About Bitcoin for dummies - we buy, store and sell cryptocurrency correctly

In recent months, a lot of news about Bitcoin has begun to appear. The reason for the increased attention is the sharp rise in the rate of this cryptocurrency. On November 21, 2016, 1BTC cost $729, and on May 20, 2017, it was already $2053.

If you don’t have bitcoins yet, but would like to invest your savings in them or use them for purchases, then this text is for you. It will talk about the practical aspects of using Bitcoin.

The editors of iPhones.ru are not responsible for your financial losses from a sudden depreciation or the consequences of purchasing prohibited goods.

How popular is Bitcoin in the world?

All the world's bitcoins (16 million out of a possible 21 million have already been mined) are now worth more than $33 billion. In the last six months, an average of about 300 thousand transactions worth 3-6 billion dollars (d) have been taking place every day.

Compared to all the money in the world, this is very little (the annual GDP of the USA alone is more than 17 trillion dollars). But Bitcoin's popularity is growing rapidly. In 2012, 5-10 thousand transactions passed through the system daily, and in 2014, on average, there were already about 50 thousand.

How to store bitcoins. conclusions

The coins have been purchased and sent - all that remains is to save them. To do this, I recommend using hardware wallets that do not disclose a private key and help secure your own crypto reserves. If you need convincing arguments to buy it, read my experience of losing coins on exchanges, friends and other problematic factors. Read and run to order a wallet.

LocalBitcoins is a good option for your first bitcoin purchases. As far as I know, with the help of Telegram bots and BestChange you can find better purchase offers, and the limit of a thousand euros per year is also not very pleasant. However, for periodic purchases for a small amount, the platform is definitely suitable.

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How has the Bitcoin exchange rate changed?

In the fall of 2010, one bitcoin on the exchange cost only 10 cents. Then the exchange rate grew steadily and in November 2013 reached $979. And then it began to suddenly fall and already in the summer of 2015 Bitcoin cost a little more than $200. But since then it has been growing again and is worth 10 times more.

On May 22, 2010, one guy with the nickname laszlo bought a pizza for ten thousand bitcoins ($25 at that time). This was the first time in the world that a tangible item was purchased with cryptocurrency. Then it cost him $25. Today, 10,000 BTC is worth $20 million .

Enthusiasts who five years ago invested a hundred or two dollars in games with new technology are now secure for several generations to come. Even those who bought Bitcoin just a year ago at $473 have already quadrupled their investment.

LocalBitcoins Limitations

In 2022, the platform strengthened its user verification system. The logic is simple: if you want to trade a lot and actively, show your documents. If you don't want to, the transaction limit will be limited to the equivalent of a thousand euros per year.

LocalBitcoins Rules

The more information you provide about yourself, the larger volume you will be allowed to trade. If you don't like it, that's okay. Then we recommend our article with a list of exchanges where you do not need to show your documents.

Where can I get bitcoins?

The easiest way to get them is to purchase from an online exchanger. For example, on bestchange.ru bitcoins can be purchased using QIWI, WebMoney, or using VISA or Master Card.

The second way is to use a Bitcoin ATM. You can find them on this map. For example, there is a Bitcoin ATM in the Baltis Plaza business center in St. Petersburg. With its help, you can receive a paper receipt with a code for replenishing your Bitcoin wallet for cash.

The third option is to buy from a private seller. The map on localbitcoins.com shows offline locations where you can get cryptocurrency for cash.

The fourth way is to make money. By personal agreement with the employer or using the freelance exchange bitwage.com. So far it has only 11,500 users, but payments worth more than $20 million have already been made through it and the project has been developing steadily for almost three years.

There are sites where you can get cryptocurrency for viewing ads. They are called Bitcoin faucets. This is something like a lottery, where a small amount of money can be given out, for example, once every 15 minutes or every thousandth visitor. But this is not a very rational use of your time; the first five methods are more reliable.

Where can you buy Bitcoin: an overview of all options

There are many ways available to the modern investor to purchase Bitcoin. The main ones are the following purchase options:

• special services – cryptocurrency exchangers;
• cryptocurrency exchanges;
• cryptocurrency wallets;
• Payeer wallets;
• cash purchase;
• purchasing on p2p sites;
• cryptomats.

Let's take a closer look at these methods of buying Bitcoin.

Exchangers

Exchange services are an easy way to buy Bitcoin for a novice cryptocurrency investor. There are a significant number of such services online. They offer users a large selection of exchange directions between fiat and cryptocurrency. In particular, it is possible to purchase BTC without commission with payment by credit card, electronic wallet, online banking and other methods. For exchange, in most cases, verification is not required, and the interface of exchangers is as simple as possible and is not difficult to master even for a beginner.

To select a suitable exchanger, you can use a special aggregator BestChange or another similar service. Here you need to indicate the direction of interest, after which the service will provide a list of proven, reliable exchangers with the most favorable rates.

