Bitcoin for Beginners: Purchase, Protect, Mine, and Trade

  • Bitcoin is officially considered an asset by the Internal Revenue Service but it is not considered a true currency. Bitcoin can be used as a payment method and is often referred to as digital money, virtual currency, and crypto currency. Bitcoin is also the transaction network by which you send and receive this digital asset. Acquiring bitcoin, using bitcoin to purchase items, and trading is 100% legal and you can even expect a tax bill on your capital gains. I have spent considerable time researching how to acquire bitcoin, protect my bitcoin, mine bitcoin, and trade. I am writing this article to share what I have found to be reliable and trustworthy vendors and websites engaged in bitcoin.
  • Security and documentation are important and while not exciting, it is where you should begin your bitcoin investing strategy.
    • Install a two factor authentication (Android | Apple | Windows) and turn on two factor authentication for all of the accounts that provide it. This includes email, bank, google drive, one drive, and blogs.
    • Consider a safe place that you can write down and/or print paper wallets to help protect and diversify storage of your bitcoins. (Think home safe or bank safe deposit box)
    • Many internet users do not consider the danger of accessing confidential / financial websites on public computers, work computers, public wifi, or a friends cell phone. As you enter into the high risk / high ROI opportunities of the digital asset bitcoin some rules should be considered. Make certain that you access your accounts over secured wifi and trusted wifi networks. Your personal laptop, PC, tablet, and smart phone should be the only devices used for bitcoin transactions.
  • There are many websites providing services to buy, sell, and transfer bitcoins. Global events in China and Tokyo have increased the risk that a retail customer, investor, and merchant must consider when selecting a bitcoin website.,, and stand out as professional and reliable full service bitcoin websites. Retail consumers, Nonprofits, and Merchants can all benefit from the full line of services available at these websites. This is evident in my personal experience, my hosting companies merchant account, and in the extensive online research that my team continuously reviews.
    • Buy and sell bitcoin, ethereum, bnb, alts here:
    • Accept Bitcoin Payments or Gifts here:
    • Watch your bitcoin transactions here: (All bitcoin transactions are saved to a global transaction log called the blockchain. This is public information and available if you have the ID in question)
    • Import/sweep paper or offline wallet bitcoins into an online wallet here:
    • Contact me directly if you are within the U.S., prefer a paper wallet or hardware wallet, and want to skip the online accounts: Bitcoin @ doshost . net
  • Use to create paper wallets, offline wallets, and to diversify the bitcoin wallets you have so they are not stored in one place.
  • Finally the advanced opportunity to utilize a decentralized exchange (DEX) along with the financial self custody enabled by a secure mobile wallet.

*Updated 5.15.2019

Why North Dakota Has to Embrace the Blockchain


Blockchain is a buzzword. In time, it will fizzle out just like others have.

If that is what you think, I bet you are wrong.

It is seven years since Satoshi Nakamoto published the Bitcoin whitepaper. Investors have so far put a little over $1 billion into blockchain related startups. And the graph is upward looking. About $200 million of that investment has flowed in during the first half of 2016.

What’s more, every sector you focus on, there is a startup working on a blockchain solution. That ranges from finance, health, asset management, agriculture to public administration.

What exactly is special about blockchain?

Blockchain renders trust unnecessary in human interactions.

That is a new reality. It is because of trust that merchants have always shipped from one corner of the globe to the other. It is because of trust that we’ve achieved law and order in our societies. And indeed it is because of trust that civilizations have flourished.

For the most part, however, we’ve exercised that trust through intermediaries. Thus, financial institutions have been the intermediaries between lenders and creditors. Insurance companies are the intermediaries amongst those seeking to pull risks together.

And the government is the intermediary amongst the citizenry of a country.

In turn, the selling of trust has been a very lucrative enterprise. A glimpse at the books of account of financial institutions, for example, will attest to this fact.

