Introduction to Bitcoin:
Bitcoin is the original crypto currency. Released as a form of peer-to-peer currency, with the aim to remove trusted third party financial services from the equation of sending funds from point a to point b. Bitcoin allows you to manage your finds absent of a third party, removing fees and putting the security in your hands.
Bitcoin is broken into 2 main technologies
- The Bitcoin Protocol
- The Bitcoin Blockchain
The protocol is the functionality behind sending and receiving funds, while the Bitcoin blockchain is the decentralized database that keeps a transparent record of every wallet balance and transaction that has ever happened.
This makes Bitcoin important, because there is nobody, single entity, or business that can change the protocol and how it functions, OR change the record we know as the blockchain.
The Bitcoin blockchain is the biggest decentralized database in the world, it is basically impossible to hack or falsify in any context. Each transaction automatically settles with the support of “Bitcoin miners” and “nodes”. Everytime Bitcoin is sent, the bitcoin blockchain record all around the world is updated, so everyone has the same record of events. It’s truly spectacular and will drive the future of time stamped events, record keeping and automated settlements.
Bitcoin offers value that exceeds it’s value in terms of FIAT currencies, reinforcing it’s name as digital gold — Bitcoin’s proportions as a form of transaction, a peer to peer network of automated settlements and timestamping , a decentralized transparent database of balances and transactions, it’s potential to transfer funds over distances in seconds, as well as it’s use as a platform for development are unscaved by it’s value at any price. Although it’s value is tied to each unit of Bitcoin, this value does not affect it’s properties or utility in the above use cases.
Denominations
฿ Bitcoin is divisible… Buy, sell, send receive any denominations you desire, such as 0.01.
฿ You can buy 20$ worth or $2,000,000, any amount you desire.
฿ Buy Bitcoin with debit, credit, SEPA, Interac and any form of payment imaginable with Bitcoin exchanges. These are online marketplaces where you can buy and sell Bitcoin 24 / 7 with your local currency — QuadrigaCX in Canada with CAD.
- The barriers to entry with Bitcoin remain high — That is; connecting a bank account for high liquidity, exchanging Bitcoin in nay amount back and forth with CAD or other regional currencies, that’s okay. When buying Bitcoin for the first time, there’s a few options — Meet in person, buy online, connect to an exchange for credit / debit / interac and other traditional forms of exchange.
Adding Banking information to a Bitcoin exchange that caters to your regional currency is key — Typically these exchanges require KYC & AML laws, ID will be required to use their services. This is a lengthy process and takes up to 2 weeks on some platforms, so don’t wait.
QuadrigaCX is the premier exchange offering deposit and withdraw options catering to Canadian financial institutions. Buy Bitcoin at QuadrigaCX now -
Once you’re in Bitcoin, you can trade for other alternative crypto currencies (alt coins) easily. Most exchanges catering to BTC and alt currencies aren’t required to follow the same regulations as those catering to FIAT currencies.
Use Binance for a quick entry into nearly every other crypto currency — Sign up for free in seconds.
Storage
฿ Bitcoin can be stored on your phone, desktop, or physical wallet such as receipt paper or purchased USB cards holding the correct software. These are more secure because they are removed from the internet so no back doors can be opened.
฿ Holding your private keys are #1. Private keys are the addresses used to spend funds. Without these you do not own your Bitcoin.
฿ Bitcoin is sent and recieved with long strings of numbers and letters, upper and lower case. These addresses are case sensitive. Here’s what they look like:
Bitcoin Address: 1HWW52rdu2RWYW5qsRdzbmfKhoeVrGuVvo
Sending Bitcoin
- Open your Bitcoin wallet
- Copy the address you wish to send to — Sometimes you will need the other party to text it or email it to you for easy copy and pasting — Do NOT try to type it in yourself in case you get the address wrong.
- Paste the address in the“Send” tab of your Bitcoin wallet.
- Select your fee — Miner fees, the bigger the quicker they send, the lower, the slower, sometimes they will even get stuck. Some wallets will select a fee dynamically, while others will let you send your own. The miner fee is determined by a few things mainly the computers mining and the comparison to other transactions at the time. Fees go directly to the miners who are reinforcing the network.
- That’s it.
Security
Cryptocurrencies put the security in your hands, that means nobody is here to protect your funds. You need to watch out for hackers, bad email links, websites phishing for your information, etc. In fact it’s safe to say, don’t keep your Bitcoins where your browsing. Here’s a few tips:
Exchanges
Never keep your Bitcoin on an exchange — If the exchange goes missing, or gets hit by a regulatory agency, your funds are frozen. If you are keeping your funds in a services wallet, you are not in charge and you do not own the coins. Yes, that means withdraw every night when you are done trading.
Always look for https: and ensure the URL is correct, there is a lot of phishing websites that mimic exchanges.
Make sure there is volume — Depositing to an exchange with no volume means your coins are stuck there.
Bitcoin exchanges are notorious for getting hacked or going missing. Always google and speak to the community prior to signing up.
Use a unique password, these websites get hacked a lot, don’t risk your information going to the world that will allow them to log into your other accounts.
2FA is your best friend.
Never give you your passwords.
Wallets
Don’t over use addresses, it’s good common practice to switch them up every so often.
Don’t show your private key to anyone, ever!
If you don’t own you private key, you don’t own the Bitcoin. If you’re using a services wallet (online / cloud wallet etc) make sure you have access to your private keys
Use 2FA and wallet passwords at every chance
Back up your wallet always
Never throw out your passphrase recovery, you don’t know when you might break your phone etc.
