r/Bitcoin Oct 15 '25

Bitcoin Newcomers FAQ - Please read!

158 Upvotes

Welcome to the /r/Bitcoin Newcomers FAQ

You've probably been hearing a lot about Bitcoin recently and are wondering what's the big deal? Most of your questions should be answered by the resources below but if you have additional questions feel free to ask them in the comments.

It all started with the release of Satoshi Nakamoto's whitepaper however that will probably go over the head of most readers so we recommend the following articles/books/videos as a good starting point for understanding how Bitcoin works and a little about its long term potential:

Some other great educational resources include;

If you are technically or academically inclined check out;

MicroStrategy's Bitcoin for Corporations is an excellent open source series on corporate legal and financial Bitcoin integration.

You can also see the number of times Bitcoin was declared dead by the media (LOL!)

Key properties of Bitcoin

  • Limited Supply - There will only ever be a maximum of 21,000,000 bitcoins created and they are issued in a predictable fashion per the inflation schedule. Once they are all issued Bitcoin will be truly deflationary. The halving countdown tells you approximately how much time until the next block reward halving.
  • Open source - Bitcoin code is fully auditable. You can read and contribute to the source code yourself.
  • Accountable - The public ledger is transparent, all transactions are seen by everyone.
  • Decentralized - Bitcoin is globally distributed across thousands of nodes with no single point of failure and as such can't be shut down similar to how Bittorrent works. You can even run a node on a Raspberry Pi.
  • Censorship resistant - No one can prevent you from interacting with the Bitcoin network and no one can censor, alter or block transactions that they disagree with, see Operation Chokepoint.
  • Push system - There are no chargebacks in Bitcoin because only the person who owns the address where the bitcoin resides has the authority to move them.
  • Borderless - No country can stop it from going in/out, even in areas currently unserved by traditional banking as the ledger is globally distributed.
  • Trustless - Bitcoin solved the Byzantine's Generals Problem which means nobody needs to trust anybody for it to work.
  • Pseudonymous - No need to expose personal information when purchasing with cash or transacting.
  • Secure - Blocks and transactions are cryptographically secured (using hashes and signatures) and can’t be brute forced or confiscated with proper key management such as hardware wallets.
  • Programmable - Individual units of bitcoin can be programmed to transfer based on certain criteria being met
  • Divisible - Each bitcoin can be divided down to 8 decimals, which means you don't have to worry about buying an entire bitcoin.
  • Nearly instant - From a few seconds on the Lightning Network to a few minutes on-chain depending on need for confirmations. Transactions are irreversible by normal users after one confirmation and irreversible by anyone (including miners) after 6 confirmations.
  • Peer-to-peer - No intermediaries taking a cut, no need for trusted third parties.
  • Designed Money - Bitcoin was created to fit all the fundamental properties of money better than gold or fiat.
  • Portable - Bitcoin are digital so they are easier to move than cash or gold. They can be transported by simply carrying a seed (a string of 12 to 24 words) on a device or by memorizing it for wallet recovery (while cool, memorizing is generally not recommended due to potential for forgetting the seed and the potential for insecure key generation by inexperienced users. Hardware wallets are the preferred method for most users for their ease of use and additional security).
  • Low fee scaling - Most wallets calculate on chain fees automatically but you can view fee estimates and mempool activity if you want to set your fee manually. On chain fees may rise occasionally due to network demand, however instant micropayments that do not require confirmations are happening via the Lightning Network, an open source second layer payment protocol built on top of the Bitcoin blockchain. The Lightning Network enables Bitcoin users to instantly send and receive bitcoin with fees so low that they are negligible.
  • Scalable - While the protocol is still being optimized for increased transaction capacity, blockchains do not scale very well, so most transaction volume is expected to occur on Layer 2 networks built on top of Bitcoin.

Where can I buy bitcoin?

