In addition to this exhaustive guide, we’re also happy to walk you through the process directly. Contact us if you’re running into problems figuring out how to use this payment technology.
Table of Contents
- Why We Should be Using Bitcoin
- How to Use Bitcoin at Fash Emporium
- What is Bitcoin?
- A Brief History
- Peer-to-Peer Networks
- The Blockchain
- Bitcoin Value (Price)
- How does Bitcoin Work?
- What is a Bitcoin Wallet?
- Desktop Wallet
- Full Node
- Mobile Wallet
- Web-based Wallet
- Desktop Wallet
- What is a Bitcoin Exchange?
- What is a Bitcoin Wallet?
- Obtaining Bitcoin
- Purchasing from an Exchange
- Do I have to Buy a Whole Bitcoin?
- What is Satoshi?
- Bitcoin Denominations
- Mining from Home
- Mining Pools
- Purchasing from an Exchange
- Storing Bitcoin
- Exchange/Web-based Wallets
- Desktop Wallets
- Hardware Wallets
- Paper Wallets
- Spending Bitcoin
- Selling Bitcoin
- Direct Sales
- Selling to the Exchange
- Selling in Person
1. Why We Should be Using Bitcoin
The most important reason that we in the Traditionalist Worker Party should be using Bitcoin is that it completely bypasses all intermediaries and keeps our financial transactions away from the prying eyes of the government and our detractors. This means that we no longer have to rely on banking institutions or other related corporate conglomerates to handle or monitor the transfer of our money.
Another reason to use Bitcoin is that, due to its design, it cannot be shut down by anyone. No one person or organization controls Bitcoin. It doesn’t matter if you have a single Satoshi or 5 million Bitcoins in your Wallet, everyone who uses Bitcoin is an equal “owner” and participant in the community. The only way Bitcoin will ever go away is if every user stops using Bitcoin completely.
Governments can freeze your assets, and seize your bank accounts, effectively blocking you from accessing your own money. This is not possible with Bitcoin, especially if you keep your Wallet secured.
Bitcoin is an internationally recognized digital currency meaning that you can purchase items from anywhere on Earth that accepts Bitcoin as a payment.
Many people are excited about Bitcoin as a speculative investment. Many people are excited about all the technological wizardry under the hood. Things are a little complicated under the hood, but keep in mind that credit cards and cash are all pretty complicated, too, if you really stop and learn exactly how it all works. All you really need to know about bitcoin is that it’s a currency that exists on your computer which we’re forced to use by a coordinated, criminal conspiracy against our perfectly legal political party.
Every major credit processor has terminated our service for absolutely arbitrary political reasons, attempting to gag and stifle our political expression. For nationalists, cryptocurrency technology isn’t an investment fad or a technological experiment. It’s the only reliable way to remain operational. Every nationalist needs to spend a few hours figuring out how to use Bitcoin. If you don’t, this system’s financiers and their paid-off politicians will win.
2. What is Bitcoin?
Bitcoin is an electronic or “digital” currency that uses a public ledger and a peer-to-peer network to transfer Bitcoin from one person to another without the need for an intermediary. The ledger where each transaction record is kept is called the Blockchain.
2.a. A Brief History
Bitcoin was first introduced to the public in November 2008 in a White Paper published by its pseudonymous creator Satoshi Nakamoto. To this very day no one knows who Satoshi Nakamoto is and we likely never will.
The Bitcoin software was released as open-source software in January, 2009.
The very first real-world Bitcoin transaction took place in Jacksonville, Florida when Laszlo Hanyecz bought two pizzas online for 10,000 Bitcoin.
When the Bitcoin network first came online, a single Bitcoin was worth $0.003. By the end of 2010 it had risen to 39 cents. At the time of this writing, a single Bitcoin is worth $7,405, and the value is predicted to continue rising.
2.b. Peer-to-Peer Networks
By now, most of the people who are reading this have at least some knowledge of how the internet works and perhaps have heard the term peer-to-peer network. If you have ever used Napster, Limewire, Skype, or Torrent files, you have used a peer-to-peer network. A peer-to-peer network is just a decentralized network of computers that connect to each other rather than a central server.
