Getting started with Bitcoin - oneplusmotors.com

PSA: Clearing up some misconceptions about full nodes

It's time to clear up some misconceptions floating around about full nodes.
Myth: There are only about 5500 full nodes worldwide
This number comes from this site and it measured by trying to probe every nodes on their open ports.
Problem is, not all nodes actually have open ports that can be probed. Either because they are behind firewalls or because their users have configured them to not listen for connections.
Nobody knows how many full nodes there are, since many people don't know how to forward ports behind a firewall, and bandwidth can be costly, its quite likely that the number of nodes with closed ports is at least another several thousand.
Nodes with open ports are able to upload blocks to new full nodes. In all other ways they are the same as nodes with closed ports. But because open-port-nodes can be measured and closed-port-nodes cannot, some members of the bitcoin community have been mistaken into believing that open-port-nodes are that matters.
Myth: This number of nodes matters and/or is too low.
Nodes with open ports are useful to the bitcoin network because they help bootstrap new nodes by uploading historical blocks, they are a measure of bandwidth capacity. Right now there is no shortage of bandwidth capacity, and if there was it could be easily added by renting cloud servers.
The problem is not bandwidth or connections, but trust, security and privacy. Let me explain.
Full nodes are able to check that all of bitcoin's rules are being followed. Rules like following the inflation schedule, no double spending, no spending of coins that don't belong to the holder of the private key and all the other rules required to make bitcoin work (e.g. difficulty)
Full nodes are what make bitcoin trustless. No longer do you have to trust a financial institution like a bank or paypal, you can simply run software on your own computer. To put simply, the only node that matters is the one you use
Myth: There is no incentive to run nodes, the network relies on altruism
It is very much in the individual bitcoin's users rational self interest to run a full node and use it as their wallet.
Using a full node as your wallet is the only way to know for sure that none of bitcoin's rules have been broken. Rules like no coins were spent not belonging to the owner, that no coins were spent twice, that no inflation happens outside of the schedule and that all the rules needed to make the system work are followed (e.g. difficulty.) All other kinds of wallet involve trusting a third party server.
All these checks done by full nodes also increase the security. There are many attacks possible against lightweight wallets that do not affect full node wallets.
This is not just mindless paranoia, there have been real world examples where full node users were unaffected by turmoil in the rest of the bitcoin ecosystem. The 4th July 2015 accidental chain fork effected many kinds of wallets. Here is the wiki page on this event https://en.bitcoin.it/wiki/July_2015_chain_forks#Wallet_Advice
Notice how updated node software was completely unaffected by the fork. All other wallets required either extra confirmations or checking that the third-party institution was running the correct version.
Full nodes wallets are also currently the most private way to use Bitcoin, with nobody else learning which bitcoin addresses belong to you. All other lightweight wallets leak information about which addresses are yours because they must query third-party servers. The Electrum servers will know which addresses belong to you and can link them together. Despite bloom filtering, lightweight wallets based on BitcoinJ do not provide much privacy against nodes who connected directly to the wallet or wiretappers.
For many use cases, such privacy may not be required. But an important reason to run a full node and use it as a wallet is to get the full privacy benefits.
Myth: I can just set up a node on a cloud server instance and leave it
To get the benefits of running a full node, you must use it as your wallet, preferably on hardware you control.
Most people who do this do not use a full node as their wallet. Unfortunately because Bitcoin has a similar name to Bittorrent, some people believe that upload capacity is the most important thing for a healthy network. As I've explained above: bandwidth and connections are not a problem today, trust, security and privacy are.
Myth: Running a full node is not recommended, most people should use a lightweight client
This was common advice in 2012, but since then the full node software has vastly improved in terms of user experience.
If you cannot spare the disk space to store the blockchain, you can enable pruning. In Bitcoin Core 0.12, pruning being enabled will leave the wallet enabled. Altogether this should require less than 900MB of hard disk space.
If you cannot spare the bandwidth to upload blocks to other nodes, there are number of options to reduce or eliminate the bandwidth requirement. These include limiting connections, bandwidth targetting and disabling listening. Bitcoin Core 0.12 has the new option -blocksonly, where the node will not download unconfirmed transaction and only download new blocks. This more than halves the bandwidth usage at the expense of not seeing unconfirmed transactions.
Synchronizing the blockchain for a new node has improved since 2012 too. Features like headers-first and libsecp256k1 have greatly improved the initial synchronization time.
It can be further improved by setting -dbcache=3000 which keeps more of the UTXO set in memory. It reduces the amount of time reading from disk and therefore speeds up synchronization. Tests showed that the entire blockchain can now be synchronized in less than 3 and a half hours (Note that you'll need Bitcoin Core 0.12 or later to get all these efficiency improvements) Another example with 2h 25m
How to run a full node as your wallet.
I think every moderate user of bitcoin would benefit by running a full node and using it as their wallet. There are several ways to do this.
So what are you waiting for? The benefits are many, the downsides are not that bad. The more people do this, the more robust and healthy the bitcoin ecosystem is.
Further reading: http://www.truthcoin.info/blog/measuring-decentralization/
submitted by belcher_ to Bitcoin [link] [comments]

Secure paper wallet tutorial

This is my handout for paranoid people who want a way to store bitcoin safely. It requires a little work, but this is the method I use because it should be resistant to risks associated with:
  1. Bad random number generators
  2. Malicious or flawed software
  3. Hacked computers
If you want a method that is less secure but easier, skip to the bottom of this post.
The Secure Method
  1. Download bitaddress.org. (Try going to the website and pressing "ctrl+s")
  2. Put the bitaddress.org file on a computer with an operating system that has not interacted with the internet much or at all. The computer should not be hooked up to the internet when you do this. You could put the bitaddress file on a USB stick, and then turn off your computer, unplug the internet, and boot it up using a boot-from-CD copy of linux (Ubuntu or Mint for example). This prevents any mal-ware you may have accumulated from running and capturing your keystrokes. I use an old android smart phone that I have done a factory reset on. It has no sim-card and does not have the password to my home wifi. Also the phone wifi is turned off. If you are using a fresh operating system, and do not have a connection to the internet, then your private key will probably not escape the computer.
  3. Roll a die 62 times and write down the sequence of numbers. This gives you 2160 possible outcomes, which is the maximum that Bitcoin supports.
  4. Run bitaddress.org from your offline computer. Input the sequence of numbers from the die rolls into the "Brain Wallet" tab. By providing your own source of randomness, you do not have to worry that the random number generator used by your computer is too weak. I'm looking at you, NSA ಠ_ಠ
  5. Brain Wallet tab creates a private key and address.
  6. Write down the address and private key by hand or print them on a dumb printer. (Dumb printer means not the one at your office with the hard drive. Maybe not the 4 in 1 printer that scans and faxes and makes waffles.) If you hand copy them you may want to hand copy more than one format. (WIF and HEX). If you are crazy and are storing your life savings in Bitcoin, and you hand copy the private key, do a double-check by typing the private key back into the tool on the "Wallet Details" tab and confirm that it recreates the same public address.
  7. Load your paper wallet by sending your bitcoin to the public address. You can do this as many times as you like.
  8. You can view the current balance of your paper wallet by typing the public address into the search box at blockchain.info
  9. If you are using an old cell phone or tablet do a factory reset when you are finished so that the memory of the private keys is destroyed. If you are using a computer with a boot-from-CD copy of linux, I think you can just power down the computer and the private keys will be gone. (Maybe someone can confirm for me that the private keys would not be able to be cached by bitaddress?)
  10. To spend your paper wallet, you will need to either create an offline transaction, or import the private key into a hot wallet. Creating an offline transaction is dangerous if you don't know what you are doing. Importing to a client side wallet like Bitcoin-Qt, Electrum, MultiBit or Armory is a good idea. You can also import to an online wallet such as Blockchain.info or Coinbase.
Trusting bitaddress.org
The only thing you need bitaddress.org to do is to honestly convert the brainwallet passphrase into the corresponding private key and address. You can verify that it is doing this honestly by running several test passphrases through the copy of bitaddress that you plan on using, and several other brainwallet generators. For example, you could use the online version of bitaddress, and brainwallet and safepaperwallet and bitcoinpaperwallet. If you are fancy with the linux command line, you can also try "echo -n my_die_rolls | sha256sum". The linux operating system should reply with the same private key that bitaddress makes. This protects you from a malicious paper wallet generator.
Trusting your copy of bitaddress.org
Bitaddress publishes the sha1 hash of the bitaddress.org website at this location:
https://www.bitaddress.org/pgpsignedmsg.txt
The message is signed by the creator, pointbiz. I found his PGP fingerprint here:
https://github.com/pointbiz/bitaddress.org/issues/18
"527B 5C82 B1F6 B2DB 72A0 ECBF 8749 7B91 6397 4F5A"
With this fingerprint, you can authenticate the signed message, which gives you the hash of the current bitaddress.org file. Then you can hash your copy of the file and authenticate the file.
I do not have a way to authenticate the fingerprint itself, sorry. According to the website I linked to, git has cryptographic traceability that would enable a person to do some research and authenticate the fingerprint. If you want to go that far, knock yourself out. I think that the techniques described in this document do not really rely on bitaddress being un-corrupt. Anyway, how do we know pointbiz is a good guy? ;-)
There are a lot of skilled eyes watching bitaddress.org and the signed sha1 hash. To gain the most benefit from all of those eyes, it's probably worthwhile to check your copy by hashing it and comparing to the published hash.
"But we aren't supposed to use brainwallets"
You are not supposed to use brainwallets that have predictable passphrases. People think they are pretty clever about how they pick their passphrases, but a lot of bitcoins have been stolen because people tend to come up with similar ideas. If you let dice generate the passphrase, then it is totally random, and you just need to make sure to roll enough times.
How to avoid spending your life rolling dice
When I first started doing this, I rolled a die 62 times for each private key. This is not necessary. You can simply roll the die 62 times and keep the sequence of 62 numbers as a "seed". The first paper address you create would use "my die rolls-1" as the passphrase, the second would be "my die rolls-2" and so on. This is safe because SHA256 prevents any computable relationship between the resulting private key family.
Of course this has a certain bad security scenario -- if anyone obtains the seed they can reconstruct all of your paper wallets. So this is not for everyone! On the other hand, it also means that if you happen to lose one of your paper wallets, you could reconstruct it so long as you still had the seed.
One way to reduce this risk is to add an easy to remember password like this: "my die rolls-password-1".
If you prefer, you can use a technique called diceware to convert your die rolls to words that still contain the same quantity of entropy, but which could be easier to work with. I don't use diceware because it's another piece of software that I have to trust, and I'm just copy/pasting my high entropy seed, so I don't care about how ugly it is.
Why not input the dice as a Base 6 private key on the Wallet Details tab?
Two reasons. First of all, this option requires that you roll the die 99 times, but you do not get meaningful additional protection by rolling more than 62 times. Why roll more times if you don't have to? Second, I use the "high entropy seed" method to generate multiple private keys from the same die rolls. Using the Base 6 option would require rolling 99 times for every private key.
I'm a big nerd with exotic dice. How many times to roll?
Put this formula in Excel to get the number of times to roll: "=160*LOG(2,f)" where f = number of faces on the die. For example, you would roll a d16 40 times. By the way, somewhat unbelievably casino dice are more fair than ordinary dice
The "Change address" problem:
You should understand change addresses because some people have accidentally lost money by not understanding it.
Imagine your paper wallet is a 10 dollar bill. You use it to buy a candy bar. To do this you give the cashier the entire 10 dollar bill. They keep 1 dollar and give you 9 dollars back as change.
With Bitcoin, you have to explicitly say that you want 9 dollars back, and you have to provide an address where it should go to. If you just hand over the 10 dollar bill, and don't say you want 9 dollars back, then the miner who processes the transaction gives 1 dollar to the store and keeps the remainder themselves.
Wallet software like Bitcoin-Qt handles this automatically for you. They automatically make "change addresses" and they automatically construct transactions that make the change go to the change address.
There are three ways I know of that the change problem can bite you:
  1. You generate a raw transaction by hand, and screw up. If you are generating a transaction "by hand" with a raw transaction editor, you need to be extra careful that your outputs add up to the same number as your inputs. Otherwise, the very lucky miner who puts your transaction in a block will keep the difference.
  2. You import a paper wallet into a wallet software and spend part of it, and then think that the change is in the paper wallet. The change is not in the paper wallet. It is in a change address that the wallet software generated. That means that if you lose your wallet.dat file you will lose all the change. The paper wallet is empty.
  3. You import a paper wallet into a wallet software and spend part of it, and then think that the change is in the change address that the wallet software generated. If the transaction did not need to consume all of the "outputs" used to fund the paper wallet, then there could be some unspent outputs still located at the address of the paper wallet. If you destroyed the paper wallet, and destroyed the copy of the private key imported to the wallet software, then you could not access this money. (E.g. if you restored the software wallet from its seed, thinking all of the money was moved to the wallet-generated change addresses.)
For more on this, see here
The hot paper wallet problem
Your bitcoin in your paper wallet are secure, so long as the piece of paper is secure, until you go to spend it. When you spend it, you put the private key onto a computer that is connected to the internet. At this point you must regard your paper wallet address as hot because the computer you used may have been compromised. It now provides much less protection against theft of your coins. If you need the level of protection that a cold paper wallet provides, you need to create a new one and send your coins to it.
Destroying your paper wallet address
Do not destroy the only copy of a private key without verifying that there is no money at that address. Your client may have sent change to your paper wallet address without you realizing it. Your client may have not consumed all of the unspent outputs available at the paper wallet address. You can go to blockchain.info and type the public address into the search window to see the current balance. I don't bother destroying my used/empty paper wallet addresses. I just file them away.
Encrypting your private key
BIP 0038 describes a standardized way to encrypt your paper wallet private key. A normal paper wallet is vulnerable because if anyone sees the private key they can take the coins. The BIP38 protocol is even resistant to brute force attacks because it uses a memory intensive encryption algorithm called scrypt. If you want to encrypt your wallets using BIP38, I recommend that you use bitcoinpaperwallet because they will let you type in your own private key and will encrypt it for you. As with bitaddress, for high security you should only use a local copy of this website on a computer that will never get connected to the internet.
Splitting your private key
Another option for protecting the private key is to convert it into multiple fragments that must be brought together. This method allows you to store pieces of your key with separate people in separate locations. It can be set up so that you can reconstitute the private key when you have any 2 out of the 3 fragments. This technique is called Shamir's Secret Sharing. I have not tried this technique, but you may find it valuable. You could try using this website http://passguardian.com/ which will help you split up a key. As before, you should do this on an offline computer. Keep in mind if you use this service that you are trusting it to work properly. It would be good to find other independently created tools that could be used to validate the operation of passguardian. Personally, I would be nervous destroying the only copy of a private key and relying entirely on the fragments generated by the website.
Looks like Bitaddress has an implementation of Shamir's Secret Sharing now under the "Split Wallet" tab. However it would appear that you cannot provide your own key for this, so you would have to trust bitaddress.
Durable Media
Pay attention to the media you use to record your paper wallet. Some kinds of ink fade, some kinds of paper disintegrate. Moisture and heat are your enemies.
In addition to keeping copies of my paper wallet addresses I did the following:
  1. Order a set of numeric metal stamps. ($10)
  2. Buy a square galvanized steel outlet cover from the hardware store ($1)
  3. Buy a sledgehammer from the hardware store
  4. Write the die rolls on the steel plate using a sharpie
  5. Use the hammer to stamp the metal. Do all the 1's, then all the 2's etc. Please use eye protection, as metal stamp may emit sparks or fly unexpectedly across the garage. :-)
  6. Use nail polish remover to erase the sharpie
Electrum
If you trust electrum you might try running it on an offline computer, and having it generate a series of private keys from a seed. I don't have experience with this software, but it sounds like there are some slick possibilities there that could save you time if you are working with a lot of addresses.
Message to the downvoters
I would appreciate it if you would comment, so that I can learn from your opinion. Thanks!
The Easy Method
This method is probably suitable for small quantities of bitcoin. I would not trust it for life-altering sums of money.
  1. Download the bitaddress.org website to your hard drive.
  2. Close your browser
  3. Disconnect from the internet
  4. Open the bitaddress.org website from your hard drive.
  5. Print a paper wallet on your printer
  6. Close your browser
submitted by moral_agent to BitcoinWallet [link] [comments]