Buying Bitcoin through the exchange Changelly.com

Instructions on how to buy bitcoins through an exchanger:

1. Go and register on the exchanger's website. Typically, email confirmation is required for registration.
2. Select the direction of exchange. The given currency and the received (bitcoin) currency are indicated.
3. Enter the address for the crypto transfer.
4. Transfer funds using the details specified by the exchanger. Usually the application is valid for 15-30 minutes (depending on the service) - during this time you need to make a transfer.
5. Confirm the transfer of funds.

After completing the transfer, the corresponding amount in BTC will be transferred to the address you specified. Please note that the speed of Bitcoin transfer depends on the current network congestion. Therefore, the receipt of crypto may be delayed up to 1 hour.

Exchanges

Cryptocurrency exchanges are a convenient option on how to legally buy Bitcoin. These are trading platforms that make it possible to buy cryptocurrencies for long-term storage and carry out urgent (futures) speculative transactions with them, including the provision of leverage. Some exchanges require mandatory user verification. On some platforms, verification is not a mandatory requirement, but completing it expands trading opportunities and expands the available functionality.

Algorithm for buying bitcoin on a cryptocurrency exchange:

1. Register your personal account. The registration process is standard, as in other services on the Internet. Be sure to check whether you can buy Bitcoin on the exchange without verification, or whether you need to confirm your identity.
2. Go through verification (if necessary) by providing the documents requested by the exchange.
3. Top up your exchange account. To do this, you need to transfer the appropriate amount to your exchange account in the currency in which you will exchange, for example, dollars. Transfer is possible through electronic wallets, card, bank payment, etc. You need to top up your account with an amount sufficient to buy Bitcoin and pay the exchange commission.
4. Make a cue ball purchase. You can buy crypto at the current market price or with a pending order. In the latter case, BTC will be purchased when its price decreases or increases to a level specified by you.

Immediately after purchasing on the exchange, newbies may wonder how to find the purchased bitcoins. The asset in the appropriate amount is immediately transferred to your internal exchange wallet. If you do not plan to carry out any operations with it in the near future, then it is better to withdraw the cryptocurrency to your own external wallet. This will allow you to secure your funds in case of possible hacking of the exchange website.

Cryptocurrency wallets

The following method will allow you to quickly buy Bitcoin if your crypto wallet has a built-in exchange service. In this case, it is possible to exchange cryptocurrencies for each other or for fiat directly inside the wallet.

The algorithm for purchasing is as follows:

1. Create a crypto wallet in the service of your choice, for example on Blockchain, Exodus, Edge, Coinomi, etc. Depending on the wallet, regular registration via email or creation of a private key and saving it to your device is used.
2. Top up your wallet with your existing cryptocurrency or fiat currency. The wallet address for transfer can be found in the “Receive”, Receive, etc. tab.
3. After crediting the funds, go to the exchange section of the wallet. Here we indicate the type of currency you have and the amount given, as well as the type of currency received (BTC).
4. The system will automatically calculate the amount in bitcoins to be credited. After this, all that remains is to confirm the transaction.

One of the most famous crypto wallets is Exodus.
If your wallet does not support exchanges, or you are not satisfied with the rate offered in it, you can use the changelly.com service. The service offers the opportunity to profitably exchange cryptocurrencies for fiat money, as well as exchange one crypt for another. The peculiarity of changelly.com is that the system automatically monitors the largest cryptocurrency exchanges and provides the user with the best exchange options. The transaction is completed directly from the changelly.com interface without switching to third-party services.

Instructions on how to purchase bitcoin in this service:

1. Register on changelly.com – registration by email is supported.
2. To purchase BTC for fiat currency, you need to go to the “Buy” tab.
3. Here you need to select the type of currency you give and the type of crypt you receive (bitcoin).
4. The system displays available exchange options, from which you need to select the most favorable rate and click the “Buy Now” button.
5. Next, all that remains is to indicate the wallet address for crediting and pay for the purchase by credit card or payment to your account.

If you have another cryptocurrency, then to exchange it for Bitcoin you need to go to the “Exchange” tab. The algorithm of actions here is generally similar.

Payeer wallets

The Payeer service provides the user with electronic wallets for storing cryptocurrencies, dollars and euros, and also supports internal exchange.

Step-by-step instructions for dummies on how to buy Bitcoin on Payeer:

1. Complete standard registration in the Payeer service.
2. Top up your balance – many methods are supported, including payment by card and transfer from electronic wallets.
3. Go to the "Exchange" section.
4. Select the currency to receive (bitcoin) in the first field and the currency to be given in the second field.
5. At the bottom of the window, go to the calculator, which needs to be switched to the “Buy” mode. After this, indicate the amount you are paying for the purchase of BTC.
6. The calculator will automatically calculate the amount received in the “cue ball”, after which you need to click the “Buy” button, and the transaction will be completed.

