Bitcoin is only growing drastically in popularity these days, and if you aren’t knowledgeable about it, you are already falling behind. If you’re just getting started or enhancing your Bitcoin knowledge, there are a few things you need to know about Bitcoin before you get started that will help your journey immensely. There are plenty of things you can and cannot do with Bitcoin, so gaining an understanding before you dive right in is definitely recommended above all.
Your regular wallet receives the utmost care to ensure its safety, and your Bitcoin should be treated with just as much, if not more care. Let’s take a look at some things you need to know about Bitcoin.
Bitcoin is volatile
If volatility makes you uncomfortable or fearful, avoiding Bitcoin is likely your best option. Due to a few things such as illiquid markets, a young economy, and novel nature, Bitcoin can be extremely unpredictable which in turn may cause stress. Essentially, Bitcoin should be seen and treated as a high-risk asset that should be taken very seriously.
On top of that, you should never store money that you simply cannot afford to lose with Bitcoin. Something such as the Bitqt App can help you better navigate this.
Bitcoin is still experimental
By now, it is fair to think that Bitcoin may be well established and ’safe’. However, the reality of it is that Bitcoin is still very much in the experimental phase and in active development even though it has been around for a long while now. While each improvement being made to Bitcoin is making it more desirable in the long run, it also adds a whole new handful of challenges.
This means that during some of these changes, you may experience higher fees, severe issues, and slower confirmations. That is why you should always be as prepared as possible to best deal with these hiccups that may arise along the way.
Bitcoin is not anonymous
Many people are under the assumption that Bitcoin is entirely anonymous, however, this could not be further from the truth. There are a whole lot of hard yards to put in to make sure that you protect your privacy with Bitcoin. What people usually don’t realise is that each transaction made is stored publicly and permanently within the network which means that anyone is able to see the balance and transactions of any Bitcoin address.
This is another reason that people are encouraged to use their Bitcoin addresses once.
You must secure your wallet
Having a secure wallet is one of the most important things to consider when it comes to Bitcoin. Just as you would keep your wallet safe in real life, it is recommended you do the same with your Bitcoin wallet. While you do get to obtain some awesome features with your Bitcoin wallet, you also have to be aware of all of the security concerns involved.
It is essential that you develop some good practices to make sure that your wallet is 100% safe and secure at all times.