How trustworthy are the authors of Electrum and MultiBit ? Why are their signing keys not verified?

Hello,
I was a bit alarmed by these two posts some weeks ago:
http://www.reddit.com/Bitcoin/comments/210fgj/there_is_an_pgp_imposter_of_bitcoin_dev_gavin/
http://www.reddit.com/Bitcoin/comments/1tin7f/warning_a_fake_electrum_website_with_malware_is/
In the first case, basically somebody registered a PGP key which at first glance looked like the signing key from Gavin Andresen. Such a key could be used to sign malware which appears as the true bitcoin client. This would only be detected if people check carefully. If people do NOT check it - maybe rushing in a situation where the network needs a quick fix - the consequences could be truly disastrous.
In the second case, the Electrum website was actually faked to distribute malware which was camouflaged as the Electrum client. If people install such a client, it could send their bitcoins anywhere - this kind of attack can really cause a lot of grief, too.
Note that in some simple setups, it might be possible to recognize the faked web site by its address, but in other cases, this will not be possible - think of insidious attacks on home routers or exploits of the recent Apple "goto" bug, which essentially disables SSL protection.
In these cases, and whenever youinstall bitcoin software, it is always important to check for digital signatures of the maintainers, which can warrant the authenticity of the code. And, doing this properly includes verification of their keys.
To make it short, I was newly installing Electrum and I decided to do it right and to look after the digital signatures and whether the signatures properly certified in a web of trust. Now, trust paths can be looked up by databases like these:
http://pgp.cs.uu.nl/
It works so that in the "from" field, you enter YOUR key ID (which needs to be connected to the web of trust graph). In the "to" field, you enter the key ID of the signing key for the software. Now, you should be able to find at least one trust path from you to the signing key for the software. For example, if Mark Shuttleworth wants to verify the key of Gavin Andresen, he enters his key ID: D54F0847 into the "from" field, and Gavin's key - 1FC730C1 - into the "to" field. This will look as here:
http://pgp.cs.uu.nl/mk_path.cgi?FROM=D54F0847&TO=1FC730C1&PATHS=trust+paths
The trouble is, if Mark looks up the key for ThomasV, this looks so:
http://pgp.cs.uu.nl/mk_path.cgi?FROM=D54F0847&TO=7F9470E6&PATHS=trust+paths
that is currently, no trust paths to ThomasV's key are found. The same is true for Jim Burton, maintainer of Multibit.
In other words, ThomasV's key cannot be verified, if somebody does not has other means. Well, somebody could look into the bitcoin forum - but first, the forum can be and has been hacked. And second, a forum identity does not mean much. Pirateat40 had an account, too, as well as the owner of bitcoinica.
I do not suspect the developers of working in an evil plot, but honestly, I'd really like to know a bit more.
Now, I have a few questions:
Thanks!
Edit: A few developers have posted here... can other people confirm what they say? Can it be proven? Anyone was at that conference?
Edit: As an important clarification: The fact that a key can be found on a keyserver, is signed by some entity, or is contained in the "strong set" of the PGP web of trust or in any web of trust does not necessarily imply that the key is linked to an authentic identity, end even less that the owner is a good guy. It only provides a mean to check this identity and to support the assumption that the identity is correct, independent from hacking attempts.
And as a reply to some badly downvoted comment: Yes, knowing or probably knowing the identity of the auhtor of some code is by no means a substitute for skilled people carefully checking the code and any change in it.
submitted by DrunkRaven to Bitcoin [link] [comments]

