Applications 106

Moving Ahead to Bitcoin 2.0 108

Part III Using Bitcoin in Business 111

Chapter 8 Using Bitcoin in Commerce 113

Selling Your Goods for Bitcoin 113

Selling on auction sites 113

Creating your own online store 114

Selling on BitcoinTatk forums 115

Looking at Bitcoin Payment Solutions 116

BitPay 118

Coinbase 119

Accepting Bitcoin Payments for Your Store 120

Online stores 120

Brick-and-mortar stores 121

Chapter 9 Staying on the Right Side of Legal 123

Understanding Bitcoin and Taxation 124

Taxable countries 125

Getting help with bitcoin taxes 128

Bitcoin Regulation Around the World 129

Regulating with BitLicense 130

Regulating elsewhere 131

Money transmitter licenses or not? 131

Chapter 10 Bitcoin Security 135

The Bitcoin Network: An Overview of How It Works 135

What makes it secure 136

The role of bitcoin nodes 137

Defending Bitcoin from Hackers 137

Hacking bitcoin services 138

Watching Out for a 51 Percent Attack 140

Theorycrafting the 51 percent attack 140

How likely is a 51 percent attack? 141

Double-Spending 142

Theorycrafting the bitcoin double-spend attack 143

Chapter 11 Mining for Bitcoins 147

Heading Down the Mine 148

Understanding How Bitcoin Mining Works 149

Cloud Mining 150

Advantages of bitcoin cloud mining 151

Disadvantages of bitcoin cloud mining 151

Risks associated with bitcoin cloud mining 153

Securing Bitcoin with Mining 153

Starting Your Own Mine 154

Getting the right hardware 154

Calculating your costs 156

Part IV The Part of Tens 159

Chapter 12 Ten Great Ways to Use Bitcoin 161

Use Bitcoin as an Investment Vehicle 161

Use Bitcoin As An Educational Tool 162

Go and Spend Bitcoin for Everyday Needs 163

Indulge in Luxury Expenses with Bitcoin 163

Support Charities with Bitcoin 164

Gamble Online 164

Invest in Precious Metals: The Gold Standard Reinvented 165

Give It Away! The Joy of Gifting Bitcoin 165

Pay Bills 165

Use Bitcoin as a Social Experiment 166

Chapter 13 Ten (or So) Other Crypto-Currencies 167

Litecoin: The Silver to Bitcoin's Gold 167

Dogecoin: Such Wow, Much Fun, Very Coin 168

Dash: Formerly Known as Darkcoin 168

Ripple: A Different Type of Crypto-Currency with Potential 169

Peercoin: Introducing Proof-of-Stake 169

StartCOlN: Crowdfunding 170

NXT: Using Proof-of-Stake for Transaction Consensus 170

CasinoCoin: Branding for Casino Users 171

Chapter 14 Ten Online Bitcoin Resources 173

The Bitcoin Wiki 173

BitcoinTalk Forums 174

Bitcoin subReddit 174 (and 174

Bitcoin News Sites and Blogs 175

Mainstream Media 175

Bitcoin Documentaries 176

Bitcoin Price Charts 176

FiatLeak 177

CoinMap and CoinATMRadar 177

Index 179

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