Even the most technologically advanced users are having hard times understanding Bitcoin sometimes – and it doesn’t help that there is so much contradictory information online. After all, it’s a hot topic, so no wonder everyone, from investors and entrepreneurs to stock traders, if trying to capitalize on Bitcoin in any way possible, which includes creating guides, tutorials and the like, many of which are not even remotely accurate.
If you’re getting frustrated and overfed with tons of questionable information, this resource is for you, as we are about to break down a few things you must know about Bitcoin. Do your research, make sure you understand the process before starting your first transaction, and follow the guide below – and your Bitcoin sailing will be smooth and enjoyable!
Bitcoin is a real currency
It’s only a matter of time before digital currencies become widespread and stop being mysterious and suspicious in the eyes of many. Bitcoins already have support from some of the most influential corporations around the world, so cryptocurrencies are the money of the future.
And those who think that nothing can be bought with bitcoins are grossly mistaken! From Microsoft to small online businesses, a growing number of organizations are accepting bitcoins, with more joining every day. So, you absolutely can – and should! – use Bitcoin to purchase actual stuff.
Bitcoin transfers are speedy and flexible
Bitcoins provide a breath of fresh air for those frustrated with bank transaction processing times, especially when it comes to sending money overseas. Bitcoin transfers are very fast (although suspicious transactions may take longer to process – more on that later), and come with no commission, as there are no middlemen handling the funds.
Bitcoin prices can fluctuate widely
It would be foolish not to admit that bitcoin price is extremely volatile. It’s a new currency existing in rapidly changing environments, which means that the price of a bitcoin can skyrocket or plummet within very short periods of time. Does it mean you shouldn’t keep your savings in bitcoins just yet? Absolutely, as frankly, it’s a high-risk asset. However, if you plan your transactions wisely and monitor the market, you can profit from using bitcoins as well – so if you have some investment money to play with, it might just be a valid opportunity. Besides, see the previous point…you can buy real things with bitcoins.
If you ever wish to withdraw, there are options as well, as many service providers can convert cryptocurrency to your local money.
Bitcoins leave a trail
Protecting your privacy with Bitcoin may be a bit tricky, as all Bitcoin transactions are stored permanently and publicly within the network, enabling anyone to trace the balance and transactions of any Bitcoin address. However, it’s important to remember that the blockchain is encrypted and independently verified by a separate group of users, meaning that the identity behind the address, as well as any personal information, remains unknown unless you choose to disclose it or do it unknowingly. Based on independent verification results, each transaction gets granted a confirmation score that indicates how difficult it is to reverse it. The longer it takes to get the confirmation – the more chances the transaction is suspicious!
This is quite a novelty, but not necessarily a drawback – something to get used to!
You must protect your privacy
It’s wise to consider security concerns and think about the ways of protecting your privacy. Fortunately, Bitcoin provides a wide variety of security features which will keep your information hidden from everyone else if you utilize them properly. Adopting good practices, such as securing your wallet and keeping your information private, will ensure you enjoy Bitcoin without experiencing any issues.
Bitcoin is still very new
Bitcoin is a new, experimental cryptocurrency under active development, which means it’s not nearly as rock solid as, say, the good old paper money. Rapid evolution leads to rapid improvements, but also leads to unforeseen problems and challenges along the way. When Bitcoin experiences “growth phases”, there may be wild bitcoin price fluctuations, prolonged confirmation times and annoying technical issues. If you choose to obtain some bitcoins, make sure you research the current situation beforehand – sometimes it’s wise to wait a bit before taking a plunge. And also, never invest more than you can lose – as bright as the future looks for bitcoins right now, it’s hard to confidently predict the long-term future of the project.
These are some of the most important considerations to think about before starting your Bitcoin journey! Make sure to read through other resources available on this site and contact us if you have any questions.