Bitcoin at $ 763.82 according to Bitstamp

The coinbase site won't let me verify my identity.

Well, guess that's as far as I'll get in this timeline.

Wish I knew why Circle didn't sell it anymore. It is stupid. The verification may take time contact their support if you have a problem they are very helpful

Do I still need a wallet like "bitcoin core" when I buy through Coinbase?

Not unless you want to. Coinbase puts it in a wallet for you. Suggested you keep your bitcoins elsewhere, though. In case coinbase gets hacked/terminated for whatever reason.

>Suggested you keep your bitcoins elsewhere, though

Do I need one of the wallets in pic related for that?

Or can you just store them in a standalone file on a flash drive or something?

Can you encrypt at least on coinbase?

sry 4 noob questions

First, bitcoin don't really exist. They're just a number next to an address in a huge "file" called the blockchain which is globally distributed and constantly being added to.

To own bitcoins means to control the private keys (or "passwords") that are required by the network to authorize the transfer of those coins to another address. The network does not give a shit about ANYTHING except whether or not you know the password. Yes? Send away. No? Fuck off. End of story. This is what makes bitcoin so powerful: you are in complete control of your own money.

Wallets manage those "passwords" for you and communicate with the network when you want to spend your bitcoin.

When you buy bitcoin from an exchange (like Coinbase) they will show you a balance but those are not actually your bitcoins. Coinbase has the "passwords" and so by the rules of the network Coinbase is the rightful owner of those bitcoins. Period, end of story.

Now Coinbase being a trustworthy company, if requested, should send those bitcoins wherever you ask - but they don't have to. If they go out of business, are shut down, or get hacked you are fucked. This happened back in 2013 when MtGoX was hacked and $500m vanished and more recently at Bitfinex where $70m was stolen.

This is why you should never keep bitcoins in "custodial" wallets or wallets where you don't actually own the private key. By the rules of bitcoin you own absolutely NOTHING.

I personally would recommend Mycelium for mobile and Electrum for desktop.

Both these wallets will encrypt your private keys. You'll be prompted for a password/pin whenever trying to spend the coins. Both will also generate a "seed phrase" which can be used to recover the bitcoins should your phone/computer be stolen or break. Create a paper backup of this and store it in a safe location.

Thanks for this info.
I've been reading up, and this matches, summarizes, and expands my knowledge so far.

My practical question is this: can I safely buy from Coinbase, and then actually assume full ownership by storing the actual meaningful part of the bitcoins in a wallet like Mycelium and Electrum?

Also, can you use Mycelium on mobile and Electrum on desktop simultaneously for the same bitcoins?

Yes. After you purchase them from Coinbase just send them to your wallet and you'll have full control.

Modern bitcoin wallets are "deterministic" wallets. They start with some random piece data (represented in "human language" by the seed phrase) and then use that data to generate new addresses on the fly, as you need them. This allows you to control 1000+ different addresses from a single wallet application. This allows you to recover every single address, no matter how many, with a single seed phrase.

If you start importing arbitrary addresses not in this deterministic set then your seed phrase is useless and you won't be able to recover the coins in the event of hardware failure or theft.

For this reason it's probably best to avoid "simultaneous management" and stick with a single wallet application instead - though both wallets I listed should support this functionality if absolutely required.

Love that seed shit. It's premium.

If I buy from a bitcoin ATM will I get them at the same price that coinbase offers?

>Electrum for desktop
Apparently, with Electrum the block chain is stored on a server somewhere instead of on your computer.

Doesn't this generate the same problem of "if they go out of business, are shut down, or get hacked you are fucked"?

(also, is it recommended to keep the wallet on an external drive, and keep that drive unplugged from the internet whenever you're not using it?)

(also also, is this a sound investment?)

Wtf, how do you even launch Electrum?

Also, does simply dragging the "wallets" folder to a flash drive save and secure it there?

There is always an up charge for in person transactions due to the risk

Srsly, how do you launch Electrum?

NoCoiner here looking to buy £100 in BTC, where should I buy the coins from, BitPanda? UK here

People have been recommending coinbase.

Apparently that and "circle" (now defunct) are where all the other resellers get theirs.