Most web users are accustomed to the way the World Wide Web works in which a browser allows them to connect to a server that hosts a website or set of files. Peer-to-peer networks are different in that there is no centralized server that users connect to. Instead, users connect to each other’s computers in order to share files, participate in video and voice chats, or otherwise transfer information without the use of a central server.
Bitcoin works in much the same way in that there is no central server or intermediary that keeps track of all Bitcoin transactions at any given time. Instead, each computer connects to the Blockchain which is distributed amongst all other computers connected to it.
Confused yet? Don’t be. You really don’t need to know any of this stuff in order to get started using Bitcoin. You will pick up a lot of this information along the way.
2.c. The Blockchain
We know how traditional networks usually have some sort of intermediary server that computers connect to over the network.
Traditional currency ledgers work in a similar way. When you deposit money into your bank account, an entry is logged in that bank’s ledger with information about you and the amount you deposited. The same happens when you withdraw money or move money around between your checking and savings accounts. This ledger, however, is both centralized and private meaning that all transactions go through that ledger and no one, save for a handful of authorized individuals, may view it.
Bitcoin works completely differently. Rather than centralizing the ledger, the entire ledger is publicly accessible by anyone at any given time. This means that anyone can view any transaction between one or more participants whenever they want to. This public ledger is known as the Blockchain in “Bitcoin speak” and is the primary reason that Bitcoin has been so successful. There are many reasons why the Blockchain is publicly accessible, however these are outside of the scope of this document.
Just because the Blockchain is publicly viewable by anyone at any given time does not mean that your personal information is available to the public. Your personal information is not even required in order to use Bitcoin. Instead, when you create a Bitcoin Wallet (more on this later), you are assigned a Public Key known as a Bitcoin Address which is an alphanumeric identity consisting of between 26 and 35 characters. You are also assigned a Private Key which is usually a 256-bit alphanumeric string of characters. Never give your Private Key to anyone under any circumstances.
This is an example of what a Bitcoin Address (Public Key) looks like: 16nCxJcj8iQQ41sU5TTeFFEApSCPVZcN3k
This is an example of what a Bitcoin Private Key looks like:
No two Bitcoin Addresses or Private Keys are the same, meaning that they are never duplicated and cannot be mistaken for someone else’s.
Your Bitcoin Address is what you will use to receive Bitcoin in your Bitcoin Wallet. The Private Key is used by your Wallet to spend Bitcoin. If anyone gets ahold of your Private Key, they could potentially send all of your Bitcoin to their own Wallet, or spend your Bitcoin somewhere and there is nothing you can do about it, so keep it safe.
2.d. Bitcoin Value (Price)
Like any other currency, from gold to paper money and everything in between, Bitcoin gets its value from its usefulness. Gold’s value comes from its rarity, its beauty, and its wide array of usefulness in everything from jewelry to electronics. Paper money gets its value from either being backed by gold, labor power, or by being the only way financial transactions can be made between two or more parties.
Bitcoin derives its value (aka Price) from its usefulness, as well. However, Bitcoin is not backed by gold or any physical object, but by people’s willingness to use it as a currency to provide goods and/or services.
When you think about it, technically anything can be used as a currency as long as others are willing to provide a good or service in exchange for it. The more people that are willing to invest in the currency, the more value it takes on which creates a positive relationship between labor and the currency.
When Bitcoin was first introduced in 2009, it was worthless. In late 2010, the price of a single Bitcoin was worth just 39 cents USD. One could by multiple Bitcoins for just a few dollars. At the time of this writing, a single Bitcoin is now worth $5,684.
3. How Does Bitcoin Work?
Despite the initial confusion you may be experiencing, Bitcoin is actually a very simple concept. The underlying software is the only confusing part about it, but the good news is that you do not have to know anything about all that to use Bitcoin, much like you do not have to know everything about combustion engines to drive a car.
Bitcoin is a digital currency that uses a peer-to-peer network and a decentralized public ledger to record transactions quickly, securely, and with little to no fees. The lack of an intermediary between transactions (e.g. a bank) is what keeps transfer fees either free or extremely minimal, usually just 1-2%. The Blockchain is an incorruptible digital ledger of all Bitcoin transactions which uses encryption to keep entries safe and secure. Your Bitcoin Address is a unique, 26-35 character, alphanumeric identifier which is used to receive Bitcoin as well as to identify you and your transactions anywhere on the Blockchain.