How to Trade Bitcoin Part 1: Getting Ready to Trade

The first part of our bitcoin trading guide series explains the basics of bitcoin and trading terminology. Instructions are also provided for buying bitcoin and getting ready to trade on BTC.sx. We originally produced the first part of this guide for our own traders to get started with our platform. However, after some really good feedback we thought we should share it publicly too. So please bear with us if it is quite orientated to our own platform. Future parts will be much more applicable to trading in general.
Here is what we have planned for the series:
1) Getting ready to trade (this post)
2) Making your first trade
3) Basics of technical analysis
4) Advanced TA
5) Developing a sustainable strategy
Please let us know if there are any topics you would like specifically covered and whether or not articles are the best format for learning.
Why should you listen to what we have to say?
Our CEO turned $100 into $200k by trading bitcoin, our COO previosuly worked at senior management level at Deutsche Bank and UBS, and one of our advisers has a Wall Street background as a Portfolio Manager and is a Chartered Market Technician.
http://i.imgur.com/G06P306.png
This article begins with an overview of bitcoin, how to buy bitcoin and how to manage risk. The remainder of the article focuses on understanding trading terminology and creating a bitcoin trading account on BTC.sx.
What is bitcoin?
Bitcoin is a digital currency that uses encryption, rules of mathematics and a decentralized network to control the creation of more bitcoins and verify transactions. Bitcoin was designed to operate as ‘digital gold’ — it resembles a commodity but can be used as a currency. Bitcoin can be traded for fiat currency, like dollars or pounds, creating opportunities to profit from trading price fluctuations.
http://i.imgur.com/hNnKxGE.png
Why is bitcoin so volatile?
Compared to the price of gold, the price of bitcoin has exhibited much larger price swings. Typically the price of gold will change by just a few percent each week, but bitcoin’s price often changes by 10% or more — even in a ‘flat’ market.
Volatility is generally considered a good thing by bitcoin traders because it creates opportunities to buy lower and sell higher than flat markets.
The primary reason why bitcoin is volatile is because it has a small market cap and low trading volume. Market cap is the number of units (bitcoin here) in circulation multiplied by the value (bitcoin price here).
For example, bitcoin has a market cap of about $3 billion vs $31 billion for the a gold ETF (GLD is the most popular American gold investment vehicle). Additionally, the daily average trading volume for bitcoin is about $12 million vs approximately $939 million for the gold ETF.
The result of this small market cap and low trading volume is that less trading less money is required to make a large difference in supply and demand.
For instance, if a trader wants to buy $3 million worth of bitcoin this represents 33% of the daily trading volume and would push the price up approximately 14%, at the time of writing. However, buying $3 million worth of the gold ETF is just 0.3% of the daily trading volume and is nothing compared to the hundreds of millions of trades that influence gold’s price.
http://i.imgur.com/NLtgVrX.png
Further information
The information we have provided about bitcoin is only the bare essentials a trader needs to know. If you are completely new to bitcoin, also consider exploring these external resources:
We Use Coins
Bitcoin.org
Bitcoin Wiki
2. How to Manage Risk
Risk of buying bitcoin
As discussed above, bitcoin is an extremely volatile asset. Besides increasing in value, bitcoin’s price can also dramatically fall. When buying bitcoin, never invest more than you can afford to lose.
You cannot lose more than you put in, so don’t put in more than you can afford to lose and you’ll be all right, even in the most negative case. - Rpietila, Bitcoin and commodity investor
Risk of trading bitcoin
Furthermore, investing more than one can afford to lose reduces a trader’s ability to make good decisions. In particular, there is a risk of ‘panic selling’ when the market declines slightly. Instead of holding throughout a market dip, someone who is over-invested may panic and sell-off their holdings for a low price — attempting to cut their losses. This tends to lead to losing more money when the market recovers and the trader buys back at a higher price.
http://i.imgur.com/yrQbCsI.png
Simply, the best way to manage your risk is to not invest more than you can afford to lose. At BTC.sx, losses cannot exceed your deposit — so simply make sure this is a comfortable amount for you to trade with.
3. Understand Basic Bitcoin Trading Terminology
Trading
Trading is the act of buying, selling or exchanging one asset for another. Exchanging Bitcoin for US dollars, for instance, is trading.
Position
A position is similar a trade, which can either be long (buying bitcoin) or short (selling bitcoin). Like a trade you profit from a long/buy position when the price rises; and you profit from a short/sell position when the price falls.
Unlike a trade, a position has an open and close. At BTC.sx you begin by depositing bitcoin. Then you may acquire more bitcoin or US dollars by opening a position. When the position is closed you are left with just more or less bitcoin than the value deposited — this depends on how profitable your position was.
Trading platform
A trading platform, like BTC.sx, is a place where traders go to enter positions. Unlike an exchange, it is uncommon for to use platforms for exchanging one asset for another. Typically trading platforms also include more advanced features, such as leverage.
Leverage
http://i.imgur.com/Aik56aI.jpg
Leverage is borrowing assets for the purposes of increasing potential trading returns. This is also known as margin trading.
Trading with 10x leverage on BTC.sx, allows you to deposit 1 bitcoin and trade with 10 bitcoins. When you are done trading (closing a position) you return the 10 bitcoin and keep any profits made.
For example, let’s say your trading has been going well and you are consistently making a 10% return each week. Trading with 1 bitcoin, your profit is 0.1 bitcoin. However, with 10 bitcoins your profit is 1 bitcoin — this is the power of leverage when used correctly.
Although leverage does also increase trading risk exposure, your losses can never exceed your deposit at BTC.sx. Furthermore, your risk of an exchange failure is reduced because you are trading with 9 bitcoins that belong to BTC.sx and only 1 bitcoin of your own.
Exchange
Unlike trading platforms, investors use exchanges to swap an asset for another. For example, Bitstamp allows investors to trade their local currency for Bitcoin, or vice versa. Exchanges are the main determinants of bitcoin’s price because they contain an order book.
At an exchange you can either be a market maker or a market taker.
Market maker
A market maker sets the price they wish to buy or sell at and waits for a market taker who agrees to that price.
Market taker
A market taker finds a market maker that is offering a desirable price and quantity then immediately trades with them.
Order book
An order book is a list investors wanting to buy and sell an asset at specified quantities and prices. These are the market makers. Below is an annotated explanation of a bitcoin exchange order book. Picture the order book as a very hectic auction and the concept should be easier to understand.
http://i.imgur.com/DuRYrnx.png
Sell orders: “Asks”
This part of the order book lists the prices and quantities investors wish to sell bitcoin at. Here the cheapest seller is offering 2.3467 bitcoin at a price of $244.58. As these investors are asking for a price to sell at, these are called asks.
Buy orders: “Bids”
This part of the order book lists the prices and quantities investors wish to buy bitcoin at. Here the most expensive buyer is willing to purchase 0.5 bitcoin at a price of $244.43. As these investors are bidding for a price to buy at, these are called bids.
Current bitcoin price
This is the last price at which bitcoin was exchanged for US dollars. Given that buyers will fulfill the cheapest ask, and sellers will fulfill the most expensive bid, the price will always fall between the the cheapest ask and most expensive bid.
In this example, the price is $244.39 — the same as the most expensive bid. This means that the last bitcoin trade was a market taker selling to a market maker. This is also a demonstration of a seller always wanting to sell to the highest bidder.
Order book depth
This depth graph visualizes the amount of asks and bids at various prices. The more bitcoins that are available at a price, the ‘deeper’ the graph is. Naturally, as sellers do not want to ask for cheap prices and buyers do not want to buy for expensive prices, the graph is normally shallow in the middle.
If the chart is one-sided, it suggests that the market may be feeling bullish or bearish. In the above example, a lot of investors want to sell at $245 which would make it difficult for the price to rise beyond that. Conversely, the shallow graph on the bid side shows not many people want to buy bitcoin at these prices. This is typical of a bearish market.
Order book execution
An important feature of BTC.sx is that the positions our users open/close make buys and sells on exchange order books. In practice, when our users click buy, US dollars is used to buy bitcoin from the order book bids. Conversely, when our users click sell, bitcoin is sold for US dollars from the order book asks.
http://i.imgur.com/1Dk8G0t.jpg
Why is this important?
Firstly, when you trade on BTC.sx you do so with leverage. This means you can have a larger impact in the market and move the price in your favour. In the above example using just 1.3 bitcoin at 10x leverage would create buy 13 bitcoin from the asks. This helps drives the price up because now the cheapest ask is $244.61. If the market sees this as a bullish sign then others may follow, sparking a price rally.
Secondly, order book execution means that BTC.sx does not trade against our users. Trading platforms that do not offer this execution are acting as market makers and stand to profit from their traders losing money. At BTC.sx we want our traders to be profitable so they can keep trading.
*4. How to Buy Bitcoin * As a bitcoin-only trading platform, BTC.sx only accepts bitcoin deposits. This allows you to begin trading in minutes and without verifying your identity.
If you do not yet own any bitcoin there are a number of places that bitcoin can be bought from, including:
Circle
Coinbase
LocalBitcoins
Click here to see other ways to buy bitcoin in each region of the world.
To store your bitcoin you will also need a wallet, such as MultiBit or Blockchain.info.
5. Create an Account on BTC.sx
Once you have bitcoin, you are ready to start trading. Head over to BTC.sx to begin the registration process.
1. Click ‘Sign Up’
http://i.imgur.com/Fikj8Nd.png
2. Enter your details and read and agree with the terms of service
http://i.imgur.com/AjnKzRY.png
3. Click on the email activation code
http://i.imgur.com/lz5yBqK.png
4. Login to your account
http://i.imgur.com/P6VJ0xm.png
5. Visit trade screen
http://i.imgur.com/WjGockR.png
6. Send a deposit to BTC.sx
You are now one step away from being ready to trade bitcoin. All that is required is to send a deposit by following these instructions:
1. Click on ‘Deposit’ in the trading screen
http://i.imgur.com/1TxpgUh.png
2. Send bitcoin to your wallet address
http://i.imgur.com/cTZim5t.png
If you do not know how to send bitcoin please contact your wallet provider for assistance.
Conclusion** ** You should now be in a position where you understand the basics of bitcoin, trading terminology and have an account on BTC.sx to begin trading.
In part 2 we will be covering fundamental analysis, the basics of technical analysis and how to make your first trade. Like us on Facebook or follow us on Twitter for future updates.
If you have not yet signed up for an account on BTC.sx click here. The registration process takes just two minutes and does not require any identity verification documents
submitted by BTC_sx to BitcoinMarkets [link] [comments]

Silkroad For Dummies Part One

*DISCLAIMER: Windows 7 is my operating system. Unexpected problems may occur if you use another OS, however it may also work perfectly. I simply do not know.
Before doing anything i would recommend making a folder to keep all of these downloaded programs in so you do not lose anything. I would also recommend either grabbing a pen and pencil to write all of your passwords down, OR creating a notepad file that you put all of your passwords in and then putting that notepad file safely on a flashdrive. If you choose to use a flashdrive be sure to only use that flashdrive for keeping your passwords safe and NOTHING else. For example i would NOT put work related or college related projects on this flash drive. I would use it solely for Silkroad or other darknet browsing.
Alright the first step i would say you need to take is downloading MultiBit. It is a bitcoin wallet that allows you to store your bitcoin. Multibit is NOT directly connected to your real identity. After you've downloaded this wallet you need to add a password to your wallet. Since multibit is NOT connected to your real identity i would recommend using a completely random password with more than 15 characters using caps and noncaps letters, numbers and symbols. I would then recommend writing that password down and keeping it somewhere safe. Do not lose this password.
The next step is to make an account on coinbase. Coin base is probably the safest way to obtain bitcoin. It takes a while but it is the easiest and most secure way to purchase bitcoin. You connect your bank account to this website and then buy bitcoin which will be transferred to your account within 4-7 days. Your coinbase account IS directly connected to your identity so i would recommend using your real email, and a NEW password. It is very important that this password is DIFFERENT from your multibit password because if it is the same password someone may be able to connect your bank account with the multibit wallet. You don't want that. After you've created an account on coinbase fill out as many verifications as possible. The more, the better.
*Also, it's worth noting that if you wish to make a purchase instantly, for a slightly higher price, you can. After you've reached "Level 1" on the coinbase verification page you can instantly buy up to 100$ worth of bitcoin each day with vista credit card. If you wish to buy over 100$ worth of bitcoin instantly you can, but you must fill out more of the coinbase verification page. To reach "Level 2" on coinbase and buy up to 1000$ worth of bitcoin instantly you must wait 30 days after your first purchase and verify your identity.
The next step is to download Block Chain. Block chain is an app on the chrome browser that allows you to make your newly purchased bitcoin completely anonymous. This website is NOT connected to your real identity. I would recommend creating another NEW password that is DIFFERENT from your other two.
The next step is to download Tor. Tor allows you to connect to clearnet websites such as silkroad. The silkroad web address is currently silkroad6ownowfk.onion. If this address changes it will be updated to the sidebar on the /silkroad subreddit. Open Tor and select the "S" loacted next to the address bar. Turn scripts off. This is important.
After downloading Tor you need to download PGP (also known as GPG4win). The default installation settings include GPA unchecked. Users need to ensure that GPA is checked and installed. You need to make a "New Key". To do this open the folder you downloaded PGP in, then click on the "GPA" application. It will open up a gui that will contain all of the keys you import from now on. You need to create a New key so click on the "Keys" listing at the top of the gui (next to the file and edit listings) and select "New key...". It will ask for your name. It is important that you make up a FAKE name that is NOT connected to your real identity. Click "Forward". It will now ask for your E-mail. It is important that your make up a FAKE email that is NOT connected to your real identity. Click "Forward" again. It will ask you to create a backup copy of your key. I highly recommend doing this. It will now ask you for a password. I would recommend creating another NEW and SECURE password that is DIFFERENT from your other three. After you have created a passphrase it will ask you to backup your key to somewhere. I recommend backing it up to your PGP folder and later putting it on a flashdrive that you keep safe with your other written down passwords. After you've chosen a folder to place your backup file in you need to go to that folder and open your "secret-key" file with notepad. To do this rightclick it and select "Open with..." then browse for notepad. After you've opened your "secret key" file you will see two keys. One will be a public key that you can give to anyone and the next will be a private key that you probably will never need; however you should NEVER disclose your private key to ANYONE.
The next step is using Tor to go to the silkroad website which is currently silkroad6ownowfk.onion . Once there create an account with a NEW username, password, and PIN that is NOT connected in anyway to your real identity. Once you've created an account on this website you need to make sure the silk road vendors know your public key. Copy and paste your PUBLIC key (located in your "secret key" file) to the "settings" section on Silk Road. This section is located under your silkroad username in the top right corner. Once there copy and paste your PUBLIC key here: "your public PGP key (will show error if invalid)". After you've pasted your PUBLIC key select "Update user". After you've done this you've done almost everything you need to do to make a purchase on the silk road.
Part 2 is located here
submitted by asdfasfssdf to SilkRoad [link] [comments]