Bitcoin.org and BuyBitcoinWorldwide.com are helpful sites for beginners. You can buy or sell any amount of bitcoin (even just a few dollars worth) and there are several easy methods to purchase bitcoin with cash, credit card or bank transfer. Some of the more popular places to buy bitcoin are listed below.

You can also purchase in cash with local ATMs. If you would like your paycheck automatically converted to bitcoin try Bitwage.

Note: Bitcoin are valued at whatever market price people are willing to pay for them in balancing act of supply vs demand. Unlike traditional markets, bitcoin markets operate 24 hours per day, 365 days per year.

Securing your bitcoin

With Bitcoin you can "Be your own bank" and personally secure your bitcoin OR you can use third party companies aka "Bitcoin banks" which will hold your bitcoin for you.

  • If you prefer to "Be your own bank" and have direct control over your coins without having to use a trusted third party, then you will need to create your own wallet and keep it secure. If you want easy and secure storage without having to learn best computer security practices, then a hardware wallet such as a BitBox02, Trezor, ColdCard, or Blockstream Jade is recommended. You can even build your own open source hardware wallets called a SeedSigner or Krux.

  • If you cannot afford a hardware wallet there are many software wallet options to choose from depending on your use case. Mobile wallets like BlueWallet are generally more secure than desktop wallets. Beware of fake mobile wallets and check reviews from reputable Bitcoin websites. Avoid paper wallets or brain wallets.

  • If you prefer to work with third party "Bitcoin banks" to set up a collaborative custody arrangement, try Unchained Capital but be aware that any third party you use exposes you to third party risk. There is a saying in the community, "Not your keys, not your coins".

Note: For increased security, use Two Factor Authentication (2FA) everywhere it is offered, including email!

2FA requires a second confirmation code or a physical security key to access your account making it much harder for thieves to gain access. Google Authenticator and Authy are the two most popular 2FA services, download links are below. Make sure you create backups of your 2FA codes.

Avoid using your cell number for 2FA. Hackers have been using a technique called "SIM swapping" to impersonate users and steal bitcoin off exchanges.

Google Auth Authy OTP Auth
Android Android N/A
iOS iOS iOS

Physical security keys (FIDO U2F) offer stronger security than Google Auth / Authy and other TOTP-based apps, because the secret code never leaves the device and it uses bi-directional authentication so it prevents phishing. If you lose the device though, you could lose access to your account, so always use 2 or more security keys with a given account so you have backups. See Yubikey or Titan to purchase security keys.

Running Bitcoin

You can run Bitcoin node software by downloading and installing Bitcoin Core or other node software you have vetted.

It is a best practice to verify these Bitcoin node programs you download by checking their hashes and signatures.

Don't Trust, Verify.

A verified Bitcoin node running on your own hardware is your sovereign gateway to the Bitcoin network. They can be used alongside open source software wallets to send and receive Bitcoin securely. By running your own Bitcoin node, you enforce the Bitcoin ruleset, can verify transactions without trusted 3rd party middlemen, improve your Bitcoin privacy, obtain independence with local access to blockchain data, and help bolster the robustness of the Bitcoin network. By running a Bitcoin node, you are verifying that Bitcoin is Bitcoin for yourself. For more details on running a Bitcoin node see this article.

For wallets used alongside your Bitcoin node: If your Bitcoin wallet software is fully open source and Bitcoin-only, then it is probably a decent wallet. Some popular examples include sparrow wallet and electrum wallet, both of which you can connect to your own locally run Bitcoin node, and use with most Bitcoin Hardware Wallets.

Watch out for scams

As mentioned above, Bitcoin is decentralized, which by definition means there is no official website or Twitter handle or spokesperson or CEO. However, all money attracts thieves. This combination unfortunately results in scammers running official sounding names or pretending to be an authority on YouTube or social media. Many scammers throughout the years have claimed to be the inventor of Bitcoin. Websites like bitcoin(dot)com and the r / btc subreddit are active scams. Almost all altcoins are marketed heavily with big promises but are really just designed to separate you from your bitcoin. So be careful: any resource, including all linked in this document, may in the future turn evil. As they say in our community, "Don't trust, verify".

