Everything you need to know before investing in Bitcoin

Important things you have to know before investing

If you are about to start exploring the world of Bitcoin, there are some things you should know. Bitcoin allows you to exchange money differently than you normally do at the bank. Therefore, it is advisable to spend some time to inform you before using Bitcoin for important transactions. Bitcoin should be treated with the same care that your wallet would treat, ATM PIN, etc, or in some cases even more!

Protect your purse

As in real life, your portfolio must be protected. Bitcoin allows you to transfer money anywhere easily and allows you to have control over your money without the need of an intermediary bank. These great characteristics also entail security risks. At the same time, Bitcoin offers high levels of security if used correctly. Always remember that it is your responsibility to take the appropriate measures to protect your money. More information on how to protect your wallet.

The price of Bitcoin is volatile

The price of a bitcoin is unpredictable, it can increase or decrease in a short period of time due to its young economy, its novel character and sometimes illiquid markets. Therefore, keeping your savings in bitcoin is not recommended. Bitcoin should be considered as a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers allow you to convert them instantly to your local currency.

However, I like many of us who are in the world of Cryptocurrency rely more on Bitcoin than in any other fiduciary currency like the dollar, the peso, the euro or any other currency that comes to mind, since This type of coins issued by central banks and government together print the amount they want without accountability to anyone, simply devaluing your money with what we call inflation previously explained.

Bitcoin payments are not reversible

No Bitcoin transaction can be reversed, they can only be reimbursed by the person receiving the payment. That means that you should be careful to do business only with people or organizations that you know and trust or that have a good reputation. For their part, companies need to have controlled the payment requests they show to their consumers. Bitcoin can detect typographical errors and will not normally allow you to send money by mistake to an invalid address. In the future there could be services that offer more priority and protection to the consumer.

Bitcoin is not anonymous

Protecting your privacy with Bitcoin requires some effort. All Bitcoin transactions are stored publicly and permanently in the network, which means that anyone can see the funds and transactions of a Bitcoin address. However, the identity of the user who owns the address is not known unless it is disclosed during a purchase or for other circumstances. This is one of the reasons why Bitcoin addresses should only be used once. Remember that it is your responsibility to adopt good practices to protect your privacy. Read more about how to protect your privacy.

Instant transactions are less secure

A Bitcoin transaction is usually received in a few seconds and begins to be confirmed within 10 minutes. During this period, the transaction can be considered authentic but can still be reversed. Fraudulent users could try to cheat you. If you cannot wait for a confirmation, you can pay a small fee or use a system to detect unsafe transactions. For amounts greater than $ 1,000 USD, you should expect to have 6 or more confirmations. Each confirmation exponentially decreases the risk of reversing a transaction.

Taxes and regulations

Bitcoin is not an official currency. That said, in most territories you will have to pay rent, payroll and taxes on profits in everything that has value, including bitcoins. It is your responsibility to make sure you apply the taxes and other regulations issued by your government or municipality.


  • Mildred Mill

    I had no idea how bitcoin worked

  • Benjamin Cobb

    Awesome

  • Ruka

    Thanks for the info. The high volatility of bitcoins price does not seem attractive to me so I won’t be investing in them.

  • amy

    Ummm too complicated

  • Janet Graham

    Interesting read

  • Darlene Harding

    Informative

  • Benjamin Reveles

    Hmmm

  • Kathryn Clark Ingersoll

    I hope you give me the diamonds that I was promised for reading this article because I only do business with honest companies

  • Alecsandra Ribeiro Cavalcante

    Interessante

  • Melanie Roy

    Excellent

  • CEM

    Learned something new.

  • Ellen Little

    Informative but complicated

  • Yours Truly

    Learned a lot of from this article.

  • Jane doe

    Learned a lot

  • Darcy Stephen

    Here

  • Yt

    Interesting

  • Ellen Little

    Fascinating

  • Brittany

    This is great info! Thanks for sharing

  • Loraliforanimals

    I have always wondered aboutl bitcoins

  • Donald

    Thanks for the info

  • Nérd Marshall Houle

    That’s good

  • Kristen Clougherty

    Cool.

  • adele

    Hummm ok

  • Julie-Anne Trottier

    Great article

  • Interesting

  • Janet Marie

    Humm

  • kathie

    oh ok

  • Sadie Taylor Bippies

    Very informative

  • Wanda M. French

    Ok

  • Jessie

    Good

  • Jessie

    Good deal

  • Jessie

    Dkne

  • Jf

    Jj

  • Tonya Matthews

    Very imformal

  • Audra Chelise Marie

    Interesting

  • Tina

    Cool

  • Jennifer Keown

    Technology is amazing. I will consider investing in Bitcoin. Thanks!

  • Bo

    Cool

    • Kwistine

      Yep

  • Colld

    Cool

  • Katty

    good

  • Jack

    GOOD

  • Kwistine

    Hello

  • Mia Rue

    Very interesting, technology is rapidly changing and this is an investment that seems to have an additional advantage financially.

  • curtis dreger

    Good info

  • Carlos Robinson

    Advice

  • Jhon

    Nice

  • Kwistine

    Very interesting, Now I can say that I know how bitcoins work

  • Patrick

    Very informative, thank you!

  • Pamala Plechus

    Very informative.

  • Rime

    Interesting

  • Janet

    Now I think I understand. Good article.

  • Gina Q

    Very interesting

  • carol

    Great article

  • Remma

    Interesting

  • Remma

    Very interesting

  • vinooo

    rshdhdgr sgdgdgd ddvd

  • Skylar

    Good to know, been hearing so much about Bitcoin except how it works exactly

  • Kim Oliva

    Thanks for the info, although I find it very risky.

  • Chandra Hicks

    Interesting article

  • Annettw

    Very interesting reading. I’ve seen headings regarding Bitcon in magazines, wondered what it was all about, & I actually passed this info. on to my husband. Thank you

  • Maiah Clark

    Wonderful article

  • Lowly Carb

    Good info

  • Patricia Hughes

    Great article

  • Andrée Naud

    First I hear about it

  • Lora Stone

    Good info

  • Jp

    Great

  • LaTonya N Rencher

    I always wanted to learn the in’s and out’s of bit coin . Thank you for your very useful information.

  • Nads La Tannante

    Cool info

  • Shiny

    Greag

  • Beatrice Coleman

    Bitcoin article completed reading.

  • Carolle Moosaie

    Good to know!

  • Judith Wash

    Thinking about investing

  • Kim

    Always interesting to learn where to invest

  • Xori

    Intersting investment idea

  • Katty

    good

  • Juan

    Real interesting. Thanks a lot.

  • Judy Sparks

    Interesting

  • Shirley

    Great to know

  • Val

    Intriguing! It’s always good to have knowledge of what’s new to invest in and/or look out for!

  • Cathy Flory

    Interesting

  • Donald

    Looking for my diamonds

  • Czee

    Good info

  • Randy Smith

    Awesome

  • Quayshana Alexander

    Interesting

  • Denzel Jolliff

    Not sure about this, but it is interesting.

  • Kim Winkelman

    It’s always interesting to read about bitcoin

  • Judy Sparks

    I learned a lot with this article.

  • Darlene Daniels

    Good info

  • Luna Mccoy

    Not for me but interesting read

  • Celeste Dias

    Still like real coin

  • Ellen Little

    Great article!..ALOT of information to think about!