The Beginner's Guide to Bitcoins & Tor Network (2024)

Internet users familiar with the underground community are likely to have heard the phrase “deep web”. It combines a set of websites and communications technologies which apply solely to the Tor network. This collective open-source software has blossomed into a revolutionary idea in just a few years.

On a similar note the bitcoin currency has also been gaining some attention. Although these two ideas are not correlated, they do fit together in the subject of underground web technology.

So, Through this guide, I’d like to introduce you to the topic of bitcoins, how they work, and their connection with the Tor network. Let’s first clarify what Tor is really about.

Read Also: 4 Ways to Own Bitcoins Online

The Tor Project

The original Tor network project isn’t as underground as it used to be. The open-source software was an effort to provide a new layer of Internet protection between the user and the remote website server, thus providing you with a sense of security. This is accomplished by using 3 different relay proxies which re-direct you along a random path in the network.

Similar to Bit Torrent, users of the Tor network will keep their computers running 24/7 as a relay service. This means when you go to access a website on Tor it’ll pass your request through 3 different computers (called nodes).

This level of encryption ensures that no single computer within the proxy chain can determine your physical location and requested content. The official Tor FAQ contains more technical details if you’re interested.

This is crucial for users who prefer to keep their location and privacy unknown, individuals like whistleblowers or abuse victims. The fact that a wider variety of people now use Tor increases the level of security, helping you hide among the many other faceless users who are on the network.

Getting Started

To access this network of proxies you only need to download their package software. If you visit the Tor project downloads page you’ll notice a listing for the most popular Operating Systems including Linux, Windows, and Mac OSX. The software is bundled as a zip archive without requiring any installation.

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After opening, just double-click the Tor icon to start up relay services, and shortly after, a new web browser should launch in the Gecko/Mozilla engine. It’s basically a shell script of Firefox which runs under custom proxy settings for Tor.

The entire network behaves as one interconnected and fluid proxy server farm. It’s important to note that you can access regular HTTP websites via proxy, but the load times are immensely slower. The real benefit of using Tor is to gain access into the onion routing network. Within this chasm of the deep Internet lies the hidden websites so often discussed around the watercooler.

Onion Routing

This new technology is used within the Tor network to communicate hosts with darknet websites. These are still HTML/CSS pages which have been hosted on servers specifically targeting an .onion DNS address.

This TLD (Top-Level Domain) is actually similar to other country codes such as .us, .co.uk, .es and others. However, you are not accessing the same websites, as through an HTTP/FTP connection.

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The most intriguing part of the Onion routing network is within their unique URL addresses. Instead of human-readable strings such as hongkiat.com these appear as randomly generated numbers and letters. So for example, to visit “The Hidden Wiki” you would enter the following in browser:

http://kpvz7ki2v5agwt35.onion/wiki/index.php/Main_Page

This redirects to a Wikipedia-style site focusing on everything Tor-related.

To get a better idea of how Tor websites are designed and created, check out some of the other examples I’ve provided below.

  • TorStatusNet Microblogging – http://lotjbov3gzzf23hc.onion/
  • Tor Web Design Guidelines – http://wf4df37hrebhwzts.onion/
  • Freedom Hosting – http://xqz3u5drneuzhaeo.onion/
  • MyBitcoin – http://xqzfakpeuvrobvpj.onion/
  • BitLaundry – http://yhngvp3q5h4s7d3e.onion/
  • BitLotto – http://jpjyhljziw2glwfg.onion/lotto/index.html
  • Simple PM – http://4v6veu7nsxklglnu.onion/SimplePM.php
  • Anonymoose Chat – http://c2hluuzwi7tuceu6.onion/

Introduction to Bitcoin

Let’s take a break from Tor for a moment and examine the underground currency, bitcoin. Bitcoins behaves just like any other monetary system; it can be exchanged and traded for Dollars and Euros. It is not too difficult to comprehend with a bit of reading but I feel that this video really clears up some of the confusing areas for beginners.

Now, the bitcoin currency has a few benefits. Notably there is no central banking group which manages and loans out these coins. They are created through computer processing – theoretically nothing more than time and GPU compression. This also means no central authority is issuing “clearing” for bitcoin transactions. Thus instead of waiting 2-3 business days for a bank you can transfer bitcoins between addresses in just a few hours.

Collecting and Exchanging Coins

Although it is an exciting endeavor, the average btc user does not spend time mining for bitcoins. The process is too intense for a single computer and you likely won’t find the payoff worthwhile.

Professional miners work together in pools and will sometimes run a series of rigs setup with dual video cards (Graphics Processing Units) for the highest turnout rate.

But for the majority of beginners it’s unrealistic to jump into this right away. The much simpler method of collecting bitcoins is to transfer in your own cash, or alternatively provide service work.

A lot of btc users are willing to trade coins for Internet marketing, web design, development, and similar odd jobs. But moving cash into your bitcoin address (or wallet) is also just as simple.

