Bitcoiner’s Roadmap

Bitcoin can be very overwhelming and hard to grasp, especially for beginners. Therefore, I have created a straightforward roadmap with actionable steps you can take to enter or progress in the Bitcoin universe. Although each person’s journey may differ slightly, and motivations vary, I believe that sharing this roadmap can help you accelerate the learning process and avoid common pitfalls.

Remember, you do not need to follow the order of steps strictly. This sequence is based solely on my personal experience and what I consider a natural progression. Feel free to navigate between steps as needed.

I will continue to update this guide over time to keep it current. I would appreciate it if you shared it with your peers, and consider donating a few satoshi or buy me a coffee to support my work. I am also open to feedback—if you would like to add something or share your journey, please contact me via X, email, or LinkedIn.

Last Update: May 17, 2024

Stage 0: Skeptic (Nocoiner)

You’ve probably heard about Bitcoin but never really paid attention. You might be skeptical, questioning why it even exists in the first place. Perhaps you’ve dismissed it as a Ponzi scheme destined to collapse or merely a tool for fraud, as often labeled by some politicians. If this sounds like you, I encourage you to consider the following.

Open Yourself to the Possibility That You Could Be Wrong

There is nothing wrong with having an opinion; the problem arises when we don’t question it enough.

We are just people and thus often wrong. It is natural because we can only absorb a tiny fraction of all the information that surrounds us. Therefore, our perception of the world is only a more or less biased and extremely simplified model of reality. It helps us navigate the complexities of the world, but it might also lead us in the wrong direction if we do not regularly reassess it.

Listen to the Arguments Instead of the Emotion

If you’re open to the idea that you might be mistaken about Bitcoin, I recommend watching these videos.

I hope that after watching these videos, you’re at least open to learning more about this technology. Trust me—investing time into studying Bitcoin can yield high returns and the sooner you start, the more you can gain. I believe that eventually, everyone will use Bitcoin as universally as they use the Internet today—constantly. Of course, I might be wrong with my assumptions, but what if I’m not?!

Stage 1: Beginner

You’ve just heard about Bitcoin from a friend or attended a talk about this technology and find yourself with no prior knowledge. Perhaps you’re open to learning more, or maybe you’re considering adding some bitcoin to your portfolio. It’s common to feel FOMO (Fear of Missing Out) at this stage, accompanied by confusion and overwhelm. If you’re feeling lost and unsure where to start, don’t worry. Keep calm, take a deep breath, and follow these next steps.

Join a Local Community

One of the most effective ways to immerse yourself in the Bitcoin space is by joining a local community. Connecting with individuals who are further along in their Bitcoin journey can provide invaluable guidance and support. Community members can also help protect you from fraud—never hesitate to seek their opinions if you’re unsure about something.

To find nearby Bitcoin enthusiasts, ask a friend involved in Bitcoin or visit BTCMap Communities. If there isn’t a community in your area, consider starting one. A great resource to explore this option is TwentyOne.World.

Read a Book, Listen to a Podcast, Watch a Video

Explore the recommended resources on this site, including books, podcasts, and videos. As a starting point, I highly recommend to read The Bitcoin Standard by Saifedean Ammous. It’s accessible for beginners and covers the essential concepts you need to understand.

Accept that learning about Bitcoin is a deep and complex journey—it’s a true rabbit hole. There’s no way to fully grasp all its aspects in just a day, a week, or even a year! Don’t feel overwhelmed or discouraged; you don’t need to understand everything aspect of Bitcoin to start using it. Take your learning one step at a time.

Get Your First Satoshi

The best way to truly grasp the potential of Bitcoin is to experience it firsthand. To begin, you’ll need to install and initialise your first Bitcoin wallet. For those new to Bitcoin, I recommend starting with custodial wallets like Wallet of Satoshi or Blink Wallet. These wallets are user-friendly and perfect for conducting your initial transactions. To help you understand how these apps work, here are some tutorials:

If you plan to invest more substantial amounts, say $200 or more, it’s wise to begin exploring self-custody solutions and hardware (cold) wallets. These provide greater security for your assets and are essential for serious users.

To acquire some bitcoin, you can either buy it or earn it. A simple way to start is to ask in your local community if anyone is willing to engage in a peer-to-peer (P2P) transaction, or you can look at this page for other buying options. Initially, you don’t need to worry too much about KYC; just purchase a few sats to experiment with and start your journey.

Follow People

Use social media to build your network of influence. Following inspiring individuals can offer valuable insights and updates that deepen your understanding of Bitcoin. Below this link, you can find a list of people I recommend following.

