There are a few things you should know if you start working with Bitcoin. Bitcoin allows you to send or receive money in a different way than you normally do. For this reason, you should take the time to master the crypto currency before using Bitcoin for any serious process.
There is a big difference between storing, using, sending or receiving bitcoin and storing standard money in the wallet or keeping it in a bank account.
Securing your wallet
As in real life, you must secure your wallet. Bitcoin makes it possible to transfer value in any place very easily and allows you to be in control of your money.
Naturally, such great features also bring great security concerns with them. Nonetheless, Bitcoin can also provide very high security protections when used correctly.
You are solely responsible for protecting your money in Bitcoin. Therefore, the stock exchanges, applications (wallet etc.) should be reliable.
Instability of Bitcoin price
The price of Bitcoin may increase or decrease unpredictably in a short period of time due to the new economy changes, the new nature of bitcoin and the non-liquid markets.
As a result, it is not recommended to protect your savings with Bitcoin. Bitcoin should be seen as a high-risk asset and you should never deposit money into Bitcoin, which you cannot afford to lose. Yes, Bitcoin price may increase in the future, but it can also decrease. So, you should be careful before thinking an investment like that.
Note that if you get paid with Bitcoin, you can convert your money into local currency through many stock exchanges.
Bitcoin payments cannot be revoked
A Bitcoin operation cannot be reversed, or revoked. Only the person who receives the money refund the money. This means that it is very important to take care to do business with the people or institutions that you know and trust.
In particular, investment companies should check and monitor the payment requests displayed for their clients according to their share.
Bitcoin can detect software errors and generally do not allow you to send money to an invalid address by mistake, but it is best to perform additional security and process checks.
Let us indicate that additional services can be offered in the future to provide more options and protection for both businesses and consumers.
Bitcoin is not anonymous
With Bitcoin you need to make some effort to protect your privacy. All Bitcoin transactions are publicly and permanently stored on the network, meaning that any Bitcoin address can be viewed and viewed by anyone. However, it is not possible to determine the identity of any user from the Bitcoin address during a purchase or in other cases if the name of the account holder is not disclosed.
This is one reason that Bitcoin addresses are used only once.
Never forget that it is your responsibility to adopt trusted applications and services to protect your privacy.
Unverified transactions are not safe
Operations are not started directly as irrevocable. Instead, they receive an approval score indicating how difficult it is to reverse the transactions.
Each confirmation is between a few seconds and 90 minutes and the average is 10 minutes. If a very small fee has been paid as a transaction fee, it may take longer to approve the transaction.
Bitcoin is still experimental
Bitcoin is an experimental new currency in active development. Each improvement makes Bitcoin more attractive. At the same time, Bitcoin adopts new challenges as the rate of adoption increases.
As bitcoin evolves, increased transaction fees, slower process validations, or more serious problems may be encountered.
Before any large investment, be prepared for problems and consult a technical expert. Keep in mind that no one can predict the future of Bitcoin.
State taxes and regulations
Bitcoin is not an official currency. It does not depend on any state or institution. However, most law regulators may request tax for revenue, sales, payroll and capital gains, especially for Bitcoin. For this reason, you should pay attention to the laws and regulations of your countries for your Bitcoin investments.
You are solely responsible for paying taxes and other legal fees imposed by governments.