The World’s First Electronic Cryptocurrency Robot!

The World's first Electronic Cryptocurrency Robot!

There are a few things to learn: getting and using a software wallet, learning how to send and receive money, and learning how to buy Bitcoin from a person or an exchange.


Before getting started, you will need to get yourself a wallet. You can do this easily enough by registering with one of the exchanges which will host your wallet for you. And, although I think you are going to want to have one or more exchange wallets eventually, you should start with one on your own computer both to get a better feel for Bitcoin and because the exchanges are still experimental themselves.

When we get to that stage of the discussion, I will be advising that you get in the habit of moving your money and coins off the exchanges or diversifying across exchanges to keep your money safe.

What is a wallet?

It serves as a means to store your bitcoins. Precisely, it’s software crafted for Bitcoin storage. You can operate it on your desktop computer, laptop, or mobile device (except Apple devices for now). It’s even adaptable to store bitcoins on items like thumb drives, which is a prudent choice if you worry about hacking. The Winklevoss* twins, who hold substantial Bitcoin investments, took a similar approach. They stored their investment on hard drives, securing them in a safety deposit box.

The Winklevoss twins are the ones who originally had the idea for a social networking site that became Facebook. They hired Mark Zuckerberg who took their idea as his own and became immensely rich.
What do you need to know about having a Bitcoin wallet on your computer? Below you can download the original Bitcoin wallet, or client, in Windows or Mac format. These are not just wallets but are in fact part of the Bitcoin network. They will receive, store, and send your bitcoins.

NOTE: This wallet serves a dual purpose – it functions as your personal wallet while also being an integral part of the Bitcoin system. The functioning of Bitcoin relies on broadcasting and recording each transaction as a number throughout the entire system. This widespread confirmation process, facilitated by the network itself, ensures the irreversibility of each transaction. Any computer equipped with the appropriate software can contribute to this system by verifying and strengthening the network. Essentially, this wallet operates as both your individual wallet and a vital component of this overarching system.

Therefore, be aware that it will take up 8-9 gigabytes of your computer’s memory. After you install the wallet, it will take as much as a day for the wallet to sync with the network. This is normal, does not harm your computer, and makes the system as a whole more secure, so it’s a good idea.

Bitcoin Qt

The original wallet. This is a full-featured wallet: create multiple addresses to receive bitcoins, send bitcoins easily, track transactions, and back up your wallet. Outside of the time it takes to sync, this is a very easy-to-use option. Search for Bitcoin Qt wallet download to find their site.

Armory Runs on top of Bitcoi Qt, so it has all of the same syncing requirements. Armory allows you to back up, encrypt, and the ability to store your bitcoins offline. Search for Bitcoin Armory Wallet to find their site. If you don’t want to have that much memory used or don’t want to wait for your wallet to sync, there are good wallets that do not make you sync the entire history of Bitcoin:


A lightweight wallet that syncs quickly. This is very good for new users. Search for Bitcoin Multibit Wallet to find their site.


In addition to being quick and light, this wallet allows you to recover lost data using a passcode. Search for Bitcoin Electrum Wallet to find their site. After you get the wallet set up, take a few minutes to click around. Things to look for:

  • There will be a page that shows you how many bitcoins are currently in your wallet. Keep in mind that bitcoins can be broken up into smaller pieces, so you may see a decimal with a lot of zeros after it. (Interesting note, 0.00000001 is one Satoshi, named after the pseudonymous creator of Bitcoin).
  • There will be an area showing what your recent transactions are.
  • There will be an area where you can create an address and a QR code (like the one I have above). You don’t need the QR code if you don’t want it, but if you run a business and you want to accept Bitcoin, then all you’ll need to do to accept payment is to show someone the QR code, let them take a picture of it, and they will be able to send you some money. You will also be able to create as many addresses as you like, so if you want to track where the money is coming from, you could have a separately labeled address for each one of your payees.
  • There will be an area with a box for you to paste a code when you want to send money to someone or to yourself on an exchange or different wallet. There will be other options and features, but to start out with, these are the items that you should know about.

Getting Your First Bitcoins

Having obtained a wallet, your next step naturally involves testing its functionality. Your initial destination should be This website dispenses small quantities of Bitcoin to familiarize people with their usage. The initial iteration of this platform was managed by Bitcoin’s lead developer, Gavin Andreson. Although the original site has ceased operation, the current version functions by distributing one or two advertisements on a monthly basis.

You agree to receive those messages by requesting the bitcoins. Copy and paste your new Bitcoin address and enter a phone number to which you can receive an SMS. They send out an SMS to be sure that people are not continuously coming back for more since it costs nothing to create a Bitcoin address. They will also send out once or twice a month advertisement to support their operation.

The amount they send is trivial: 0.0015 BTC (or 1.5 mBTC). However, they process almost immediately and you can check to see that your address and wallet are working. It is also quite a feeling to get that portion of a Bitcoin. (Non-disclaimer: I have no connection with this site and receive nothing if you use them. I simply think they are a good way to get your feet wet).

Congratulations! You have just entered the Bitcoin economy.

To gain some initial experience, you can try panning for gold in the Bitcoin world. Several services and websites offer Bitcoin as compensation for activities such as visiting specific websites, completing online surveys, or watching sponsored videos. These activities are harmless and can help you earn additional bitcoins. However, it’s crucial to keep in mind that these are business operations that generate revenue when visitors click on their site links. Essentially, they are sharing a portion of their earnings with you.

