Cryptocurrency 101 - class session #1

(go here for session #2)

This post plus several that follow will comprise a self learn course on cryptocurrencies. The course method is learn by doing, plus read a bit. The class sessions give you assignments to do in the real world with real money.

Note:  the #1 cryptocurrency (15 times as big as #2) is bitcoin.   So the course focuses on bitcoin.

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CLASS SESSION #1:  

(1a) Set up a bitcoin wallet on blockchain: do this by going to the website https://blockchain.info. Near the top of the page click "wallet", this will take you to the wallet page. On the wallet page click "start a new wallet". This will take you to to "new wallet" page. Supply the requested information. Follow their instructions.

(1b) Buy $100 worth of bitcoins: do this by following one of the below (or other):

• go to https://blockchain.info. On the right side of the page click "cash to coins". Follow the instructions, including going to Wells Fargo or Bank of America and making the $100 deposit.   
• OR  go to localbitcoins.com. Follow their instructions and create an account (note: when you establish this account the site will at the same time give you a localbitcoins wallet). Look at their listings for "buy bitcoins online", or "buy bitcoins with cash". Select one of the ads, follow the instructions and arrange a deal with a seller. Note: after you arrange a deal with a seller, localbitcoins requires that the seller put the bitcoins he's selling you into their escrow account. Then you can pay cash to the seller and be assured that he won't just take your money and run. Once the seller sends confirmation to localbitcoins that you have paid, then localbitcoins will put the escrowed bitcoins to your localbitcoins wallet.
• OR go to coinbase.com. Follow their instructions and create an account. Further follow their instructions and verify your email. Further follow their instructions and set up things so that they can link your coinbase account to one of your bank accounts (don't worry, coinbase is considered trustworthy). Once your banking account is linked (this will take maybe a week) then return to coinbase.com and login. On the left side of the home screen click "buy/sell". In the "buy amount" box enter 0.1, then adjust this number up and down until you zero in on a purchase value amount of $100. Then click on the "buy bitcoin" button. Note: Coinbase will levy a 1% fee for the purchase.

(1c) Transfer some bitcoins between your wallets: If you don't already have more than one online wallet, then create another. Do this by opening an account with localbitcoins.com or with coinbase.com. There are many others you can choose as alternatives - some trusted, some less than trusted. Since you're dealing with only $100 be adventurous! 

Copy the public key of the wallet you want to transfer Bitcoin into. Go to one of your other wallets with a non-zero bitcoin balance and follow the website instructions for "transferring bitcoin" or "sending money". Put in the request to transfer $xx worth of your bitcoin. At the appropriate place, paste in the public key that you copied earlier. Complete the transaction.

After 15 minutes or so, verify the bitcoin transaction has been completed. Do this by checking your balances in the wallets that were involved. Note: there may or may not have been a small miners fee charged for making the transaction.

Repeat the above process as needed and transfer the balances of all of your wallets into your blockchain.info wallet (considered the safest of all online wallets).

(1d) Read some basics on how bitcoin and other cryptocurrencies work: 

• https://blockchain.info/wallet/bitcoin-faq, 
• http://www.coindesk.com/information/what-is-bitcoin/
• http://www.coindesk.com/information/bitcoin-glossary/
• weusecoins.com

(1e) Use blockchain.info to check the balance and transactions of a wallet:  do this by selecting one of your wallets and copying its public key. Go to blockchain.info home page and enter the copied key into one of the search boxes. Hit enter and the webpage will list the transactions and current balance of that wallet.

(1f) Read some cryptocurrency news each day: http://www.coindesk.com/news/

---------------  end of class session #1---------------

(go here for session #2)

to be covered in class sessions to follow:

• buy stuff online with bitcoin
• create a paper wallet
• buy crypto stocks with bitcoin
• buy and trade various altcoins (cryptocurrency alternatives to bitcoin)
• sell some bitcoins
• realtime tracking of bitcoin value and trading exchange rates, and of altcoins