1 Cuban will have to work 1 hour to do 7 transactions with Multibit

I think you have to rework your way to grab money for you, developers. 1000 Satoshi looks not so much. For a lot of peoples it's indeed, very soft.
But again, it's the poorest peoples who are gonna have to pay the more.
You told on http://www.coindesk.com/cash-strapped-multibit-developers-charge-transaction-fee/ :
“That’s such a speck of dust that the vast majority won’t even notice it.”
For you, yes. It's probably the same for most Redditors.
According to this list: http://en.wikipedia.org/wiki/List_of_minimum_wages_by_country
Average of Cubans win $0.05 per hour of work. If 1 BTC = $650, 1000 Sato = $0.0065, which is 13% of $0.05. 13% for 1 transaction. 13% of 1 hour of work is almost 8 minutes. The Cuban using Multibit will have to work 1 hour to do 7 transactions.
Of course, peoples from Cuba will not going on Multibit, we have some other nice Wallets running.
According to the UNECE's 2011 statistics on http://en.wikipedia.org/wiki/List_of_countries_by_average_wage (last table), only 30 countries offer a +$1000 wage / month to peoples. Others are below, and the population of the countries below the $1000 if probably higher than the population getting above $1000.
I'll stop my maths here, but I think your enforced fee isn't fair. Bitcoin is a revolution for all and it's gonna help a lot the less wealthy countries. Don't forget them please. I understand your need of money, fair enough, your job is pretty awesome. But you need to keep the Wallet worldwide.
I can't complain without an idea, maybe a solution. I understand that donations are maybe not enough, a minority are donating (well, not sure after seeing the Armory donation address). So I would have an option to remove this fee, reduce/increase it, so peoples can adapt. And also why not giving a kind a Points to users participating ? Peoples with Points could unlock special features or so.
Edit to clarify some points: so far im not asking to get multibit free of charge, and im using cuba as an example, could be any other "poor" country. Some peoples here made me understand that Cuba is not the best example.
submitted by GaaraBits to Bitcoin [link] [comments]

Silkroad for Dummies Part Two

Part 1 is located here
Part 2 begins here:
You just now have to put all of these passwords and knowledge to use. I will now go through all of the steps i would take to make a purchase on the Silkroad or another darknet website.
Step one: Coinbase
Go to "buy/sell bitcoin" and make a bitcoin purchase on coinbase. It will give you the date these coins will arive.
Step two: Wait
Wait until your coins arive
Step three: Transferring your coins via coinbase and Block chain.
Open your blockchain app on chrome. Copy your bitcoin address (located on your "wallet home" tab). Now go to coinbase and select "send/request". Now click "Send Money". Paste your Block Chain bitcoin address as your receiving address. Click send money. Now open up Blockchain app again and check "my transactions" within the next 30-60min your bitcoin should arrive and be confirmed. The bitcoin will be on your account after you have about 6-7 "confirmations". To check your "confirmations" click your transaction.
Step four: Sending bitcoin to Silkroad anonymously
Open your bockchain app and select "Send money", then select "Shared coin". It is important to use Block chain's "Shared coin" option if you wish for your bitcoin to be completely anonymous. In the "from:" area select "any address". In the "To:" area copy and paste in one of your Silk Road wallet addresses. Your silkroad wallet addresses can be found on your silkroad "account" tab. To get here select "account" at the top of your silkroad page. Once there you will find your silkroad deposit addresses. Back on Block chain select the amount of bitcoin you wish to send. You cannot send all of you coins because it costs a very small amount of money to send your coins. I recommend leaving about 1 $ on your Block chain account to cover the cost of sending your coins, for present and future purchases. Next select the amount of repetitions you wish to have. I would recommend somewhere between 5-10 repetitions. The more repetitions the more secure, but the greater the cost. The cost, however, will be minimal no matter how many repetitions you choose.
Step five: Wait
I've heard of it taking anywhere from 10min - 24 hours for your silkroad to receive your bitcoin.
Step Six: Making a purchase on the silkroad.
Once you've received your bitcoin on silkroad it's now time to make a purchase on silk road. To do so add the items you wish to buy to your cart (be sure to select a shipping option), and include an encrypted address you wish to have it sent to. To encrypt your address you need to use PGP. First you need to get the public key of the person you're buying your product from. Go to their silkroad listing of the product you wish to buy and copy and paste their key to a notepad file and safe that file to your PGP folder. This is what a public key looks like:
-----BEGIN PGP PUBLIC KEY BLOCK-----
Version: GnuPG v2.0.21 (MingW32)
xQENBFBuNAMBCACrjNBSs7P8EUBSH42K2x3g2LUQ6S3RjcAHUxlKT3XKisKQQPwd 39j2USyocyrDPdJzAWW9EhqnISlv4COVlS8v2dpqwBqoH+eiK21wsOPxbWIyhPQu zRrPxqxqdzp5TJeCofGqlt250AicNpicSIsmEWwwRcPqBKqKmrCMlm1O2kcfZCfd 4JEJ60+dg1gh3Omqd8R4ooE4JUofcWU6NXhA3KV5ZcOgXV/7t0DVqJhplbH5qD28 zp8RUn+OvHAgU+C+CKY2fRIGHuKlqijKN40/4W9hPKHsF8NkEOK/ixHbcgaIX5yF sl/CXjgzJ8vRP+AV78q7ZLAXRc5VJ2dBxDDXABEBAAG0I0JsdWVWaWtpbmcgPEJs dWVWaWtpbmdAbGF2YWJpdC5jb20+iQE4BBMBAgAiBQJQbjQDAhsjBgsJCAcDAgYV CAIJCgsEFgIDAQIeAQIXgAAKCRCOymUppVxR2sWoB/sGfDqyii2LpFs0u9MOG1VT XTIpEtxKo+4UvNJYSdtXuaLc2bczpqK7yVPiYSTHq87OOq5Iomk52ziwzsRYBARe 40cqC7ijJ+aStf56vUYxFJRmgx0JGDqZeeeluOjhOdaluw+5Y5Pm4ToUDqQSolPG bki/Vhs3cXBpdrq6B2mmiLwhS40/4W9hPKHsF8NkEOK/ixHbcgaIX5yF sl/CXjgzJ8vRP+AV78q7ZLAXRc5VJ2dBxDDXABEBAAG0I0JsdWVWaWtpbmcgPEJs dWVWaWtpbmdAbGF2YWJpdC5jb20+iQE4BBMBAgAiBQJQbjQDAhsjBgsJCAcDAgYV CAIJCgsEFgIDAQIeAQIXgAAKQENBFBuNAMBCACrjNBSs7P8EUBSH42K2x3g2LUQ6S 39j2USyocyrDPdJzAWW9EhqnISlv4COVlS8v2dpqwBqoH+eiK21wsOPxbWIyhPQu zRrPxqxqdzp5TJeCofGqlt250AicNpicSIsmEWwwRcPqBKqKmrCMlm1O2kcfZCfd 4JEJ60+dg1gh3Omqd8R4ooE4JUofcWU6NXhA3KV5ZcOgXV/7t0DVqJhplbH5qD28 zp8RUn+OvHAgU+C+CKY2fRIGHuKlqijKN40/4W9hPKHsF8NkEOK/ixHbcgaIX5yF sl/CXjgzJ8vRP+AV78q7ZLAXRc5VJ2dBxDDXABEBAAG0I0JsdWVWaWtpbmcgPEJs dWVWaWtpbmdAbGF2YWJpdC5jb20+iQE4BBAvxIZ2udI1KVCx+hzhZ9pGU+MbB2xotX+ n/Se05zimkbm2f7h4lNmZWyE5PeBI57l2IIi6REhzYKqlj9aiXqIu1B4BM7R1v Q41wDyre+yfUFDSWeXMU41LeIzM4DmB7r3CN0Ha2WNAmJeHTUBp1MhScIXV7D4+J woc2PPcCoC0AyZQFpCk9vzABPbaBWCNvT79bmDEzV+XvC73vgpJbaws8fuplZcTU 0xSRvyDoYEQ1cvcX4jemafng2Dh2/EO8i3qy3IbdLJRlWA== =lC3C
-----END PGP PUBLIC KEY BLOCK-----
Be sure to copy the whole key. After you've copied their key and saved it in your pgp folder open "GPA" and select "Import". Go to the location of your pgp folder and select the file with the key of the person who you are buying from and import it. Now select the "Clipboard" option at the top right of the gui. Type your address in. Be sure to type your REAL name and REAL address. You must do this if you want to receive your package. For example:
 Billy Joe Bob 8876 Creek Road N. W. Montgomery, Alabama, 36103 (USA) 
After you've typed your address select "encrypt" and then select the public key of the person you're buying from on silkroad. Be sure to select the "Sign" option in the encrypt gui and sign with your key. Click OK. You will now see your encrypted pgp message. Copy and paste this message into the address section of your order on silkroad. Now the person you are buying from on silkroad knows where to send your package. I repeat, be sure to type your REAL name and REAL address. You must do this if you want to receive your package. Don't worry, the address you typed in is encrypted so only he person your are buying from can see it.
Step seven: Retrieving your leftover bitcoin.
To get your leftover bitcoin, and you WILL have some leftover after making a purchase, go to the "account" section of your silkroad and copy and paste your Blockchain address to your "withdraw funds" section on silkroad. Type your pin and the amount you wish to send and select "withdraw". Once you receive your bitcoin on block chain you can now send it to your secure multibit address. To do this, once again, select the shared coin option on blockchain and send the coin to your multibit address. This is the only time in the entire process you need to use multibit. I do, however, highly recommend using multibut because it is the most secure place to store your bitcoin after you're done making a transaction.
Step eight: YOU'RE DONE!
Remember, if you have leftover coin in multibit, you can use that coin in the future simply by sending it to your Blockchain address and then using the shared coin feature to send that coin from blockchain to silkroad.
submitted by fdasdfasdfas to SilkRoad [link] [comments]

Updated to Multibit HD, need help understanding Bitcoin addresses

Hey Guys,
I need a bit of help here, which I was unable to figure out on the Multibit website.
I was on the old MultiBit Classic, but want to move my Bitcoin to the new Multibit HD. This has gone fine, and a test transaction has been made and confirmed successfully.
I want to transfer the rest of my Bitcoins to this new Multibit HD wallet. Now, in the old Multibit, my address remained unchanged, and was always the same. The new Multibit HD creates a new address everytime I press "Request".
I think I might have missed something over the past few years. I thought your address was your "wallet", and for small fry like myself, you only need one (i.e. like one bank account). However, I don't understand how Multibit HD works with wallets - is it 1 wallet, with a million bitcoin addresses after a million receipts (for example)?
Or am I doing something wrong?
I'd like to keep my bitcoin address as one address only, and I'm a bit nervous in understanding how Multibit HD shows 1 wallet, but gives me new bitcoin addresses everytime I click the request button. I also can't get Multibit HD to show me the old bitcoin address directly (I can see it in the transaction / on the old version / in Blockchain etc).
Hopefully I'm just being dumb.
TLDR: Multibit HD creates a new bitcoin address every time I press "Request". I thought wallet = bitcoin address. How do I just get and use one bitcoin address with Multibit (I don't want wallets in a wallet, I want one wallet with one bitcoin address)?
Appreciate the help!
submitted by Redsap to Bitcoin [link] [comments]

"Attacking" an address?

