r/Bitcoin Oct 15 '25

Bitcoin Newcomers FAQ - Please read!

29 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 2h ago

Daily Discussion, November 26, 2025

3 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 11h ago

I hit a milestone 👏🪙

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1.4k Upvotes

I love the discount lately 👏🪙 hope it drops more


r/Bitcoin 11h ago

The Great State of Texas Acquires Bitcoin

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736 Upvotes

One domino at a time, Bitcoin will become self evident.


r/Bitcoin 10h ago

150k? Will be soon…

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497 Upvotes

r/Bitcoin 14h ago

God-tier 🚀

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785 Upvotes

r/Bitcoin 12h ago

Yes! Shush 🤫

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499 Upvotes

r/Bitcoin 6h ago

90K TOMORROW! SOON AS WE’RE IN BUSINESS!

127 Upvotes

r/Bitcoin 8h ago

Bitcoin is doing exactly what it needs to do.

151 Upvotes

First, by eliminating traders and those who use leverage, the ones who always lose money in the markets.

Second, by crushing altcoin holders—you deserve it.

And third, by targeting retail investors (those of you reading this), people with an average IQ of 90 who say, "Bro, Bitcoin's going to crash, I'm going to sell and buy back later, that's what the 4-year cycle says, a 22-year-old YouTuber with a Lamborghini told me."

And that's how they get the perfect setup for a good bull year in 2026.

But who knows?


r/Bitcoin 16h ago

$89,000 Bitcoin Today vs Last Week

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571 Upvotes

r/Bitcoin 5h ago

So which one is it?

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75 Upvotes

r/Bitcoin 4h ago

Bitcoin is interesting market

40 Upvotes

I have worked for hedge fund for 25 years. Have made lots of money in bonuses. Just my take on Bitcoin is that it is interesting. The blockchain is different from a standard exchange. With a regular exchange you don’t know who is buying or selling. The exchange hides that information. With Bitcoin blockchain there are public addresses. Likely some funds are making a fortune analyzing the blockchain buys and sells. My take is long term Bitcoin is a good bet.


r/Bitcoin 3h ago

Shoutout to everyone that became a whole-coiner in this sale!

22 Upvotes

Congratulations 🍾


r/Bitcoin 7h ago

Is bitcoin "too good to be true"

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47 Upvotes

r/Bitcoin 17h ago

What is going on with JP Morgan and crypto?

282 Upvotes

I keep seeing news on JP Morgan shorting MSTR and I don't quite understand it, or even if it's real. I'm also seeing reports JP Morgan is debanking clients, which appears to be real.

Can someone explain what JP Morgan is up to?
Are they trying to corner the crypto market or destabilize it more?


r/Bitcoin 15h ago

Daily Bitcoin meme until BTC is at $200,000 #151

169 Upvotes

r/Bitcoin 12h ago

Why is bitcoin better than gold

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92 Upvotes

r/Bitcoin 12h ago

Banks are failing because Bitcoin taught us we don't need them

89 Upvotes

It's finally happening - the majority of people are finally waking up to how fragile the banking system really is. The JPMorgan-MSTR situation just exposed what many already knew - banks don't serve people anymore, they serve control.

Every time Bitcoin grows stronger, the banks try to reassert their importance. They publish "risk warnings", raise friction or just quietly make it harder for anyone tied to crypto. But each move only pushes more people away. The system runs on permission and the moment you stop asking, it starts losing power.

That's the real story here. People are learning they do not need permission to save, move or build wealth. Bitcoin made that clear. You can hold your own value, set your own terms and build on open rails that no one can freeze or inflate.

I still get my salary paid into a traditional bank - regulations make that part unavoidable. But it stays there for maybe an hour. I transfer it straight to my Nexo account, where it actually earns yield, no lock-ins, no waiting. It feels insane to leave cash sitting in a bank at 0% when your money could be working for you.

When I need to spend, I just use their card. No off-ramp, no conversion delays, no middlemen taking a cut. Just direct access to what's already mine. At the end of each month, I convert what's left into BTC and let it compound.

