On this page I have collected frequently asked questions about Bitcoin for beginners. The answers should provide an easy introduction to the topic Bitcoin. Therefore there are no explanations about Bitcoin mining or blockchain technology in general.

How do I buy Bitcoins?

For most beginners, a trading platform that makes it as easy as possible to buy Bitcoins against Dollars is a good choice for the first purchase. Serious providers with an easy to understand website are Coinbase or Kraken. Here you can buy Bitcoins with a conventional credit card or by bank transfer. The trading partner in this case is Coinbase and the price for the Bitcoin depends on the current market price.

Do I have to buy a whole Bitcoin?

No. Many beginners don't want or can't invest that much. They don't have to, because the smallest unit of the Bitcoin is 0.00000001 BTC - also called 1 Satoshi. Thus also very small dollar amounts can be invested.

What does BTC mean?

Just as the US-Dollar has the three-digit abbreviation "USD", "BTC" is the abbreviation for Bitcoin.

What is a wallet and what do I need it for?

A wallet is a digital wallet in which your Bitcoins are stored. After signing up for a trading platform you have your own wallet there.

How can I send/receive Bitcoins?

Just like your bank account has an account number, each wallet also has a unique address. In your wallet you will usually find your own address in the "Receive" section.

To send Bitcoins, you will find an input field for the address of the recipient wallet in the "Send" section of your wallet.

How long does a Bitcoin transfer take?

Depending on the global network load, a Bitcoins transaction from one wallet to the other takes between a few seconds and several minutes.

How can I sell Bitcoins?

Selling Bitcoins works just like buying on a trading platform. You can also sell your Bitcoins to other Bitcoin users on marketplaces such as Paxful. This way you can usually achieve a slightly higher selling price with lower fees. Compared to a trading platform, the selling process is somewhat more complex.

Where can I pay with Bitcoins?

Dealers where you can pay directly with Bitcoins are still rare in Germany. Coinmap provides an overview of which local merchants in your area accept Bitcoins as a means of payment.

A possibility to pay at least indirectly with Bitcoin offers Cryptopay. Cryptopay is a trading platform like Coinbase, but also offers a normal VISA card, which feeds itself from the wallet balance.

Why are there so many more crypto currencies?

As there is not only the Euro and the US Dollar among the conventional currencies, there are now numerous crypto currencies. Many have only a very small market volume and can simply be ignored by most people. Bitcoin is, so to speak, the leading currency among the crypto currencies. An overview of the current market volume of the individual crypto currencies can be found at Coinmarketcap.

What is Bitcoin Cash?

Bitcoin Cash (abbreviation: BCH) has a name similar to Bitcoin, but is a completely separate crypto currency.

How should I store larger amounts of Bitcoin?

As soon as your Bitcoin amount increases, you should start thinking about other means of storing your Bitcoins.

Storing large amounts of Bitcoin on crypto platforms or Bitcoin marketplaces is generally not recommended, as these providers usually do not give you the so-called "private keys". These remain with the respective provider. This increases the risk of a loss of Bitcoins in the event of insolvency of the provider or a hacker attack.

As an alternative there are software wallets. For most people, the open-source wallet Electrum, which creates a wallet file that is stored locally, is a good choice. Here you have full control but also full responsibility for your Bitcoins.

Even more secure are so called hardware wallets like Trezor or Ledger. Here, a hardware token, which must be connected to the computer via USB or Bluetooth for the administration of the wallet, serves as an additional level of security.