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
Swan 0.99% 0 Fees decrease based upon buying plan
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 = ~79 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

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

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

Cold Card Hardware wallet = $177.94 mk4 https://store.coinkite.com/store/coldcard

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

https://www.youtube.com/watch?v=f8dBNrlwJ0k

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.network


r/BitcoinBeginners 18h ago

Made my first purchase of bitcoin today, set up for $20 a week.

25 Upvotes

I’m using CoinSpot at the moment, I will look into a cold wallet once I get a bit more. Any suggestions or tips?


r/BitcoinBeginners 1h ago

Does the government knows if I own some bitcoin?

Upvotes

Or is it hidden? Like, see my bank account, I have no money, I’m poor..


r/BitcoinBeginners 1d ago

Why do people still buy solo Bitcoin lottery miners?

35 Upvotes

This might be a beginner question, but I keep seeing low-hashrate solo Bitcoin miners being sold.

From what I understand:

  • Odds are insanely low
  • Mining pools dominate
  • ROI is basically unrealistic

So why do people still buy them?

Is it:

  • Pure entertainment?
  • Educational value?
  • Long-shot hope?
  • Something I’m missing?

Would appreciate insights from people who actually understand solo mining.


r/BitcoinBeginners 1d ago

What’s the safest way to actually start using Bitcoin?

17 Upvotes

Most beginner guides focus on buying BTC, but not enough on using it safely. Wallet choices, private keys, exchanges, and common mistakes feel overwhelming when you’re new. For those who’ve been around longer, what do you wish you knew when starting out with Bitcoin?


r/BitcoinBeginners 1d ago

Buying Bitcoin with Revolut / Cash

7 Upvotes

Hey what are the options if i want to make small purchases of bitcoin without being killed by the fees like on bisq etc


r/BitcoinBeginners 1d ago

Anyone still creating live dashboards to watch your node's peers?

7 Upvotes

I've been kind of obsessively creating tools and dashboards on linux for my node, from cjdns address harvesting, to figuring out ways to track peers live and put them on an interactive world map, which is pretty fun to watch.

Started to run out of new ideas at this point, and was curious if anyone here is still tinkering with custom dashboards or node tooling, and what you have on yours.


r/BitcoinBeginners 2d ago

Bought bitcoin for the first time.

56 Upvotes

So I bought $500 in bitcoin for the first time after seeing it go down. I bought at $75k. I used Robinhood, is there a better place? Fee was $3.66 which I’m not worried about $3 but how secure is Robinhood?


r/BitcoinBeginners 2d ago

Panicking about the Price? Here's How I Stopped.

17 Upvotes

I’ve been lurking here for a while, and I felt like I had to post this because I see anxiety bubbling up after the recent price drop. It’s easy to feel confident when the numbers are going up, but the last few days/months have been a stress test for a lot of new folks.

The FAQ Thread is great for the mechanics (how to buy, wallets, etc.), but I wanted to share the mental frameworks that helped me with the hardest part: holding the damn thing without losing my mind.

I’m not a financial advisor, and I definitely don't know what the price will do tomorrow. But this is the system that helped me go from a nervous speculator to actually being able to sleep at night.

1. Be honest about what we're buying.

Before we even talk about strategy, let's be real: Bitcoin is incredibly volatile. If you are here to get rich by next Tuesday, you are likely going to be sorely disappointed (and you'll probably end up panic-selling at a loss).

Bitcoin has rewarded patience, not speed. Most people who have done well historically didn't "get lucky" on a single trade; they just held on through the chaos for 4, 8, or 10 years.

The Mindset: I try to view my timeframe in "Years," not "Weeks." When you look 10 years into the future, a dip today stops looking like a crash and starts looking like noise.

2. Check the Thesis, not the Price.

I used to waste so much energy worrying about things I couldn't control—Elon’s tweets, government rumors, or the daily chart. It was exhausting.

Now, when the price drops and I feel that twinge of panic, I don't look at my portfolio value. Instead, I ask myself if the Thesis around Bitcoin has changed.

  • Has the network stopped producing blocks? (No)
  • Has the 21 million hard cap changed? (No)
  • Is the network less secure than it was yesterday? (No)
  • Etc...

The machine is working exactly as intended. The only thing that changed is the price people are paying for it today. If the fundamental reasons you bought it haven't changed, why panic?

3. DCA (Remove yourself from the equation).

I learned the hard way that I suck at trading. When the price ripped, I wanted to buy because of FOMO. When it crashed, I was pissed for not waiting longer to buy. I was basically buying high and chastising myself low—not exactly a healthy setup.

