Bitcoin 101: What is Bitcoin? | How to Use Exchanges | Cryptocurrency Wallets

Episode Highlights:

  • 00:44 – Basics Of Bitcoin
  • 01:12 – Methodology To Trading
  • 02:05 – What Is Bitcoin 101
  • 04:13 – Fun Facts About Bitcoin
  • 07:55 – Something Special About Bitcoin
  • 08:29 – Bitcoin Is A New Type Of Currency
  • 10:31 – What Are Cryptocurrency Wallets?
  • 12:10 – Bitcoin Versus Traditional Currency
  • 13:47 – Bitcoin, The New Gold
  • 15:06 – Where Do You Get Bitcoin
  • 16:10 – What’s Next For Bitcoin?
  • 19:42 – A New Opportunity

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Transcription:

Hey guys its Dan from Digital Update again wanting to talk to you about Bitcoin, about cryptocurrency, about how to make money in this new wild wild west of trading. So anyway last video I made it kind of dawned on me that there’s probably several folks watching the video that don’t know really a thing about Bitcoin or don’t know a thing about cryptocurrency. And it occurred to me that as much as I want to start teaching people how to make money by buying and selling and trading Bitcoin and other altcoins.

I want to make sure people have a solid understanding of the basics around what bitcoin is, what cryptocurrency is, what a wallet is what an exchange is and how you actually access these different things.

00:44 Basics Of Bitcoin

So I thought I’d take a step back and actually explain to people around all of these things and sprinkled in between all of this kind of education around Bitcoin and what it is, how to use it.

00:56

I’ll be talking about trades then I’ll be talking about how to trade on the cryptocurrency exchanges and I’ll show you examples of how I’ve traded and when I’ve traded and how I find the low points in the market and buy at the low points and then sell at the high points.

01:12 Methodology To Trading

There’s an actual framework an actual methodology about you know how to go about doing this so that you could always make money 99 percent of the time. You can make money and especially in the market today the cryptocurrency market today it’s much less mature than the stock market it’s really in its infancy, there’s a lot of people in the market trading doing things they don’t really understand what’s going on. Unlike the stock market where there’s professional traders there’s institutions for hundreds of years people have been trading in this well maybe not a 100 years but people have been trading in the stock market it has really gotten to the point where it’s so institutionalized that it’s a lot more difficult to make money in the stock market. You really really need to know what you’re doing and how to trade if you’re going to do any type of day trading or position trading it’s not like that with Bitcoin and cryptocurrency. So the markets are very new, they’re very hot, they’re very up and down they’re very volatile.

02:05 What Is Bitcoin 101

So anyway before I get into all of that I really wanted again to talk about the basics of Bitcoin. What is Bitcoin,Bitcoin 101, how does it work? What’s the vault what’s the exchange so forth. So let’s dive into this presentation. If you already know the basics of Bitcoin go ahead and move on, go ahead and move up the trades and see how to actually make money with this stuff today. So let’s just dive right into it so what is Bitcoin?

Bitcoin is a form of digital money or digital currency that lets you send and transfer money over the internet. It’s really as simple as that, you can buy, you could sell, send and you can receive money over the internet in an electronic form and that’s what’s called Bitcoin. So think about it like this, bitcoin is similar to email, you have email address A and you have email address B email, address A sends an email to email address B and email address B receives that email so if I’m the owner of email address A, I just write a message and I click send and it’s automatically sent over the internet through wire through technology, through what is it Adam, it’s sent to email address of B whoever owns that email address can actually pick up and read my message and so forth.

Bitcoin acts in a very similar way. Although it’s not email obviously each person or each time you buy or purchase bitcoin you’re assigned a unique ID and a unique address. If you get a Bitcoin wallet which is where you can store your bitcoins you’ll get a Bitcoin address so similarly you’re seeing here in the bottom of the screen here you’ll see there’s a unique address so for any Bitcoin you have or any Bitcoin wallet you have your assigned unique address. You can then transfer that Bitcoin or the value of that Bitcoin from one address to another address similar to email again. You simply put in the amount of Bitcoin you want to send or receive, you click send or receive and then it’s automatically transferred or shot through the internet to any other account or the other wallets. And the person on the receiving end can actually pick that up it’s as simple as that. It’s really just an electronic transfer of money or a value in this case.

04:13 Fun Facts About Bitcoin

Let’s keep going so a couple quick fun facts about Bitcoin. Bitcoin is the first decentralized digital currency ever. So bitcoin was started back again in 2009 and it was started by an anonymous developer called Satoshi Nakamoto. He first wrote a white paper that proposed Bitcoin and blockchain technology and what was how it worked. Although here’s the funny thing Satoshi Nakamoto isn’t a real person it’s actually an anonymous identity it’s an alias if you will of the real developer that developed Bitcoin into Bitcoin technology.