Let’s paint a real world picture of how Bitcoin would work in a non-digital environment.
Say that you and 10 other friends have $100 USD each in your physical wallets. Also, each of you has a clipboard with a piece of paper and a pen. Now let’s say that your friend John has a cow that you want to purchase and have butchered. John states that the price for butchering the cow is $75 USD. You agree to this price and he provides you with his home address to send the money to. Immediately after you send him $75 in the mail, you and each of your 10 friends (including John) record this transaction on your respective clipboards. Any other transactions between you or between your friends are also recorded on their clipboards by every single person in the group so that everyone can verify any and all transactions at any time.
- The group of people in the above scenario represents the peer-to-peer network.
- The $100 that each of you has represents the amount of Bitcoin you have.
- The physical wallet that you have represents a Bitcoin Wallet.
- The clipboards with paper and pen represent the Blockchain (public ledger).
- The cow is the good being purchased with Bitcoin.
- John’s home address represents his Bitcoin Address.
If this transaction were to occur using Bitcoin, your and John’s transaction would be added to the Blockchain. The Blockchain would also record the new amount of Bitcoin that your possess in your Bitcoin Wallet. Since you initially had 100 Bitcoin, but sent 75 to John, your Bitcoin Wallet and the Blockchain would now show that you have only 25 Bitcoin. It is as simple as that. The only difference is that with Bitcoin, all transactions happen over a digital network instead of face-to-face.
3.a. What is a Bitcoin Wallet?
A Bitcoin Wallet is simply a location where you store your Bitcoin. It operates the same way as the physical wallets we carry our cash and credit cards in, or much like a bank account. When you want to give someone money in the real world, you can either pull out your wallet, take out cash, and hand it to the other party, or you can wire money to another bank account from your bank. When you want to give someone Bitcoin, you open your Bitcoin wallet, input the other party’s Bitcoin Address, the amount you want to send them, and click send. Their Bitcoin Address points directly to their Bitcoin Wallet, so it is just like if I opened my physical wallet and handed you cash, or if I sent money from my bank account to yours.
There are multiple types of wallets that one can use, but for now, we will deal with just three; the desktop wallet, the mobile wallet, and online web-based (aka cloud) wallets.
3.a.i. Desktop Wallet
A Desktop Wallet is a software application that you download from the web and install on your personal computer. There are multiple different Desktop Wallets available for Bitcoin, all offering their own set of features, however they all share the same basic functionality, the ability to receive and transfer Bitcoin.
3.a.i.1. Desktop Wallet – Full Node
The first Bitcoin Desktop Wallets were what are known as Full Node wallets. “Full Node” is just a way of saying that your computer has joined the Bitcoin network and stores a full copy of the Blockchain, as well. You can download the Full Node Bitcoin Wallet here: https://bitcoin.org/en/download
It is important to remember that Bitcoin is decentralized and that the ledger is public. This is important because when you install the Desktop Wallet, it will also start downloading the entire Blockchain to your computer so that it can:
A. Become part of the network to help record other people’s transactions and
B. Keep track of your personal Bitcoin amounts and transactions.
The Blockchain is massive. At the time of this writing it is 145GB in size, so make sure before installing the Desktop Wallet that you have enough space on your computer. If you do not have enough space, the Wallet will not function properly, or at all. Also keep in mind that the process of downloading the Blockchain can take anywhere from a couple of days to a week depending on your internet speed.
3.a.i.2 Desktop Wallet – Lightweight
A Lightweight Desktop Wallet operates exactly the same as a Full Node Desktop Wallet with one exception; it does not download the entire Blockchain. An example of a Lightweight Desktop Wallet is the Electrum Wallet, available here: https://electrum.org/#home
Lightweight Wallets are becoming more and more popular with Bitcoin users due to their speed and the fact that they do not require the user to also download the entire Blockchain, which helps save hard drive space and bandwidth. Instead, the Blockchain is stored on external servers which the Lightweight Desktop Wallet connects to.
One thing to keep in mind with regard to Lightweight Desktop Wallets is that fees are applied to transactions. This is because the creators of the Lightweight Desktop Wallet are hosting the Blockchain on their own servers which costs them money. By applying small fees to every transaction that uses their wallet application, they are able to pay the expenses associated with hosting the Blockchain on their servers, as well as make a little money for their efforts.