But the intermediaries have also often betrayed this trust they hold on behalf of others. For example, the collapse of the banking industry in 2008 was a result of bad investment decisions that bank executives made.

And that led to close to 9.3 million families losing their homes and investments. Unfortunately, in the past, societies haven’t had options to replace the centralized management of the trust.

But that is changing now.

The blockchain is heralding an age when, for example, a small trader in Africa can borrow credit directly from a fellow entrepreneur in the US. And you can purchase a property from a stranger without notaries and lawyers. And all that is possible with little scam risk.

What is the impact of that?

The cost of doing business will go down significantly. That is because the cut that the middle person has been taking isn’t on the budget.

What is the blockchain?

Blockchain is the technology beneath bitcoin. That is the first ever successful decentralized digital currency. But the easiest way to make sense of it is to think of it as a ledger. A continuous record of transactions.

Just like what the commercial banks keep.

Every time you withdraw from your account, the bank makes a debit entry on a ledger. Every time you deposit, the bank makes a credit entry on the ledger. It does the same every time you use your card or take a loan.

And part of this ledger is what you receive as a bank statement. The blockchain is the same in many aspects.

Just like with the bank’s ledger, when you send bitcoins, an entry is made on the blockchain against your public address (a string of alphanumeric). When you receive bitcoins, an entry is also rendered on the blockchain. Thus the blockchain is a ledger that shows who owns what at what time.

But there are major differences between the bank’s ledger and the blockchain.

First, the bank’s ledger is centralized. It is only the bank that creates, maintains and stores it. On the other hand, the blockchain is decentralized. No one entity owns it. It is a property of a network of nodes.

Every node in the network keeps a copy of this ledger. What’s more, all the copies are synchronized in real time.

Secondly, it is accessible for anyone to read and write on the blockchain (especially the public blockchain). But far from what you might think, this doesn’t affect the credibility of the records.

And how does that work?

That is possible because for you to write on the blockchain, you must follow rules entrenched in its core software. You must also do energy intensive work with your computer, which makes it costly to write bad data. Lastly, the entire network must approve your entries.  

Bitcoin is on a public blockchain. Another public blockchain that has grabbed the attention of many is Ethereum.

Satoshi Nakamoto designed the bitcoin blockchain with currency in mind as the primary application. On its part, Ethereum aims to support a broad range of applications.

In May 2016, a Decentralized Anonymous Organization (DAO) on the Ethereum blockchain raised close to $160 million from investors. The DAO is a company with no offices, CEO nor a board of directors. A code guides all its processes, and all shareholders get to vote on every decision.

The other type of blockchains that showed up in the recent past is private blockchains. As the name suggests, you can only read or write on the private blockchain with permission from the owner. It is the opposite of the public blockchain.  

The third type is the consortium blockchain. This is where different players come together and build a blockchain to which each of them becomes an equal node. One of the consortium blockchains is R3Cev, which is a project by over 40 major financial institutions.

Some of the commercial banks behind R3Cev include JP Morgan, Barclays Bank, and Goldman Sachs.

Another blockchain consortium is the Hyperledger. This is a project that Linux Foundation is leading with the support of close to 50 financial institutions and major technology companies. Some of the names supporting that project include IBM, Intel, and Hitachi.

Why should North Dakota care?

Already several states are embracing the blockchain technology. For instance, on 6th July 2016, North Carolina Governor Pat McCrory signed House Bill 289 into law. The new law gives clarity to bitcoin and blockchain businesses.

On 2nd May 2016 Delaware Governor, Jack Markell unveiled a plan to embrace the blockchain. By providing an enabling regulatory and legal environment, the state seeks to attract blockchain companies.

It is the right time to get involved. The world is waking up to the realization that the blockchain should fuel our social, economic and political relationships.

Bitcoin PSA

Public Service Announcement – Buying Bitcoin

1) What Is Bitcoin

A global payment network and a new kind of money.

2) No Really, What Is It?