The true person, the real person that developed the technology has not actually revealed himself or herself for that matter. Very interesting to me that there’s a secret person that developed Bitcoin. We can get into that in just a moment. But I just wanted you know Satoshi Nakamoto as a way to transfer value to transfer money over the Internet really. He was just developing a new protocol that he thought would be a way to better transfer and store value across the internet on computers. So one other very important fact here no one controls Bitcoin. So unlike dollars, unlike fiat currency, bitcoins aren’t printed, they are not produced by people. You can’t make more of them there’s a finite number of bitcoins out there in circulation and the value of Bitcoin goes up and down based on the market demand, based on the supply, based on a number of things. But it’s not controlled by a central authority it’s not controlled by a central figure like a central bank or an insurance company or even that’s not controlled by anybody. So it can’t be manipulated in that way by a central authority so that’s a very very key differentiator here.

What bitcoin is, it’s a distributed ledger that tracks transactions and the value of transactions over time in a very very sophisticated encrypted blockchain technology. What’s called blockchain they are like this whenever a transaction happens it’s actually put on the blockchain and when another transaction happens it actually goes over that and it goes over that and it goes over that and it goes over that and each time a transaction happens the ledger gets bigger and bigger and bigger and bigger and bigger.

And over time these things are encrypted in the block and there’s no way to change or modify the transactions that have happened because they’re really locked in, they’re kind of glued into the amber of the blockchain if you will, if that makes sense.

06:47

So anyway that’s kind of the basics about Bitcoin so in simple words bitcoin is an open-source software to transfer money over the internet. And one thing I wanted to highlight really quick here about Satoshi Nakamoto, I’m curious keep your comments coming in the video if you’d like but I’m curious why would somebody create Bitcoin, create this revolutionary technology and not even reveal themselves and not even claim that they’re the the inventor of this revolutionary technology. Very odd, very peculiar, very strange to me don’t want to get into a conspiracy theories or anything like that but this person whoever created it was either, A afraid that they would get arrested and go to jail for creating something like Bitcoin or B thought it would disrupt the world so profoundly that they may, some people may be mad at them thanks we’re talking about powerful people here they get upset with them or maybe this person just didn’t really know what it was going to create, didn’t want to be known as the person that created it going who knows. I’d be curious to hear your thoughts in the video here but what it tells me is that bitcoin is special.

07:55 Something Special About Bitcoin

Something about Bitcoin is special we know maybe some of what that is it’s a revolutionary technology. You do a lot of things that you couldn’t do before, there’s something special about it. What’s the long-term potential about bitcoin we don’t know most people a lot of people think that bitcoin’s going through the moon, other people think bitcoin is a bubble it’s going to go away and it’s just going to die out? If you’ve seen and looked at the trend since 2009 2017 to today bitcoin is not going away it is growing exponentially day after day new coins are being built on this blockchain technology and it’s only the beginning.

08:29 Bitcoin Is A New Type Of Currency

Anyway I’d like to keep going on and I want to keep going through this slideshow and the last thing I want to tell you is so we have currencies we have dollars we have pounds you have a number of currencies in the world today you could trade them on the for its exchange. Bitcoin is a new type of currency you can add it to the list of currencies except its special in the way that it’s a digital currency that can be programmed. The technology itself can change over time. I’ll get into more of that a bit but it’s really key to remember that bitcoin is a new form of currency and there’s debate about this, but if you can buy and sell it on exchanges and you can redeem it for dollars or pounds or other forms of currency in my opinion Bitcoin is a form of currency. So bitcoin you can trade on exchanges and I think in the first video I showed you a couple exchanges that you could trade on as an example but similar to the stock market you can trade Bitcoin on exchanges you could buy you could sell Bitcoin as the price goes up and down market fluctuations so forth and so on you could buy it and you could trade it similar to an auction. There are many crypto currency exchanges many many crypto- currency exchanges.

And I just found a typo in my slide so I will have to replace that but just bear with me so there are many bitcoins or crypto currency exchanges here some of the more popular exchanges are bit tricks, bit stamp crack in look at this annex there’s quite a few popular ones I’ll get more into that in later episode but just wanted to let you know that they’re exchanges with many of them and in these exchanges you can not only trade bitcoins but you can trade many other all coins and what all coins are, all coins are basically different flavors of Bitcoin there are technologies built on blockchain and they may be slightly different than Bitcoin they may have improvements to the coins do they have a different functionality improved functionality to bitcoin. All of these things are exchanged or traded on these exchanges rent on these cryptocurrencies exchanges

10:31 What Are Cryptocurrency Wallets?

