- Ported main section from LnBook Ch 02 regarding mnemonic phrases
- Ported main section from LnBook Ch 02 regarding acquiring acquiring bitcoin as it is more succinct.
@ -125,6 +125,27 @@ For the purposes of this book, we will be demonstrating the use of a variety of
When Alice runs Mycelium for the first time, as with many bitcoin wallets, the application automatically creates a new wallet for her. Alice sees the wallet on her screen, as shown in <<mycelium-welcome>> (note: do _not_ send bitcoin to this sample address, it will be lost forever).
==== Mnemonic Words
A modern bitcoin wallet will provide a _mnemonic phrase_ (also sometimes called a "seed" or "seed phrase") for Alice to back up. The mnemonic phrase consists of 12-24 English words, selected randomly by the software, and used as the basis for the keys that are generated by the wallet. The mnemonic phrase can be used by Alice to restore all the transactions and funds in the Eclair Mobile wallet in the case of an event such as a lost mobile device, a software bug, or memory corruption.
[TIP]
====
The correct term for these backup words is "mnemonic phrase". We avoid the use of the term "seed" to refer to a mnemonic phrase, because even though its use is common it is incorrect.
====
[[mnemonic-storage]]
==== Storing the Mnemonic Safely
Alice needs to be careful to store the mnemonic phrase in a way that balances the need to prevent theft and accidental loss. The recommended way to properly balance these risks is to write two copies of the mnemonic phrase on paper, with each of the words numbered as the order matters.
Once Alice has recorded the mnemonic phrase, she should plan to store each copy in a separate secure location such as a locked desk drawer or a fireproof safe.
[WARNING]
====
Never attempt a "DIY" security scheme that deviates in any way from the best practice recommendation in <<mnemonic-storage>>. Do not cut your mnemonic in half, make screenshots, store on USB drives or cloud drives, encrypt it, or try any other non-standard method. You will tip the balance in such a way as to risk permanent loss or theft. Many people have lost funds, not from theft but because they tried a non-standard solution without having the expertise to balance the risks involved. The best practice recommendation is carefully balanced by experts and suitable for the vast majority of users.
====
[[mycelium-welcome]]
.The Mycelium Mobile Wallet
image::images/mbc2_0101.png["MyceliumWelcome"]
@ -140,21 +161,19 @@ Alice is now ready to receive funds. Her wallet application randomly generated a
Alice is now ready to start using her new bitcoin wallet.((("", startref="GSquick01")))((("", startref="Wquick01")))
[[getting_first_bitcoin]]
==== Getting Your First Bitcoin
[[acquiring-bitcoin]]
==== Acquiring Bitcoin
((("getting started", "acquiring bitcoin")))The first and often most difficult task for new users is to acquire some bitcoin. Unlike other foreign currencies, you cannot yet buy bitcoin at a bank or foreign exchange kiosk.
There are several ways Alice can acquire bitcoin:
Bitcoin transactions are irreversible. Most electronic payment networks such as credit cards, debit cards, PayPal, and bank account transfers are reversible. For someone selling bitcoin, this difference introduces a very high risk that the buyer will reverse the electronic payment after they have received bitcoin, in effect defrauding the seller. To mitigate this risk, companies accepting traditional electronic payments in return for bitcoin usually require buyers to undergo identity verification and credit-worthiness checks, which may take several days or weeks. As a new user, this means you cannot buy bitcoin instantly with a credit card. With a bit of patience and creative thinking, however, you won't need to.
* She can exchange some of her national currency (e.g. USD) at a cryptocurrency exchange
* She can buy some from a friend, or an acquaintance from a Bitcoin Meetup, in exchange for cash
* She can find a _Bitcoin ATM_ in her area, which acts as a vending machine, selling bitcoin for cash
* She can offer her skills or a product she sells and accepts payment in bitcoin
* She can ask her employer or clients to pay her in bitcoin
[role="pagebreak-before"]
Here are some methods for getting bitcoin as a new user:
* Find a friend who has bitcoin and buy some from him or her directly. Many bitcoin users start this way. This method is the least complicated. One way to meet people with bitcoin is to attend a local bitcoin meetup listed at https://bitcoin.meetup.com/[Meetup.com].
* Use a classified service such as pass:[<a class="orm:hideurl" href="https://localbitcoins.com/">localbitcoins.com</a>] to find a seller in your area to buy bitcoin for cash in an in-person transaction.
* Earn bitcoin by selling a product or service for bitcoin. If you are a programmer, sell your programming skills. If you're a hairdresser, cut hair for bitcoin.
* ((("Coin ATM Radar")))((("ATMs, locating")))Use a bitcoin ATM in your city. A bitcoin ATM is a machine that accepts cash and sends bitcoin to your smartphone bitcoin wallet. Find a bitcoin ATM close to you using an online map from https://coinatmradar.com/[Coin ATM Radar].
* ((("exchange rates", "listing services")))Use a bitcoin currency exchange linked to your bank account. Many countries now have currency exchanges that offer a market for buyers and sellers to swap bitcoin with local currency. Exchange-rate listing services, such as https://bitcoinaverage.com/[BitcoinAverage], often show a list of bitcoin exchanges for each currency.
All of these methods have varying degrees of difficulty, and many will involve paying a fee. Some will also require Alice to provide identification documents to comply with local banking regulations. However, with all these methods, Alice will be able to receive bitcoin.
krupawan5618
3 years ago
committed by