Stage 2: Intermediate

By now, you likely have a basic understanding of what Bitcoin is all about. As your confidence grows, you might find yourself holding some bitcoin, whether purchased through a crypto exchange or obtained from a friend. At this stage, you may be wondering about the best ways to manage and use your bitcoin effectively.

Explore Self-custody

Bitcoin was designed to function as peer-to-peer (P2P) digital cash—a new form of money that is open-source, decentralised, and resistant to censorship. To truly own your bitcoin and be the sole operator of your funds, you need to understand how self-custody works and accept the responsibilities it entails. This process may seem daunting at first, but with time and practice, you’ll become more comfortable managing it.

Buy Hardware Wallet

Hardware wallets are essential for securely accessing your funds without the risk of exploitation by remote attackers. Their primary function is to store your seed and private keys within a device that never connects to the internet, essentially reducing the risk of hacking and unauthorised access to nearly zero.

I recommend using Trezor products, as this company is well-established and has a proven track record. All their code is open-sourced, and their fund management application, Trezor Suite, features a very user-friendly interface.

Secure Your Seed

The seed phrase acts as the master key to your assets. In the standard setup, whoever owns the seed has access to the assets. For its protection, do not store it digitally. Instead, keep it physically written on durable material that can withstand fire and water damage (see recommended seed backup solutions). Ensure that you are the only one with access to it. Remember, properly safeguarding your seed is the cornerstone of self-custody and should never be underestimated.

Set Saving Strategy

Bitcoin’s design includes a capped supply of 21 million coins (2.1 quadrillion satoshi), making it a scarce asset. This scarcity is likely to cause its price to increase over time, making bitcoin an excellent asset for savings. Just like with traditional savings, it is crucial to have a clear strategy and to avoid making impulsive decisions driven by emotions, which typically lead to losses.

If you have a stable income, one of the best strategies to adopt is known as Dollar Cost Averaging (DCA). This approach involves consistently purchasing bitcoin at regular intervals with the same amount of money, regardless of its current price. This method helps mitigate the effects of market volatility and, over a sufficiently long period (such as four years or more), greatly reduces the likelihood of incurring losses. Additionally, there are options to automate this process, allowing you to invest regularly without worrying about timing the market.

Stage 3: Advanced

You already have a good setup in place and are thinking about ways to further improve it, as your allocation in Bitcoin will likely grow naturally alongside the confidence gained from intensive learning.

Increase Privacy

Bitcoin itself doesn’t care who uses it. It is a neutral technology. However, various parties are investing a lot into identifying users of the network. These parties can include governments, data analysis companies, or even a nosy neighbours.

Bitcoin operates on an open ledger visible to anyone with internet access. While this transparency is crucial for verifying that all parties adhere to the rules, it also poses privacy challenges.

Fortunately, there are several ways to enhance your privacy:

Purchase Bitcoin without undergoing Know Your Customer (KYC) checks.
Use unique addresses for each receiving transaction.
Connect over the Tor network to anonymise your interactions.
Utilise technologies like CoinJoin and Coin Control to further obscure transaction details.

Inheritance planning

No one lives forever, and while it may scare you, it’s crucial to consider what will happen if you pass away or are unable to access your funds due to reasons like complete paralysis or amnesia. Although you might not be able to enjoy your hard-saved bitcoin, ensuring that your loved ones can benefit from it is a responsible step. You certainly don’t want to be remembered as someone who possessed wealth but failed to pass it on to their closest.

Since Bitcoin operates without a central authority, the inheritance process is inherently more complex, yet feasible. There are strategies available that allow you to establish a secure setup, ensuring that your assets are passed on without compromising your sovereignty or risking unauthorised access.

For comprehensive guidance on creating a foolproof plan, I recommend the book Cryptoassets Inheritance Planning by Pamela Morgan. It provides essential strategies to securely and effectively pass on your digital assets.

Run Your Bitcoin Node

Running your own Bitcoin node offers numerous benefits—not only for you but for the entire network. By operating your node, you can verify your transactions independently without relying on third-party nodes, enhancing your privacy. Additionally, you contribute to the network’s decentralisation, support the overall resilience of the system, and can participate in governance by choosing which Bitcoin software version to run. Lastly, managing a node provides a valuable learning opportunity about the inner workings of Bitcoin.

