The First Step to Buying Bitcoin – the Bitcoin Wallet App

If you want to learn about bitcoin, you should start by setting up a bitcoin wallet app. Once you have that, you will be able to get some bitcoins and get a feel of what it is and how it works. More and more people are interested in this, because consumer trust in banks has been lost since the financial crisis. However, you do have to know what you are doing with bitcoins in order to benefit from them.

Installing the Bitcoin Wallet App and Other Preparations

Android is leading the way in terms of bitcoin wallet apps. There are numerous apps available registered with various exchanges. A lot of people actually have wallets with multiple exchanges but you should start with just one if you’re new to it. This is also due to the fact that many of the exchanges are quite new themselves, and everybody is still finding their feet. Once you understand bitcoin, however, then you should sign up with multiple exchanges to move your bitcoins around.

What Is a Bitcoin Wallet?

Like a physical wallet, it is a place in which your bitcoins are stored. However, it isn’t physical but rather a piece of software. You can run this on mobile devices (although not yet on iOS), but also on a variety of other devices. Do be aware, however, of the fact that electronic devices can be hacked, so you may want to consider some form of secure storage. Some people, for instance, store it on an external hard drive and place those into safety deposit boxes.

Installing a Bitcoin Wallet

Once you put a bitcoin wallet app on your smartphone, you will be part of the network and your bitcoins can be sent, received, and stored. You will be given a unique key, which is what other people need to know if they want to send you money. The key can also be expressed into a QR code, which is a great way to enable people to send you bitcoin if you meet them physically.

One of the things that makes bitcoins so unique is that they are almost anonymous. Anyone can see transactions that have been made, but not who by and whom to. Rather, a number will show up that means a bitcoin has moved, and it is not possible to reverse this, as the number has been overwritten. The only way to get a bitcoin back that you have accidentally sent to someone, is by knowing whom you have sent it to and asking them to reverse it, although they are under no obligation to do so.

A final thing to be aware of is that bitcoin wallets tend to take up a lot of space on your electronic device. Furthermore, it will have to sync with the network, which can take a very long time. So long, in fact, that you may think you’ve crashed. Be patient, however, as it will work eventually. The network is simply becoming incredibly large.