What is Bitcoin?

by Franco on August 6, 2017

What is Bitcoin? You’re about to learn what bitcoin is, how to get your first bitcoin, how to store it in your own bitcoin wallet and then I’ll show you how to build wealth trading bitcoin and other cryptocurrencies.

There are 4 main ways to make money in bitcoin and cryptocurrencies:

  1. Own and Hold Bitcoin. (yeah it’s that simple)
  2. Affiliate Marketing and Flip Commissions into Bitcoin.
  3. Trade Cryptocurrencies. Buy low. Sell high. Stack Your Gains.
  4. Invest in bitcoin/cryptocurrency companies. Make passive income.

WATCH ALL VIDEOS BELOW FOR COMPLETE TRAINING: But these are the basics to getting started with bitcoin…

  1. Buy bitcoin for the first time: Coinbase.
  2. Bitcoin Wallet to Store Your Crypto Safely: Exodus.io is the best wallet.
  3. Trading crypto: In Exodus you can exchange bitcoin for other cryptos.
  4. Crypto Trading Exchange: A free exchange account at Binance and trade like a pro.
  5. Master the skill: If you like trading bitcoin and crypto learn here.

KEEP IT SIMPLE: I’ll show you other cool tools and strategies if you want as you learn the basics, but the 4 tips above will allow ANY bitcoin/crypto beginner to get started building wealth with bitcoin and crypto and it keeps it very simple. So the next step is to watch all the videos below.

You can show your gramma how “do bitcoin” this way.

Bitcoin Education & Profits: Two High Quality Crypto Affiliate Programs I Recommend…

Simple Freedom Academy: Click here.

Bitcoin Trading School & Tools: Click here.


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BITCOIN FOR BEGINNERS: What is Bitcoin, Exactly?

BTC, short for Bitcoin, is a decentralized digital currency (cryptocurrency) that was invented by “Satoshi Nakamoto.” The anonymous inventor or group published a white paper in 2008 as a proof of concept, then released it as open-source prototype software in 2009.

Bitcoin is digital money. You can use it to store value. You can send it without resitrictions anywhere in the world to any other person with a “bitcoin wallet.” It’s universal, free (as in freedom/liberty) money and isn’t controlled by any centralized corporation or government.

You can trade bitcoin and cryptocurrencies just like any other asset or commodity in a free and open market. Bitcoin’s value can go up and down depending on market forces (supply and demand).

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Getting Started with Bitcoin: Simple Steps.

  1. Buy bitcoin for the first time. You can do that here on Coinbase.
  2. Move your bitcoin to your own bitcoin wallet.
  3. Trade bitcoin and other cryptocurrencies on exchanges for profit.
  4. Learn more about bitcoin and cryptocurrency. Crypto School.

BITCOIN BASICS: How Does Bitcoin Work?

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Bitcoin appears to be like “magic money” but it’s completely built by cryptography and mathematics. Bitcoin uses peer-to-peer technology to operate without a central authority or banking institution; managing transactions and issuing new BTC, also known as mining, is carried out collectively by the network. Bitcoin has many unique characteristics compared to traditional credit cards such as international payments, low transaction fees, irreversible transactions for merchants, and security through encryption.

BITCOIN MINING: How is Bitcoin Created?

Bitcoins are only created as a reward for proof of work involving cryptographic hashes called mining. Users offer their computing power to verify and record payments in to a public ledger, known as the blockchain. Bitcoin that is already mined is in circulation and can be exchanged for goods and services.

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There will only ever be 21 million bitcoins in existence, with the final fractions of bitcoin being redeemed by miners in the year 2140. If this great bitcoin experiment succeeds and people still use it after that point, BTC miners will be supported exclusively by numerous small transaction fees – which are required to let your transactions be included swiftly into the blockchain.

However, these coins can be divisible into smaller units, unlike regular currencies bitcoins are divisible by up to 10^8, which means that over time people will have the ability to use tiny little fractions of bitcoin to buy things. The smallest divisible unit of a bitcoin is aptly named a ‘Satoshi’.

