Intro to Bitcoin by Miss Teen Crypto
Bitcoin and cryptocurrency are taking the world by storm- transitioning from the physical world of money and making it digital!
If you’re wondering what this crazy magic internet is you’re in the right place!
Let’s breakdown Bitcoin one slide at a time.
Bitcoin is the first decentralized digital currency- all this means is that Bitcoin is the first currency of the internet that does not use any third parties, such as banks.
Yes, you read that right! That leads us into our next slide…
Bitcoin being peer-to-peer is what we were discussing before concerning not using any third parties to transfer our funds. Think of this as handing your friend a dollar bill- one wallet to another!
Bitcoin along with many other cryptocurrencies are borderless. You can send funds to any person or business you’d like no matter where they are across the globe!
Using cryptocurrency with large or international payments are essential considering the fees to transfer funds from one country to another using third parties.
You’re also saving on conversion fees from one currency to another by using and spending your Bitcoin!
Many people avoid buying Bitcoin because a whole coin may not be affordable- that’s fine! I don’t have a full Bitcoin either, but you can still buy small amounts- sats (satoshis).
*(Just how 100 cents= 1 dollar, 100,000,000 satoshis= 1 Bitcoin)*
A common strategy known as dollar cost averaging (DCA) is used by many (myself included). This means buying Bitcoin or your desired crypto periodically whether that be daily, weekly, or monthly regardless of Bitcoin’s price change.
Popular ways to DCA are found on common exchanges such as Coinbase or Gemini where you can set up recurring buys with your desired time and amount. *My Coinbase referral code is on a later slide!*
One of the best aspects of Bitcoin is the rarity, as there are only 21 million Bitcoin to ever exist! Which means that there are going to be very few people that will have the chance to own even 1 Bitcoin!
This scarcity creates a “store of value” factor, as Bitcoin is the new digital version of your savings account!
Bitcoin’s decentralization comes from the technology that’s behind it known as the Blockchain.
Bitcoin are also created or “mined” using the blockchain!
Think of the Bitcoin Blockchain as an app that anyone can join and use. The more people that use the Bitcoin network the more secure it becomes!
This network approves and validates transactions.
I remember in school I was trying to give my classmates Bitcoin and nobody would accept! One girl wanted to accept but she said she couldn’t since she didn’t know her Social Security number- crazy right?!
It’s important to note that there is no such information needed and no age restrictions on who can have a Bitcoin wallet! Anyone who has an internet connection can download a wallet and start transacting!
With all of this information being said, you’re essentially being your own bank! This can be a scary concept for some but practicing self-custody is essential to protecting your funds and have access to it at all times- 24 hours and 7 days a week!
In order to start being your own bank you have to download a wallet- no need for bulky wallets in your pockets!
Before we go into two types of wallets first let’s discuss Seed Phrases- now known as Recovery Phrases. These phrases are the key to your funds just like the key to your front door- except there is no key master to print a new key for you if you lose it.
Let’s say you lose your phone with your crypto wallet on it, you’re all good! Just grab a new phone, download the wallet and recover your funds using these phrases
These phrases are usually 12–24 phrases that are randomly generated. The best way to store these phrases are to keep them completely offline on a piece of paper or engraved metal.
Hot wallets are wallets that you can download as an app on your phone. These wallets generate recovery phrases as act as your portable wallet that you’d typically hold cash in!
Cold Wallets are a way of storing your crypto more securely, completely offline. This is basically your own bank vault and large safe like you see in the movies, except your funds are held on a device!
When opening these wallets you are given those trusty recovery phrases, that way if you lose this device, you can purchase a new one and recover your funds using those phrases.
Buying crypto under the age of 18 is easy! You simply visit your closest Bitcoin ATM and exchange your $ to crypto in seconds.
A popular choice is CoinFlip ATM, you can visit conflip.tech to find your closest ATM!!
Buying crypto at 18+ years old is so simple! You can download a crypto exchange app on your phone. Think of it as going to a currency exchange stand at the airport!
Above is a referral code to join Coinbase, a very user friendly platform.
Transacting with crypto gets easier and easier! You can simply scan the QR code on a friend’s wallet or copy and paste their address to send- just how you scanned the referral QR code above.
Yes- it’s that easy!
You have now completed your Intro to Bitcoin, happy stacking!