After the exchange, the corresponding amount in bitcoins goes to your wallet in the Payeer service.

For cash

This method involves purchasing a cue ball directly from an individual seller. You can find such a seller in your city on specialized forums. Having agreed on the terms of the deal with him, you arrange a meeting. During the meeting, you give the seller the required amount in cash, and he transfers you bitcoins.

This method allows you to buy bitcoins in Russia quite cheaply and without commission. However, it is available mainly to residents of large cities. Its main disadvantage is the high risk of encountering a scammer. Therefore, such an exchange is not recommended for beginners, unless you know the seller personally.

Through p2p sites

This method can be called an improved version of the previous one. P2P exchange services are platforms that organize transactions between individual users. In addition, the platform acts as a guarantor when completing a transaction, providing protection to both parties by making payments through a special escrow account. Popular p2p services include LocalBitcoin, LocalCriptos, Criptolocator and others.

Instructions on how to buy bitcoins for the first time on the p2p platform:

1. Complete standard registration in the selected service.
2. In your personal account, go to the “Buy BTC” section.
3. Use filters to select suitable conditions, for example, payment method, limit, etc.
4. Select a suitable ad from the list provided and click “Buy”. When choosing, it is recommended to read the reviews of other participants.
5. Read the conditions in detail, find out the points of interest from the seller and leave a request.
6. After agreement with the seller, transfer funds to the specified details.
7. Wait until payment is received from the seller.

Next, funds in bitcoins are credited to the wallet you specified.

Cryptomat machines

This is a rather exotic way to buy Bitcoin in Russia. Cryptomats are special machines - payment terminals with the function of purchasing cryptocurrencies. Such devices can be found in Moscow, St. Petersburg and several other large cities. However, with the growing popularity of cue ball, the network of crypto ATMs is gradually expanding.

Cryptomat for buying bitcoins in Kazan

The procedure for how to buy Bitcoin correctly depends on the provider, but in general it looks like this:

1. Make sure that Bitcoin is available for purchase at the selected crypto machine.
2. Enter the address for depositing cryptocurrency, which will be verified by the system, or connect a physical wallet.
3. Specify the amount and deposit funds in cash or by bank card.
4. Confirm the transaction.

How to start using Bitcoin?

Install a special program on your computer or phone and register a wallet. After this, you need to top up your account.

You also need to make sure that all necessary security and anonymity measures are observed (full list of measures here)

After this, you need to click on the “Send” button in the program, indicate the address for transfer and the amount. One Bitcoin can be divided into many shares. The smallest monetary unit in the system is Satoshi (0.00000001 BTC), named after the mythical founder of the cryptocurrency.

There is also 1 uBTC (microbitcoin) equal to 0.00000100 BTC and 1 mBTC (millibitcoin) equal to 0.00100000 BTC. Be careful when making payments. Transactions cannot be reversed .

How to withdraw cryptocurrency from LocalBitcoins

Of course, no one forces you to keep coins on the platform. To withdraw, go to your personal account, enter the recipient’s address and the transfer amount, and then send the coins.

Withdrawal of coins from LocalBitcoins

By the way, to send you will need a code from Authenticator. This is another layer of security and another reason to enable two-factor. Seriously, do it. Approach the undertaking with maximum responsibility - this is exactly what is needed when working with cryptocurrency.

The coins arrive quickly, there are no problems with this. To sell, the opposite is true: add coins to your wallet and select “Quick sale” on the main page. The meaning of the operation will be the same.

What can you spend bitcoins on?

You can buy most things you need in life with Bitcoin if you use intermediary sites. For example, on egifter.com there are gift cards for American chain stores and restaurants.

Some online stores accept bitcoins and you can make purchases there without intermediaries. For example, BitPremier.com, where you can buy villas, handmade Persian carpets, cars and Rolex watches.

Bitcoin.travel will help you find cafes, clubs, bars and grocery stores on the world map where you can pay with this cryptocurrency.

There is also information about car rentals, hotels, spas, museums and other entertainment for travelers. In America and Europe, you can use it to plan a full-fledged vacation, during which you will not need regular money .

Air tickets can be purchased for bitcoins at abitsky.com. Unfortunately, with a very significant markup. For example, the cheapest Moscow-Surgut ticket on May 23 costs 6,501 rubles (translated from BTC), but on the Utair website it costs only 4,985 rubles.

The example with the airline ticket above clearly showed that paying for ordinary goods and services with this currency is completely unprofitable. Sellers include in the price a commission for the exchange on the currency exchange and throw a little more on top in order to suffer less from sudden exchange rate fluctuations.

It’s worth buying food with bitcoins only for the sake of fun, for ideological reasons , if your bank accounts are blocked or are under surveillance by intelligence services.