How is Bitcoin Price Calculated?

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The price of bitcoin is determined by its supply and demand. When demand for bitcoin increases, the price increases, and when demand falls, the price falls. There is only a limited number of BTC in circulation and new bitcoins are created at a predictably diminished rate. Demand must follow this level of inflation to keep the price stable.

Why Do People Trust Bitcoin?

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Unlike centralized fiat payment systems, Bitcoin is fully open-source and decentralized. Transactions can be verified independently at any time. Bitcoin payments can be made instantly and directly without an intermediary.

The whole system is protected by a combination of elliptic curve cryptography and hashing on the sha256 curve. Together these mechanisms sufficiently provide large enough random key-space that cannot be attacked by hackers or gamed through mathematics.

Who Controls the Bitcoin Network?

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No organization or individual wields total control of the entire network. The Bitcoin network has no dependence on a central authority nor single administrator. Managing transactions and issuing new bitcoins are carried out collectively on the above mentioned blockchain.

The Bitcoin protocol itself cannot be modified without the cooperation of nearly all its users to aggregately run updated software.

What are the Characteristics that Make Bitcoin Different Than Conventional Money?

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Bitcoin has several features that make it different than government backed currencies:

** The very Decentralized nature of Bitcoin sets it above from conventional money that is issued by a central bank or federal agency.

** It is very easy to setup Bitcoin Software and Take Payments- Unlike a conventional bank account, you can set up a bitcoin address in seconds without any fees or documentation.

** The anonymous nature of Bitcoin sets it apart from conventional money. A bank account has links to your real name and other personally identifying information.

** Transparency on the blockchain makes it different to conventional money. All bitcoin transactions and newly issued bitcoins are recorded in public view and can be seen in real-time.

** Ease of transferring money- you can send and receive money anywhere in the world within minutes, as soon you broadcast the transaction, it gets confirmed and spread to the other peers within the network.

** You can choose your own fees while spending your bitcoin. Paying high transaction fees can encourage very fast conformation on the bitcoin network. However, Fees are unrelated to the amount transferred, so it’s possible to send 10,000 BTC with no fee, and just wait a bit longer for them to be confirmed (Up to three days.)

** Bitcoin transactions are secure, irreversible, and do not contain customers’ sensitive or personal information. This offers strong protection against identity theft compared to checks or credit cards.

How Can One Buy Bitcoin?

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The first step of bitcoin is to just buy it. “Investing” in bitcoin is extremely simple. All you have to do, for starters, is create a bitcoin wallet and buy some at an exchange like Coinbase.

NOTICE TO AFFILIATE MARKETERS: No matter which bitcoin affiliate marketing program you wish to join and promote, the very first thing you’ll be taught to do in order to buy the products or participate is to:

(1) Get a bitcoin wallet and…
(2) Buy some bitcoin.

To do that, you’ll need to turn some of your cash into bitcoin.

The Two Steps to Buying Bitcoin for the First Time:

  1. Get a bitcoin wallet.
  2. Buy bitcoin.

That’s what I did when I bought bitcoin for the first time.

I created a free account at Coinbase.

I linked my Coinbase account to my regular bank account.

I clicked to buy some bitcoin and it was sent via “ACH” from my bank to my Coinbase bitcoin wallet.

Outside USA? Buy Bitcoin Here

CoinMama: You can buy bitcoin using credit card or debit card here on the Coinmama site.

Uphold: You can also buy bitcoin using the Uphold website.

Once you have your bitcoin in a bitcoin wallet, you get your bitcoin wallet ID. With your bitcoin wallet ID, it acts just like your email address in that anyone can send you bitcoin to your bitcoin wallet ID and you can send bitcoin from your bitcoin wallet ID to any other bitcoin wallet ID.

What is a Blockchain Wallet?