Do you think that there is any possibility to somehow "attack" an address? E.g. flooding an address handled by a HW wallet?
In case of Ledger (but I can imagine that it can be applied to other devices): The addresses are generated from the seed (mnemonic, passphrase), the HW wallet will use and consider all generated ones on a given derivation path. Let's say, high amount of transactions will be sent to one or more of this addresses. I mean spamming. Don't think of Bitcoin with high fees, but Litecoin, Vertcoin or preferably maybe a not yet existing future altcoin. Now for example, the Ledger Nano S is not suitable to handle many (1000+) transactions, quoted from FAQ: (Here BTC mentioned, but consider a very-very low fee, or fee-free coin and a very low sent value pro transaction, e.g. 100,000 transactions x 0.01 cent value pro transaction = 10+$ total costs!)
"Imagine that you have received 1,000 payments of 0.001 BTC. If you want to make a payment of 1 BTC then the chip will have to construct a transaction of 1,000 inputs and sign 1,000 times. Not only it will take a few hours, but you have risks that it will not manage to do it (the chip may get too hot and fault some computation etc)."
Of course, the solution is mentioned there:
"restore your 24 words seed on Multibit HD or Mycelium and empty your wallet" +
"use a temporary software based wallet which you'll empty every 0.05 BTC."
But since the transactions are public, it can be guessed what is the new address of the attacked person, i.e. this can be repeated.
submitted by steve2000andone to CryptoCurrency [link] [comments]

Guide for first timers

I made this for my friends and family to use. Hope this heps someone. Much help!
bitcoins first: Get a wallet - just like physical money, you need a wallet to hold the money. use multibit - for a wallet - if you want options here a few http://bitcoin.org/en/choose-your-wallet go here and download this https://multibit.org/ how to backup your wallet https://multibit.org/help_backupWalletUsingPrivateKeys.html i recommend backing it up to at least 3 separate locations. example: harddrive, usb drive, encrypted dropbox folder.
go here to buy bitcoin also known as an exchange https://coinbase.com/?r=52dee75a8a2eed3e480000e5&utm_campaign=user-referral&src=referral-link
don't create wallet, click sign up button on top right. add bank information, and credit card info, and phone info - phone allows 2 factor authentication so your identity becomes much more difficult to fake and steal your money and information. I asked them to send me a SMS message instead of using app. this is the most reputable place to do this at. Never never use an online wallet!!!
buy some bitcoin on coinbase.com, and send yourself some bitcoin using your multibit wallet address(under the Request tab it shows your address there)
Now Dogecoin First get a wallet, - use the qt wallet. You can get it here for either Mac or Windows. http://dogecoin.com/ for linux use this guide - http://www.reddit.com/dogecoin/comments/1tvmnd/dogecoin_on_linux_the_complete_beginners_guide/
For a place to buy dogecoin. Use cryptsy, here is the link. https://www.cryptsy.com/users/register?refid=138894
click register new account. enter your information. go to your settings, and enable 2 factor authentication, use your cell phone number, and put in the number that they send to your phone. This makes it much more secure. you will send your bitcoins here and then buy dogecoin, then send the dogecoin to your wallet on your own computer. Backup the wallet after every purchase.
Send your Dogecoin to your own wallet. backup your wallet, at least 3 times. Use USB thumb drives. FYI, This might take away, the withdraw servers are slow as of right now. Took 3 days for me.
If you have any questions ask. Also you can buy Dogecoin or Bitcoin on ebay, do that at your own risk.
submitted by malak33 to dogecoin [link] [comments]

WOW !This is difference of VTA with other coins : VirtaCoin addresses are similar to Bitcoin addresses and can be used to send and receive Bitcoins as well.

Well, VirtaCoin addresses are similar to Bitcoin addresses and can be used to send and receive Bitcoins as well. You can also send VirtaCoins to a Bitcoin address and Bitcoins to a VirtaCoin address. A single VirtaCoin or Bitcoin address can as well be used to separately manage balances of both crypto-currencies. VirtaCoin is the first and only scrypt-based coin to do all this. Here is an example of a VirtaCoin address: 1HgtXf8HnWVYrGoSAkCyAWwAMHp7gUW2gR As you can see it starts with a "1", just like most Bitcoin addresses. VirtaCoins can be sent to Bitcoin addresses that begin with a "3" such those provided by GreenAddress. "3" Bitcoin addresses can be used to send Bitcoins to VirtaCoin addresses as well. Using Private Keys To Manage Dual Balances You will need to know the private key of your VirtaCoin or Bitcoin address to be able to view and manage the opposite balance of the wallet that originally created the address, meaning for a VirtaCoin address created with VirtaCoin Core you'll need the private key in order to see any bitcoins sent to that VirtaCoin address in a Bitcoin wallet. Exchanges and most online wallet providers don't normally give you the private keys of your VirtaCoin or Bitcoin address so its best to use addresses created from wallets that you have total control of, such as desktop or mobile wallets. Desktop wallets such as MultiBit can be used to export the private keys to a file on your computer while mobile apps such as Bitcoin Paper Wallet can generate addresses with private keys. To use your VirtaCoin address as a Bitcoin address in your Bitcoin Wallet simply import the private key of your VirtaCoin address into your wallet. The popular Blockchain Wallet works well with importing your VirtaCoin address and can reveal your VirtaCoin/Bitcoin address (public key) if you only know your private key. Similarly you can use the private key of your Bitcoin address to import the address into the VirtaCoin Core wallet. Just follow these steps, specifically on importing a private key into VirtaCoin Core. Please remember to backup your wallet before importing another address into VirtaCoin Core.
http://virtacoin.info/about
Please donate me VTA for this great info at address:
1NQqFiSca7VuYBF8QTZquB8k3E5oK5uoMB
submitted by huyhpvn to VirtaCoin [link] [comments]

One-click way to estimate your transaction confirmation time (Blockonomics.co)

The Blockonomics.co transaction explorer has now integrated estimates from BitcoinFees.21.co! We currently return a time estimate that is one half of the max time given for the related fee level at BitcoinFees.
How do I use this?
  1. Visit Blockonomics.co
  2. Enter your transaction ID (example: 4ff24694b1b8f85d6b1e8c64360b283336334ba042f4d602741a1d5ec1614d1a) or lookup your unconfirmed transaction using any of the addresses associated with your transaction (such as recipient address). In the case of an address lookup, Blockonomics will automatically show pending transactions in a separate tab.
  3. Blockonomics will then show you the current elapsed time since the transaction was detected and estimated time required for confirmation based on current BitcoinFees data.
Mycelium, Multibit, and BitSquare users can also select Blockonomics as the default block explorer for true one-click transaction lookups.
We hope this gives users an easier way to gain a rough estimate of when their transactions may confirm (i.e., matter of minutes, hours, or days).
submitted by bits-of-change to Bitcoin [link] [comments]

One-click way to estimate your transaction confirmation time (Blockonomics.co)

The Blockonomics.co transaction explorer has now integrated estimates from BitcoinFees.21.co! We currently return a time estimate that is one half of the max time given for the related fee level at BitcoinFees.
How do I use this?
  1. Visit Blockonomics.co
  2. Enter your transaction ID (example: 4ff24694b1b8f85d6b1e8c64360b283336334ba042f4d602741a1d5ec1614d1a) or lookup your unconfirmed transaction using any of the addresses associated with your transaction (such as recipient address). In the case of an address lookup, Blockonomics will automatically show pending transactions in a separate tab.
  3. Blockonomics will then show you the current elapsed time since the transaction was detected and estimated time required for confirmation based on current BitcoinFees data.
Mycelium, Multibit, and BitSquare users can also select Blockonomics as the default block explorer for true one-click transaction lookups.
We hope this gives users an easier way to gain a rough estimate of when their transactions may confirm (i.e., matter of minutes, hours, or days).
submitted by bits-of-change to btc [link] [comments]

Two questions for practical use and a really dumb one.

My first question is: I have my Multibit wallet. How do I figure out my public and private key? You can generate a text file of those if I understand correctly? But if I send bitcoin through my wallet I don't have to enter my private key right, just my password. So does Multibit have my private key?
My second is about a paper wallet. I should probably just try this out myself but if I understand correctly you make an address and send bitcoin to it. Then if you want to spend it you would use an app like blockchain? This is on android, but is there a windows phone "spend app" for example?
Then about generation of wallets. Do the wallet generators use a logic to make sure no wallets are generated twice? Is it impossible to generate a wallet and already find funds on it (or that someone is already using) or just very very very unlikely?
I've had these noob questions for a while now and figured this is the subreddit for them. I waited for moronic monday, but I can't find it this week. Thanks in advance for your answers!
submitted by feedabeast to BitcoinBeginners [link] [comments]

GPG instructions and public key list for verifying Bitcoin clients.

