From a newbie who got introduced to bitcoin because I wanted to buy 'something' that only accepts bitcoin .. I didn't like the experience at all and I'm a computer programmer by profession so I'm comfortable with technology.
Here's my initial experience - I went about buying bitcoin, researched about wallets then read about warnings people gave - I don't know whether they are common threats / outdated info :
- Use paper or cold storage or else my bitcoins might get stolen - use a LiveCD, offline transaction signing, another PC/Laptop that has never been connected to the Internet
- when you send to someone, better create a new wallet 'offline' wallet since the keys have now been used (I believe Hot Key is the term)
- Oh have a 'Change Address' or else your bitcoins might get lost
- Never store your bitcoins with Exchanges in case they steal it or worst close up like Mt Gox
In the end, what I did was buy the exact bitcoins I needed, send to my phone wallet then paid. Oh and by the way, here in Australia, in order to buy bitcoins I needed to verify my identity to an exchange - as in send driver's license info, a utility address, passport etc (not sure if this is the case with other countries).
Anyway, I saw bitcoin as a good investment so bought some when they were 700 Australian dollars - here are the steps I did based on the recommendations I've read :
- download Tails and create Live USB
- download offline bitaddress from github
- disconnected my printer from Wifi, looked for my USB printer connector to print the paper wallets
- did all transfers from the bitcoin exchange to my paper wallet via Tails Live USB in case my windows PC has some sort of bitcoin stealing malware
- store my paper wallet never to be used until the day I decide to cash out
- all this on top of having to join an exchange in the first place
You can say that there's a similar 'bottleneck' with banks - that they also verify your details - but for banks, most working people already have them set uo to get their salary.
OR I can ignore and just use wallets as normal, but just read the internet and all those warnings are always there.
I also invest in stocks/funds using an online broker, using my home/work PC and my phone. I never had to worry about all these "offline transactions/offline storage/needing LiveUSB" with PayPal or CC.
If I ever have my CC get stolen and used illegally I can revert them with my bank.
My PayPal that I used for eBay buyers that sent me wrong / broken products I've gotten my money back.
My money is safely stored with my bank - yeah there's a small possibility banks can close but some of my money is insured.
So for the near future, I will keep using PayPal / CC and just use bitcoin as an investment (again in a paper wallet generated via Tails LiveUSB while offline - printed with an offline printer and stored several copies around like the days before the Internet was invented).