So that’s all you need to know if you want to trade Bitcoin you need to go to these exchanges the next thing are wallets. What’s the cryptocurrency wallet? We talked about it a little bit at the beginning of this this presentation, a cryptocurrency wallet is essentially a place where you can store your your Bitcoin or your all coins the place where you can store any of your cryptocurrencies that you purchased. In the news you’ve probably seen or you may have seen that there’s been issues with exchanges some of the exchanges have been hacked there’s been scams on the exchanges and people have lost money trade Bitcoin on these exchanges so people now store their Bitcoin or their other all points on wallets there’s software wallets which are essentially virtual wallets they’re just software that you store your coins in or there’s now even Hardware while it’s physical wallets that you can store your coin in.

People are nervous that if they store they’re going on software on a computer and next year goes down or whatnot they may lose that Bitcoin so people then moving to Hardware type of wallets to store that Bitcoin on physical wallets you can send 500,000 bitcoins to your Hardware wallet stored away in your room under your bed under your mattress if you want five years from now go back to an exchange they load it back up and redeem your bitcoins on that wall now. Again I’ll get more into this little bit later if you want to make you aware though that there are many different types of wallets for physical to virtual wallets I currently use electrum it’s a virtual wallet I haven’t actually gone the route of purchasing a hardware wallet yet my account is increasing pretty pretty substantially so I’m thinking of actually moving to a hardware wallet but if someone actually made the plunge in my software wallet electrum is working just fine, now okay.

12:10 Bitcoin Versus Traditional Currency

So why is a Bitcoin better? Why is that going better than traditional currency? Rather than dollars so forth bitcoin is international, it’s truly international you can truly send money anywhere in the world for very low cost you can find things with Bitcoin online you can. I’m based here in the San Francisco Bay Area if I wanted I can send one penny, two pennies, three pennies, five cents or whatever to somebody in Nigeria in a little town a little village in Nigeria makes it very easy and very inexpensive to send money overseas so that’s one advantage.

Another advantage like I mentioned before it’s cheaper typically to wire money to some remote place in the world you to wire it to your bank and you can be charged fees $30 to $100 depending on the amount, the value, the sort, the fees are high; bitcoins changes that, bitcoin makes fees drop, it reduces the fees it reduces the price to send money back and forth anyone in the world and it does that at high amounts and low amounts. It doesn’t discriminate in different coins of different doing this but essentially it’s cheaper to send money using Bitcoin.

Another thing is that Bitcoin now can protect you from inflation it can protect you from a recession it can protect you from a depression imagine tomorrow if all of a sudden we had a depression or a recession in the US and imagine if the stock market or the value of the dollar tanked let’s say tank 50 percent what would you do? Then most people traditionally they would go to gold they’ve gone buy gold stockpile gold whatnot that’s kind of been that the basis for the value that they could preserve so they could preserve their value of their money.

13:47 Bitcoin, The New Gold

That’s changing Bitcoin is now being looked at as the new gold. It’s being called the digital gold of our era people are moving from storing money, saving money buying gold to storing money in Bitcoin it coins a way to store value it’s a way to preserve value when hard times it’s a way to preserve the integrity of money that you have. And people are shifting from gold to Bitcoin and surprisingly they kind of actually surpassed the value of gold by a couple thousand I think today the value of bitcoins around 4,000 I think last week it was around 5,000 and the price of gold is a couple thousand dollars less than that, so what does that tell you. Pretty interesting to say the least, so if there’s one point I want to leave you with you is that Bitcoin and other cryptocurrencies are money with an API.

Now if you don’t know what an API is don’t worry API is a fancy technical term in the programming world and basically all it means is that the money with a way Bitcoin and blockchain technology works is that think of money, think of being able to program money, think of being able to program applications around money and what you can money think about that and think about programmable money it’s a pretty interesting concept.

15:06 Where Do You Get Bitcoin

So next so how do you get started trading bitcoins? how do you buy Bitcoin? Where do you get Bitcoin? So there’s a couple of ways to do it the easiest by far the easiest way to get started trade cryptocurrencies buying bitcoins today is go to coinbase.com

Literally go to coinbase.com sign up for an account and you could literally put your credit card in there by Bitcoin today you could buy I think the first time users provides $500 a bit Bitcoin today instantly right once you have Bitcoin in coinbase you could then start trading it from coinbase to the exchanges to your wallet.

So forth and so on but by far the easiest way to get started with cryptocurrency is to go to coinbase and actually buy some there right using your credit card so you this way other ways would include mining Bitcoin which involves installing software and hardware in your computer and actually mining the Bitcoin out producing. But helping mine the bitcoins so that other people can they get it so that’s one other alternative.

