Bitcoin For Dummies®, 2nd Edition
Published by: John Wiley & Sons, Inc., 111 River Street, Hoboken, NJ 07030-5774, www.wiley.com
Copyright © 2022 by John Wiley & Sons, Inc., Hoboken, New Jersey
Published simultaneously in Canada
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Library of Congress Control Number: 2022932288
ISBN 978-1-119-60213-2 (pbk); ISBN 978-1-119-60216-3 (ebk); ISBN 978-1-119-60214-9 (ebk)
Welcome to Bitcoin For Dummies, 2nd Edition, a book that tells you everything you need to know to get started with the original blockchain-based cryptocurrency (including what blockchain and cryptocurrency mean).
This is a very strange subject. Bitcoin is perhaps the most valuable asset (there’s about a trillion dollars’ worth right now) that almost nobody understands. How can you invest in something if you don’t understand what it is? And make no mistake, most people, even some with thousands of dollars’ worth of Bitcoin, don’t know what it truly is. Read this book, and that won’t be you.
We’re firm believers that if you want to be involved in Bitcoin in some way, you need to understand it. Two huge problems come with not understanding it:
Our job is to break it all down into intelligible, easy-to-digest, bite-sized pieces that ordinary folks like yourself can understand.
This book explains, simplifies, and demystifies the world of Bitcoin. You find out what you need to know and do in order to decide if and how you’re going to begin stepping into the beautiful world of Bitcoin.
In this book, we explain the following:
And plenty more!
We don’t want to assume anything, but we have to believe that if you’re reading this book, you already know a few things about the Internet. Bitcoin is a technology that depends on the Internet — no Internet, no Bitcoin. So you need to be tech-aware enough to use some kind of Internet-connected device: a desktop PC or laptop, or maybe just a smartphone. You need to be able to navigate to websites, and download and run software (not necessarily much software, maybe just a simple crypto wallet you can run on your smartphone).
We explain how to keep your Bitcoin safe, so you’ll also need to be able to carry out processes such as loading a password-management program, installing anti-virus software, and doing backups. This isn’t rocket surgery or brain science, but if your idea of using a computer is asking your grandkid to find something on the interwebs for you, this book may not be for you!
This book, like all For Dummies books, uses icons to highlight certain paragraphs and to alert you to particularly useful information. Here’s a rundown of what those icons mean:
A Tip icon means we’re giving you an extra snippet of information that may help you on your way or provide additional insight into the concepts being discussed.
The Remember icon points out information that’s worth committing to memory.
The Technical Stuff icon indicates geeky stuff that you can skip if you really want to, although you may want to read it if you’re the kind of person who likes to have background info.
The Warning icon helps you stay out of trouble. It’s intended to grab your attention to help you avoid a pitfall that may harm your investment.
In addition to what you’re reading right now, this product also comes with a free access-anywhere Cheat Sheet that covers quick tips and info to help you along the Bitcoin road. To get this Cheat Sheet, simply go to www.dummies.com and search for “Bitcoin For Dummies Cheat Sheet” in the Search box.
Like all good reference tools, this book is designed to be read when needed. It’s divided into several parts: background information on what Bitcoin actually is; how to actually use Bitcoin (buying, selling, and investing); some more details on how the technology functions; and the Part of Tens.
We recommend you start at the beginning and read through sequentially, but if you just want to know how to use wallets, read Chapter 4. If you need to understand where to buy Bitcoin, read Chapter 3. If all you need to understand is what the crypto in cryptocurrency is and how it works, Chapter 2 is for you.
However, Bitcoin is a complex subject. All the topics covered in this book are interrelated. We strongly recommend you read everything in this book before you dive deep into Bitcoin investing. It’s essential that you have a strong understanding of everything involved before you start. Don’t join the thousands who have lost their Bitcoin. A little knowledge goes a long way!
Part 1
IN THIS PART …
Discovering where Bitcoin comes from
Understanding how money works
Learning how Bitcoin uses cryptography
Sending messages to the Bitcoin blockchain
Using private keys to prove Bitcoin ownership