What Is Bitcoin?
Bitcoin is a peer-to-peer technology that operate without central banks or authority. The an open-source network of users is managing transactions and issuing bitcoins collectively. Nobody owns nor controls Bitcoin technology as everyone can participate.
If you are new to Bitcoin, there are a few things you should learn first. With Bitcoin, you can exchange money without need of banks. Take your time and educate yourself before using Bitcoin for any serious transaction. Bitcoin should be treated with even greater care than your regular wallet or credit card.
With Bitcoin, you can transfer money anywhere in the world in a very easy way – you don’t need banks and middle men. Unfortunately such incredible features also come with great security risks. Bitcoin is able to provide you with very high levels of security, but only if you do it properly.
Bitcoin price is volatile
The price of a bitcoin is unpredictable. It can increase dramatically and then crash over a short period of time. It’s not recommended to keep your savings in Bitcoins just yet. Bitcoin is very profitable but high risk asset, and you should never store money that you cannot afford to lose. If you receive Bitcoin as a payment, consider converting them into your local currency.
Bitcoin payments are irreversible
Bitcoin transaction cannot be reversed, they can only be refunded if the receiver agrees to do so. You should do transaction only with people you trust or via trustworthy exchanges with established reputation.
Bitcoin is not anonymous
There is a common misconception that Bitcoin is completely anonymous. In fact, all Bitcoin transactions are stored publicly on the network, which means anyone can see the transactions of any Bitcoin address. At the same time, if you don’t publicly associate particular bitcoin address with your name, nobody will know the identity behind the address.
Unconfirmed transactions aren’t secure
Every transaction should be confirmation to be irreversible. Each transaction confirmation may take between a few seconds to a few days. If the fee of transaction is too low, it can take much longer.