Bitcoin for Beginners: The Quickest Way to Learn About Bitcoin
"FOMO” – Fear of Missing Out
Ever felt like the only one at the party who doesn’t get the joke?
That’s what being out of the Bitcoin loop feels like these days.
Whether it’s your mates bragging about “wallets” and “mining” or the news throwing around terms like “blockchain,” or “Bitcoin hit $100,000” it’s easy to feel left behind.
But don’t worry—this article is your fast pass to understanding Bitcoin without the tech-speak or headaches.
Perfect for beginners, it’s safe, simple, and dare I say... fun? Let’s turn that FOMO into OMG-I-finally-get-it.
Meet Lisa, the Skeptical but Curious Beginner
Lisa was, by her own admission, a late bloomer when it came to technology.
She still asked her nephew to reset her Wi-Fi router and occasionally wondered if her toaster was "smart" enough to spy on her.
So when a coworker casually mentioned they were saving money using Bitcoin, Lisa was intrigued but skeptical.
“Isn’t Bitcoin just for tech wizards and risk-takers?” she asked.
Her coworker laughed. “Nope. It’s for anyone willing to learn. You could start today if you wanted to.”
That evening, armed with curiosity and a cup of chamomile tea, Lisa decided to explore the world of Bitcoin.
What she discovered surprised her—and it just might surprise you too.
What is Bitcoin and Why Does It Matter?
Lisa started with the basics.
She learned that Bitcoin was created in 2009 by an anonymous person (or group) named Satoshi Nakamoto.
It’s a digital currency that operates without banks or middlemen, relying instead on something called the blockchain.
“But why does it matter?” Lisa thought.
Then she stumbled upon a lightbulb moment:
Bitcoin isn’t just money—it’s freedom.
It allows people to send and receive funds anywhere in the world without worrying about high fees, delays, or government restrictions.
For people in countries with unstable currencies, Bitcoin can be a lifeline, as countries could have capital controls (making it difficult to move money from the country to another).
Understanding the Key Concepts: Blockchain, Wallets, and Transactions
The deeper Lisa dove, the more she realised Bitcoin wasn’t as complicated as it first seemed. Here’s how she broke it down:
1. Blockchain: The Big Ledger
Lisa pictured the blockchain as a giant digital notebook where every Bitcoin transaction is recorded.
'Think of the blockchain as this big, live spreadsheet that is always showing transactions online'
It’s secure, transparent, and tamper-proof.
Each page in this notebook is a "block," and they’re all connected in a chain. Hence, blockchain!
2. Wallets: Your Digital Piggy Bank
Next, she learned about wallets, which are like digital piggy banks.
A Bitcoin wallet doesn’t store actual coins; instead, it keeps your private keys—special codes that let you access your Bitcoin.
· Hot wallets (online and easy to use, great for beginners).
· Cold wallets (offline and secure, ideal for long-term storage).
Lisa decided to start with a beginner-friendly mobile/internet browers based wallet but made a mental note to invest in a hardware wallet for extra security later.
3. Transactions: Sending and Receiving Bitcoin
Sending Bitcoin, Lisa learned, was as easy as sending an email.
All you need is the recipient’s Bitcoin address.
There are no middlemen, no delays, and minimal fees.
Lisa was thrilled—no more waiting three days for her bank to process payments!
Lisa's First Real Bitcoin Experience
Feeling emboldened, Lisa decided to try her first Bitcoin transaction.
She bought $50 worth of Bitcoin using a popular exchange (think Binance or Coinbase, I use Coinspot Fyi). Within minutes, she had her own tiny slice of cryptocurrency.
She sent $10 worth to her nephew as a test. “What’s this for?” he texted.
“Just proving to myself I’m cooler than you think,” Lisa replied.
It worked seamlessly, and Lisa couldn’t help but feel like a financial pioneer.
Example 1: Sending Money Overseas
Lisa remembered her friend Priya, who often sent money to her family in India.
Every time, Priya lost chunks of money to transfer fees.
Lisa excitedly explained how Priya could use Bitcoin to send funds directly, cutting out the middlemen and saving money.
“Wait, so the money gets there faster and cheaper?” Priya asked.
“Exactly!” Lisa said, beaming.
Priya wasn’t convinced just yet, but Lisa knew she was planting seeds of curiosity.
Example 2: Investing for the Future
Lisa had always thought investing was for Wall Street types in fancy suits.
But with Bitcoin, she realized anyone could participate.
She invested $200 and watched the value fluctuate.
Sure, the ups and downs were nerve-wracking at first, but Lisa adopted a long-term perspective.
She learned the golden rule: only invest what you’re willing to lose.
Over time, her modest investment grew, and she felt like a savvy investor for the first time in her life.
Example 3: Supporting Small Businesses
One weekend, Lisa visited a local coffee shop and noticed a sign that read, “We Accept Bitcoin.”
Intrigued, she struck up a conversation with the owner, Sarah.
Sarah explained that accepting Bitcoin helped her save on credit card processing fees, which could be as high as 3%.
“Every little bit helps when you’re running a small business,” Sarah said.
Lisa bought her latte with Bitcoin, feeling both futuristic and supportive of Sarah’s business.
How Bitcoin Affects Everyday People
Lisa realized that Bitcoin isn’t just for tech enthusiasts or investors.
