Bitcoin and all other cryptocurrencies are very complicated to understand for someone who has only known paper money (and credit cards) their whole lives. However, it doesn’t take long to grasp the basic concepts — and sometimes those are all you need.
Do your best to memorize the following quick facts about Bitcoin to understand it better for yourself and to explain it to friends and family members. Remember… this is just the very beginning!
* Satashi Nakamoto released Bitcoin to the public in early 2008. Nobody knows his/her identity.
* There will only ever be 21 million Bitcoin, reaching max supply in the year 2140.
* You can own/purchase less than one Bitcoin.
* The smallest unit of a coin is called a Satoshi, and it is 0.00000001 (one hundred millionth).
* When you make a transfer, several other computers connected to the network must verify them
* To make a transfer, you must pay a fee. This fee is to compensate people verifying transactions.
* Unless you publish your public address, nobody will know what Bitcoin belong to you (or how many).
* If you own Bitcoin, it’s best not to tell anyone how many you have. This will prevent a lot of nagging questions if/when your Bitcoin become worth a lot. It’s also for your own safety.
* There are over 1,300 different coins that released after Bitcoin. Most will never be worth anything substantial, but others may eventually experience success as much as (or greater than) Bitcoin.
* The best way to buy Bitcoin is on an online exchange.
* The best way to keep your coins safe is to put them in a “cold storage wallet” that is not connected to the Internet or any computer networks.
* The best way to spend Bitcoin is to keep a small amount in a “hot wallet” on your phone or computer. Never have too many coins on this device; in the case they are lost or stolen, it should not take a toll on you.
* You can buy a portable device such as a “Ledger Nano” to transfer coins from one device to another safely.
* You should keep multiple backups of your private keys; your private keys are your Bitcoin, so keep them highly secure.
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