I have noticed their is a growing problem of fake bitcoin clients, and I expect the frequency and elaboratness of these fake clients to increase.
Verifying the signatures for these clients will detect if you are receiving anything other than what the signer the of the software signed. The exception to this is if the attacker acquires the signer's private key, which should be a lot more difficult than tricking users to visit the wrong site or hacking servers. This can also be addressed by using multiple signatures per client.
An important part of this process is acquiring the public keys for the sofware signers in a secure manner.
To help with this I have included a signed list of fingerprints and where to acquire the public keys to act as another source to verify the keys used to sign bitcoin clients.
I have also included instructions for verifying the fingerprint list and bitcoin clients.
To deal with the issue that posts and comments on Reddit can be easily modified I suggest other users (especially well known ones) post a signature of the fingerprint list in a comment in this thread, or at least a hash of the fingerprint list (not as secure but still better than nothing).
List of Fingerprints:
+++ Bitcoin-Qt: Signer: Gavin Andresen (CODE SIGNING KEY) [email protected] Fingerprint: 2664 6D99 CBAE C9B8 1982 EF60 29D9 EE6B 1FC7 30C1 Key ID: 1FC730C1 Key Link: bitcoin.org/gavinandresen.asc
Electrum: Signer: ThomasV [email protected] Fingerprint: 6694 D8DE 7BE8 EE56 31BE D950 2BD5 824B 7F94 70E6 Key ID: 7F9470E6 Keyserver: pool.sks-keyservers.net Signer: Animazing [email protected] Fingerprint: 9914 864D FC33 499C 6CA2 BEEA 2245 3004 6955 06FD Key ID: 695506FD Keyserver: pool.sks-keyservers.net
Multibit: Signer: Jim Burton (multibit.org developer) [email protected]astmail.co.uk Fingerprint: 299C 423C 672F 47F4 756A 6BA4 C197 2AED 79F7 C572 Key ID: 79F7C572 Keyserver: pgp.mit.edu
Armory: Signer: Alan C. Reiner (Offline Signing Key) [email protected] Fingerprint: 821F 1229 36BD D565 366A C36A 4AB1 6AEA 9883 2223 Key ID: 98832223 Keyserver: pgp.mit.edu +++
My Key:
-----BEGIN PGP PUBLIC KEY BLOCK----- Version: GnuPG v1.4.12 (GNU/Linux) mQINBFLB9nUBEAC/klZvqQkWP/NUD0pT09PzhKh0xIQ0XM7MxqUZLa1OytF3iUCX /fNwQD5OnSFQoEg1O4bGzrrRb+PiuKCvH19dp7sFVj3q7Dhwfb6EvsX39xqzxCr6 2AQFQ3esz4nNodnQWa48t2ujihaf/vpTn6n7+jCl6a124r+U4wNGiNIEWxLLUNNb ec8S1RcjtTp6Ue/yRpThgJN9e4rj19+vJMqKCiqL03NBZWVoCEkL6iIdjwlQK8/r CpP9m5yAsc8wkelRkZvuLmjJ1GgSFrO0WteGnURMshy59LetaSRyiIDeHaPdV5rk /n3mBv8hsK/39O6H7fYWDx/ZLnZE4rMghcndexIFLhsuPx6FJNATqQ2gHT4ijb8K NlwZ0LatlXyUEMKfC1aroa3/9RkQSf0y0GKS0XrvUWGVRn/X7gk1DRhuaHWuacCf k3w0XZOA2WpWw1w/rjZSeHbKG1w4B2/kWH3K4sXsfcLltlY85zH03HUYSx+leMFc yxiHz60ZfuV2aGjYFPL8dzF6DS106lHz51j608OZkAEO8Xssincii1k/PR1h1y2P AqgrEADzgl52iBbNw+tdnxSAIy/asEyxU/VwkUFjOzSyP7ZmBxg8ss966w2Kl6WE o9R5tkVuUG8WTMTnF0FeMxO9YOqx4KhN9bhP7RjBL7BFTvRXYVVJUGabIQARAQAB tBVkY2M0ZSA8ZGNjNGVAZ214LmNvbT6JAj4EEwECACgFAlLB9nUCGwMFCQlmAYAG CwkIBwMCBhUIAgkKCwQWAgMBAh4BAheAAAoJECO6L0dAOWOhsNIQAKUN9Z4e0hM3 DbaUjYJx93JGdJArLmz+Ko10N/lGcao4lCNVA+xM73Ga1GBnPlhPFW9iD2VQocOv tY2PYNsPrHgGlzyMKAMSpZ8364wVEyCHdJVKFORUjhyuJGYfyhDt2iZuzQwxWbmQ 1gmlbiGvxRysmaSW5+M8CDhja/fI8+EOp5NbH/EvHJClul3cO72UBUXBPxRv4Eb+ j8k0Uozob70A3bD894F8bJ9wZ3XBX/9DEkAbvDyW7CxIZwUiCeYTQylH++8S91A1 wL3z35ELdOLzGqwetYY6gSZRwY/W+rewEfPfBDSRjXKOBfhraMBYV1Sdg0IUj10W 2XVAzkqmqaej0T/xTt6aNjFtiH1u18BUpYIcCAAZ6TJ7325bnqnI+0xWFdonyggL +AIX1nzhx5niw8ZkCX0/jlJAx3TXAuxX/Tfy7cVSVi33v0fiwoDb8ZIDBzg0P2uc PUpR13B3AevFpxuAuAFPWfTDOJQmZyn9YNswVOhNb9rfq5bkmaSBlMRefTtUKIjW XjrRhSULPJ73H+R1DNL1Y0vhclnkOVCFRB+VPChkO+6RitGQDTg/Z60fBHpnYiDz sysnsoojLwBGanHO5mZMprxADc9CmeRGRmfHwvx7eJvW1HqN+5JR3Ai+JDlT+IxX RNUQxUbOry4D8TwRn9nBEtumNyNQcBmUuQINBFLB9nUBEACyRFYCrOXxC8yWm92U qPPNa3YC+W17O4rHW/thKTze1/TeZAKTNaIMPCS7iSVBBRbuijG+8NsgFd6W9acC ihMD4VUdFhVPjRGM3HmqzsxudVI4kGlQl8w86pYZu8ceGB4LQcoUFbPmWgXDIszH NV7kIFO/2oCRJ7VIBllUMP97RRdIfDND7EZMWvDveZ40BZCBLfnD9f6VSs4Lgn2C ow/ko01ijnvUxA/BGPJKI7JTLJHbdL//RQwT3AacLSc/etIurY2Ef926XbYYI1gi qboCU/dYUkGG2D+BDcGdukwpksdZZSXPyNhkZQAPPViHuFFtHI3C+FNb5L+lnC0h /dfF73U1lN3jp/VX11U1tIsHJyPjs8aael2UJO7Qy3vgVRM6KOywNNjVRv79Z/rF YHkNzBwXrGKdwV16SdRWjgkzkB4JeNQME096SqrwAEj/j5fwMqHjR8dKqWKDT6s9 V2Z83go3n9kI8JWFh33OksBh/qpKghhwtGWrUsbVcEDOVmUn2ozXvARDzqnNw3DN PcQvzUtasD8hxGHo7fW4TczdtgS3b/DfU2VJo68Fmo1C4eqYX+Ixx05khFCtP7d0 POqX6jIIQqZq8NTea8/M8Xx1YGhR5RpA4vZe7bCLgD2VUXHL43Npmq2nuZ0/7AwY H0hc/y/T+SU70xn28XyWHHLkCwARAQABiQIlBBgBAgAPBQJSwfZ1AhsMBQkJZgGA AAoJECO6L0dAOWOhIcgP/ioKYiJFAsolS4ep1PenCPvQFjvZTq4xJnsubEJ/ERU8 zdgET0Rh5jcCLqRAxQbGW3lVsewR3N+S9Rt3zHApqfZBFg5XJkZxsk0u+0qGPHWA 4oC7U3E4ZwMfVzUDcfKrzD1h0JaiSW1+1qgCh9/YVCUYakR1n/9LgzPP8ekQLTeb nWE+ZQQfeTDgoTNFWZvUlEbh4zcHLvcay78PnK3uT3UbWPyltSxon/eD47s1dt03 P/8nqaXCZhhRZ9N3EbJyudLBgA3ctySSJJSKKQHYynH5qUQqKp4Wq1KY80161xvW FqKwN/Jr4tTpRVZPu8P82cxhwrWJdf1U3/M2F2aIgXbGS4fHbzsLZ+6zZ3AuT4D8 auW55GOrnoF9XzZV6IavtluILUXMjVzF13slo5PKzS8yyJRNxE22krbeEyUum4Zu dDiERxIB6B+RDMM9qvV9svGJoEXG+4ugwkA3R7a6LWApmkvH3eXpULfDN2g5eNcr 5efFMrI/myxmpsP3nUp5EZFJyp8+ZSzIMJ1jSzXH8mHajIGTG49xDyZGpbog3wd2 7aQf5D9WOuKfYZM9MU9PBF+ZgtNrAxWuYJcCOr4WEd/2IjayMWvLxNA/RVW66oVj puaaDc3m3hXg1fwUWv9ZJyMUv7NARLgig3KEMVZiVzos7ZMn9mZNrOk2fnkKpVJB =ufyu -----END PGP PUBLIC KEY BLOCK----- 
Signature for fingerprint list:
-----BEGIN PGP MESSAGE----- Version: GnuPG v1.4.12 (GNU/Linux) owGFk31QFGUcx48XIU/KU0YSZOhHToraHeze3u4tqd2+HZ6g4ks6ZBTLsXdud7eH ewtCV4mp4/hGKmlTQbyEkgoZxpg6kReML0RWaoohOWWN0mhK4WSZje0Zxw0zzfTP 7rPf5zfP7/N8nn22PRyliYyYfDQ9y0La6yNaotYW6hyi5BTkYlmUFJ9BKVMWdZyu mDFjhpYWFbtXlPQLlUztYtEpCXImZPGlogSUVCQLPkGCNGYBy8FiW9Z82/wsyOby poEzWMEPFVicHl50G+xeD1jDXTIBxXEMcJYkgaEpDhiSNgNCmlHgrHgGoCRLAsfh NCBWhgBjBoNos4VysLGZD5LhIEeUXJlQ+C+nwSs700d0N/A+u5ZzC3ZFLvGE97Bk hdfD+5aC8uBdiqiQZYYiQTuCEMdJDFizujuC5swqjQkHI0JzwJImlZBmTWBGMRoI q1pHZHD4MGEwCQU+QS4Ntiz2et0Gn8und4Uyn0ESlGEkShI9/Etqf5jJh4Zhd7NH opEkgoEZx1iwMkYjYCTJAM5QKADNcRSgKGZSnWWogkmTCTJwKzvMFkxCwf+xzStx K6LqNixurugBukRWvOrBe4Zmg9ahSCgV3N5iQZ4GL4oeHDFbHLxPGcI3lLhG8qNB YAw1qtQEagWMsKoGTTgFOE1hwCAkASjFsUCQVgIYE4GG1apJKBjGdxYbPCqHUFSi pWSPVy4PA1NuXgLGAIsEUf2GtAUOh1sdQXA+KFtdZhrwapFl6B/iHywQdD4S2Ywi VkBQlAQjTrPAmnBVMa4iM0b1gVE0AjiluifNZqN6AKhxGDmYhIL/Qg5etI2RydGa iEhNzKjI4N3TaEfrQjf0brJOs692U9vbzb2jMs51uP1Jl/6KXf7NoTEHolxXvvRf SjzbEylrjFvH1jXefbJxd9/tK8u8SVdLC9yv5N88N/v1Cyu7N1deXDPJMeVs8obj b9zvtW84sv9OWeJJ8tXyPX2/N+zqGn+ZnxCdGz++QXqzYGzthSRE7JJaflRu4/01 jqsFuat62ifvHujc8ZhupW1P59OBjoMtgz+crx08mdN/sDkwtUmfLecN2Hb8duuz Lxq6Aztjz3RsWV1d3TJBc4D86cbfuqjvn0iJemqvfk1/ToHQFZhtWrT555eZwh45 +vNj/jX7Fubnd/3adNxf+EhF7sWmMX+Q184dSvygFdFXBF6b2m1KjLvnoKanzEp0 2cWqgX7L2biU8/2xt5LudZ4g4pawCZVpv6T7q1JfaN9Q1xFxP2Z55fiPuo7tvXdd v6m3vrLt+Tk12bGzDn/rr8+puxl4vLsqrnPKmPg51xUZo+tiXKuf2XZ44DLd8t7N weL21tONnY2jKy+MSzi1/1o8sWrQPPPTd1tteW/tTct6fyO2NNWUJ6wT6mPWx9fz 31ml53QTe75a+2HbumVuvZCcC33V0/fFpM07wkRYUh9a0LxzK6mrOuqYChWT6u4M oGkJS2vmNkWdmdWcP5le4ulLbr+Ws+IysX37OyfSt4y70St8vLov9dE/k3Y1zNy4 SyrY/fWzvRMLP8mNrjh1eFvtznXt/wA= =5zDz -----END PGP MESSAGE----- 
Hashes for fingerprint list:
SHA-256: 7A6B9841 355B1127 E5639A9D 7040D81C F395D382 884376C2 31829C63 6FCF1B80
SHA-512: 04A49A60 A1645479 ED0B3CE9 AE32E156 E9768CC2 0D4EF393 814162BE BFA6FAF5 6C520769 C654467F 6B61EBD4 4A5A5C93 9DF81B7D AA468A50 2DD7FFF3 F637A49C
Verifying the fingerprint list:
Save fingerprint list, from the first plus to the last plus, to a text file called fingerprints.txt
Next save my key to a file called dcc4e.asc and my signature to a file called fingerprints.txt.asc
In terminal or command line run:
gpg --import dcc4e.asc gpg --verify fingerprints.txt.asc 
You should see:
Good signature from "dcc4e " 
GPG examples for verifying Bitcoin clients:
Verifying Bitcoin-Qt:
First download, import and check Gavin's key:
Download his key at bitcoin.org/gavinandresen.asc
In terminal or command line run:
gpg --import gavinandresen.asc gpg --fingerprint 
Check that the fingerprint for Gavin's key matches 01CD F462 7A3B 88AA E4A5 71C8 7588 242F BE38 D3A8.
Then download the wallet software and signature.
Verify the signature:
gpg --verify SHA256SUMS.asc 
You should see:
gpg: Good signature from "Gavin Andresen (CODE SIGNING KEY) " 
The signature for Bitcoin-Qt signs the hash values. So we must compute the hash of the specific downloaded software manually. This example is using the linux version.
gpg --print-md SHA256 bitcoin-0.8.6-linux.tar.gz 
Check that the output matches the associated hash value in SHA256SUMS.asc
Verifying Electrum:
First download, import and check ThomasV's key:
This key can be found at a keyserver.
gpg --keyserver pool.sks-keyservers.net --recv-keys 7F9470E6 gpg --fingerprint 
Check the fingerprint.
Download Electrum and the signature.
Verify the signature:
gpg --verify Electrum-1.9.6.zip.asc 
You should see:
gpg: Good signature from "ThomasV " 
For this example you do not need to manually compute any hash values because the signature is signing the downloaded file directly instead of signing a list of hashes.
submitted by dcc4e to Bitcoin [link] [comments]