What are Bitcoins most often used for?

The anonymity of the transaction has made Bitcoin the main currency of the darknet. Criminals also use other cryptocurrencies and wallets of legal electronic payment systems (QIWI, WebMoney, Yandex.Money), registered using fake documents. But Bitcoin is used most often.

On Tor sites you can use it to buy: weapons, drugs, “hacking” programs, stolen credit cards, scans of passports and other illegal goods. This currency is also accepted in illegal online casinos, and extremist organizations use it to raise funds for their projects.

This topic is covered in detail in the articles 7 sites in Tor that can lead to imprisonment (21+ and What products are actually sold in Tor.

Bitcoin is also used by terrorists, to obtain ransom for hostages and by blackmailers. For example, it was in Bitcoin that the hacker group Turkish Crime Family demanded money from Apple for a promise not to delete 200 million iCloud accounts to which they allegedly gained access.

An ordinary respectable citizen has no real need to use cryptocurrency. Unless to increase your capital.

Where else can you get free bitcoins?

There are enough services on the network where you can try your luck and win both bitcoins and altcoins. You should not confuse such sweepstakes with faucets; they all have different conditions and prizes. Conventionally, online services for winning bitcoins can be divided into several types:

• Bitcoin casino with faucets. When playing, users receive Satoshi simply for their activity. There is no need to make a deposit on such platforms.
• Bitcoin casino with no deposit bonus. All you need to do is register and receive a bonus on your balance. It cannot be withdrawn; you can only take away the coins you have won, and then, often on the condition of replenishing your account.
• Slot crypto machines . Online slots that simulate slot machines. You need to spin the reel, select numbers, etc.
• Betting on sports and e-sports. This method requires investment.
• Bitcoin lotteries . Actually the services that are of most interest to beginners. Some lotteries give out tickets for free, for example, for registration or when using a faucet, for others you will have to pay.

As for how to play and win, it all depends on the user. If the “fight” for free bitcoins takes place on faucets, then there is no need for a special strategy. Click more often and get free Satoshi. If bets are made with your own money, then it is better to adhere to the rules of money management:

• The maximum size of one bet should not exceed 2% of the total capital for the lottery.
• All bets in total should not exceed 15% of your deposit.
• If you have already lost 15% of your deposit, then you need to stop.
• It is better to recoup after some time, having come to peace of mind.
• Bets must be placed with a cool mind, and not succumb to emotions such as excitement, passion, or greed.
• If there is a constant game, then you should choose a strategy. The most suitable strategy for playing the lottery is Martingale, Forks, Locking and others.

Bitcoin is a great tool for making money. You can make money on it in other ways - investing, speculation, mining. Making money from gambling services is not a good idea. All these projects are created with one goal - to enrich their developers, but not their users. If they promise you free BTC, then it’s not a fact that you will receive them, but you can lose a lot of money if you get too carried away with the game.

How are things going with Bitcoin in Russia?

In 2014, our authorities paid close attention to cryptocurrencies and began to think about equating them to “money surrogates” and introducing criminal liability for their use. But no official laws banning Bitcoin have yet been adopted. Therefore, Russian-language sites about cryptocurrencies are doing well.

There are still few places in Russia where you can pay with bitcoins. Some of them are on this map. For example, Subway in Dolgoprudny (Moscow region) or the G-Shine clothing store in St. Petersburg.

Can you get scammed on LocalBitcoins?

Things work a little differently here. All online auctions are protected by an escrow or so-called escrow. When the transaction begins, the amount of BTC for trading is automatically reserved from the seller's LocalBitcoins wallet. That is, if the seller runs away with your money and does not give back your coins, the service’s support will easily return your crypto.

There are no such guys on LocalBitcoins

If you are selling BTC, never send coins from the vault until you see the transfer from the buyer. This way you will protect yourself.

How are things going with Bitcoin in other countries?

In the US and Europe, it is much easier to find places where you can exchange bitcoins or buy something. The situation is similar in large cities in South America, Australia and Southeast Asia. The rest of the world is still completely out of the loop, but the situation is changing rapidly. After all, cryptocurrency is a chance to partially solve the problem of poverty.

A community of thousands of Bitcoin users has already formed in Kenya (a documentary has been made about this). And in Bishkek in 2015, the first Bitcoin ATM in Central Asia was installed.

But he is not very popular yet. But local activists hope that soon Kyrgyz people who work abroad will understand that transferring money home through Bitcoin wallets is more profitable (non-urgent transactions are carried out without commission) than the traditional way.

In most states, the government is in an uncertain position regarding Bitcoin. In 74 countries it is officially allowed, and in Bangladesh, Bolivia, Ecuador and Venezuela, bitcoins are illegal. Here you can find detailed and up-to-date information for each country.

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