Edit: I see Hamilton already answered everything, but I've already typed so much, here is it anyway ^^
The same address can be shared in multiple wallets. For every address there is a private key, which allows you to spend the Bitcoins on the address. (The Bitcoins are always on the blockchain, not in your wallet) You can have this key at multiple places.
E.g. You wouldn't run around with $100.000 in your pocket all the time (unless you are filthy rich and don't care about them being lost).
You could do that, receiving is fine (you need no connection to do that). But for spending you will have to use some client.
If you want the most secure way (but probably not easiest), you could try the Armory Offline wallet (spare offline laptop required).
(btw: don't buy Bitcoins at ebay)
Bitcoin-qt needs to download the whole blockchain, so maybe it's not the best one to try out Bitcoin.
Electrum, Multibit or the online-wallet blockchain.info are good choices for small sums.
1. A *client* and a *wallet* are one in the same, in that I can't use Coinbase as my client, but have Electrum as a wallet for the same address... I need to pick either/or, correct?
The same address can be shared in multiple wallets. For every address there is a private key, which allows you to spend the Bitcoins on the address. (The Bitcoins are always on the blockchain, not in your wallet) You can have this key at multiple places.
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2. I have to choose one device to download the wallet to. Anyone who hacks, steals or otherwise has access to my device would then have access to my Bitcoins, unless I take them off the device and put them in "cold storage" (which is the same thing as "paper wallet.)
Yes, everyone with access to the private keys, can spend the Bitcoins.Quote
3. Paper wallets/cold storage is only truly safe if every trace of "private keys" is wiped from the device they were originally created on, correct?
correct.Quote
4. Best way to get my "feet wet" would be to choose a wallet and have someone send me a minimal fraction of Bitcoins, right?
yes, that's a good way to learn.Quote
5. My coins are vulnerable to attack/disappearance anytime I'm using a client/wallet... which is why cold storage/paper wallet is always best - if I have no intent to spend. Am I on track?
yesQuote
But now... here's where my heart starts thumping in frustrated confusion:
1. Clients get robbed/hacked more and more recently, and it seems likely that this will continue being an issue because there can never be 100% security when you're entrusting a client with your wallet... SO... why would anyone bother using a client, to begin with? Shouldn't I just stay on the safe side by skipping online storage and go directly to paper wallet? (side note - I'm planning to put in very minimal amounts initially, until I get the hang of the whole system.)
Online and local wallets are more comfortable to use, so you can use it like your real life wallet for day-to-day use.1. Clients get robbed/hacked more and more recently, and it seems likely that this will continue being an issue because there can never be 100% security when you're entrusting a client with your wallet... SO... why would anyone bother using a client, to begin with? Shouldn't I just stay on the safe side by skipping online storage and go directly to paper wallet? (side note - I'm planning to put in very minimal amounts initially, until I get the hang of the whole system.)
E.g. You wouldn't run around with $100.000 in your pocket all the time (unless you are filthy rich and don't care about them being lost).
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2. Is there a way to skip having a client and go straight to offline wallet? (sorry if I sound repetitive - I'm just trying to wrap my head around all of this via different wording.)
You could do that, receiving is fine (you need no connection to do that). But for spending you will have to use some client.
If you want the most secure way (but probably not easiest), you could try the Armory Offline wallet (spare offline laptop required).
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3. I am soooooo lost re: private keys. All the articles I've read, discussions I've followed and videos I've watched have still rendered me LOST. Say John Doe sends me a tiny fraction of a BTC to help me get started. Now my wallet generates a key for the address John sent funds to. I decide to add funds to the wallet by buying BTC from someone on eBay... would I have the seller send the funds to the exact same address? And if so - would I then get another key for that address to replace the first, or would it be two keys for the one address, or would the key remain the same no matter how many funds add up in that address? And then... why would anyone ever need more than one or two addresses? (I can see having one for saving and one for using/trading/sending/selling, etc... but why do some people have numerous addresses?)
You can send it to the same address, however using multiple adresses increases your anonymity.(btw: don't buy Bitcoins at ebay)
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4. If anyone/everyone can see how much BTC each address has, this means that every time you give an address out for people to send funds to, they can go look up how much BTC you already have... right? Isn't that like opening your wallet in front of the cashier and pouring your $ out on the counter for them to see? Or... does that kinda answer the previous question (duh, think I just answered the last question on my own, right? Hence... why people have numerous addresses?!?)
yes, you did Quote
5. Please, please... someone just tell me which client/wallet to get started with. The goal is to get it offline, but I really need to get a feel for the system now. I thought I read that Coinbase is very vulnerable to hacking, other issues and potential future regulation. I thought Electrum sounded like a perfect alternative, since it seems easier to go offline with. Bitcoin QT sounds good - maybe - but I'm overwhelmed with information at this point.
Any/all advice and help is welcome and wanted!
Thanks!
Any/all advice and help is welcome and wanted!
Thanks!
Bitcoin-qt needs to download the whole blockchain, so maybe it's not the best one to try out Bitcoin.
Electrum, Multibit or the online-wallet blockchain.info are good choices for small sums.