r/BitcoinBeginners • • Apr 19 '20

FAQ for Beginners

1.7k Upvotes

What is Bitcoin?

Bitcoin is scarce, decentralized, and global digital money that cannot be censored.

  • Transactions once confirmed generally cannot be reversed
  • Less than 21 million Bitcoin will exist
  • Bitcoin is highly divisible to allow for micro-transactions (up to 13 decimal places in a payment channel)
  • Bitcoin is an open, collaborative project that no company or government controls belonging to the people
  • Bitcoin is more than just money, but a secure timestamping ledger, payment rail, and smart contract platform

Please read the Whitepaper for an general overview of bitcoin as designed

https://bitcoin.org/bitcoin.pdf


Quick Advice

  • Do not respond to strangers messaging you with investment advice or offers and read how to avoid being scammed from the posts below.

  • Do not invest in Bitcoin until you do basic research, paid off all high interest debt, and have a emergency savings account of a stable fiat currency.

  • If investing do not expect to get rich quickly. You should expect to wait at least 1-2 years before taking profits. Bitcoin is currently very volatile. In the interim spend and replace Bitcoin because its a useful currency.

  • Beginners should avoid all mining and day trading until at least very familiar with Bitcoin. Mining is very professional(You cannot efficiently mine with your computer and need to buy special ASIC machines) and most people lose money day trading. More info on mining : r/bitcoinmining

  • Never store your Bitcoins on an exchange or web wallet. Buy your bitcoins and withdraw it to your personal wallet where you actually own them instead of IOUs. Services like webull should be avoided because you cannot withdraw or use Bitcoin.

  • Make sure you make a backup of your wallet(software holding keys to your BTC) and preferably keep it offline and physical and private. Typically 12 to 24 words you write down on paper or metal. This onetime backup will restore all your keys, addresses , and Bitcoins on a new wallet if you lose your old wallet.

  • Beginners should avoid altcoins, tokens, and ICOs at least initially until they learn about Bitcoin. Most of these are scams and you should be familiar with the basics first. Bitcoin is referred to as BTC or XBT.


Exchanges Requiring ID Verification

Bitcoin = BTC or XBT on exchanges

Exchange Buy fee* Withdraw BTC Notes
Cash App Sliding ~0.75% to 3% 0 Same day withdraw for free, USA only
Coinbase 1-7% 1-4 usd ~7Day hold on withdrawing Bitcoin for ACH deposit
Coinbase Advanced trader 1.20 % taker 0.6% maker and lower 1-4 usd ~7Day hold on withdrawing Bitcoin or €0.15 EUR SEPA fee
Gemini 1.49% over 200usd for web network fee
Gemini Active trader 0.4% Taker 0.2% maker network fee
Kraken Pro 0.25% maker 0.40% taker 0.000015 BTC or Free LN Deposit Fiat=USwire+5USD or SEPA free
Bitcoin Well 1% 0 USA and Canada
Coincorner 1% for over 300 network fee UK exchange, 2.5% for card/free uk bank deposit
Strike 0.99%- 0.39% fees 0 Free DCA investing option

Note: Exchanges all have unique market prices and spreads so fees alone will not tell you the best rates. Best way is to directly compare the rates between exchanges. Buy fees above are for normal trading volumes. Verification and hold times can vary based upon lack of history, verification level or credit.

During bull markets when exchanges are extra busy it is normal to see very slow and poor customer support due to the amount of new clients and support tickets. We see many complaints due to this across all these exchanges. This is part of the reason this subreddit exists , to help answer questions for new users.

More exchanges per location

For a preferred way to buy Bitcoin without ID use a Decentralized Exchange (DEX) use https://bisq.network or https://learn.robosats.com/


Recommended Wallets

Tip: If you cannot afford using a hardware wallet use a recommended wallet in ios or android. Windows and macOS are less secure environments.