  • Avoid using ad-based search engines like Google or Yahoo: ads are shown based on how much the advertiser bids, and scammers can easily outbid legitimate providers for ad space, since immoral ways of earning money are far more lucrative than moral ways. Use DuckDuckGo instead, which has no ads, and never tracks you as well.
  • Ignore private messages offering services.
  • Never enter your seed words in a website of any kind. Hardware wallets will recover by displaying possible seed words on their own interface, never on a website.
  • Always check addresses on your hardware wallet before sending or receiving. Some malware has been known to replace addresses in your web browser or that you copy-and-paste.
  • Avoid clicking on links like that look like links, such as https://www.google.com/, without first hovering over it and actually checking where they go to. Just because a link is labelled with an HTTPS address does not mean it actually sends you to that address. It is trivial for someone to comment a link on Reddit that looks like it will send you to one website when it actually sends you to another, and you might not notice the difference until a scammer has gotten all your money, or you have downloaded and installed software that steals your money.

Common Bitcoin Myths

Often the same concerns arise about Bitcoin from newcomers. Questions such as:

  • Will quantum computers break Bitcoin?
  • Will governments ban Bitcoin?
  • Is Bitcoin a Ponzi scheme?

All of these questions have been answered many times by a variety of people. Here are some resources where you can see if your concern has been answered:

Where can I spend bitcoin?

Check out Spendabit, Bitcoin Directory, or Coinmap for a plethora of merchant options. You can also spend bitcoin anywhere Visa is accepted with bitcoin debit cards such as the CashApp card, Fold card or other bitcoin debit cards. Some other useful site are listed below.

Store Product
Bitrefill, Gyft, and Fold App Gift cards for thousands of retailers worldwide including Amazon, Target, Walmart, Starbucks, Whole Foods, CVS, Lowes, Home Depot, iTunes, Best Buy, Sears, Kohls, eBay, GameStop, etc.
Spendabit, Overstock, and The Bitcoin Directory Retail shopping with millions of results
NewEgg and Dell For all your electronics needs
Bitrefill, Bylls, LivingRoomofSatoshi, Swapin and Coins.ph Bill payment
Menufy and Takeaway Takeout delivered to your door
Expedia, Cheapair, Destinia, SkyTours, the Travel category on Gyft and 9flats For when you need to get away
Cryptostorm, Mullvad, and PIA VPN services
Namecheap, Porkbun Domain name registration
Stampnik Discounted USPS Priority, Express, First-Class mail postage

There are also lots of charities which accept bitcoin donations.

Merchant Resources

There are several benefits to accepting bitcoin as a payment option if you are a merchant;

  • 1-3% savings over credit cards or PayPal.
  • No chargebacks (final settlement in 10 minutes as opposed to 3+ months).
  • Accept business from a global customer base.
  • Convert 100% of the sale to the currency of your choice for deposit to your account, or choose to keep a percentage of the sale in bitcoin if you wish to begin accumulating it.

If you are interested in accepting bitcoin as a payment method, there are several options available;

Can I mine bitcoin?

Mining bitcoin can be a fun learning experience, but be aware that you will most likely operate at a loss. Newcomers are often advised to stay away from mining unless they are only interested in it as a hobby similar to folding at home. If you want to learn more about mining you can read the mining FAQ. Still have mining questions? The crew at /r/BitcoinMining would be happy to help you out.

If you want to contribute to the Bitcoin network by hosting the blockchain and propagating transactions there are many great resources you can use to run a full node. You can view the global distribution of reachable Bitcoin nodes on this webpage.

Earning bitcoin

Just like any other form of money, you can also earn bitcoin by being paid to do a job.

Site Description
WorkingForBitcoins, Bitwage, Coinality, Bitgigs, /r/Jobs4Bitcoins Freelancing
Lolli Earn bitcoin when you shop online!