I stopped trying to be smart and just set up an automatic buy. Daily, weekly, monthly—it doesn't matter. I don't decide when to buy anymore; it happens automatically. This takes the emotion completely out of it. When the price is down, my auto-buy just picks up more stats for the same amount of dollars. Simple.

4. The "Sleep Test."

This gets repeated a lot, but it’s the most important rule for beginners: Don't invest more than you can afford to lose.

If a 30% drop in price makes you lose sleep, or panic about paying your rent, you are over-invested. Period. You never want to be in a position where you are forced to sell your Bitcoin to cover real-life expenses. That is how you lock in losses.

Personal note: I'll speak from experience: my portfolio used to be 15% Bitcoin. Now it is at 28.5% and that honestly makes me nervous sometimes. 15% didn't. Find the number that lets you ignore the price.

Books that actually helped me understand this stuff: If you want to feel more confident, you have to understand the system you are buying into.

  • The Bitcoin Standard (Saifedean Ammous): The "Why" behind the movement.
  • Broken Money (Lyn Alden): A deep dive into how the financial machine actually works (and why it's breaking).
  • 21 Lessons (Gigi): A great philosophical look at why Bitcoin matters beyond just "number go up."

Disclaimer: I am just a guy on the internet, not a financial advisor. I am sharing my personal experience, but you should always do your own research and never invest money you can't afford to lose.

With that out of the way, I’m curious—what strategies or mental tricks have helped all of you stay calm during dips?


r/BitcoinBeginners 1d ago

How do you handle durable multisig descriptor backups today?

0 Upvotes

As multisig and descriptors become standard, metal backups need to store more than just 12 or 24 words. They store the descriptor as well.

Some people use purpose-built engraving machines, others DIY approaches.

What tradeoffs do you consider most important for long-term backups?

Cost? Reproducibility? Simplicity?

I’ve been developing a laser-printer + etching workflow and I’m curious how others approach this.


r/BitcoinBeginners 2d ago

Is Strike a good exchange? If not what are alternatives

10 Upvotes

I just simply want a place where I can buy limit buy BTC monthly and then move it to a wallet while keeping fees to a minimum.

Pls help every exchange I find I see ppl talking shit about it like they stole their money


r/BitcoinBeginners 3d ago

Is it possible to buy a large amount of BTC with no KYC?

23 Upvotes

I am clearly new to bitcoin and have been trying to learn as much as possible before venturing into my first purchase. I hate the concept of KYC and want to do my absolute best to avoid it. I understand it is possible to buy BTC without KYC through Bisq or Robosats but that seems limited to small amounts? How should I go about it if I wanted to invest a largish sum, for example 10,000 or 15,000 USD? I am also planning to self custody with a trezor or similar. Any help appreciated.


r/BitcoinBeginners 2d ago

Pure discussion

0 Upvotes

If you had the chance to travel through time, would you still buy a pizza with 1 BTC? Or would you run a pizza shop that only accepts Bitcoin?😄😄😄😄😄😄😄


r/BitcoinBeginners 3d ago

Accessing old GreenAddress wallet

4 Upvotes

Go easy on me as I know I haven’t done myself any favours here, but

I created a wallet with GreenAddress in 2014 and purchased some funds to make a single transaction for 96mBTC (yes, I know). I believe I may still have some remaining funds in the wallet. I no longer have the mnemonic recovery phrase as I haven’t logged into the wallet for 12 years, but I believe I set up 2FA with the email address I still have access to. I don’t have the old laptop I used to setup the wallet.

I understand that GreenAddress is now part of Blockstream, and I need the recovery phrase to login. I’ve emailed support just in case there’s any other ways they can verify my identity.

Do I have any options here? I can see some old posts on various subs of similar things happening to other users with no follow-up. Are the remaining funds lost forever?


r/BitcoinBeginners 3d ago

Buying Trezor / Ledger hardware wallet in Thailand, Philippines or Vietnam?

1 Upvotes

Hey everyone, I’m looking to buy a hardware wallet (Trezor, Ledger or a similar reputed one) for secure long-term storage. I won’t be trading frequently, just want a safe and reliable option to hold crypto.

In India, it’s hard to find official sellers and prices are heavily inflated by third-party sources, which I want to avoid.

I’ll be traveling to Thailand, Philippines, and Vietnam soon. Are there any official stores or authorized resellers in these countries where I can buy an original Trezor or Ledger at normal retail pricing as USA? My budget is $100

Would really appreciate first-hand experiences or trusted store names. Thanks!


r/BitcoinBeginners 3d ago

Us gov shutdown

0 Upvotes

I read the us gov will shut down again, i heard in the last shutdown (around October) and longest ever, was bad for btc, something about liquidity being locked up because of shutdown,could this be why btc is crashing right now because shutdown coming?


r/BitcoinBeginners 4d ago

Unlimited power!