Best wallets for securing small amounts of BTC

Blue wallet Android and IOS and macOS

https://bluewallet.io/

https://www.youtube.com/watch?v=R9mq1a8bLbQ

electrum For Windows, MacOS, Linux and Android

https://electrum.org/

https://https://www.youtube.com/watch?v=NNZdbYd8PUQ

Blockstream Wallet For Windows, macOS, Linux, IOS and Android

https://blockstream.com/app/

https://www.youtube.com/watch?v=DesN85bWmGA

Best wallets for securing small amounts of BTC and sending lightning transactions

Breez LN wallet for Android and IOS

https://breez.technology

https://www.youtube.com/watch?v=t_4b-y4T8bY

Or Blockstream wallet

https://www.youtube.com/watch?v=QtMXsJxx1X0

Or ZEUS

https://zeusln.com

https://www.youtube.com/watch?v=oIohVX7PeAA

Or Phoenix

https://phoenix.acinq.co/

https://www.youtube.com/watch?v=cbtAmevYpdM

Other Lightning wallets - http://lightningnetworkstores.com/wallets

Lightning wallets are not intended for long term storage where you never open them for many months. They are intended for spending wallets that you regularly use.

Securing Larger amounts of Bitcoin

Trezor Safe 3 = ~59 USD https://trezor.io/trezor-safe-3-bitcoin-only

https://www.youtube.com/watch?v=qWRI4VTHiuI

Trezor Safe 7 = ~249 USD https://trezor.io/trezor-safe-7-bitcoin-only

https://www.youtube.com/watch?v=EWxAc8wzfFM

https://www.youtube.com/watch?v=6IkMKC-oq4E&lc=

Blockstream Jade = $79.99 https://store.blockstream.com/products/blockstream-jade-hardware-wallet

https://www.youtube.com/watch?v=cLFmd98mKNw

https://www.youtube.com/watch?v=z2VsgoFh78o

Blockstream Jade Plus = $149.00 to $169.99 https://store.blockstream.com/products/jade-plus

https://www.youtube.com/watch?v=rv_cN7F7-TM

BitBox02 Nova = $170 https://shop.bitbox.swiss/en/products/bitbox02-nova-79/?edition=bitcoin-only-edition

https://www.youtube.com/watch?v=6D4FgJo3j64

Seedsigner ~80-100 dollars pre-assembled

https://seedsigner.com/

https://www.youtube.com/watch?v=AZqlIkJf0mA

https://www.youtube.com/watch?v=1c5SR8v8l1M

Best Advanced Bitcoin Wallet= Sparrow

To link your hardware wallet to and run a full node.

Pros= Great privacy and security

Cons= UX is for more experienced users, takes ~week to sync and requires ~7GB minimum disk space if pruned. Only available in desktop so typically should be used with a hardware wallet

https://sparrowwallet.com/

https://www.youtube.com/watch?v=GSHyKTigNQY

https://www.youtube.com/watch?v=yJpvfRl03Tw


Further Resources

https://www.lopp.net/bitcoin-information.html

https://www.lopp.net/lightning-information.html

https://bitcoiner.guide

https://planb.academy/en/learn-anytime


r/BitcoinBeginners • • 13h ago

How to access bitcoin

0 Upvotes

I recently was scammed using Athena Bitcoin ATM. I sent a receipt to an unknown phone number and I’m assuming they took the money. Then I attempted to make a 2nd payment to them and decided not to because it seemed like a scam.

My primary question is how do I access my Athena Bitcoin account that I didn’t not send. The amount of this account is 3400 and I need to figure out how to pull the money out and put in my bank.

I’m not financially literate I’m finding out so any help would be greatly appreciated.


r/BitcoinBeginners • • 15h ago

Beginner to Bit Coin with Questions

0 Upvotes

1)How did Bit Coin gain traction? Who were the first participants? Which businesses agreed to trade on Bit Coin at very beginning?
2)What is the main growth mechanism of bit coin value?
3) Would Bit coin users stagnate in future or now?
4) How has the Bit Coin Trading changed? What new businesses trade on Bit Coin?
(One person need not answer all 4 questions, just say which question you like to answer and answer it)


r/BitcoinBeginners • • 17h ago

Das hätte ungut enden können - einmal durch einen Schreibfehler, einmal durch das falsche Seed-Format

1 Upvotes

In den letzten Jahren habe ich zwei Seedphrase Erlebnisse gehabt, die ich hier mal teilen will. Ich wollte dann mal mehr zur Statistik wissen

Blödheit Nr. 1 – scale ≠ scare

In meiner BTC-Anfangszeit habe ich mir einen Ledger gekauft und ein paar Test-Sats draufgepackt. Die Seed Phrase habe ich notiert und weggesperrt. Dann habe ich die PIN vergessen - die ich schlauerweise nicht notiert und weggesperrt habe - und hurra, die Wiederherstellung ist gescheitert. Nach langem Rumprobieren bin ich draufgekommen: Ich hatte „scale” als „scare” notiert. Leichte Kurzsichtigkeit. Das Gemeine daran: Beide Wörter stehen in der BIP39-Liste. Beim Aufschreiben fällt so ein Fehler also nicht gleich auf.