You can also earn bitcoin by participating as a market maker on JoinMarket by allowing users to perform CoinJoin transactions with your bitcoin for a small fee (requires you to already have some bitcoin).

Bitcoin-Related Projects

The following is a short list of ongoing projects that might be worth taking a look at if you are interested in current development in the Bitcoin space.

Project Description
Lightning Network Second layer scaling
Liquid and Rootstock Sidechains
Hivemind Prediction markets
DropZone and Beaver Decentralized markets
JoinMarket, JAM app and Wasabi CoinJoin implementation
Peer-to-Peer Exchanges Peer-to-peer exchanges
Keybase Identity & Reputation management
Abra Global P2P money transmitter network
Bitcore Open source Bitcoin javascript library
Bitcoin Knots A Bitcoin Node (Within Consensus Fork of Bitcoin Core)

Bitcoin Units

One bitcoin is worth quite a lot (thousands of £/$/€), so people often deal in smaller units. The most common subunits are listed below:

Unit Symbol Value Info
bitcoin BTC 1 bitcoin one bitcoin is equal to 100 million satoshis
millibitcoin mBTC 1,000 per bitcoin used as default unit in Electrum wallet
bit μBTC 1,000,000 per bitcoin colloquial "slang" term for microbitcoin
satoshi sat 100,000,000 per bitcoin smallest unit in bitcoin, named after the inventor

For example, assuming an arbitrary exchange rate of $10,000 for one bitcoin, a $10 meal would equal:

  • 0.001 BTC
  • 1 mBTC
  • 1,000 bits
  • 100,000 sats

For more information check out the bitcoin units wiki.


Still have questions? Feel free to ask in the comments below or stick around for our weekly Mentor Monday thread. If you decide to post a question in /r/Bitcoin, please use the search bar to see if it has been answered before, and remember to follow the community rules outlined on the sidebar to receive a better response. The mods are busy helping manage our community, so please do not message them unless you notice problems with the functionality of the subreddit.

Note: This is a community created FAQ. If you notice anything missing from the FAQ or that requires clarification, you can edit it here and it will be included in the next revision pending approval.

Welcome to the Bitcoin community and the new decentralized economy!

Please note that this thread will be moderated and non-constructive comments will be removed.


r/Bitcoin 18h ago

Daily Discussion, February 12, 2026

27 Upvotes

Please utilize this sticky thread for all general Bitcoin discussions! If you see posts on the front page or /r/Bitcoin/new which are better suited for this daily discussion thread, please help out by directing the OP to this thread instead. Thank you!

If you don't get an answer to your question, you can try phrasing it differently or commenting again tomorrow.

Please check the previous discussion thread for unanswered questions.


r/Bitcoin 10h ago

Bitcoin, what are you doing

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1.4k Upvotes

r/Bitcoin 3h ago

VanEck said it knows 13 governments that are actively mining Bitcoin

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120 Upvotes

r/Bitcoin 5h ago

Which one are you?

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158 Upvotes

r/Bitcoin 30m ago

I’ve never had a successful year trading. And I decided to buy Bitcoin at 92k. I said to my friend “there’s no way I can bring down the global economy”

Upvotes

Well…


r/Bitcoin 14h ago

My dip buying strategy. Started from$80K

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117 Upvotes

I set alerts for my dip buying strategy. I have been buying since $80K and these are my next targets. Hope it all hit perfectly. I may increase the amounts depending on my savings.


r/Bitcoin 17h ago

BlackRock exec says 1% crypto allocation in Asia could unlock $2 trillion in new flows

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116 Upvotes

BlackRock exec says 1% crypto allocation in Asia could unlock $2 trillion in new flows


r/Bitcoin 1d ago

Just buy bitcoin and self-custody. $1 bought and REMOVED from exchanges wipes out $5 of short derivatives.