Is there a Peercoin wallet that doesn't download the entire blockchain? Like Multibit for Bitcoin.

Multibit, for example, scans the blockchain for all references to your addresses, but doesn't download the entire blockchain (which is around 20gb for Bitcoin). Is there a Peercoin wallet that does the same? I'm very low on hard drive space on this computer.
submitted by lecherous_hump to peercoin [link] [comments]

Real-Life Superhero needs 5 btc to continue helping homeless people in Toronto! (x-post from /BitcoinCharity)

As a quick preface to this posting, I'd like to sincerely thank Moderator Frankenmint. Thank you, good sir, and I'd love to hear more of your advice and ideas!
I am asking the Bitcoin community to help me become "The World's First Bitcoin-Powered Superhero".
My name is Captain Caregiver. I'm part of the "Real-Life Superhero" community, where members like myself perform public services such as food & water hand-out patrols, anti-drug talks, and neighborhood watches.
(As proof, I was on MTV some months back: https://www.youtube.com/watch?v=MiRDxBH9YTY)
It may seem weird for adults like myself to dress up in colorful costumes, but we do it for two reasons. First, it satisfies the superhero complex all RLSH'ers possess in their psyche. Second, dressing up as a superhero while doing service to the community draws attention to the problems we're battling, such as the aforementioned homelessness. I have been doing food hand-out patrols, where I walk around downtown Toronto looking for homeless people and street kids who need help. Unfortunately, I've developed a degenerative spine condition that is now causing me pain & great difficulty in walking. I no longer have the range in mobility I need to continue my public service and the ability to carry enough supplies to give out to those without homes. And I ache to do so again!
Here is where I plead for your help, /bitcoin. I need around 5 btc to be able to buy the electric mobility tricycle I need to do my patrols again. Specifically, I am hoping to purchase a Nolet Scooter. Nolet Electric Scooters is a Canadian company, and was also on the TV show Dragon's Den. It will allow me to patrol Toronto better than ever before to help the homeless, even with my weak legs. Also, the Nolet has the best carrying capacity I've seen in any scooter, which will be great for carrying food, water & clothes to people living on the streets.
Any bitcoin donations would help me out massively and, hopefully, will bring in enough to help me help people again.
Please note I am completely willing to work with the /bitcoin community here on reddit by posting receipts for all purchases towards the "Caremobile" and supplies to help the homeless. I will also post updates and patrol reports on a steady basis to /bitcoin for two important reasons:
First, it is of utmost importance and priority to me to establish 100% trust with /bitcoin; I want to be a good example to both this community and the Real-Life Superhero (RLSH) community.
Second, I will gladly push the Bitcoin cause by saying I am "The World's First Bitcoin-Powered Superhero" in interviews and such. Heck, it's a bit audacious, but I would certainly draw attention to the wonderful potentials of the bitcoin!
I could use a bit of advice, too: I'm using multibit for my bitcoin wallet; should I use a wallet somewhere else to make things more transparent for everyone?
In any case, the wallet address I currently use is: 14Cxa1MSCccGniBdREKH951ZjaacnLa7t9
My FB page: https://www.facebook.com/rlshcaptain.caregiver which has more information about me & my personal war against poverty and homelessness. It also has many unflattering pictures of me in spandex (sigh).
Thank you most sincerely (!!!) for reading this post, kind redditors of /bitcoin! I hope we can work together on this on-going project.
Most Humbly, Your Servant in Spandex,
Captain Caregiver
Edit 1: Can I get some upvotes, please?
Edit 2: I'm sure 99% of the /bitcoin community are genuinely nice people, so it's a shame that I'm getting down-voted and insulted in the comments section by the 1% meanies. Still, I'm disappointed in the bitcoin community here on reddit but I hope I can still work with the good people in it in the future. I know I'll probably be downvoted further for expressing my honest opinion but, /bitcoin, you have to be careful of the mean & angry people here who turn people off the bitcoin cause! In any case, all my best to everyone in /bitcoin. Thank you for taking the time to read my request.
submitted by Captain_Caregiver to Bitcoin [link] [comments]

Clearing up some misconceptions about full nodes | Chris Belcher | Feb 10 2016

Chris Belcher on Feb 10 2016:
I've been asked to post this to this mailing list too. It's time to
clear up some misconceptions floating around about full nodes.
=== Myth: There are only about 5500 full nodes worldwide ===
This number comes from this and similar sites: https://bitnodes.21.co/
and it measured by trying to probe every nodes on their open ports.
Problem is, not all nodes actually have open ports that can be probed.
Either because they are behind firewalls or because their users have
configured them to not listen for connections.
Nobody knows how many full nodes there are, since many people don't know
how to forward ports behind a firewall, and bandwidth can be costly, its
quite likely that the number of nodes with closed ports is at least
another several thousand.
Nodes with open ports are able to upload blocks to new full nodes. In
all other ways they are the same as nodes with closed ports. But because
open-port-nodes can be measured and closed-port-nodes cannot, some
members of the bitcoin community have been mistaken into believing that
open-port-nodes are that matters.
=== Myth: This number of nodes matters and/or is too low. ===
Nodes with open ports are useful to the bitcoin network because they
help bootstrap new nodes by uploading historical blocks, they are a
measure of bandwidth capacity. Right now there is no shortage of
bandwidth capacity, and if there was it could be easily added by renting
cloud servers.
The problem is not bandwidth or connections, but trust, security and
privacy. Let me explain.
Full nodes are able to check that all of bitcoin's rules are being
followed. Rules like following the inflation schedule, no double
spending, no spending of coins that don't belong to the holder of the
private key and all the other rules required to make bitcoin work (e.g.
difficulty)
Full nodes are what make bitcoin trustless. No longer do you have to
trust a financial institution like a bank or paypal, you can simply run
software on your own computer. To put simply, the only node that matters
is the one you use.
=== Myth: There is no incentive to run nodes, the network relies on
altruism ===
It is very much in the individual bitcoin's users rational self interest
to run a full node and use it as their wallet.
Using a full node as your wallet is the only way to know for sure that
none of bitcoin's rules have been broken. Rules like no coins were spent
not belonging to the owner, that no coins were spent twice, that no
inflation happens outside of the schedule and that all the rules needed
to make the system work are followed (e.g. difficulty.) All other kinds
of wallet involve trusting a third party server.
All these checks done by full nodes also increase the security. There
are many attacks possible against lightweight wallets that do not affect
full node wallets.
This is not just mindless paranoia, there have been real world examples
where full node users were unaffected by turmoil in the rest of the
bitcoin ecosystem. The 4th July 2015 accidental chain fork effected many
kinds of wallets. Here is the wiki page on this event
https://en.bitcoin.it/wiki/July_2015_chain_forks#Wallet_Advice
Notice how updated node software was completely unaffected by the fork.
All other wallets required either extra confirmations or checking that
the third-party institution was running the correct version.
Full nodes wallets are also currently the most private way to use
Bitcoin, with nobody else learning which bitcoin addresses belong to
you. All other lightweight wallets leak information about which
addresses are yours because they must query third-party servers. The
Electrum servers will know which addresses belong to you and can link
them together. Despite bloom filtering, lightweight wallets based on
BitcoinJ do not provide much privacy against nodes who connected
directly to the wallet or wiretappers.
For many use cases, such privacy may not be required. But an important
reason to run a full node and use it as a wallet is to get the full
privacy benefits.
=== Myth: I can just set up a node on a cloud server instance and leave
it ===
To get the benefits of running a full node, you must use it as your
wallet, preferably on hardware you control.
Most people who do this do not use a full node as their wallet.
Unfortunately because Bitcoin has a similar name to Bittorrent, some
people believe that upload capacity is the most important thing for a
healthy network. As I've explained above: bandwidth and connections are
not a problem today, trust, security and privacy are.
=== Myth: Running a full node is not recommended, most people should use
a lightweight client ===
This was common advice in 2012, but since then the full node software
has vastly improved in terms of user experience.
If you cannot spare the disk space to store the blockchain, you can
enable pruning as in:
https://bitcoin.org/en/release/v0.11.0#block-file-pruning. In Bitcoin
Core 0.12, pruning being enabled will leave the wallet enabled.
Altogether this should require less than 1.5GB of hard disk space.
If you cannot spare the bandwidth to upload blocks to other nodes, there
are number of options to reduce or eliminate the bandwidth requirement
found in https://bitcoin.org/en/full-node#reduce-traffic . These include
limiting connections, bandwidth targetting and disabling listening.
Bitcoin Core 0.12 has the new option -blocksonly, where the node will
not download unconfirmed transaction and only download new blocks. This
more than halves the bandwidth usage at the expense of not seeing
unconfirmed transactions.
Synchronizing the blockchain for a new node has improved since 2012 too.
Features like headers-first
(https://bitcoin.org/en/release/v0.10.0#faster-synchronization) and
libsecp256k1 have greatly improved the initial synchronization time.
It can be further improved by setting -dbcache=6000 which keeps more of
the UTXO set in memory. It reduces the amount of time reading from disk
and therefore speeds up synchronization. Tests showed that the entire
blockchain can now be synchronized in less than 3 and a half hours
(See
https://github.com/bitcoin/bitcoin/pull/6954#issuecomment-154993958)
Note that you'll need Bitcoin Core 0.12 or later to get all these
efficiency improvements.
=== How to run a full node as your wallet ===
I think every moderate user of bitcoin would benefit by running a full
node and using it as their wallet. There are several ways to do this.
(https://bitcoinarmory.com/) or JoinMarket
(https://github.com/AdamISZ/JMBinary/#jmbinary)
Multibit connecting only to your node running at home, Electrum
connecting only to your own Electrum server)
So what are you waiting for? The benefits are many, the downsides are
not that bad. The more people do this, the more robust and healthy the
bitcoin ecosystem is.
original: http://lists.linuxfoundation.org/pipermail/bitcoin-dev/2016-February/012435.html
submitted by dev_list_bot to bitcoin_devlist [link] [comments]

