What you need to know
To experience Bitcoin, it is necessary to take certain precautions. Bitcoin allows money and value to be exchanged, so it is essential to secure your Bitcoin wallet as you naturally do for a physical wallet that contains cash.
Save your wallet
Bitcoin services and software allow you to back up your wallet or private keys. Which can be printed on paper or saved on a USB key. Stored in a secure place, a backup can protect you against computer failures or various human errors.
Encrypt your wallet
Encrypting your wallet allows you to enforce a password against anyone attempting to withdraw funds. Which can protect you from theft and hacking. But not against keyloggers. You must ensure that you never forget your password otherwise your money will be lost. Unlike your bank, you cannot recover your password with Bitcoin!
Be careful with online wallets
Using an online wallet is a bit like using an online bank. You trust a company to store your money while all you have to do is remember your password and protect it. You should choose this kind of service with caution. To date, none of these services offer enough assurance and security to store value like a bank.
Use offline backup for savings
Using an offline wallet offers the highest level of security for savings. It involves storing a wallet only on paper and on USB keys in different secure places that are not connected to any network. This is good protection against computer failures and vulnerabilities, theft and human error. To date, this approach still requires technical knowledge to be performed correctly.
The value of Bitcoin is volatile
Bitcoin's value can rise or fall unpredictably over a short period of time due to its young economy, unusual nature, and sometimes illiquid markets. As a result, keeping a large portion of your savings with Bitcoin is not recommended. Bitcoin should be considered a high-risk asset and you should only ever store money with Bitcoin that you can afford to lose. If you receive payments in bitcoins, many service providers allow you to transfer your bitcoins instantly into your currency.
Bitcoin payments are irreversible
Any transaction made with Bitcoin cannot be reversed. They can only be reimbursed by the person receiving the funds. Which means you need to make sure you're trading with companies and people you know and can trust. But don't worry, Bitcoin can detect typing errors and usually won't let you send money to an invalid address.
Bitcoin is not anonymous without effort
All Bitcoin transactions are publicly and permanently stored on the network. Which means anyone can view the balance and transactions of each Bitcoin address. Although it is very difficult to associate a Bitcoin address with its owner, it is still recommended to use a new address each time you receive a payment. This practice is especially important for public uses such as websites.
Bitcoin is still experimental
Bitcoin is an experimental new currency that is under active development. Although it becomes less and less experimental every day as its use increases, you must keep in mind that Bitcoin is a new invention that plays on a ground that has never been explored to date. As a result, his future cannot be predicted by anyone.
Don't forget to pay your taxes
Bitcoin is not an official currency. That being said, most jurisdictions still require you to pay taxes on income, sales, wages and wealth. It is your responsibility to inform yourself and comply with applicable laws.
