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Getting Started with Bitcoin: Choosing the Right Bitcoin Wallet

Payza Bitcoin

Payza is excited to be among the first online payment and remittance platforms to offer a direct way to buy Bitcoin. We feel it’s an important milestone both for our company and the cryptocurrency movement.

If you don’t have experience with Bitcoin or other cryptocurrencies, we realize this can be an exciting but intimidating new world, so we want to help you get familiar with it.

Once you get to know Bitcoin, we expect you’ll be a lot less intimidated and even more excited.

What is Bitcoin?

At its core, Bitcoin is both a currency and payment network that’s designed for the internet age.

Today, the Bitcoin network processes over 50,000 transactions per day, and the cost of 1 bitcoin is approximately $550 USD.

Unlike typical currencies, bitcoins are sent person to person via the Bitcoin network program, without using any third-parties. This means transactions happen instantly, at an extremely low cost, anywhere in the world, with very strong security. These factors make Bitcoin a terrific online payment method.

Just like regular money, there are dangers when it comes to Bitcoin and your best defense against them is education.

How do I store my bitcoins?

Bitcoins are stored in your personal Bitcoin Wallet. There are several different wallet services available online each with their own set of benefits and drawbacks. It’s similar to how you would treat your wallet, your checking account, and your physical safe with different levels of security versus convenience.

If you’re new to Bitcoin, Coinapult is a good choice for a first wallet. Some of the features of a Coinapult wallet that are designed with Bitcoin newcomers in mind are Locks and Bitcoin by Email.

With Locks, you can tie the value of your Bitcoin balance to a traditional currency or even to gold, helping you avoid the ups and downs of Bitcoin’s price changes. This makes Bitcoin less of an investment risk for new Bitcoin users.

“Locks now lets everyday consumers reap the benefits of the Bitcoin network, without having to speculate on day-trading bitcoins,” said Ira Miller, CEO of Coinapult.

How do I keep my bitcoins safe?

It’s important to remember that just like your money in the real world, it is up to you to make sure you have the right level of security for your bitcoins. Bitcoin.org has lots of tips to help you learn how to keep your bitcoins safe.

Where can I spend my bitcoins?

Because Bitcoin is so easy to set up and use, there are many businesses worldwide that have begun to accept Bitcoin as a method of payment. Currently, it is estimated that between 60,000-80,000 merchants across the world accept Bitcoin, from mom and pop shops to billion-dollar corporations like Dell.com.

In addition, there are also easy-to-use services available that will purchase goods on your behalf if the merchant you want to buy from does not currently accept Bitcoin. Since Bitcoin helps create simple solutions, the question really is, what can’t you buy with Bitcoin?!

As Bitcoin grows in popularity more and more businesses have climbed aboard the Bitcoin bandwagon, taking advantage of Bitcoin’s low transfer fees and state-of-the-art security features. Every day, more and more businesses of all sizes add Bitcoin to their payment methods.

Buying your first bitcoins

So now that you know what Bitcoin is, you’ve set up a wallet and you’ve learned the basics about security, it’s time to test the waters. Right now the price of 1 bitcoin is about $550, and you’re probably thinking that’s a lot of money just to test Bitcoin out.

The good news is, you don’t need to buy a whole bitcoin, each bitcoin can be divided into one hundred million equal parts! The smallest unit is called a Satoshi (after Satoshi Nakamoto, the mysterious creator of Bitcoin) and is worth 0.00000001 bitcoins.

With Payza, the minimum Bitcoin withdrawal amount is just 20$ USD, so you don’t have to worry about breaking the bank.

At Payza, we’re extremely excited to be a part of the Bitcoin movement and we hope you are too. Look for more Bitcoin educational articles on the Payza blog and more Bitcoin features coming soon!

Image Credit: "Bitcoin ATM Plate" by Mrnett1974 - Own work. Licensed under Creative Commons Attribution-Share Alike 3.0 via Wikimedia Commons - http://commons.wikimedia.org/wiki/File:Bitcoin_ATM_Plate.jpg#mediaviewer/File:Bitcoin_ATM_Plate.jpg