Growing the value of your bitcoin

If you hold bitcoin, you want its value to grow. At the same time, the risk of holding it directly may tempt you to diversify into any number of wild schemes such as alts, crowdfunded businesses, even USD.
In the past few decades, the greatest value in the world has been created by investments in software. So, if you’re looking to diversify but also support Bitcoin’s future value, your secondary investment concentration should be in getting software built and improved for Bitcoin.
The focus should be on free software tools and protocols that form decentralized networks, whether that be between consenting humans using mobile apps or computers connected via p2p networks. The goal is to help our economy (and the value of your holdings) grow both incrementally and disruptively.
Here are some examples in no particular order:
It's important to remember that programmers are people too and if people, programmers or not, see that there's money to be had, scams can quickly arise. For this reason, I suggest that you use multisig addresses and trusted mediators (ie those with rep to lose) in your investments. I've been playing around with bountify.co for this purpose but wouldn't feel comfortable putting more than $50-100 (the site's limits coincidentally) toward a gig there. With multisig though, we could potentially lock thousands or tens of thousands of dollars up for spending on a particular project. Helping this happen has been the focus of my own pet project, I'm calling Rein (http://reinproject.org) which is an attempt to document and simplify trustless trade of professional services.
submitted by dsterry to Bitcoin [link] [comments]

Real-Life Superhero needs 5 btc to continue helping homeless people in Toronto! (x-post from /BitcoinCharity)

As a quick preface to this posting, I'd like to sincerely thank Moderator Frankenmint. Thank you, good sir, and I'd love to hear more of your advice and ideas!
I am asking the Bitcoin community to help me become "The World's First Bitcoin-Powered Superhero". My name is Captain Caregiver. I'm part of the "Real-Life Superhero" community, where members like myself perform public services such as food & water hand-out patrols, anti-drug talks, and neighborhood watches.
(As proof, I was on MTV some months back: https://www.youtube.com/watch?v=MiRDxBH9YTY)
It may seem weird for adults like myself to dress up in colorful costumes, but we do it for two reasons. First, it satisfies the superhero complex all RLSH'ers possess in their psyche. Second, dressing up as a superhero while doing service to the community draws attention to the problems we're battling, such as the aforementioned homelessness. I have been doing food hand-out patrols, where I walk around downtown Toronto looking for homeless people and street kids who need help. Unfortunately, I've developed a degenerative spine condition that is now causing me pain & great difficulty in walking. I no longer have the range in mobility I need to continue my public service and the ability to carry enough supplies to give out to those without homes. And I ache to do so again!
Here is where I plead for your help, /bitcoin. I need around 5 btc to be able to buy the electric mobility tricycle I need to do my patrols again. Specifically, I am hoping to purchase a Nolet Scooter. Nolet Electric Scooters is a Canadian company, and was also on the TV show Dragon's Den. It will allow me to patrol Toronto better than ever before to help the homeless, even with my weak legs. Also, the Nolet has the best carrying capacity I've seen in any scooter, which will be great for carrying food, water & clothes to people living on the streets. Any bitcoin donations would help me out massively and, hopefully, will bring in enough to help me help people again.
Please note I am completely willing to work with the /bitcoin community here on reddit by posting receipts for all purchases towards the "Caremobile" and supplies to help the homeless. I will also post updates and patrol reports on a steady basis to /bitcoin for two important reasons: First, it is of utmost importance and priority to me to establish 100% trust with /bitcoin; I want to be a good example to both this community and the Real-Life Superhero (RLSH) community. Second, I will gladly push the Bitcoin cause by saying I am "The World's First Bitcoin-Powered Superhero" in interviews and such. Heck, it's a bit audacious, but I would certainly draw attention to the wonderful potentials of the bitcoin!
I could use a bit of advice, too: I'm using multibit for my bitcoin wallet; should I use a wallet somewhere else to make things more transparent for everyone?
In any case, the wallet address I currently use is: 14Cxa1MSCccGniBdREKH951ZjaacnLa7t9
My FB page: https://www.facebook.com/rlshcaptain.caregiver which has more information about me & my personal war against poverty and homelessness. It also has many unflattering pictures of me in spandex (sigh).
Thank you most sincerely (!!!) for reading this post, kind redditors of /bitcoin! I hope we can work together on this on-going project.
Most Humbly, Your Servant in Spandex,
Captain Caregiver
Edit: Could I please get some up-votes?
submitted by Captain_Caregiver to BitcoinCA [link] [comments]

Having trouble importing private keys back into a MultiBit Classic wallet.

I have what I believe is a backup of my private keys from a MultiBit Classic wallet. The format of the password protected file is exactly the same as the example here:
https://multibit.org/en/help/v0.5/help_exportingPrivateKeys.html#exportFileFormat
I'm getting the error: "Could not understand address in import file" when trying to import.
I've gone through the steps of de-crypting the file using openssl and while it seems to decrypt it using:
openssl enc -d -p -aes-256-cbc -a -in ./bitcoin.key -out bitcoin.key.txt
Output shows me a "salt=", "key=" etc. It also creates a file fine, but it's not particularly readable. It has various unreadable characters and looks nothing like an non-password protected key file.
Not exactly sure how to continue or where to turn to get this thing imported. I'm not even sure if it's the correct backup of the wallet I'm looking for, but it certainly is some type of private key backup.
Any help would be appreciated.
submitted by peteski3 to BitcoinWallet [link] [comments]

NEM Stake Auction Details: A Chance to Obtain a Stake!

Utopianfuture has revealed the details associated with the auction of the 155 stakes (made available from the removal of sockpuppets), quoted below:
NEM public auction explanation
155 NEM stakes will be put on a public auction (155 million NEM)
The auction will happen in Bitcoin blockchain and follow the multi unit auction format. http://en.wikipedia.org/wiki/Multiunit_auction
How does it happen if X stakes are put on the auction ?
  1. On the auction day, a Bitcoin escrow address will be revealed at a designated time.
  2. Each transaction to the escrow address will be considered a bid for 1 stake. Two transactions from the same address to the escrow address will be considered two separate bids.
  3. The auction will last at least 24 hours (but less than 36 hours).
  4. Bidders could monitor the bidding process in real time via Blockchain.info
  5. When the auction ends, X highest bidders (X biggest transactions) will win X stakes.
  6. We will refund all non-winning bids minus the transaction fee and a service fee. All winning bids will receive back the difference between the winning bid price and lowest winning bid price minus the transaction fee and a service fee. Service fee is for the escrow service (for tallying and refunding the bids).
  7. Example: there are 3 bids 1 btc, 1.2 btc and 2 btc and all are winning bids. Since 1 btc is the lowest winning bid price then bidders of 1.2 btc and 2 btc will win a stake and get a refund of 0.2 and 1 btc respectively.
  8. There is a limit of two bids for each sending address and taint analysis will be used on the escrow address to make sure no address wins more than 2 stakes.
  9. The sending address of the winning bid will be the identifier of the owner of the won stake. Therefore the winning bid sender should later provide a NEM address to receive the share via a signed message from the sending address. Signed message could be done via popular bitcoin wallets such as multibit, bitcoin-qt or blockchain.info.
  10. Bidding recommendation: bidders should consider placing only 1 bid if they want to buy 1 stake and placing the highest bid that they are willing to buy. Since the buying price for all stakes will be equal to the minimum winning bid, there is no risk of over-paying for a stake.
There will be 10 stakes offered in the first test-run auction in about 2 weeks or so (it will be held on Saturday-Sunday frame) and we plan to offer regular auctions every week until close to the official launch. (open Alpha should be released before the auction)
Let me know if you want to be the escrow for the auction, you should follow all the above rules but being able to set the service fee yourselves. The entire service fee will go to the escrow and he will hold the fund for the winning bidders until NEM officially launch.
Source.
submitted by TauMuon to nem [link] [comments]

How to create a bitcoin wallet  Beginners Tutorial  BTC ... Green Address Bitcoin Wallet - Segwit, RBF, 2FA, Multisig and More How to Get Your Coinbase Bitcoin Wallet Address - YouTube KryptonBit Presentation English - YouTube How To Get Free Bitcoins (Tutorial + Links + Application)

Hi I am using multibit as my bitcoin wallet. I will be using money gram to put money into my account. I dont know how to buy bitcoins for myself. On multibit it says you can send coins to someone or request them but it doesn't say to yourself. I don't want to send them to anyone else, just me. I am using bitinstant to transfer funds into bitstamp, but where do I get the wallet address? Where ... Multibit claims valid address is invalid and refuses to send #763. Closed batter opened this issue Oct 18, 2016 · 2 comments Closed Multibit claims valid address is invalid and refuses to send #763. batter opened this issue Oct 18, 2016 · 2 comments Comments. Copy link Quote reply batter commented Oct 18, 2016. I have been using MultiBit the last few days trying to transfer some bitcoin to ... A Bitcoin wallet is as simple as a single pairing of a Bitcoin address with its corresponding Bitcoin private key. Such a wallet has been generated for you in your web browser and is displayed above. To safeguard this wallet you must print or otherwise record the Bitcoin address and private key. It is important to make a backup copy of the private key and store it in a safe location. To prove that you own a Bitcoin address, send a signed message together with the address. Anyone can then use MultiBit HD to verify that the message was signed with the address's private key. From the Tools select "Sign message" Select an address to sign the message in the "Bitcoin address" field. This must be from the wallet and can be obtained by requesting a payment. Enter the message to ... An example is the now-unsupported MultiBit Classic. Random Address Pool Wallets use a fixed-size pool of randomly-generated addresses. Change is sent to the next available empty address, causing the creation of a new empty address to take its place. The best-known example was Bitcoin-Qt, until its key-handling functionality was upgraded.

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How to create a bitcoin wallet Beginners Tutorial BTC ...

If you want to find out more about the tools we have for cryptocurrency investors in our Masters area, see video here: https://moocharoo.ninja/bmm Also try: ... Today I take a look at a more advanced option for mobile wallets: Green Address. In includes things like Segwit addresses, RBF (replace by fee), 2FA (2 factor authentication) and multi-signature ... Bitcoin Adder can help u add your bitcoins instantly to your own wallet. With the Bitcoin Adder you can get an unlimited amount of bitcoin. You can use multiple Bitcoin wallet to get BTC on ... Simple tutorial for beginners about how to create a cryptocurrency wallet and securely back up Bitcoin and Bitcoin Cash funds. BTC.com is a cryptocurrency wa... KryptonBit Presentation In English Whatsapp: 1-6267717931 Skype: jaimemorales77 Email: [email protected] http://facebook.com/officialJaimeMorales http...

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