We at SiliconANGLE have been following the Bitcoin market and community for a while now and with each jump in valuation and press cycle comes new blood rushing in like a tide. As a result of new people entering the scene there’s also the potential that more predatory elements of the Internet will take advantage of their naivety.

We went to Mark Hopkins, the founding editor of SiliconANGLE, and we put together a shortlist and guide for people new to the market. Much like any other budding market, getting in without getting in over your head is about sticking to honest, low-risk behaviors.

1) Buy bitcoin from trusted sites. Don’t use an exchange. That means use LocalBitcoin and do an in person transaction, or use something like BitStamp or Coinbase for repeat, volume usage.

2) Don’t buy mining equipment. You’re not ready.

3) If you must buy mining equipment, seek out a trusted friend / expert to guide you to a mining contract seller. Don’t just buy equipment off Craigslist or mining contracts from Google searches or Ebay sellers. You will get scammed.

4) Use a trusted wallet service. Don’t put it on your phone using that wallet you found in the Android store. Use a big name wallet like Mycelium or Blockchain.info.

Follow those tips, and you’ll stay mostly out of trouble.

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Mining and exchanges

Right now mining and exchanges themselves feels like a powerful source for making money.

Bitcoin mining uses expensive equipment and exists in a sea of extremely complex technology. Navigating the server market right now is filled with a culture that’s confusing enough that even hardcore geeks with a lot of research under their fingertips have been scammed.

Bitcoin valuation is pretty volatile and these shifts can be taken advantage of by people who are willing to play exchanges like a stock market. Of course, this also comes with a great deal of risk exactly like playing any market. For the average user, especially a beginner, exchanges are the wild west.

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Spending bitcoin

You may be interested in Bitcoin because it’s value and popularity is rising; but bitcoins do have a very real function as money and in fact may be the “future of money.”

The above certainly covers getting bitcoins easily enough–and the rules for spending them are even easier. Numerous merchants have been signing up with well known services to exchange goods for bitcoins. Look for people working with well known bitcoin processors such as BitPay and Coinbase (there are a few others) and check up on them on Google for scam warnings.

BitPay is already putting up a directory of merchants and services who take bitcoins that could be a good way to find a place to spend your gains.

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