Middleman services

If you ended up on this thread you seem to be interested in learning about Bitcoin. Welcome!

Table of contents:
i - Advantages and disadvantages
ii - Getting started with Bitcoin and creating your wallet
iii - Buying Bitcoin
iv - Bitcoin safety
v - FAQ and general trading tips

For anyone not familiar with it yet, Bitcoin is the first decentralized digital currency. It has many advantages that make it an amazing payment method in regards to any kind of online trading.

I - Advantages and disadvantages

Advantages:
- Very minimal transaction fees
- Fast transaction speeds
- Anyone can use it, regardless of age/location
- No chargebacks possible (hi Paypal)
- No chance of a 3rd party freezing or limiting your balance (hi Paypal...)

However, there are some drawbacks as well:
- Purchasing Bitcoin for real money can still be difficult for some people.
- Bitcoin exchange rates are volatile, moving up or down every day by the hour

II - Alright, I'm in! How do I get started?

To start using Bitcoin, you must first create your own Bitcoin wallet. There are multiple options to doing so.

Downloadable wallet clients:
- Multibit-HD - Most simple Bitcoin client, lightweight, very newbie-friendly, highly recommended to anyone starting out.
- Electrum - Lightweight, rich in features, highly recommended for advanced users who want to make full use of the different features available.

Web-based wallet services:
-coinbase.com - THE BEST WALLET TO USE FOR BITCOIN! Allows you to exchange to usd through a bank instantly.
- blockchain.info - Most trusted web-based wallet service. However, keep in mind that it's not recommended to keep significant amounts with a 3rd party service hosting your wallet.

Creating your very own wallet address is typically fairly straightforward.

Creating a wallet using Multibit-HD
1.) Upon opening Multibit-HD, you'll be prompted to create a wallet.
2.) You will be given an unique wallet words phrase, which is a collection of 12 different words together. Write this down on paper and keep it in a secure location. This allows you to recover your Bitcoin wallet at any time.

This will be something like "neutral science office people train pink yellow light unique heart pilot apart". NEVER disclose this phrase to anyone else, keep it secure as it's the unique key to your wallet.

3.) You've now set up your Bitcoin wallet! To get started with accepting payments, upon clicking Request payment, and you'll be generated an unique Bitcoin wallet address that you can then use to receive payments.

III - Buying Bitcoin

The difficulty in buying Bitcoin can greatly vary depending on what payment methods you have available. Typically, the ideally preferred payment methods are irreversible ones, and sellers rarely accept reversible payment methods such as Paypal.

Real money Bitcoin exchanges

Coinbase - Verified accounts have access to buy Bitcoin instantly, second biggest exchange site, my recommended exchange for US users
Bitstamp - Largest exchange site, accepts bank transfers
Kraken - Largest EU based exchange, accepts SEPA payments, doesn't require ID verification, and very low fees, my recommended exchange for EU users
Localbitcoins - Marketplace for trading Bitcoins for cash locally in your area, tons of different payment methods available, builtin escrow system. Only drawback is that sellers usually charge higher prices as a premium.

Exchanging other cryptocurrencies such as Litecoin, Dogecoin, etc. into Bitcoin:
shapeshift.io - Allows instant exchange between 30 different cryptocurrencies, charges small fee (1%-2%), highly recommended for convenience
Other altcoin exchanges include: Bter, Cryptsy, Vircurex, Bittrex

Exchanging Paypal into Bitcoin
As mentioned previously, merchants rarely accept Paypal for Bitcoin. However, there are a few sites that have decided to take on the risk and offer Bitcoin at a markup.
Virwox - Wonky site, complicated process. Google a "Virwox guide" before using it. 15-20% fees. Trusted, but has many drawbacks. Calculate ALL fees before putting your money in. (USD-SLL, SLL-BTC, BTC withdrawal fee)
Wesellcrypto - Great site. 15% fees. Requires ID verification. Highly trusted and my recommendation.
Localbitcoins - Tons of sellers there. Average fee 15%-20%, sometimes more/less. Often ID verification required.

IV - Bitcoin safety
As Bitcoin can be transferred to another address irreversibly and anonymously, users with a lot of Bitcoin become prime tackets for hackers and thieves. In this section I will be detailing out different risk factors and what steps to take to keep your Bitcoin as safe as possible.

#1 - Encrypt your BTC wallet with a password
This goes without saying, keeping a non-encrypted wallet isn't a good idea to do. Make sure that your wallet is protected by an unique password. This way, no one will able to spend your Bitcoin without knowing the password.

#2 - Backup your BTC wallet
Keeping a backup of your wallet is important. There are plenty of situations where a backup could come handy, like when your hard drive dies, or your computer/phone with the wallet on it gets stolen.
It's always encouraged to keep a backup in different devices from your main one. (USB, CD, second computer, paper backup)

#3 - Move larger funds to cold storage
If you're planning to hold large amount of Bitcoins, then it's encouraged to keep a large portion of them in cold wallet storage - a seperate wallet that is on a secure device. You can find more info about cold storage here:
https://en.bitcoin.it/wiki/Cold_storage

Also, if storing amounts higher than 100btc, some people encourage to purchase a Trezor hardware wallet ($99), which is also a good way to provide cold storage for your Bitcoins.

#4 - Keep your Bitcoin wallet updated
Although often outdated wallet client versions will still continue providing the same functionality, it's highly encouraged to fully update any Bitcoin wallet clients that you run.

Logically speaking, there always is a reason why an update for the software is made. The reason may sometimes be a security update too, so you definitely want to be running the most updated version.

#5 - Keep your computer safe
As chances are, most of you are Steam item traders here, you already know the risk of malware infecting your computer and stealing your Steam skins. The same risk is present with your Bitcoin wallet.

- Always run updated antivirus. However, keep in mind that antivirus does not help against all malware, as it may take 48 hours or more for each new malware strain to get detected and added to their databases.
- Periodically scan your computer with an anti-malware tool such as Malwarebytes Antimalware.
- Never download a "new voice chat program" or "Teamspeak plugin". If in doubt, Google it first.
- If someone is trying to convince you into downloading a program, be extremely wary. Remember, better safe than sorry.
- If your computer gets infected, do not keep using same Bitcoin wallet. There is a chance a copy of it has been made. Once your computer is secure, make a new wallet and transfer your previous BTC funds to it.


#6 - Be cautious of which sites you trust with your Bitcoin
There are many large sites which accept, handle or exchange Bitcoin. It's not encouraged to keep significant amounts of Bitcoin anywhere else but your own local wallet. 3rd party Bitcoin sites that store significant amounts of Bitcoins have been prime targets for hackers.

Sites as large as Mt. Gox, Bitstamp, Vircurex, Bter, Dispenser.tf and many more have been victims of large scale Bitcoin thefts.

V - FAQ:

Q: How many confirmations should I wait for?
A: 1 confirmation is typically sufficient. This means that a Bitcoin miner has accepted the transaction and confirmed it as being valid. If the Bitcoin transaction is sent with standard fees of 0.0001btc, then each confirmation typically takes 5-10min on average.

Q: I got scammed, what do I do?
A: Report the other user on Steamrep as soon as possible, with screenshots of the entire chatlog and a link to the Bitcoin transaction on the blockchain.info website so the moderators would be able to verify it asap and prevent the scammer from stealing from anyone else.

If the other party has a CSGO Cash rep thread, post your proof in their thread so anyone trading with them would notice it, then contact the group moderators after.