If you're new with Bitcoin, there are a few things you should know. Bitcoin lets you exchange money and transaction in a different way . As such, you should take time to inform yourself before using Bitcoin for any serious micro transaction. Bitcoin should be treated like your regular wallet, or even more in some cases!
Securing your wallet
Like in your real life, your wallet must be tottaly secured. Bitcoin makes it possible to transfer money from anywhere in a very easy way and it allows you to be in control of your money. Lot of great features also came with high security concerns. At the same time, Bitcoin can provide high levels of security if you used correctly. Always remember that it is yourself responsibility to adopt good practices on protecting your money. Read more about securing your wallet.
Bitcoin price is volatile
The price of a bitcoin is very unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your money in Bitcoin is not recommended at this point. Bitcoin its like a high risk asset, and you should never spend money that you cannot afford to lose with Bitcoin. If you pay with with Bitcoin, many service providers can’t convert them yet to your local currency.
Bitcoin payments are irreversible
If you pay with Bitcoin the transaction cannot be cancel, it can only be refunded by the person who is receiving the funds. This means you should take care to do business with people or organizations you know and you trust, or who have an established reputation. For their part, businesses need to keep track fund of the payment . Bitcoin can detect typo and like other transaction media usually won't let you send money to an invalid address by mistake, but it's the best way to have controls in place for additional safety and redundancy. Additional services might be exist in the future to provide more choice and protection for both businesses and consumers.
Bitcoin is not anonymous
Some effort is required in order to protect your privacy with Bitcoin. All Bitcoin transactions are stored publicly and permanently saved on the network, which means anyone can see the balance of any transaction Bitcoin address. However, the identity of the user behind an address remains secret until information is revealed during a purchase or in other circumstances. This is why Bitcoin addresses should only be used once. Always remember that it is your responsibility to adopt good practices in order to protect your current privacy.
Unconfirmed transactions aren't secure
Transactions don't start out as irreversible. Instead, they get a confirmation score that indicates how hard it is to reverse them . Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer.
Bitcoin is still experimental
Bitcoin is an experimental new currency that is in active development. Each improvement makes Bitcoin more appealing but also reveals new challenges as Bitcoin adoption grows. During these growing pains you might encounter increased fees, slower confirmations, or even more severe issues. Be prepared for problems and consult a technical expert before making any major investments, but keep in mind that nobody can predict Bitcoin's future.
Government taxes and regulations
Bitcoin is not an official currency. That said, most jurisdictions still require you to pay income, sales, payroll, and capital gains taxes on anything that has value, including bitcoins. It is your responsibility to ensure that you adhere to tax and other legal or regulatory mandates issued by your government and/or local municipalities.