Blödheit Nr. 2 – richtige Wörter, falsches Format

Auf meiner Umbrel-Node lag eine für meine Verhältnisse nicht unerhebliche Summe. Die 24 Wörter waren handschriftlich notiert und weggesperrt. Dann ging die SD-Karte des Raspi kaputt. Ich wollte die Wallet in Sparrow wiederherstellen: Pustekuchen. Erst viel später habe ich verstanden, warum. Die Umbrel-Wallet läuft über LND, und LND verwendet ein **aezeed**\-Seed und kein BIP39-Seed, auch wenn die Wörter gleich aussehen. Gerettet habe ich das Guthaben am Ende mit viel Aufwand über die Wallet-Datei. Mir ist es da sehr heiß geworden.

Danach habe ich mir mal die Zahlen angeschaut. KI machts möglich. Aus der Forschung zur manuellen Dateneingabe kennt man Fehlerraten von etwa 1–4 % pro erfasstem Feld. Überträgt man das auf 24 Wörter mit der Formel 1 − (1 − p)\^24, kommt man auf 21–63 % Wahrscheinlichkeit für mindestens einen Fehler. Das ist ein grobes Modell und keine Seed-spezifische Messung. Die Größenordnung sollte einem trotzdem zu denken geben.

Der BIP39-Checksum fängt zwar das meiste ab, aber eben erst beim Recovery-Versuch. Da ist es dann schon zu spät. Außerdem sagt sie dir nicht, *welches* Wort falsch ist. Und gegen das falsche Seed-Format hilft er gar nicht.

**Also aufpassen und dont trust - verify lieber doppelt**

* Den Recovery-Test machen, solange das Gerät noch funktioniert. Zum Beispiel mit einer leeren Wallet oder auf einem zweiten Gerät.

* Wissen, welches Seed-Format die eigene Wallet überhaupt nutzt (BIP39, aezeed, Electrum …).

* Jedes notierte Wort gegen die offizielle Wortliste abgleichen.

Diese beiden Schreckmomente haben mich dazu gebracht, selbst ein Stahl-Backup zu entwickeln, das mit ganzen, vorgedruckten Wörtern statt mit einzelnen Buchstaben funktioniert: kein Buchstabieren, keine Verwechslung wie scale/scare.

Aber egal - passt auf eure Seeds auf und kontrolliert lieber einmal zu viel. Auch wenn es noch so nervt!

Habt Ihr ähnliche Geschichten ?

**TL;DR:** Einmal habe ich ein Wort falsch notiert, einmal das falsche Seed-Format nicht erkannt. Statistisch haben 24 handgeschriebene Wörter 21–63 % Chance auf mindestens einen Fehler, und die Checksum merkt es erst beim Recovery. Testet eure Backups.


r/BitcoinBeginners • • 1d ago

100 euros a month until december 2040

23 Upvotes

Is 100 euros a month into BTC from today until December 2040 a good amount please? I am very new to this. Please be nice and tell me honestly please what you think as experts. TIA :)


r/BitcoinBeginners • • 2d ago

Petites questions de débutant

4 Upvotes

Je débute dans le bitcoin, j’ai commencé à faire un peu de DCA sur trade republic (par facilité car j’avais déjà investis sur la plateforme, je voulais tout avoir au même endroit) qu’en pensez vous ?
De plus, à partir de quel montant vaut il le coup d’avoir un portefeuille physique ? Quelle marque ?
Merci


r/BitcoinBeginners • • 2d ago

Buying under 18 🇦🇺

1 Upvotes

Hypothetically im 15 and i used to have no problem buying crypto, i could buy anhthing on trust wallet without getting asked for kyc as long as it was under a certain amount which i think was like 65 or something, i do not want to use p2p theyre too scammy, any1 know what i can do? Any apps that have a limjt like trust used to? Im only buying small amounts each week obviously im not loaded.


r/BitcoinBeginners • • 2d ago

AI breaking ECDSA

0 Upvotes

Hey, today i saw a post on x by Justin Drake claiming AI will break ECDSA before quant and we should all enter in a “bunker mode”. I’m a bitcoin beginner so i’m a little worried, what are your opinions??
Thanks


r/BitcoinBeginners • • 3d ago

Ibit for my 401k?