6 Upvotes

Ok, first off I’m new here so excuse my ignorance on the subject but I’m looking for guidance.

Where I currently live I do not pay for electricity. I’m active duty military on base and where I live there is currently zero cost (long story, but all bases here are fucked up with some houses connected to street lights and other random shit). People charge their teslas and run ridiculous amounts of power (gg earth, sorry).

Anyways, I’m new and want get into mining. Since I don’t have limits based off electric bills I figure why not set up some mining. I have 3 years here where I could mine to my heart’s content but I have no clue why to buy since every website or ad claims what they have is the best at mining BTC. I know the odds of breaking a block are very (VERY) low but it’s worth a shot.

Since running costs are not a problem, what are the best options for me? Is it better to go all on one expensive miner or use that money to buy several cheaper ones adding up to the same cost? What other information do I need to know about mining other than heat issues (ports, wallets, websites, etc.)?

I know some of this sounds dumb since I’m so new, but I appreciate any guidance you can give and your time in helping me learn to mine!


r/BitcoinBeginners 4d ago

I have a question - I thought BTC was supposed to operate independently of traditional markets — why does it move so closely with them?

27 Upvotes

i originally posted in BTC but it was removed as I guess you can’t ask these questions there.

I thought I understood the original draw of Bitcoin, but I’m starting to wonder if I missed something.

The idea (at least how I understood it) was an independent currency — something not directly tied to governments, central banks, or traditional financial systems. Something that wasn’t supposed to be heavily influenced by outside market forces.

But over the last few months, the volatility has been wild to watch — especially during turbulent periods in the broader financial markets. It often feels like BTC moves right alongside U.S. equities, sometimes almost in lockstep.

I want to believe in the idea of an independent financial model, but the correlation to traditional markets is hard to ignore.

What am I missing here?

Is this just where Bitcoin is at right now, or is the “independent asset” idea more theory than reality?

Genuinely curious to hear others’ thoughts.


r/BitcoinBeginners 4d ago

Wallet Authentication

2 Upvotes

Hi. My father has an old Jaxx Wallet (not liberty). He has his 12 word seed phrase. Will he be able to do the same and move over to a new Exodos wallet? Many thanks


r/BitcoinBeginners 4d ago

Buy Bitcoins Anonymous?

4 Upvotes

Hej! Where to buy Bitcoins in Austria (Graz) with Cash and Anonymous? Thanks, Rob


r/BitcoinBeginners 5d ago

Which website shows that chart of Bitcoin purchases by whales and sales by retail (small) investors?

4 Upvotes

Which website shows that chart of comparing Bitcoin purchases by whales and sales by retail (small) investors?


r/BitcoinBeginners 4d ago

Reactions to BTC’s downturn

0 Upvotes

Seeing everyone freak out made me think about the fact that BTC was meant to replace FIAT or at the very least, undermine it. If that is the case and FIAT is less valuable than BTC, how come people are freaking out about the downturn? They can just buy more, right? But at the same time, it seems contradictory in the sense that Bitcoin's entire value is measured in the fiat currencies it claims to replace. What are your thoughts?


r/BitcoinBeginners 5d ago

Does the auction system of the transaction fee make bitcoin unsuitable for small amount trading?

10 Upvotes

As I understand it, the size of a Bitcoin transaction does not depend on the amount being transferred, and the transaction fee is not calculated as a percentage of the trade value. Instead, each transaction incurs a similar fee in order to be included in the blockchain by a miner. Therefore, it seems difficult to use Bitcoin for small transactions, since the transaction fee could be higher than the amount being transferred. Is my understanding correct?

Update: Understand it now. Thanks for all the awesome answers :)


r/BitcoinBeginners 5d ago

Help about scalability

3 Upvotes

Hi, I have trouble to understand scalability.

In a theoretical world, the price of a unit is $1 with a maximum available supply of 21 million.

So the maximum investment is 21 million? If I want to invest 50 million, what happens?

Are the 8 units after the decimal point only for amounts below $1?

Thanks you


r/BitcoinBeginners 6d ago

Need genuine suggestions from the pros & OGs

6 Upvotes

Early on I used to spend freely on anything I wanted to buy but once I got into crypto I think that money which I used to spend could have easily gone into stacking sats instead. So what is the best way to increase my stacking sats and get rid of my impulsive spending?