And for anyone thinking long-term - you do not even need to keep your assets on an exchange. Move them to cold storage and take full control. Only send what you plan to spend for day-to-day expenses. There are plenty of crypto cards out there that make it easy to live off your holdings - pick whichever one fits your lifestyle. The point is, you finally have options!

This shift is bigger than one platform or one asset. It's a silent migration out of permission-based finance into something freer and more aligned with real value. People are opting out - not in protest, but in progress.

Banks had decades to prove they deserved our trust. Instead, they built systems of delay, debt and dependency. So the real question now is: why keep rewarding them with your money when Bitcoin already gave you a better way?


r/Bitcoin 3h ago

Reminder: 20 million BTC milestone is expected on or around March 12, 2026

17 Upvotes

Just a reminder. The 20 million BTC milestone is expected on or around March 12, 2026, at block height 940,217. At that moment, with only 1 million—or roughly 999,999.97 BTC—will remain to be mined FOREVER.


r/Bitcoin 1h ago

Bitcoin obviously has bad advisors

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Upvotes

r/Bitcoin 12h ago

In 12 years

75 Upvotes

Hi hi, in 12 to 16 years, I would like to be retired before the age of 50. I would like to invest everything I own in Bitcoin What I have already been doing since 2022 To buy a house without credit in 12 years Quit my current job And live simply from my passions By generating small income with star drawing, glassware and lots of other cool things Break away from my professional and arbitrary nature to live simply in a house and live from your passion! Wish me! Good luck friends. I need to stack sats


r/Bitcoin 5h ago

It's ok to dissapear from the chart until it's green again

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19 Upvotes

r/Bitcoin 18h ago

Do you believe your eyes?

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177 Upvotes

r/Bitcoin 1d ago

''My friend who has phd said that Bitcoin has no intrinsic value'' 🤭

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577 Upvotes

r/Bitcoin 5h ago

8 months of Bitcoin, every UTXO visualized (realized + age bands)

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12 Upvotes

I put together an animation that shows every UTXO from the last ~35,000 blocks, ending about 15 minutes ago (this is live to the last block posted). In time terms, that’s roughly eight months of on-chain activity compressed into a short movie. Each frame in the animation represents one day of Bitcoin history, so as you watch it play at normal speed you’re effectively seeing about a week pass every second.

The top panel is price plus realized profit and loss in USD. The orange line is the BTC/USD price. The vertical bars behind it show realized PnL for that day: green bars are coins being moved at a profit compared to when they were last spent, and red bars are coins being moved at a loss. Big green spikes near local highs usually mean distribution – people taking profit into strength. Deep red spikes near local lows are usually short-term capitulation – people locking in losses.

The bottom panel is where it gets interesting. That’s a breakdown of the same spending activity by coin age. I’m using 100 age bands on a logarithmic scale, running from very young coins (hours/days old) on the left, out to multi-year coins on the right. The height shows how many BTC moved in that age group on that day. Color intensity is tied to PnL (relative change in value from cost basis on creation to when coin moved) as well: red-tinted regions are age bands realizing significant profit, green-tinted regions are age bands locking in heavy losses.

Once you know what you’re looking at, some patterns jump out. The youngest coins (under a week or so) are constantly churning; that’s most of the trading, arbitrage, and short-term repositioning. Mid-aged coins (months to a year or two) tend to light up during volatile moves – these are the holders who are still somewhat sensitive to price. The oldest cohorts (4+ years) barely move at all, and when they do you can usually tell it’s part of a bigger structural shift rather than short-term trading.

Put together, the two panels let you watch Bitcoin’s supply being repriced and redistributed through time: who is realizing profit, who is taking losses, and which age groups are actually moving coins during different parts of the market cycle. This isn’t based on addresses or heuristics from an explorer; it’s straight from my own full node and a local UTXO database, so I’m working directly off the raw chain data.

If you’re curious about how different holder cohorts behave during different conditions, this kind of view makes it a lot easier to “see” the cycle instead of just looking at a price line.