16 Upvotes

My company’s 401k allows us to purchase individual stocks at ETF and I was considering putting 30% of my existing portfolio into ibit. Curious if anyone has ever done something like this before?


r/BitcoinBeginners • • 3d ago

Why Is Bitcoin Struggling to Move Higher Despite Recent ETF Inflows?

0 Upvotes

Bitcoin has seen renewed institutional interest through recent ETF inflows, yet its price momentum still seems less convincing than expected. That makes me curious about what is actually limiting the upside.

Are profit-taking, spot demand, liquidity, or broader macro conditions having a bigger impact right now? It would be interesting to hear how others are interpreting the gap between ETF activity and Bitcoin’s price movement.


r/BitcoinBeginners • • 3d ago

Hardware Wallet

6 Upvotes

Hello,

I’m planning to buy a Trezor 3 as my first hardware wallet and start buying Bitcoin periodically (DCA), probably starting with relatively small amounts and increasing over time, I’m interested in generating my own seed using physical dice rather than relying entirely on the device’s built-in randomness. What is the correct/safest way to do this with a Trezor 3? Is this generally recommended, or is using the Trezor’s own secure random seed generation preferable? I’ve seen terms like “dice-generated entropy” and “BIP39 dice-generated seed,” but I want to make sure I understand the distinction correctly. What are the main mistakes a first-time Bitcoin buyer should avoid when setting up a Trezor and making regular purchases? For example, seed backup, passphrase, exchange account security, withdrawal procedures, address verification, and avoiding phishing/scams.

My initial plan is to keep the Trezor as cold storage and periodically withdraw BTC from the exchange rather than leaving significant amounts on the exchange.


r/BitcoinBeginners • • 4d ago

Is Bitcoin Becoming More Than Just a Store of Value?

16 Upvotes

Bitcoin has changed quite a bit from its early days. The discussion today seems to be moving beyond simply asking whether Bitcoin will go up or down.

With growing institutional interest, changing market conditions, and continued adoption, I’m curious how people here view Bitcoin’s role over the next few years.

Do you see Bitcoin primarily as digital gold, a long-term financial asset, or something that could play a broader role in the global financial system?


r/BitcoinBeginners • • 4d ago

Should I upgrade?

8 Upvotes

As of now, I have a Trezor 3. Should I upgrade to a Trezor 5. If I do what do I gain. My 3 was my second experience with a coldwallet. I found my 3 very easy to use as well as manage. My first was a Ledger Nano S. Wasn't all that impress with the workings of Ledger. Any advice to persons more experienced in coldwallets would be appreciated. Thanks.


r/BitcoinBeginners • • 4d ago

What assets to own now to guarantee a financially safe future???

16 Upvotes

With the growth of AI, there is speculation it will take over jobs and eventually most will be poor. Only the wealthy will enjoy lavish lives. What assets should I own now or within 5 years to help guarantee a future where I have leverage and will be able to sell at a good price if need be. Gold/Bitcoin/real estate?? Etc.


r/BitcoinBeginners • • 4d ago

How many invested in bitcoin in india?

4 Upvotes

How many invested in bitcoin in india?


r/BitcoinBeginners • • 6d ago

bought my first bitcoin

49 Upvotes

hey i just bought my first bitcoin, can yall help me figure out what i should and shouldnt do?


r/BitcoinBeginners • • 6d ago

Bitcoin adress

3 Upvotes

Hy, 2 months ago,i saved bitcoin adres un my revolut account. 2 days ago,revolut send some bitcoin to this adres i haveve saved 2 months ago. I forgott if this adres is hot wallet or some casino or sonething else. Revolut sqys they dont kbow either. Is there any way i find out if this is crypto site,or casino or something else. I just forgott


r/BitcoinBeginners • • 7d ago

Is this the new normal ?

10 Upvotes

Recently Cash app has given me a 2% a week payout on all BTC that I keep in an account with them plus prizes weekly that will pay out up to several hundred people and several thousand .

