Some things you need to know about Bitcoin

If you're just going to explore Bitcoin, there are some things you should know. Bitcoin allows you to exchange money in a different way from the usual bank. Thus, you should take the time to learn before using Bitcoin for any important transactions. Bitcoin should be treated the same as you treat your wallet, or even more cautious in some cases.

Securing your wallet

In the real world, your wallet should be secured. Bitcoin allows you to make transfers to anywhere in a very easy and allows you to control your money. Great features it also comes along with a high attention to security. Bitcoin provide a very high level of security if used correctly. Always remember that it is your responsibility to do the safety measures are good in order to protect your money. Read more about securing your wallet.

Bitcoin prices volatile

Bitcoin prices can go up or down unexpectedly during a short period of time due to the economy are still young, new, and sometimes illiquid market. As a consequence, you are not currently recommended for saving in bitcoin. Bitcoin should be considered as high-risk assets, and you should not keep too much money is at risk of missing the Bitcoin. If you accept Bitcoin, many service providers that allow you to exchange it instantly to your local currency.

Bitcoin payments can not be undone

Every transaction you do with Bitcoin can not be canceled, funds can only be returned by recipients. That means you have to be careful to do business only with people or organizations that you know and trust, or those who already have a good reputation. On the other hand, business owners need to control payment requests that are shown to customers. Bitcoin can detect typos and usually does not allow you to send money to the wrong address by mistake. Additional services can be made at a later date to provide more choice and security for consumers.

Bitcoin is not anonymous

It takes some effort to protect your privacy by Bitcoin. All Bitcoin transactions in general and permanently stored on the network, which means that anyone can view balances and transactions from any Bitcoin address. However, the identity of the owner of the address to be kept secret, and then told the time of purchase or in any other circumstances. This is one reason why Bitcoin address should only be used once. It is your responsibility to safeguard actions your privacy.

Instant transactions are less secure

Bitcoin transactions are usually carried out within a few seconds and will start to be confirmed within the next 10 minutes. During that time, a transaction that is considered authentic remains irrevocable. Users who do not honestly be trying to cheat. If you can not wait until confirmed, you can improve security by asking for a small transaction fee or a transaction using a detection system that is not safe. For a large number like 1000 dollars, confirmation should wait until 6 or more. Each confirmation exponentially minimize the risk of cancellation of the transaction.

Bitcoin is still testing

Bitcoin is a trial of the new currency is still in active development. Although over time and the increasing use Bitcoin is becoming increasingly mature, keep in mind that Bitcoin is a new discovery that explore ideas that have never been done before. Thus, the future of Bitcoin can not be predicted by anyone.

Government taxes and regulations

Bitcoin is not the official currency. That is, most countries still require you to pay income tax, sales, payroll and capital gains tax on any value including bitcoin. It is your responsibility to ensure that you comply with tax and other legal rules or policies issued by your government and / or policy makers in your area.