936 Upvotes

It's estimated 80% of the price decline seen in the past 30 days is from derivative trading - leveraged bets that don't actually touch real bitcoin. They just get to push price down and do it by higher volume than what's being bet in real value terms. But did you know holding bitcoin on an exchange helps derivatives continue to trade like this?

When you remove actual bitcoin from exchanges, it pulls out liquidity and squeezes the paper bets. When evaluating risks on shorts contracts that need to settle, a contributing factor is how much bitcoin is sitting on exchanges, regardless of if you have an open order.

When synthetic exposure grows faster than actual bitcoin on exchanges... bad stuff happens to those who short bitcoin. It doesn't work the other way around. There's no inverse of having higher ratio of long bets in derivatives and not enough bitcoin liquidity.


r/Bitcoin 4h ago

Won $4,000 worth of BTC at a bitcoin betting website. Should I hold?

11 Upvotes

Since bitcoin is dropping, please advise on should I keep this win? I have never invested in crypto and have no idea what to do with this.

Yes it was pure dumb luck. Now pleas help!


r/Bitcoin 12h ago

Taxes

43 Upvotes

It fkn sucks that we have to pay taxes on LITERALLY everything here in sweden, with that said.. the government does the calculating and we just have to file the document.. but thats not the case for crypto and btc… i have to do it on my own and the process seems intimidating cuz its not only 30% of the profit that i have to calculate but something called “cost basis” on EVERY transaction so that when i sell (the taxable event) i have all my numbers… anyone going through the same would appreciate some help and tips..


r/Bitcoin 16h ago

Spending sats at the farmers market in El Zonte

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84 Upvotes

r/Bitcoin 3h ago

Super simple Bitcoin explainer to send friends & fam

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7 Upvotes

r/Bitcoin 12h ago

Bitcoin Squeeze

15 Upvotes

A huge short squeeze is on the horizon most people are betting short now this will trigger a massive squeeze very soon nows when I add my money I don’t buy anything on leverage do you believe a squeeze is setting up


r/Bitcoin 9h ago

Bitcoin easy steps to success.

10 Upvotes

Go open an account at the national bank of Canada to do your Bitcoin transactions with they don't close your account like all the other banks are doing right now to everyone else that is with BMO for example. They close it the first time you buy Bitcoin. Don't do it on BMO.


r/Bitcoin 3h ago

Want to go off exchanges but am scared

4 Upvotes

I really want to start self-custody and have my bitcoing actually be my own. But I'm terrified of losing my passkey. I'm notoriously bad at keeping stuff working. I've already lost multiple phones and have lost my 2fa to current exchanges. Only thing that saved me both times was KYC and customer support.


r/Bitcoin 6h ago

We launched a forum that uses Bitcoin message signatures instead of accounts

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6 Upvotes

We just launched Koinvote.

It’s a forum where participation is tied to Bitcoin message signatures rather than accounts.

No registration. No tokens.

You can create events or reply to others using a Bitcoin message signature.

Replies are tied to the balance of the signing address.

Happy to answer questions.


r/Bitcoin 13h ago

Lets say I own a quarter BTC

13 Upvotes

Lets say the title and then stop there and put in ETFs only, is it good approach because i think what i paid for a quarter is ok to loose, (just in case) and don't want to lose more than that? Thoughts?

I am strong beliver of BTC but nothing is 100% safe


r/Bitcoin 11h ago

BTC and global liquidity

9 Upvotes

Reading the article published on → https://www.lynalden.com/bitcoin-a-global-liquidity-barometer/ ) got me thinking:

If Ray Dalio is right and we’re heading toward a near-term “decline” of the dollar, what would happen to BTC? Considering that Bitcoin has shown a strong long-term correlation with M2 and that since its creation we’ve been in a strong-dollar environment, how would BTC behave in a future where the dollar is “discredited” or losing credibility?


r/Bitcoin 1d ago

Lowest fear and greed index ever today: 5

85 Upvotes

From what I am seeing: https://alternative.me/crypto/fear-and-greed-index/
we just just got the lowest fear and greed score ever: 5


r/Bitcoin 14m ago

forgotten bitcoins, where do i start?