3.a.ii. Mobile Wallet
Mobile Wallets are Bitcoin Wallets that you can install on mobile devices such as smartphones and tablets. They operate in almost exactly the same fashion as Lightweight Desktop Wallets in that they do not download and store the Blockchain when you install them, but rather connect to servers which host the Blockchain.
Mobile Wallets extend the usefulness of Bitcoin Wallets in that rather than your Bitcoins sitting on your desktop computer, they travel with you wherever you take your mobile device, affording you the ability to use your Bitcoins for purchases while you’re on the go.
Since Mobile Wallets operate in the exact same way that Lightweight Desktop Wallets do, they also apply fees to transactions.
3.a.iii. Web-based Wallet
A Web-based Wallet is a Bitcoin Wallet that is hosted on a website on the internet somewhere. The most common type of Web-based Wallets are found on Bitcoin Exchanges like Coinbase and Kraken and are typically free. All you do is create an account, log in, generate a Bitcoin Wallet, and the Exchange will generate your Public and Private Keys for you.
Web-based Wallets are popular because they not only offer you a quick and secure way of creating and maintaining a Bitcoin Wallet, but the exchange offers you the ability to buy, sell, and trade Bitcoin from within the website. Because the Wallet resides on the World Wide Web, it is accessible from anywhere in the world as long as you have an internet connection.
Web-based Wallets are mostly popular with people who are new to Bitcoin. The website does all the “hard” work for you by hosting the Bitcoin Wallet and the Blockchain on their servers, leaving you to only learn how to buy, sell, and trade. Web based wallets are dangerous, as either the website is subject to the law and therefore the federal government can arbitrarily seize your bitcoins, …or it’s not and the website itself can arbitrarily seize your bitcoins. Neither of these are hypothetical. This happens. We strongly discourage relying on web wallets.
Web-based Wallets apply fees to transactions for the same reasons that Lightweight Desktop and Mobile Wallets charge fees.
3.b. What is a Bitcoin Exchange?
A Bitcoin Exchange is a website that allows users to buy, sell, and trade Bitcoin. It also allows you to add your personal banking information so that you can convert your Bitcoin to USD and deposit it into your bank account.
Bitcoin Exchanges range from very simple, like Coinbase, to quite complex like HitBTC. If you are new to Bitcoin, I highly recommend starting out with an exchange like Coinbase since they deal primarily with buying, selling, and transferring Bitcoin. Exchanges like HitBTC are for more advanced users of Bitcoin and other cryptocurrencies for reasons that are outside of the scope of this document.
If you want to jump into Bitcoin immediately, create an account with Coinbase and browse their support documentation. This documentation will guide you through the process of setting up your profile, buying and selling Bitcoin, and how to send and receive Bitcoin among other things.
4. Obtaining Bitcoin
There are multiple ways of obtaining Bitcoin, but the two most basic ways are purchasing Bitcoin outright and Mining. Other slightly more complex manners of obtaining Bitcoin is through Bitcoin Faucets or trading which we’ll get into later.
4.a. Purchasing Bitcoin
Purchasing Bitcoin is the easiest and most direct way of obtaining Bitcoin. Bitcoin is purchased from a Bitcoin Exchange. To purchase Bitcoin, you would create an account on an Exchange such as Coinbase, create a profile, and use your bank card to purchase Bitcoin. You can then either keep your Bitcoin in the exchange’s Web-based Wallet, or transfer it to your Desktop or Mobile Wallet.
4.a.i. Do I have to Buy a Whole Bitcoin?
Many people ask this question. The answer is no, you do not have to buy Bitcoin in whole amounts. You can purchase Bitcoin in very small amounts, actually. The amount you are able to purchase depends on which Exchange you purchase your Bitcoin from.
When you go to buy Bitcoin at an exchange, they will automatically calculate how much Bitcoin you are purchasing when you enter a dollar amount.
For instance, if I wanted to purchase $100 worth of Bitcoin, Coinbase’s calculator would tell me, based on the current exchange rate, that $100 USD is worth exactly 0.01810010 Bitcoins.
4.a.ii. What is Satoshi?
A Satoshi is a subunit of Bitcoin. It is the smallest amount recorded in the Blockchain, and is equal to one hundred millionth of a Bitcoin, or 0.00000001.