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Read Also: Everything You Need to Know About Bitcoin

How are Bitcoins Spent?

The ultimate goal is to use this alternate currency and hold our reserve coins in some type of wallet. Then we can use a unique wallet ID (or bitcoin address) to shop where bitcoins are accepted. This coin archive can either run through a desktop software or a third-party browser solution.

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Those who value ultimate safety and security will want to keep their bitcoin assets local, i.e. in their computer. But I feel more comfortable using online wallets, as I have direct access to my accounts from any computer.

Now putting aside the possible earnings from buying and selling the currency itself, you can purchase a lot of things with bitcoins!

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But if you truly want a catalog of shops, you cannot go wrong with the official bitcoin trade wiki. This includes a detailed list of physical and digital items you can purchase with no shortages of URLs. These categories include clothing, video games, books, electronics, and so much more.

Read Also: 14 Best Bitcoin Wallets For Secure Bitcoin Storage

Anonymity with Bitcoins and Tor

On the surface it appears that these two topics don’t have much in common. But there are a lot of underground networks within the Tor project which discussed bitcoins as the next level of our world economy.

It’s difficult to say where things will go from here at this point, but it’s certain that the underground community have created an astounding system. And both of these technologies are only in the early stages of adoption and development.

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I feel the problem with a lot of monetary solutions is a general lack in privacy and security. I would not imply that PayPal is an unsecured website, but it’s difficult to understand why only a handful of people are allowed to control that website’s policy.

In the bitcoin marketplace, digital exchanges are held between buyer and seller. Purchasing through the Tor/Onion network adds an extra layer of security.

Read Also: The Good, The Bad And The Ugly Of Bitcoin Security

Resources on Tor/Onion Routing

Resources on Bitcoin

Conclusion

The underground Tor network and bitcoin marketplace are just two examples of emerging technologies. We may be at the verge of a technological breakthrough in restructuring how we access and trade currency through the Internet. I’m an early adopter of both these ideas and will be following the news closely on future developments!

The Beginner's Guide to Bitcoins & Tor Network (2024)

FAQs

What is Bitcoin Tor? ›

Tor, originally an acronym for "The Onion Router," is a free software enabling anonymous communication over the internet. By concealing users' locations and usage from network surveillance, Tor offers a high degree of privacy and freedom, especially vital in the realm of cryptocurrencies and decentralized technologies.

What is the minimum investment for Bitcoin? ›

You can invest as little as $2 on platforms like Coinbase. However, it's important to consider the fees charged by the exchange platform, which may make very small investments less practical. The minimum amount of money needed to invest in Bitcoin varies depending on the platform you choose.

How much will I get if I put $1 dollar in Bitcoin? ›

Convert United States Dollar to Bitcoin

1 USD equals 0.000015 BTC. The current value of 1 United States Dollar is -0.14% against the exchange rate to BTC in the last 24 hours. ​ The current Bitcoin market cap is $1.30T. ​Create a free Kraken account to instantly convert USD to BTC today.

What to avoid on Tor? ›

Users should avoid engaging in any illegal activities on Tor, as these remain unlawful regardless of the platform used and can lead to serious consequences. Additionally, they should steer clear of sharing any sensitive personal information, as this could compromise their anonymity and potentially expose them to risks.

How risky is Tor? ›

Despite Tor and the dark web being closely linked, using Tor browser doesn't mean involving in illicit activities. It can be very useful software to certain internet users. Because of how it operates, Tor is generally safe to use, and Tor onion browser offer several benefits like heightened safety and privacy.

How does Tor get money? ›

Tor is a network and the network does not charge money. The Tor Project is a non-profit, and receives grants from the US Department of Defense, the National Science Foundation, and other branches of the US government, from the government of Sweden, from Mozilla, and from individual contributors.

Is Tor legal in the US? ›

Tor is legal in the US. You won't likely get in trouble just because you use the Tor browser. However, Tor is not a lawless domain, so you can't use this browser for illegal activities. If you use Tor for buying drugs or weapons, you are held responsible against the law.

Can my WIFI provider see what I do on Tor? ›

When using Tor Browser, no one can see the websites that you visit. However, your service provider or network admins may be able to see that you're connecting to the Tor network, though they won't know what you're doing when you get there.

Does Tor cost money? ›

Tor Browser is entirely free and open source.

How much will $100 Bitcoin be worth in 10 years? ›

A $100 investment in Bitcoin could purchase 0.00607 BTC today based on a price of $16,466.14 at the time of writing. If Bitcoin hits the $1 million price target by Wood in 2030, the $100 investment would turn into $6,070. This represents a gain of 5,970% from now until 2030.

How much money will I make if I invest $1000 in Bitcoin? ›

If You Invest $1,000 Today in Bitcoin, It Could Be Worth $13,000 in 6 Years.

What would 5000 in Bitcoin be worth today? ›

The current price of 5000 Bitcoin in US Dollar is 333.11M USD. The price is calculated based on rates on 34 exchanges and is continuously updated every few seconds.

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