Bitcoin represents a vote for a new financial system and protocol for data transfer that is decentralized, distributed, trustless, and permissionless. This is an inclusive architecture that levels the playing field globally.

3) But Traditional Technology?

Better, faster, cheaper – BlockChain Technology Amazoned traditional technology

4) How Can I Understand This?

Be a dedicated lifetime learner. This is a new tool and you will not make good decisions without proper education.

5) Should I Buy Bitcoin?

Can you explain what a fork is and when the next one is scheduled? If the answer is no, you need to learn more before buying.

6) Should I Mortgage My House? How Much To Buy?

#LunchMoney that is what you invest, on a weekly or monthly basis, nothing more. Average in over several years so you can sleep and enjoy this beautiful world!

7) Ignore At Your Own Peril.


@SummerBTM is available by appointment! – is excited to share that our Project SkyHook Bitcoin ATM Kiosk is open for business in Grand Forks, North Dakota! Monday through Friday 8am to 5pm ~ by appointment. Please fill out the form below or call 701.203.2002 to request an appointment. Appointments are required and drop-in customers will be asked to visit this website form or call 701.203.2002 to request an appointment.

Bitcoin ATM Kiosk Location: – Daniel Schott
4200 James Ray Dr
Grand Forks, ND 58202


Important information for customers:

  • The purpose of this Bitcoin ATM Kiosk is educational and we hope to provide a safe learning environment for those interested in Bitcoin.
  • Customers that are approved for an appointment will be required to provide; government issued ID, address information, and a phone number.
  • Customers will be required to sign a waiver that they do not intend to use the bitcoin for unlawful activity.
  • Customers should have a Bitcoin wallet on their phone or a paper wallet. In the future we will have  offline Crypto Cards available for purchase.
  • Please provide several Dates and Times in the following form so that we can best service your request to purchase bitcoin.
  • Max transaction amount is US $100
  • The cost for bitcoin is Bitstamp quote + 1%

What’s missing in our world of digital currency?

A currency that is backed up by something substantial to help support it during the bad times, and to be the gold standard during the good times.




Accept Bitcoin Payments on Your Corporate Website

Bitcoin eCommerce & Bitcoin POS Systems

Executive Summary from Digital Merchant Consulting

A growing number of large companies and 30,000 mid- to small-sized firms now accept Bitcoin electronic currency as an alternative to the U.S. dollar. Among these are household names including,, Kings College, Dell Computer, eBay, Dish Network, 1-800-FLOWERS, Newegg and Sir Richard Branson’s Virgin Group. Further bolstering the Bitcoin economy, the U.S. government auctioned and sold nearly 30,000 Bitcoin with a market value of about $16 million in June, 2014.

What is Bitcoin?

Bitcoin is a decentralized electronic currency produced by an international network of computers. No bank or government controls its value or its creation; it has no central bank. The current value of all Bitcoins in the market totals about $6.45 billion (July, 2014), which increases each day as new Bitcoins are created through that network.

Bitcoin Is Ideally Suited for eCommerce

Customers find it convenient and secure. They have no need to login and expose their user ID and password, nor to enter a credit card number into new and unfamiliar websites. For those who do not have bank accounts, (about one in every 12 Americans according to Forbes Magazine), [4] Bitcoin provides the opportunity to purchase online. Bitcoin currency wallets are free, secure, and users cannot be surprised with an overdraft or other fees.

Vendors find that customers using Bitcoin often spend substantially more [2] than traditional purchases made with credit and debit cards – reportedly 30 to 50 percent more in some cases. [2] Because no bank or credit card company regulates the transaction between buyer and seller, merchant transaction fees fall to zero, giving vendors an opportunity to cut the cost of sales significantly. Bitcoin provides protection against fraud and charge-backs. It makes international payments fast and simple. Finally, the expense and administration involved with Payment Card Industry (PCI) data security standards compliance are moot, for there is no “payment card” involved in the transaction.