People often refer to all amounts behind the decimal point as Satoshi, or sometimes plurally as Satoshis.
The name Satoshi is an homage to the currently unknown creator of Bitcoin, who goes by the name of Satoshi Nakamoto.
4.a.iii. Bitcoin Denominations
There are three main denominations of Bitcoin.
A. BTC – Bitcoin, which equals one whole Bitcoin
B. mBTC – milliBitcoin, which equals one thousandth of a Bitcoin
C. μBTC – microBitcoin or just Bits, which equals one millionth of a Bitcoin
To learn more about the other Bitcoin denominations, visit this site: http://bitcoinchaser.com/bitcoin-units-and-denominations
You will often see the letters BTC and XBT. These are simply abbreviations that refer to Bitcoin.
Mining is the use of special software which uses your computer’s processing power to process Bitcoin transactions on the Blockchain. In the early days of Bitcoin, Bitcoin enthusiasts were able to use their personal computers to mine Bitcoin. It was a relatively fast, easy, and cheap way to obtain Bitcoin.
4.b.i. Mining from Home
However, as the Blockchain has grown over the years, the transactions have become equally more complex. This means that massive amounts of computing power (known as Hashing Power) are required to process Bitcoin transactions which desktop computers simply cannot provide. When powerful desktop computers were no longer able to mine profitably, people began using special hardware known as Miners. These machines were designed for only one thing, mining Bitcoin. They are able to crunch highly complex transactions very quickly. The problem with Miners is that they are very expensive and consume a lot of electricity. Unless you have access to a free power source, it is no longer profitable to mine Bitcoin from home.
4.b.ii. Mining Pools
Although it is no longer profitable to mine Bitcoin from home, you can still participate in Bitcoin Mining by joining a Mining Pool. A Mining Pool is basically a group of people who use special mining software that combines, or “pools”, their computers’ processing power in order to process Bitcoin transactions. This combined processing power is called Hashing Power and the more Hashing Power available, the faster and more efficiently transactions can be processed.
Unlike mining from home where you received all of the Bitcoins you earned from mining, Bitcoin Mining Pools split the rewards. A simple example would be if four people joined a mining pool and mined one total Bitcoin, they would split the Bitcoin four different ways, each getting 25% of the Bitcoin mined.
Bitcoin Faucets are a free but very slow, and often risky, way to obtain Bitcoin without doing much work. The most basic “Faucet” is simply a website that shows a bunch of advertisements for a specific amount of time and after that time has passed, they give you a small amount of Bitcoin. Then the process starts over again. The owners of these Faucets make money by showing you advertisements on their site, which allows them to be able to afford to give away small amounts of Bitcoin.
Some of the more elaborate Faucet sites offer you the ability to play games or take surveys to earn a little bit more Bitcoin than you would normally get from the standard ad-based Faucets.
I highly recommend that you stay away from Faucets mainly for security reasons. Most of the Faucets out there are scams and generally not safe to use. They are also a huge waste of time since they only give away small fractions of Bitcoin at a time. If you insist on using a Faucet, I recommend using http://moonbit.co.in/. Still, I suggest that you use it only as a passive, secondary way of earning Bitcoin. Purchasing Bitcoin and Mining Pools are much quicker.
Trading is something that I do not recommend for those new to Bitcoin. If you were not already aware, Bitcoin is not the only digital currency in existence. There are hundreds of different digital currencies out there with varying prices. This is where more complex digital currency exchanges like HitBTC come into play. These types of exchanges allow you to buy lots of different digital currencies like Litecoin, Monero, and Etherium and, if you want, trade them for Bitcoin or USD.
Think of digital currency exchanges as being similar to the stock market. In the stock market there are multiple different stocks and each of them has their own value. When a stock’s value drops, people will buy it. When a stock’s value is high, people will sell it or trade it. This is the same idea behind sites like HitBTC.
5. Storing Bitcoin
As previously mentioned, there are a multitude of options to choose from when storing your Bitcoin. The three I mentioned were Desktop, Mobile, and Web-based Wallets.
5.a. Exchange/Web-based Wallets
For those new to Bitcoin, I recommend starting out by using Coinbase’s Web-based Wallet so that you can become familiar with how Bitcoin works in an environment that isn’t as complex as other Bitcoin Exchanges.
Coinbase also provides a mobile app for smartphones that connects to your Coinbase account, thus, if you have a Coinbase account, your Web-based Wallet is also a Mobile Wallet.
5.b. Desktop Wallets
Once you become more familiar with Bitcoin operations, you may want to download a Desktop Wallet. If you do that, you can transfer some or all of your Bitcoin to that wallet. I recommend that you not keep all of your Bitcoin in your Desktop Wallet, though. This is because Desktop Wallets depend on a healthy hard drive. If you have any suspicions that your hard drive might fail, I suggest not keeping Bitcoin in a Desktop Wallet at all. If your hard drive fails and you have Bitcoin stored on it, you stand the chance of losing that Bitcoin forever.
5.c. Hardware Wallets
Hardware Wallets are special wallets that stores your Bitcoin information on a secure hardware device. These devices typically come in the form of USB “thumb” drives or small solid state drives that connect to your computer via a USB connection. When using a Hardware Wallet, your Bitcoin information is no longer stored on your computer or anywhere on the internet and thus not susceptible to online attacks.
Hardware Wallets are typically used by Bitcoin enthusiasts who have a significant amount of Bitcoin that they want to store safely offline. As the value of Bitcoin continues to rise, the concern for keeping one’s Bitcoins safe grows, and so Hardware Wallets are starting to see a proportionate boom in popularity.
For more information on Hardware Wallets, visit this site: https://en.bitcoin.it/wiki/Hardware_wallet
5.d. Paper Wallets
Paper Wallets for Bitcoin are becoming more popular as a safe and cheaper alternative to Hardware Wallets.
Whenever you create a Bitcoin Wallet, you are assigned a Bitcoin Address which is a Public Key allowing you to receive Bitcoin to your Bitcoin Wallet. You are also assigned a Private Key which allows you to send Bitcoin to someone else.
If you are at least somewhat familiar with Bitcoin, or if you have ever seen someone advertising their Bitcoin address asking for donations, you may have also seen a QR Code looking something like this:
The QR Code above is essentially just a type of barcode that contains your Bitcoin Address (Public Key). When this QR Code is scanned, the device that scans it is able to extract the Bitcoin Address from it and then the user can send Bitcoin to that Address.
A Paper Wallets is literally a piece of paper that contains two QR Codes. One QR Code contains your Bitcoin Address and the other QR Code contains your Private Key.
The benefit of a Paper Wallet is that your Bitcoin Address and Private Key are not online at all. Another benefit is that they are extremely cheap to create. All you have to do is generate QR Codes for your public and private keys and print them out on a piece of paper using your printer.
The downside of a Paper Wallet is that paper tends to degenerate or fade over time. There is also the possibility that you could lose your Paper Wallet somehow. If you happen to keep your Paper Wallet in your physical wallet or purse and it is stolen, then the thief now has full access to your Private Key which means he can transfer your Bitcoin to his own Bitcoin Address.
If you plan on using a Paper Wallet, I first recommend keeping a digital copy on an external hard drive. Next I suggest that you print at least two copies of the Paper Wallet and laminating them to keep them from being damaged or degrading. Keep one of them in a safe place in your home, or for even better security, in a safe deposit box at a bank or post office.
Fore more information on creating a Paper Wallet visit this site:
6. Spending Bitcoin
Spending Bitcoin is very simple. Keep in mind that “spending” Bitcoin can mean actually spending your money on a good or service, or simply sending someone Bitcoin such as in the form of a gift or donation.
In order to spend Bitcoin, you will first need the Bitcoin Address of the person to whom you are going to send it to. Once you have their Bitcoin Address, you can then go to your Bitcoin Wallet, input the Bitcoin Address, input the amount of Bitcoin you wish to send, and finally send it.
Sometimes a website, such as an e-commerce store, will have a form on their payment options page that shows their Bitcoin Address and/or a QR Code which will allow you to pay for an item using Bitcoin. If you have a Mobile Wallet, you can scan the QR Code, and send the amount requested for the item. When the Blockchain confirms that you have paid for the item, the transaction is logged in the Blockchain, and the seller will send you your item.
7. Selling Bitcoin
Selling Bitcoin means basically that you want to trade your Bitcoins for hard cash. This can be done in many ways, but we will cover the three most common ways of selling/trading your Bitcoin.
7.a. Direct Online Selling/Trading
There are a couple of different ways to sell your Bitcoin for cash online. The first is by simply finding someone who wants to buy Bitcoin at a discounted rate, sending them your Bitcoin and they send you cash either by check, money order, or through a bank transfer. However, this way of selling Bitcoin is VERY risky and not recommended at all.
The safest way to do a Direct Sale of your Bitcoin is through an Exchange like Coinbase. In order to sell your Bitcoin to another person on Coinbase, you must first register as a Seller with them, which involves confirming your identity. Once you have done this, you can put your Bitcoin up for sale. If someone is interested in purchasing your Bitcoin, they will contact you. They will know that it is safe to purchase your Bitcoin because the Exchange has confirmed your identity and the Exchange is also facilitating the sale.
7.b. Selling to the Exchange
Bitcoin Exchanges will also allow you to sell your Bitcoin back to the Exchange itself. Say you created an account on Coinbase and you have 5 Bitcoin in your Coinbase Bitcoin Wallet. You have decided that you would like to sell your Bitcoin to the Coinbase Exchange in order to get cash in USD. To do this, you would simply click the “Sell” link at the top of the page on your dashboard. Then, using the form on the Sell page, enter the amount of Bitcoin you would like to sell to the Exchange and click the “Sell” button.
The Coinbase Exchange will “purchase” your Bitcoin and send you the equivalent amount in USD to your Coinbase USD Wallet. You can then use your USD Wallet to either purchase other digital currencies that Coinbase supports, or transfer this money to your Bank Account.
7.c. Selling in Person
Selling Bitcoin in person is the probably the simplest and least expensive way to sell your Bitcoin, as well as the fastest way to get your cash.
To sell in person, you would have the buyer meet you at a safe location, such as a police department, bank, or any populated public space. You would scan his QR Code or manually enter his Bitcoin Address into your Bitcoin Wallet and send him whatever amount of Bitcoin he wishes to purchase. Then he would hand over the equivalent amount in USD to you.
Bitcoin – an electronic or “digital” currency that uses a public ledger and a peer-to-peer network to transfer Bitcoin from one person to another without the need for an intermediary.
Bitcoin Address – An alphanumeric string of between 26 and 35 characters. Also known as a Public Key.
Bitcoin Exchange – A website that offers a user the ability to buy, sell, trade, and store Bitcoin.
Bitcoin Mining – The process of processing Bitcoin transactions.
Bitcoin Wallet – A place to store Bitcoin. These can be either digital or physical. Examples include Desktop, Mobile, Web-based, Hardware, and Paper Wallets.
Blockchain – The digital ledger where each Bitcoin transaction record is kept.
BTC – An abbreviation of the word Bitcoin. It is also used as a denomination representing one whole Bitcoin.
Coinbase – A popular Bitcoin Exchange. Highly recommended for those new to Bitcoin.
Cryptocurrency – A portmanteau of Cryptographic and Currency referring to a digital currency relying on a peer-to-peer network and cryptography such as Bitcoin, Litecoin, and Monero. Also known as Virtual Currency.
Faucet – A website that offers very small amounts of Bitcoin for free in exchange for viewing ads, playing games, or taking surveys.
Hashing Power – The amount of power your computer has to process hashing algorithms related to Bitcoin transactions.
HitBTC – Another popular Bitcoin Exchange but for more advanced Bitcoin users.
mBTC – An abbreviation of MilliBitcoin which is a denomination representing one thousandths of a Bitcoin.
Miner – A software application or hardware device that mines Bitcoin.
Mining Pool – A group of Bitcoin users that combines the processing power of their personal computers to mine Bitcoin
Peer-to-Peer Network – A network of computers that connect to each other rather than connecting to a centralized server or set of servers.
QR Code – A type of barcode that stores information. In the Bitcoin community, a QR Code typically stores a person’s Bitcoin Address. A QR Code can also store a Private Key.
Private Key – A 256-bit alphanumeric set of characters. These can also be 128 or 512 bit.
Public Key – See Bitcoin Address
Satoshi – The smallest unit of Bitcoin equalling one hundred millionths of a Bitcoin.
Satoshi Nakamoto – The pseudonym of the creator of Bitcoin
μBTC – An abbreviation of MicroBitcoin which is a denomination representing one millionths of a Bitcoin.