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Many people prefer to keep their bitcoin securely stored independent of any exchange like Coinbase. For that purpose, they create a free wallet at a site like Blockchain. Blockchain’s wallet is safe, secure and accessible from both your desktop and via smart phone app. I use blockchain wallet from my phone to send and receive bitcoin all the time. It’s my most convenient (and fast) way to receive commissions from affiliate programs that pay in bitcoin or to receive bitcoin sent to me from customers or any other person for any reason.

My Favorite Wallet: I prefer to use the Exodus.io wallet because, although it is only available on desktop/laptop and not available on smart phones (yet) it has something more valuable that my Blockchain wallet doesn’t have: a built-in cryptocurrency exchange function.

With Exodus, whenver I want to exchange bitcoin for litecoin or ethereum or EOS or any of the 15 different cryptos that exodus supports, I can exchange fast right from inside my own wallet. You don’t have to use a third party cryptocurrency exchange website to trade. You can do so from inside your own Exodus wallet.

I started with a Blockchain wallet because of the convenience of having it on my smart phone but these days, I prefer using Exodus because it makes it much more convenient to trade cryptos safely.

You can review the Exodus.io wallet here.


Bitcoin Affiliate Marketing: How to Use Affiliate Marketing to Accumulate Bitcoin…

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As a full time affiliate marketer online, one of the very first questions I had as I found out more about the cryptocurrency and bitcoin community is if there were any affiliate programs that were transacting in bitcoin and paying commissions in bitcoin.

I knew that with the bitcoin concept, as developers created platforms and tools to allow more people to transact and use it, there would be a huge trend in the micro business niche of affiliate marketing and in the “home based online business” community.

We focused on creating a community where people who were passionate and interested in learning more about both, bitcoin/cryptocurrency and affiliate marketing online would be able to network, mastermind and create products and services to serve this growing niche market.

I love bitcoin. I love affiliate marketing. I love trading cryptocurrencies. Here is the affiliate marketing program I use that  merged these all together. I use the information service, education and trade news & alerts and I also promote it for referral commissions.

It’s a great way to accumulate cash flow and capital to invest in and accumulate bitcoin and cryptocurrencies. It’s also very affordable and has no monthly fees, tuition or monthly subscriptions to pay.

Simple Freedom Academy – Bitcoin & Crypto Education. Learn how to buy, store, transfer and trade cryptocurrency. Get real time crypto news, alerts and chart reading education. Access the private members mastermind group and chat rooms. Live member online events. Constant new training tutorials, special reports, videos and live streams.

The Academy delivers way more value every single week than what it costs to join. At only $150 one time (no monthly fees) you receive at least $500 worth of value every week in the form of education, guidance, tutorials, video coaching and direct, person to person support if you have any questions about crypto and bitcoin. That alone is well worth the tiny one time affordable fee to become a member.

The affiliate program includes $100 commissions per referral. Make your $150 back fast. Just by referring a couple people you can make the fee back quickly with the built in referral bonus in the affiliate program.

If interested, review the membership and the affiliate program included and let me know if you have questions. This could be a great environment for you to learn how to use and accumulate bitcoin as well as cash flow for investing or trading.

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TRADING CRYPTO: How are Bitcoin and Cryptocurrencies Traded on Open Exchanges?

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Buy Low, Sell High. Crypto Trading. Similar to stocks on Wall Street, cryptos and bitcoin can be traded on exchanges that run 24 hours a day every single day and all around the world. It’s a 24/7 global marketplace similar to the currency exchanges in Forex.

You can create an exchange account for free at a major global crypto trading exchange like Binance here.

GETTING STARTED TRADING: Your Crypto Trading Fast Start Guide…

  1. Buy some bitcoin for the first time here at Coinbase.
  2. Create your free trading account at Binance.
  3. Deposit some bitcoin in your Binance account.
  4. Buy whatever crypto you want to trade (ethereum, litecoin, genesis vision, EOS, RLC etc).
  5. Buy and Sell when you want.
  6. Send your crypto back to your safe crypto wallet on Exodus for holding.
  7. Learn more. How to use indicators, how to spot trends in price action and more here.



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