There is nothing illegal, or even immoral about this (you might like what you see and make a purchase!), but they are frequently flashy and may not be completely straightforward. All the ones that I have tried (particularly have paid out as advertised. It is interesting to experiment with these, but even with the likely rise in the value of Bitcoin, you won’t become a millionaire doing this. So, unless you are an advertisement junkie, I would recommend you move on. If you would like to try, simply Google “free bitcoins” or something along those lines and you will find numerous sites.

Buying Bitcoin Hand-to-Hand

Finally, this is going to be the real test of Bitcoin. Can people easily trade them back and forth? If this can’t happen, then there can’t really be a Bitcoin economy because retailers won’t be able to use it. If retailers can’t use it, what earthly good is it? Fortunately, this is not really a problem. iPhone is a bit of a holdout, but many smartphones have apps (mobile wallets) that will read QR codes and allow you to send Bitcoin to whomever you want.

You can also display a QR code of your address, or even carry a card in your wallet with your QR code to let people send Bitcoin to you. Depending on what kind of wallet you have, you can then check to see if the bitcoins have been received.

A couple of things to note:

When you set up your wallet, if you click around a bit, you will see an option to pay a fee to speed up transactions. This money becomes available to a Bitcoin miner as he/she/they process Bitcoin information. The miners doing the work of creating blocks of information keep the system up to date-and secure.

The fee is an incentive to the miner to be sure to include your information in the next information block and therefore “verify” it. In the short term, miners are making the most of their money by mining new coins (check the section on What Are Bitcoins for more information about this).

In the long term, as it gets harder to find new coins, and as the economy increases, the fees will be an incentive for miners to keep creating more blocks and keep the economy going. Your wallet should be set to pay 0 fees as a default, but if you want, you can add a fee to prioritize your transactions.

You are under no obligation to pay a fee, and many organizations that process many small transactions (like the ones that pan for gold described above) produce enough fees to keep the miners happy. In clicking around your wallet, on the transactions page, or linked to specific transactions, you will see a note about confirmations.

When you make a transaction, that information is sent out into the network and the network will send back a confirmation that there is no double entry for that bitcoin. It is smart to wait until you get several confirmations before walking away from someone who has paid you. It is actually not very easy to scam someone hand-to-hand like this, and it is not very cost-effective for the criminal, but it can be done.

Where can you buy Bitcoin like this?

An option is to explore if there’s a Bitcoin Meetup in your vicinity. For individuals nearby who are interested in buying or selling, you can visit Across the globe, efforts are underway to initiate local street exchanges. These exchanges, often referred to as Buttonwoods, take their name from the inaugural street exchange that emerged on Wall Street in 1792 beneath a buttonwood tree.

See if there is one, or start one, in your area. See if you have any friends who would like to try bitcoins out. Actually, the more people who start using Bitcoin, the larger and more successful it will become. So please tell two friends! Some people ask if it is possible to buy physical bitcoins. The answer to this is both a yes and a no. Bitcoin, by its very nature, is a digital currency and has no physical form. However, there are a couple of ways that you can practically hold a Bitcoin in your hands:

Cascascius Coins:

These are the brainchild of Mike Caldwell. He mints physical coins and then embeds the private keys for the bitcoins inside them. You can get the private key by peeling a hologram from the coin which will then clearly show that the coin has been tampered with. Mike has gone out of his way to ensure that he can be trusted. These are a good investment strategy as in the years to come it may be that these coins are huge collector’s items.

Paper Wallets:

A paper wallet just means that rather than keeping the information for your bitcoin stored in a digital wallet, you print the key information off along with a private key and keep it safe in a safe, in a drawer, or in your mattress (if you like).

This is a highly recommended and cost-effective system for keeping your Bitcoin safe. Keep in mind, though, that someone could steal them, or if your house burns, they will go with the house and there will be no way to get them back. Really, no different than cash. Also, as with Casascius Coins, they will not really be good for spending until you put them back into the computer.

There is software to make printing your paper wallets easier. is one of the best and includes a good tutorial about how to use them.

  • The bitcoins are not actually in the wallet, they are still on the web. In fact, the outside of the wallet will have a QR code that will allow you to ship coins to the wallet any time you like.
  • The sealed part of the wallet will have the private key without which you cannot access the coins. Therefore, only put as many coins in the wallet as you want to be inaccessible. You will not be able to whip this thing out and take out a few coins to buy a cup of coffee. Rather, think of it as a piggy bank. To get the money, you have to smash it. It is possible to take out smaller amounts, but at this point, the security of the wallet is compromised and it would be easier for someone to steal the coins. Better to have them all in or out.
  • People who use paper wallets are usually security conscious, and there are a number of ways for the nefarious in the world to hack your computer. gives a lot of good advice about how to print your wallets securely. Some people have also asked about buying bitcoins on eBay. Yes, it is possible, but they will be far overpriced. So, selling on eBay might seem to be a better option given the extreme markup over market value you might see. But, as with anything that is too good to be true, this is too good to be true. As I will explain in the next section, selling Bitcoin this way is just way too risky.

How Not to Buy Bitcoin

In the next section, I am going to explain a couple of key points about buying from Bitcoin Exchanges. Before I do, let me give you a warning. A short history lesson: When people first started setting up actual businesses based on Bitcoin, they used all of the tools available to any merchant. They are sold by credit card and PayPal.

The problem with this business model was quickly spotted: bitcoin transactions are not reversible by anyone except the recipient of the money. Credit cards and PayPal have strong buyer protection policies that make it relatively easy for people to request a chargeback. So, nefarious individuals realized this and began making purchases of Bitcoin and then sooner or later requesting a chargeback.

And, since bitcoin is a non-physical product, sent by new and poorly understood technological means, the sellers were not able to contest this. Because of this, sellers stopped accepting credit cards and PayPal.

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