The first section is about bitcoin, the second half a guide on how to get hold of bitcoins.
The main characteristics of bitcoin are:
- Transfer fees are tiny
- Value can be transfered just like email can be transfered between computers without a third party to accept the information sent
- Transfers are instant 24/7
- Bitcoins can be split into smaller parts. On Warbarons we use milliBit for example
- Bitcoin is a public peer 2 peer network where the connected computers act as a database that hold information about all accounts and bitcoins in the network
- The adressess and bitcoins are public information but the addressees owner is unknown until the owner reveal this information, therefor is considered pseudonymous
- Bitcoin can be exchanged to fiat money and the exchange price is based on what the market believe bitcoins are worth just like stocks
There are a few big exchanges (as well as many smaller) where several million dollars change hands every day so it’s never a problem to instantly sell yourbitcoins for fiat money. Most exchangers employ what is called KYC (Know Your Customer) which mean they require identification to accept deposits or withdrawals.We have listed exchangers bellow.
About bitcoin value
The value of bitcoin is set by the market, just like any limited resource is decided by the markets demand. There are at the time of writing about 12.600.000 bitcoins mined. Every 10 minutes another 25 bitcoins are found through mining. The mining speed is halved every 4 years.(Next halving date is expected to be 2016-08-22). The bitcoin value is a result of mining, new members buying bitcoin and news that affect the current bitcoin holders belief thatbitcoin will continue to grow globally and that bitcoin will be accepted as a medium of payment on a wider scale.
- Start by installing a bitcoin wallet on your computer.
We recommended multibit, a lightweight actively developed bitcoin wallet endorsed by the bitcoin foundation for Win, Mac, Linux
More info about different wallets found here
- The next step is to fund your wallet.
There are several exchanges and sites where you can buy and sell bitcoins.We have listed the biggest ones but there are several more. There are many smaller exchangers that work within the country they operate in. Use google to find.
Europa based exchange that works in most countries (SEPA transfers possible) (our choice)
USA based site where most americans buy their coins (recommended if you are from the US).
Buy through Webmoney
BTC-e (Russian exchange one of the biggest longest running exchanges but anonymous owners so transfer the bitcoins to your own wallet)
- When you have bought bitcoins you should transfer them from the exchange to your wallet on your computer. From there you send to the hash listed on the deposit bitcoin page here on Warbarons.
Current exchange prices for bitcoinhttp://bitcoinwisdom.com/markets/bitstamp/btcusd
Blockchain lists every transaction + a lot of data in the bitcoin networkhttp://blockchain.info
- Where ever your bitcoin are located, your desktop some online account (like Warbarons) or other wallet always use a unique strong password to protect your account. In your desktop wallet you should put a unique password to encrypt your wallet (Built into most wallet clients).
- Keep your bitcoins on your own computer unless you are using them for a service. There is always a risk that the site server is hacked and the site owner loses the bitcoins to the hacker (happened several times on various sites online).
- We are moving all bitcoins off from the server to not risk losing them in case someone manage to break into the server.
- There is a virus called cryptolocker for windows that will encrypt your wallet file and demand a ransom to unlock. We recommend that you keep a backup copy of the wallet and keyfiles on a USB in case you get that virus or if your computer is stolen or harddisk crashes. Most wallet clients have a export feature that lets you make a backup.