Getting Started

Getting Started

Like every decent financial system, you need a place to store your money and in the Bitcoin world this comes in the form of the Bitcoin client whereby you need to download the software (www.bitcoin.org) or through an online account such as mybitcoin.com.

Once you have either one of these accounts or shall we say wallets in place, you will have a Bitcoin (BTC) number whereby you are able to receive and send funds through your BTC number.

Of the two methods unless you plan on mining for Bitcoin I prefer using mybitcoin.com with a very secure password (12 alphanumeric digits).

Using a Mybitcoin.com account

To send some Bitcoin to a friend, merchant, acquaintance click on ‘Mybitcoin’ found on the left of the screen. All you need to do is input the  ‘Bitcoin Payment Address’.

If you are sending funds to someone you do not deem trust worthy, such that you believe the service or good desired will not be delivered, you may wish to use the escrow account service of ‘Clearcoin’.

ClearCoin – How it works

ClearCoin is an escrow account service which is adds an additional level of security to a Bitcoin transaction with an unknown party. ClearCoin works on a system of trust based on the user’s identity listed through their Google account.

It works such that instead of sending Bitcoins directly to the seller, they are sent to ClearCoin. ClearCoin will not release the coins until you have instructed them that you have received the product or service and instructed ClearCoin as such.

If you are selling through ClearCoin, the funds are released to you only once the payee confirms that they have received the goods or service.

The system discourages cheating in that, if the buyer received the good or service but refuses to release the funds, the funds are then donated to charity. On the other hand if the seller does not send the goods to the buyer than the buyer’s funds are not forwarded to the seller but are instead donated to charity.

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