Explore More Advanced Topics

Second Layer Solutions (Lightning and Liquid Networks): Enhance your understanding of how to use second layers for everyday transactions by using a Lightning network wallet. Consider running your own Lightning node to delve deeper into this technology.
Bitcoin Scripting: Learn how smart contracts operate over Bitcoin and explore the possibilities of Bitcoin scripting to understand the capabilities beyond simple transactions.
Bitcoin Mining: Gain insights into the mechanics and business aspects of Bitcoin mining. Understanding this foundational element can provide a deeper appreciation of the network’s security and operational nuances.
Using Bitcoin in Corporate Structures: While using Bitcoin as an individual may seem straightforward, employing it within complex ownership structures presents unique challenges. Explore multi-signature wallets, legal requirements, accounting practices, and risk management to effectively integrate Bitcoin into business operations.
Austrian Economics: Dive into the principles of how money and the economy function by reading works from renowned economists like Ludwig von Mises, Friedrich Hayek, Murray Rothbard, and others. Their theories can provide valuable perspectives on the economic implications of Bitcoin.
Cryptography Behind Bitcoin: If the technological backbone of Bitcoin fascinates you, take the time to learn about key cryptographic elements such as SHA-256 and elliptic curves.

Note: While these advanced topics can be a great addition to your Bitcoin understanding, they are not essential for every Bitcoin user. For average users, deep technical or economic knowledge isn’t necessary. However, if you are considering a career in a Bitcoin-focused company, I highly recommend delving into one or more of these areas, as they could significantly enhance your career progression.

Participate in the Local Community

If you’ve reached this stage, you’re already further along than 95% of your Bitcoin peers. Don’t keep all that knowledge to yourself—help others in your community advance as well. Organise events, speak at conferences, and share the benefits of Bitcoin (often referred to as “orange-pilling”) with your surrounding. Bitcoin’s growth to its current state is largely due to its vibrant and active community. Don’t just wait for others to help Bitcoin scale—be part of this transformative movement. Become a beacon for your friends, family, and community members.

Additionally, encourage local merchants to accept bitcoin as a form of payment. If you have a favorite store, bar or café you frequently visit, strike up a conversation with the owner about accepting bitcoin payments. As a regular customer who has already established a relationship, you’re in a great position to initiate this dialogue. There’s a good chance they’ll be open to considering it, especially if they see the value it could add to their business.

Stage 4: Expert

You’ve likely undergone a significant mental shift: you’ve completely lost trust in fiat currencies and now feel much safer holding bitcoin in self-custody. However, with this newfound confidence come new challenges. You are at the forefront of development, facing unique problems that test your skills and knowledge. This position offers you the opportunity to make significant contributions to the Bitcoin space with innovative products or services.

Stay Humble

Unfortunately, it is in human nature to become overconfident, arrogant, and egocentric as we reach a certain level of mastery, and this is true across all human disciplines, including Bitcoin.

Continually remind yourself that there will always be something new to learn, no matter how many years you’ve been involved in the space. Be patient with newcomers and help them grow. Also, don’t let your confidence lead to costly mistakes—many experienced Bitcoiners have lost their wealth by making avoidable errors with their own unique setups.

Get Paid in Bitcoin

At this point, you’re not worried about bitcoin’s ups and downs. You know its value will hold up over the long term. You’re also tired of issues with traditional money, like banks freezing your funds, high fees, and dealing with different currencies. You prefer using bitcoin to avoid these problems as much as possible. One great way to do this is to start getting paid in bitcoin.

If you are employed, talk to your employer about paying you in bitcoin. Explain why it’s important to you. If you play a crucial role at work, they might be willing to consider it.

If you run your own business, offer your customers the option to pay in bitcoin. You can set up your own BTC Pay Server or use a custodial payment solution like Confirmo. To encourage customers to use this payment method, consider offering discounts for transactions made in bitcoin.

Build and support other builders

Your experiences are incredibly valuable, providing you with unique insights into the Bitcoin ecosystem. Familiar with the latest trends and developments, you are ideally positioned to create new products and services or improve existing ones. There are plenty of opportunities to start new businesses in this young and growing field. However, if starting a new business isn’t for you, you can still contribute by assisting other builders in testing their products and providing feedback.

Educate peers

You are likely very enthusiastic and definitely highly knowledgeable—it would be a shame not to share your insights with others. Help others grow just as those in the past helped you.

Everyone possesses a unique set of skills; use yours creatively to educate others about Bitcoin. Write articles, post on social media, create videos, organise workshops, or report on Bitcoin adoption in remote areas. There are countless ways to contribute, and as Bitcoin continues to grow, the demand for knowledgeable educators will only increase.

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