16:10 What’s Next For Bitcoin?

So where are we going with Bitcoin while there are exciting things are going around Bitcoin right now and the reason put this picture up here is because it’s think about this for a minute. So Bitcoin ATMs are now popping up all across the country all across China all across Europe they’re starting to pop up and you have to see a Bitcoin ATM machine yet you will barely soon.

It’s a big topic and that’s about to explode once you can start buying and selling it withdrawing Bitcoin from ATMs that means it’s getting closer to going mainstream once Bitcoin goes mainstream game over it is going to go to the moon. It’s going to shoot up in volume very very significantly now of course there’s going to be able to balance a long way so I’m just going to go up through the moon over night but it’s a signal to me that Bitcoin is becoming mainstream it’s gaining mainstream adoption and more and more people are understanding what bitcoin is, understanding the value of Bitcoin, wants to participate in Bitcoin. And that’s why I think this is very exciting we are at the tip of the iceberg right now literally it’s been around since 2009. The things have really started picking up in the last maybe a year or two and we’re about to see an explosion of people entering the market trading Bitcoin buying, receiving Bitcoin using Bitcoin to make consumer purchases withdrawing Bitcoin from ATMs and so forth.

We’re very much at the beginning here and if you get it now there’s some a very significant potential to make a lot of money moving forward which is why I want to educate inform everybody else right now I’ve already made quite a significant amount of money in the exchanges and I am NOT by profession a stock market trader. I have learned the basics I’ve learned probably a little bit more than the basics at this point but right now it’s not that hard to make money in this crypto currency market today there are some fundamentals.

You need to know you need to be careful of course but very big opportunities right now so as I said bitcoin is only the beginning and I have this up because I really just wanted to show you that bitcoin is one of many different digital currencies. Digital coins there’s many of them the most popular or some of the most popular are Bitcoin Imperium litecoin – or digital cash Manero, z cash these are all some of the more popular coins. And they do different things they have different technical capabilities they have different applications so forth but this is just the beginning and as I mentioned before these new types of digital currency these coins if you will are popping up all over the place they’re popping up in ICOS which stand for Initial Point offering are like IPOs.

But they’re for digital points and businesses are being created almost over tonight I think I just read the other day there was a company called Probe B it’s a new real estate coin that’s being developed. I think they’ve raised around fifteen million dollars in like a couple hours is crazy and you can search that and check it out but fascinating what’s going on so again I’ve left the video here but I wanted you guys to take home with an opportunity like this comes once in a lifetime I mean if you remember real estate boom in the early 2000, the Internet boom is the late 1999 or early 2000 that those things don’t come around all the time. A lot of people made money in the real estate market a lot of people made money in the internet.com boom era this is a new era.

19:42 A New Opportunity

This is a new opportunity unlike we’ve ever seen before and I really want each of you really take the time take 5 10 15 minutes today figure out what bitcoin is if you don’t know what bitcoin is write a little note and I’ll help explain it to you go to digital update.com. Opt in, update, sign up and we’ll educate you more about Bitcoin but it’s truly a once-in-a-lifetime opportunity for those who want to get in on the ground floor, if you want to take the time to learn about this technology about what it can do about what it’s already doing and how to fund a trading on the side and actually make some money this is for you I mean it’s I’m so excited about this opportunity I came to tell you I go home every day I tell my wife that I want to, I have a full time job and I tell her I want to go home I want to quit my job pretty much every day because of what’s going on in the cryptocurrency world now it’s such a big opportunity I’m so excited and fascinated about it we barely scratched the surface and I can’t tell you enough I can’t push you enough to just learn about this technology get into this technology buy a $50 account buy $50 with a Bitcoin, start trading it, start playing around with it start exploring how it works put it in a wallet put it in exchange transfer it back and forth send it to a friend just learn how it works because this is really the future and if you don’t you’re going to be left behind.

Anyway this is Dan again from Digital Uptake hope you enjoyed this hope this was valuable to you. If you have any questions leave them in the comments, I’ll also posted this video on my blog at schema otherwise go to digitaluptate.com and opt-in to our email newsletter we’ll give you more information about this and recommendations of what cryptocurrencies should be trading anyway again thanks and I will talk to you next time.

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This Is A Custom Widget

This Sliding Bar can be switched on or off in theme options, and can take any widget you throw at it or even fill it with your custom HTML Code. Its perfect for grabbing the attention of your viewers. Choose between 1, 2, 3 or 4 columns, set the background color, widget divider color, activate transparency, a top border or fully disable it on desktop and mobile.