Use MultiSIG transactions for important times — This requires verification from multiple devices
Facts and Myths
฿ No bitcoin hasn’t died. No it hasn’t crashed. But 400 million in Bitcoin just got stolen — Yes, you’re probably right. Here’s the catch: Remember above when we suggested that Bitcoin’s goal is p2p financial transactions that remove trust, well that still remains true. You’re hearing about a Bitcoin exchange, or a Bitcoin service that has been hacked. This is no reflection on Bitcoin — Picture you local bank gets robbed and all that money goes missing. Well this is the same thing. It doesn’t mean Bitcoin doesn’t work or has been hacked, it suggests that the business who was holding those Bitcoin was extremely insecure.
฿ Bitcoin is anonymous — No it’s not. Not even close. And I have no idea where this came from. The Bitcoin blockchain holds a record of every balance and transaction ever — That is a far cry from me handing you a $20 bill behind closed doors. Bitcoin in NOT anonymous
฿ Bitcoin is only for bad things — Get your head out of the gutter.
฿ No it can’t be hacked unroll quantum computing is in circulation, but even then, Bitcoin by definition adapts with consensus, so it’s nearly impossible for this to be a viable situation.
฿ Bitcoin uses the bitcoin blockchain, not the same as the banks you’re hearing about. The Bitcoin blockchain is a system that is decentralized to the core, so no single entity can control the decisions.
฿ The bitcoin blockchain is proprietary because it’s one big record of transactions that is public and cannot be changed. There is millions of copies that are getting longer day by day and increasing the unliklihood of replication.
฿ Bitcoin is a protocol not run by anyone or anyone entity or any business, every bitcoin service and holder has a say. BIPS are Bitcoin improvement proposals and they are submitted as a proposal and adopted by the community with consensus rules. The protocol cannot be changed unless the community adopts it.
Sending and Receiving Bitcoins
฿ Bitcoin uses receive and send addresses to move funds. When you send funds from a wallet to another wallet, it’s public.
฿ Anyone can Google “blockchain explorer” and see all of the live Bitcoin transactions happening in bitcoin in real time — that is, every address and every transaction. This is the blockchain, and it’s a transparent record of every wallet address, balance and transaction, ever.
฿ Buying Bitcoin? This is done on a Bitcoin exchange. Each country has an exchange or multiple that cater to their currency and popular payment options. We use QuadrigaCX in Canada because it is convenient.
฿ Bitcoin transactions are not even close to anonymous — contrary to popular belief. The blockchain is a public record of transactions and balances. In order to be anonymous you need to be tech savvy.
฿ Trading Bitcoin for Ethereum or Litecoin? Perhaps another new ICO or cyrpto currency? Use Binance for the ability to trade into nearly any coin that exists. Join in seconds here.
For Businesses
฿ Merchants can accept digital payments at 0% cryptocurrencies opposed to credit cards at 3–5%.
฿ Merchants can accept Bitcoin and have it directly deposited in FIAT currency into their merchant account essentially eliminating volatility risk.
฿ Employees can have their paychecks come in Bitcoin increments at any company with BitWage.
฿ Bitcoin can be a way to show your brand is trendy, up with the times or simply to offer more payment channels. Educate your customers to build a relationship!
฿ There is no security on your bitcoin wallet. Lose it and you’re not insured because you are the sole entity in charge of your funds.
฿ Significantly save on B2B purchases and dropshipping partners with Bitcoin, an easy way to transfer money over long distances, instantly.
Bitcoin Community and News, How to Keep Up to Date
Where to keep up with the Bitcoin conversation and up to date news?
www.reddit.com/r/bitcoin
www.bitcointalk.org
Bitcoin Canada Slack channel
For Taxes in Canada
Bitcoin is a commodity. You must claim capital gains on the margins you make. Below are links to the Government of Canada and Intruit websites, both credible resources for this kind of content in Canada.
https://www.canada.ca/en/financial-consumer-agency/services/payment/digital-currency.html
https://turbotax.intuit.ca/tips/how-bitcoins-might-impact-your-income-taxes-333
Getting Started With Using Bitcoin in Seconds:
- Download a wallet — I recommend Bitpay or Copay for mobile, Electrum for Windows Desktop, Trezor for a hardware wallet and a paper wallet for anyone looking to put a few Bitcoins away for a while.
- Buy Bitcoin — QuadrigaCX to buy Bitcoin with USD or CAD or Local Bitcoins to find someone to meet up with in person.
- Send from the exchange to your personal wallet — Click your receive address on your Bitcoin wallet, it should copy a syntax of numbers and letters that look like this — 12xJLzZFWGdwHe4Uq7ruPiviGQsL7iqT9u. Withdraw to the receive address of the wallet you want to store your coins.
- Exchange for ALT Currencies — Looking to diversify your portfolio? Use Binanceto exchange for other cyrpto currencies. Buy litecoin, Ethereum, Ripple etc in seconds with Bitcoin.
- Know your goals — Investing in Bitcoin for a week is different than a year. Each time-frame requires different security measures, and the proper wallet. Liquid Bitcoin should be kept in a mobile wallet, while Bitcoin put away for the long term might benefit from a paper wallet… Know your goals, do your research and understand what’s happening with your finances.
Join us on Facebook buying and selling Bitcoin — https://www.facebook.com/groups/tradebitcoins/
Send Jordan a tip with:
Bitcoin: 1HWW52rdu2RWYW5qsRdzbmfKhoeVrGuVvo
Litecoin: LbDjd29WZdSH16K78jgR6mNbDaPHMMBf53
Ethereum: 0xB15690AAFB3DC32Fe1B5Cf133335D5b0Ec962312
Coins mentioned in post: