 If you need to Bitcoin and cryptocurrencies, then you probably have a lot of questions as I did when I first heard of Bitcoin back in 2013. Unfortunately, due to the lack of answers really and my understanding of it, I was not able to make an investment back in 2013 because I just didn't get it. Fortunately enough, I did give it another crack in 2016 and after going through tons of videos, just spending hours and hours doing research on it, I figured it out and was able to buy my first Bitcoin at $600 at the time. Bitcoin changed my life for the better and I believe that you're still early enough for it to change your life in a good way as well. Today, I'm going to answer the top 10 questions that I get from beginners all the time who are new to this space and have zero knowledge but want to get involved. If you're new here and looking to get involved in this amazing revolution, I recommend you sticking around and taking some notes. Let's jump right in. Hey, what's up? Jay here and welcome to Bitcoin Daily, bringing you guys the best tips, tutorials and ideas to help you become profitable and successful traders. If you're new here, the goal of this channel is to empower you guys, the people and the community with the knowledge and resources to take you to that next level. So if you're not subscribed yet, go ahead and hit that subscribe button. Make sure to like this video as well and turn on that post notification so that you guys are notified as soon as we post videos Monday through Friday. So the first question that we get all the time is what is Bitcoin? So Bitcoin is a digital currency created back in January of 2009 following the housing market crash. It follows the idea set out in a white paper by the mysterious Satoshi Nakamoto. The identity of the person or per sins who created the technology is still a mystery to date. Bitcoin offers the promise of lower transaction fees than traditional online payment mechanisms and is operated by decentralized authority unlike government-issued currencies. There are no physical Bitcoins. Only balance is kept on a public ledger that everyone has transparent access to. That along with all Bitcoin transactions is verified by massive amount of computing power. Bitcoins are not issued or backed by any government or banks nor are individual Bitcoins valuable as a commodity. Bitcoin charts high on popularity and has triggered the launch of hundreds or even thousands of other virtual currencies collectively referred to as outcoins. What is blockchain? At its most basic level, blockchain is literally just a chain of blocks but not in the traditional sense of those words. When we say the words block and chain in this context, we are actually talking about digital information which is considered as the block stored in a public database known as the chain. Blocks on the blockchain are made up of digital pieces of information. Specifically, they have three parts. Blocks store information about transactions like date, time, and dollar amount. Blocks store information about who is participating in transactions and blocks store information that distinguishes them from other blocks. Much like you and I have names to distinguish us from each other, each block stores a unique code called the hash that allows us to tell it apart from every other block. So how do I get started with Bitcoin? There are several things that every aspiring Bitcoin investor needs. A digital wallet, personal identification documents, a secure connection to the internet, a method of payment, and an account at a cryptocurrency exchange. Valid methods of payment using this path include bank accounts, debit cards, and credit cards. It is also possible to get Bitcoin at specialized ATMs and via peer-to-peer exchanges. However, be aware that Bitcoin ATMs were increasingly requiring government-issued IDs in early 2020. So step one is get a Bitcoin wallet. When it comes to choosing a Bitcoin wallet, you have options. There are software and hardware wallets. Software wallets are mobile applications that connect with your traditional bank account. These wallets allow for quick and easy access to Bitcoin, but the drawback is that they put your money in the hands of a third-party company. So some software wallets will be places like Coinbase, places like blockchain.com, and places like Exodus, I've used that before, and that's pretty much it as far as software wallets that I've used personally. I've also used Gemini, actually. So gemini.com, I've used them as well. Hardware wallets that I would recommend is the Ledger Nano, the Trezor Model T, and the Ledger Nano S. So any of these three are usually pretty good hardware wallets, aka cold wallets. Step two is to connect a bank account in order to purchase Bitcoin. You need to connect your wallet to a bank account debit card or credit card. All these payment methods all perform the same function, exchanging traditional currency for Bitcoin. They each carry their own set of fees. Bitcoin exchanges are online marketplaces where you can trade Bitcoin for traditional currency like BTC for USD, for example. Just like when you go to make a purchase online, you have options. There's eBay, Amazon, Etsy, Alibaba, et cetera. To say nothing of the millions of private retailers who use these websites to sell their products, the same is true of buying Bitcoin. So some of the different exchanges that are very popular and that I've used before are Binance.com, Kraken, Bitfinex, and Coinbase. It also has its own exchange. Under this on regular Coinbase, you can use, it has a lot of different options for coins, but you can also go to and use Coinbase Pro, which has more coins, I believe, than the regular Coinbase app. So that's something you should definitely check out. And then if you see here, as far as on Investopedia says best crypto exchanges of 2021, it recommends Coinbase and Coinbase Pro. Cash app also has its own exchange. It's just a little bit more limited. Binance for Outcoins and Bisk, I have not used before, but I've heard about it. So it is a decentralized exchange. So you could also check that out. Step four, place your order. You're now ready to buy Bitcoin for the first time. So it is crucial to keep in mind that although one Bitcoin costs several thousand dollars, more like 50, Bitcoin can be divided up to eight decimal points. The smallest unit of a Bitcoin is known as a Satoshi. Even if the price of Bitcoin skyrockets, you'll still be able to buy Satoshi for a tiny fraction of a cent. Alternative ways to buy Bitcoin. While an exchange like Coinbase remains one of the most popular ways of purchasing Bitcoin, it is not the only method. Here are some additional processes Bitcoin owners utilize. So the first one is Bitcoin ATMs. As you can see in this picture, you basically just take your fiat and exchange it for Bitcoin. You can also exchange your Bitcoin for cash, or fiat, at a Bitcoin ATM. Remember that a lot of Bitcoin ATMs in 2020 started asking for personal identification, so be prepared for that. The other way to buy Bitcoin is using P2P exchanges, also known as peer-to-peer exchanges. Some peer-to-peer exchanges that I've used in the past and that you can use is ones like localbitcoins.com. This has been around for a very, very long time. Another one is Paxful.com. This has also been around for a pretty long time. And here are some other ones on this website. As you can see the top peer-to-peer exchanges to buy Bitcoin. LocalBitcoins, Paxfuls, HadoHado, BitQuik, LocalCoinSwap, Remitano, and Binance, peer-to-peer. So Binance is also offering peer-to-peer trading and buying. I have not used it though. What is a Bitcoin wallet? In order to conduct transactions on the Bitcoin network, participants need to run a program called a wallet. Bitcoin is not technically coins, so it only seems right that a Bitcoin wallet would not actually be a wallet. Bitcoin balances are maintained using public and private keys, which are long streams of numbers and letters linked through the mathematical encryption algorithm used to create them. The public key is the location where transactions are deposited to and withdrawn from. This is also the key that appears on the blockchain ledger as a user's digital signature. Pretty much like a username on a social media newsfeed. The private key is a password required to buy, sell, and trade the Bitcoin in a wallet. A private key should be a guarded secret and only used to authorize Bitcoin's transmissions. Some users protect their private keys by encrypting a wallet with a strong password, and in some cases by choosing the cold storage option. That is storing the wallet offline. How to send and receive Bitcoin? To receive Bitcoin, what you have to do is open up your wallet app and select receive. Choose which wallet you want to receive Bitcoin to. Make sure you select a Bitcoin wallet if you're receiving Bitcoin. Your chosen wallet will generate an address that lets you receive Bitcoin. Copy this by tapping on it and hitting copy. Provide this address to the cryptocurrency exchange or person sending you Bitcoin. Or if you're in person, the sender can simply scan your wallet QR code with their device. How to send Bitcoin? Again, open your wallet and select the crypto that you would like to send and look for somewhere that says send. Copy and paste the recipient's wallet address into your own wallet app. Or if you're in person, just select scan QR code and simply scan it with your app. Choose which wallet you want to send Bitcoin from. Make sure you select a Bitcoin wallet if you want to send Bitcoin. Enter how much you want to send and select next. Carefully check that you're happy with the details and then slide to send. Now of course, this process varies depending which wallet you're using and which exchange you're using. So we made a general outline of how the process works. So you just gotta kind of go into your, usually in your wallet or your assets folder. It should be something like that within the wallet that you're looking at and that you're using and look for a send and receive option. Send and receive can also sometimes be named deposit and withdraw. So deposit would be to receive and withdraw would be to send. All right guys, hopefully you guys are enjoying this video so far. If you found value in this content thus far, make sure to hit that subscribe button. Make sure to like this video. And if you have any questions so far, drop it in the comment section and I'll be more than happy to help you and bring you some answers. We still have a few topics to cover here, including is now the right time to buy Bitcoin. So stay tuned. What is Bitcoin mining? Bitcoin mining is equivalent to the mining of gold, but in its digital form. The process involves specialized computers solving algorithmic equations or hash functions. These problems help miners to confirm blocks of transactions held within the network. Bitcoin mining provides a reward for miners by paying out in Bitcoin in turn, the miners confirm transactions on the blockchain. Miners introduce new Bitcoin into the network and also secure the system with transaction confirmations. They are also rewarded network fees for when they harvest new coin in a time when the last Bitcoin is found mining will continue. So you're probably asking, can I make money mining Bitcoin? Well, yes and no. The days where anyone can make money mining Bitcoin with a desktop computer or GPU cards are unfortunately long gone. The total computing or hashing power of network has risen exponentially since the introduction of application specific integrated circuits, also known as ASICs or machines designed specifically to solve Bitcoin's mining proof of work algorithm and nothing else. It is still possible for individual miners to make some money by purchasing their own ASIC based equipment. However, most mining takes place in a large factory like environments with hundreds of machines in places where energy is cheap, such as China and above the Arctic Circle. And once your machine is superseded by a newer model, a few months after purchase, its ability to compete on the network and thus its earning potential is greatly diminished along with its resell value. You also need to consider energy costs where you live. Bitcoin mining ASIC machines run very, very hot and consume large amounts of electricity. You need to subtract the cost of electricity and cooling from the profits that you make. How do I get free Bitcoin? I get this question all the time. So the short answer is you can't. Unfortunately, unlike the early days, there's not really a real way to get free Bitcoin nowadays. Some of the ways you can get some free Bitcoin is by maybe referring friends to certain exchanges or websites like Coinbase, I believe they give you like $10 or $20 or something like that. If you refer somebody, you can do affiliate type of stuff like that with different exchanges and websites that offer that function. Most sites claiming to still be Bitcoin faucets are actually something else completely. Some are actually gambling sites that just offer a few free setoshis to start you off, but there is only a minuscule chance that you will win enough to reach the withdrawal minimum without putting in more Bitcoin of your own. Some are actually online freelance platforms that require you to put in work, such as answering surveys or completing other tasks. Some websites might also be secretly using your browser from mining an outcoin in the background, exploiting your CPU and giving you a fraction of what you could have made yourself. How to trade outcoins? So you've probably heard of outcoins like Ethereum, XRP, Doge, and you're wondering how do you get those coins? The first step is to buy actual Bitcoin. Once you have Bitcoin, then you need to register on an outcoin trade exchange. And usually you have to transfer your Bitcoin from where you bought it to the outcoin trade exchange. Now you can look for the outcoin that you would like to buy and trade your Bitcoin for that outcoin. Fortunately, a lot of places now like Coinbase where you buy and trade your fiat for Bitcoin also gives you the choice to buy and trade fiat for outcoins. So that makes this process a whole lot easier. But in a lot of cases, it is very limited to the amount of outcoins that you have to choose from to buy. So most of the time you're gonna have to buy Bitcoin and send it to a outcoin exchange like Binance where they have a lot more outcoins available for you to buy and trade there. All right, next guys, we're gonna talk about Bitcoin scams. We get so many messages asking about just things that are obviously a scam. These scammers target people with no knowledge or little knowledge of crypto, promising them crazy amounts of returns for a small investment. My rule of thumb is, if it sounds too good to be true, it usually is. And most of the time, if you have to ask anyone if something is a scam, it's because it's a scam. So here are some of the most popular scams that you should avoid. Account management services, cloud mining, binary traders, too good to be true returns, impersonation giveaway scams, Ponzi or pyramid schemes, pumps and dumps. These are all things that you should, at all cases, stay away from. No matter what they promise you, if anyone is asking you directly for Bitcoin to send them Bitcoin 10 times out of 10, it is a scam. Also, I recommend you guys watching this video that I created three months back, the top Bitcoin scams to avoid, where I get more in-depth on Bitcoin scams. And finally, the question that I get the most out of any other question that there is, is now a good time to buy Bitcoin. So I have covered this on several different videos and I have told this to several different people. I've covered it in Q and A's. I've covered it in DMs. I've covered it on Instagram and the stories. I've covered it on Instagram feed posts. I've covered this subject over and over and over again, all the way from when Bitcoin was at $3,000 up till now where it's at $52,000. Guys, there will never be a correct answer to this. This all depends on your risk tolerance. If you wanna be exposed to Bitcoin, you need to buy Bitcoin. If you keep sitting on the sidelines waiting for the Bitcoin price to drop, I mean, it could drop or it might not and just keep going up. There are still people waiting on the sidelines waiting for Bitcoin to drop to $10,000. What I always recommend is to dollar cost average. We've covered videos on dollar cost averaging and I will redo another video on dollar cost averaging but that is the best advice that I can give you right now at this moment. It's the same advice I've given people since Bitcoin was at $3,000. Dollar cost average, don't just put one lump sum in. The best thing that you can do is dollar cost average. That is it, guys. We have answered the 10 most common questions and I think most important questions that I get all the time. If you guys found the value in this video, go ahead and subscribe. If you're not subscribed to the channel yet, we're on our way to 10,000 subscribers right now where we've finally passed 5,000. Also make sure to like this video if you enjoyed it. We're trying to put more and more content out there for beginners like yourself because we do recognize the absent of enough valuable content out there. Thank you guys so much for watching this video till the end. I will see you guys tomorrow on the next video. As always, peace and love. Bye.