It’s for anyone who wants more control over their money.
Whether it’s sending money overseas, avoiding hefty bank fees, or supporting local businesses, Bitcoin can empower everyday people in tangible ways.
Actionable Steps for Beginners
Lisa’s journey taught her a lot, and she wanted to share her tips for anyone starting out:
- Do Your Homework, how does bitcoin work: Understand the basics of Bitcoin and blockchain.
- Best Bitcoin Wallets for Beginners: Start with a beginner-friendly option like a mobile wallet.
- Bitcoin Investment Tips for Beginners: Consider the benefits and risks of Bitcoin investment, tips for cautious investing
- Buy a Small Amount of Bitcoin safely: Use a trusted exchange to purchase your first Bitcoin.
- How to Store Bitcoin Safely: Storage methods, private key safety, and best practices
- Common Bitcoin Myths Debunked: Addressing misconceptions about Bitcoin
- Bitcoin vs. Traditional Currency: Comparing Bitcoin with traditional money, covering pros and cons
- Understanding Bitcoin Price Fluctuations: Factors influencing Bitcoin price, market volatility, and tips to navigate it.
- Bitcoin Mining for Beginners: Overview of mining, equipment needed, and profitability for novices.
The Funny Twist
One day, Lisa tried explaining Bitcoin to her dad. “It’s like digital gold, but you don’t need a pickaxe.”
“So, it’s fake money?” he asked, squinting.
Lisa sighed but couldn’t help laughing. “No, Dad, it’s real money, just... smarter.”
Despite the initial confusion, Lisa helped her dad set up his first wallet.
By the end of the day, he was calling her “Crypto Queen.”
Final Thoughts
Lisa’s journey from skeptic to Bitcoin enthusiast is proof that anyone can learn the ropes.
Bitcoin for beginners doesn’t have to be intimidating.
With a little curiosity and the right resources, you can join the growing community of people using Bitcoin to save, invest, and simplify their financial lives.
So, what are you waiting for? Grab a cup of tea (or coffee, if you’re like Lisa) and start your own Bitcoin adventure today!
Here are some straightforward metrics that beginners can use to assess Bitcoin (see below). CoinMarketCap illustrates many of the below metrics on one page - https://coinmarketcap.com/currencies/bitcoin/
- Price: The current market value of Bitcoin, indicating how much one Bitcoin is worth in fiat currency (e.g., USD).
- Market Capitalization: Calculated by multiplying the current price by the total number of Bitcoins in circulation, this metric reflects the total market value of Bitcoin.
- Trading Volume: The total amount of Bitcoin traded within a specific period, showing the level of market activity and liquidity.
- Hashrate: Measures the total computational power used to mine and process transactions on the Bitcoin network. A higher hashrate suggests a more secure and robust network.
- Mining Difficulty: Indicates how challenging it is to mine a new block. The network adjusts this periodically to ensure blocks are added at a consistent rate.
- Transaction Volume: The total number of transactions processed over a certain period, reflecting the network's usage and adoption.
- Number of Active Addresses: Represents the count of unique addresses participating in transactions, serving as a proxy for user activity.
- Fees per Transaction: The average fee users pay to have their transactions processed, which can indicate network congestion and demand.
- Mempool Size: The aggregate size of unconfirmed transactions waiting to be added to the blockchain. A larger mempool can signal higher network congestion.
- Supply Metrics: Includes the total supply of Bitcoin, the number of Bitcoins mined, and the remaining supply to be mined, highlighting Bitcoin's scarcity.
For beginners, focusing on these metrics can provide a foundational understanding of Bitcoin's market dynamics and network health.
Welcome to your Bitcoin for Beginners: The Quickest Way to Learn About Bitcoin series
Cheers, Stevo – Armchair Banker MAppFin, AdvDipFP, ADA
‘Meet Stevo, the financial wizard behind Armchair Banker. With 15 years of experience in investment banking, corporate finance, and markets, Stevo’s résumé is so impressive it could intimidate a spreadsheet.’
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Meta Description: Meet Lisa, a curious newcomer diving into Bitcoin for beginners. This fun and practical guide explains blockchain, wallets, and transactions, with real-life examples of how Bitcoin impacts everyday life. Get started today!
DISCLAIMER: The information in this article does not constitute personal financial advice. Consult your adviser or stockbroker prior to making any investment decision.
MORE DISCLAIMERS: Stevo is not a Financial Adviser, however, works as an Investment Banker assisting ASX listed companies with retail capital raises. All opinions expressed and written by Stevo, including all other ‘Armchair Banker’ contributors is for informational and entertainment purposes only and should not be treated as investment or financial advice of any kind. Any information provided from our articles, blogs and written opinions is general in nature and does not take into account your specific circumstances. Armchair Banker and its contributors are not liable to the reader or any other party, for the reader’s use of, or reliance on, any information received, directly or indirectly, from any content by Armchair Banker in any circumstances.
The reader should always (we’re serious about this):
1. Conduct their own research
2. Never invest more than they are willing to lose
3. Obtain independent legal, financial, taxation and/or other professional advice in respect of any decision made in connection with this video.
Full Disclosure: Stevo holds Bitcoin at the time of publishing.