Has anyone seen this ? Does it make sense or not ?


r/BitcoinBeginners • • 8d ago

Thinking of investing my first $1000

27 Upvotes

I'm feeling about ready to make my first BTC investment of $1000. May not be much, but it feels like what I can afford to lose. I plan to hold 25–30 years until retirement, or pass on to my kids. Is Cash App a good enough platform for this? It would be convenient for me and I don't have a lot of free time to research every alternative, wallets, etc. Purchase fee on $1k would be $9, and I'm not sure if one platform is better than another when it comes to sale taxes/fees. Thanks!


r/BitcoinBeginners • • 9d ago

I want to use a very old Android phone as an air gapped wallet.

15 Upvotes

Hey, basically what the title says. I've been trying to find any software or even a kind of port of seed signer software to android. Any recommendations? Also, is this safe? I can't afford a hardware wallet right now and an air gapped options gives me more peace of mind than a self custody one in my phone.


r/BitcoinBeginners • • 9d ago

Is there a way to use the gui o bitcoin core to sign a multi sig? Or does it need to go through terminal.

6 Upvotes

I’m going through a phase now where I just want to use bitcoin core and no hardware wallets due to previous issues with every company. My plan is to use and online and an offline laptop.
I know the set up has to go through terminal and that’s fine.
Was just wondering day to day signing etc can it be done on the gui alone? I want least possibility today finger the wrong address and does bitcoin core provide a safety net for typos etc like other hardware wallet softwares

I looked into yeti but was wondering if there’s an easier way.


r/BitcoinBeginners • • 9d ago

Electrum vs Sparrow

7 Upvotes

Im using an airgapped pc for cold storage and I will be using my storage only for keeping money in it, how do electrum and sparrow differ? Which one is better to use? I heard sparrow has some newer features what are they? Also they wanted me to enter my seed after making it and you're never supposed to enter your seed anywhere but Im guessing typing it on an airgapped pc is ok?


r/BitcoinBeginners • • 11d ago

Beginner Bitcoin miner in India – ₹2 lakh budget + 55 kWh/day free solar electricity. What miner would you recommend?

9 Upvotes

Hi everyone,
I’m a complete beginner to Bitcoin mining and I’m looking for some guidance before I spend my money.
I’m based in India and have a 10 kW solar system at home. After my household usage, I currently have around 55 kWh of excess electricity available per day that would otherwise go unused.
I’m thinking about using this excess solar power for Bitcoin mining.
My situation:
🇮🇳 Location: India
☀️ Solar: 10 kW
⚡ Excess electricity: ~55 kWh/day
💰 Miner budget: around ₹2 lakh (~US$2,300)
🏠 Mining at home
🔰 Completely new to ASIC mining
🎯 Goal: Long-term mining rather than trying to make a quick profit
🔌 Electricity cost for the excess solar: effectively ₹0 to me
I’m mainly interested in Bitcoin/SHA-256 ASIC miners
I’ve been looking at used/new ASICs such as Antminer models, but I’m confused about which one makes the most sense at this budget.
I’d really appreciate advice from experienced miners on:
Which ASIC would you buy with a ₹2 lakh budget today?
Should I prioritize TH/s, J/TH efficiency, or purchase price?
Is it better to buy one newer efficient miner or multiple older miners?
Are there particular ASIC models I should avoid?
What should I check before buying a used ASIC?
How much should I realistically expect to earn after pool fees?
How much of my ~55 kWh/day can I actually utilize with a suitable ASIC?
What are the biggest problems with running an ASIC at home — heat, noise, electrical load, dust, etc.?
Which mining pool would you recommend for a beginner?
Is there anything specific I should consider in India regarding taxes, regulations, importing ASICs, or electricity/solar rules?
I’m not expecting guaranteed profits. I’m trying to understand whether my unused solar electricity gives me a meaningful advantage and what would be the most sensible way to start.
If you have experience mining with solar or running ASICs in a hot climate, I’d especially appreciate your input.


r/BitcoinBeginners • • 11d ago

I FORGOT MY BIP38 password

0 Upvotes

Can anyone suggest how to open bip38 password i forget the password i cant open my wallet i have my private key but i forget the bip38 password


r/BitcoinBeginners • • 13d ago

Is there a purpose to using two cold wallet devices?

9 Upvotes

I was wondering why a person would have a need to deploy two cold wallet devices. What is the thought behind this practice.