E-commerce, the “sweet spot” for Bitcoin, is expected to continue increasing as a percentage of all commerce. The U.S. Census Bureau [1] estimates that Internet sales accounted for more than $71 billion in the first quarter of 2014, which is a 15 percent increase from the year prior. Forecasts from eMarketer [3] predict worldwide electronic sales will reach $1.2 trillion in 2014, then nearly double to 2.07 trillion by 2017.

Today, with the advent of Bitcoin ATM’s [5] and POS systems, consumers can buy from major national retailers and even food truck vendors, making Bitcoin an ever-growing method of payment.

Digital Merchant Consulting

These e-commerce trends and the growing acceptance of Bitcoin raise the question for many CFO’s at B2B and B2C companies …

How can I accept Bitcoin?

Digital Merchant Consulting, (DMC), a division of DOSHOST.NET, provides consulting and implementation services to add a robust and secure Bitcoin payment method to any existing e-commerce website.

DMC, through its partnership with Bitpay, delivers a robust and proven solution known as an API – an application programming interface. The API seamlessly connects the services of Bitpay to your web site so with each Bitcoin transaction you receive the full value of the sale: If you charge one dollar, you receive one dollar with instant conversion to U.S. currency, with bank deposits made daily and with no transaction fees.

DMC’s solution includes …

  • A payment gateway with seven ready-made libraries that scale to accommodate both domestic and international sales.
  • More than 20 plug-ins that integrate with a wide range of shopping carts and e-commerce systems.
  • Full functionality for mobile users working from smartphones and tablets.
  • A merchant’s ability to accept Bitcoin in 150 different currencies, and to receive settlements in nine currencies via direct bank deposit, vastly simplifying international sales.
  • Conversion from Bitcoin to U.S. dollars occurs instantly after each purchase to avoid the risk of exchange rate fluctuation.
  • Cash from sales is transferred to your bank account daily and appears in the account after two business days. Settlements are made with as little as $20.00 in sales each day.
  • Quickbooks integration allows exporting sales data from Bitpay directly into Quickbooks for subscribers to the Business and Enterprise level plans.
  • For retail brick and mortar establishments a POS application accepts Bitcoin for any retail point-of-sale system that can access the Internet.
  • For mobile sales reps and field service personnel, the application accepts Bitcoin payments through smartphones and tablets running Apple IOS or Android operating systems.
  • Options are available to retain some or all sales revenue in Bitcoin.

Plan Options

In addition to three levels of service summarized below, DMC offers a free starter plan for companies wishing to test the system. The starter plan levies a one percent transaction fee on each sale. However the full-service plans outlined below charge no transaction fees. Your monthly cost is fixed and understandable, while you benefit by accepting Bitcoin as an alternative form of payment.

Professional Business Enterprise
$30 / month $300 / month Contact DMC
Free, instant conversion to dollars Free, instant conversion to dollars Free, instant conversion to dollars
Daily bank deposit Daily bank deposit Daily bank deposit
Retail POS application Retail POS application Retail POS application
22 eCommerce integrations 22 eCommerce integrations 22 eCommerce integrations
Email support Phone & email support Priority phone & email support
Up to $10,000 daily sales Up to $100,000 daily sales Unlimited daily sales
Quickbook sales integration Quickbook sales integration
Dedicated account manager
VPN access
Enterprise engineering & integration services available

Learn More

Digital Merchant Consulting has deep knowledge of eCommerce and the Bitcoin economy. Further, with years of technology experience through its parent, DOSHOST.NET, the company has substantial resources to help in most any kind of technology venture. Now, through the relationship with Bitpay, DMC is uniquely positioned to assist you in adding Bitcoin payment capabilities to your eCommerce site. We’ll provide in-depth consulting, advice and implementation services required to bring you “live” so you can begin taking advantage of this growing trend in electronic commerce. For more information, please visit, or contact us directly.

Business: 701-203-2002

Email: info@DOSHOST.NET

Author: Allen R

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