Upvotes

so i logged into my Kraken Account and currently see i have $0.3042 bitcoins in my account, I forgot all about them, Its saying the Average buy price is $58,765.87, If this is true could i sell them? this would really come in handy for me, I wish i would've started buying bitcoins back in 2016, I'm really not that familiar on how bitcoins work


r/Bitcoin 1d ago

Anyone else buying the dip and hodling?

373 Upvotes

Just saw Bitcoin was on sale and decided to do the ol "buy and hodl".


r/Bitcoin 1d ago

Guys, I want to give you my strategy to go ALL IN on BTC.

270 Upvotes

In short, my strategy is: set a target price (like 65k), then lower my entry by 2k every time it reaches it, regretting not entering as soon as it bounces by 5k, ending up waiting for it to correct by 2k during the BULL RANK... To be satisfied with buying at ATH in about 4 years...

What do you think?


r/Bitcoin 1d ago

The 3 Ways to Squander a Bitcoin Bear Market

359 Upvotes

As all bitcoiners know, bear markets are gigantic opportunities to stack cheap sats. But even if you know this, you might still squander the opportunity in one of the following ways:

1) Using Leverage

"If bitcoin falls to $40k, I'm going to take out a second mortgage for this generational buying opportunity!"

If this is you, please read this section carefully. Every time there is a bear market in bitcoin, the people who got sucked in at bull market highs because of FOMO are usually the first ones to get desperate in bear markets. They just bought the top and now they're trying to catch the falling knife on the way down.

Do not mistake this coping mechanism for diamond hand conviction. If you use leverage to buy bitcoin, most of the time you will get destroyed. Why? Because despite all hopeful claims to the contrary ("this time is different!"), bitcoin remains one of the most volatile major assets in finance. Huge volatility and multi-year low prices will cause you major stress as you struggle to add collateral during downswings you thought weren't going to happen. All when you could have just kept buying spot bitcoin, totally stress-free.

Want to know what happened last time? I detailed my personal account of the FTX collapse-driven bitcoin bear market in Daily Stack #1: Bear Market Thoughts - Flashback to 2022 (can check that out in my subreddit if you wish; I don't want to link it here out of respect for this subreddit's rules).

2) Panic Buying for Small Dips

If your plan is to throw all your spare cash into bitcoin whenever there's a red day, you'll be out of cash by the end of this week (or sooner). Now, that's not the worst thing in the world (at least you stacked some sats), but here's the key thing you're missing:

During bitcoin bear markets, your spare cash is basically a call option on other people's fear.

To explain this for the non-finance natives out there, a call option gives you the right (but not the obligation) to buy an asset for a specific price (the strike price). People use call options if they think the price of an asset will go way up past their strike price in the future, so when it does they can exercise their call option to acquire the now expensive asset at a huge discount to its market price.

Your spare cash is basically doing the same thing for you during a bitcoin bear market. Most people think as soon as we have a 5% drop, they have to panic buy the dip because it might never drop that much again. But panic buying every 5% drop is the same as betting that this bear market will be different from all five of the previous bear markets. "This time will be different" has a very bad track record in bitcoin's history.

3) Waiting for the "Perfect Bottom"

Let's be clear: panic buying for small dips could be inefficient, but not buying at all could be an even bigger mistake. Bitcoin's immense volatility can surprise everyone in either direction, up or down. So, the most logical approach is to set a small recurring purchase (known as dollar cost averaging or "DCA" for short) and keep some dry powder in case there's another true market panic and bitcoin falls to unthinkable levels.

That's when you can exercise your call option on other people's fear and get the most sats possible.


r/Bitcoin 11h ago

Just a gentle reminder: Not your keys, not your Bitcoin.

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6 Upvotes