Key aspects of using bitcoin (Topic)

People who are going to study the cryptocurrency market, and in particular the market for the most popular coin - Bitcoin, need to know a few simple things. Cryptocurrency makes it possible to exchange funds in a completely different way than an ordinary bank, while innovative funds have their risks and disadvantages.

Wallet security is your concern

As in life, your wallet must be protected. Bitcoin only makes it possible to transfer money anywhere and control these funds. The word "encryption" and "crypto security" hides a very ambiguous concept. The keys to your wallet will never be cracked by anyone, but if you show negligence or carelessness, these ultra-secure "keys" can easily be lost.

Every day, thousands of various hacker attacks are carried out in the world, from which you can protect yourself only by observing simple, but equally important security rules: use high-quality antivirus software, use sites with secure encryption, make correspondence and communicate only in secure messengers. Without making a number of silly missteps, Bitcoin can become a highly secure and convenient means of making payments for you.

We recommend using either a physical wallet or blockchain.info

Fluctuating price market

Bitcoin, due to its young age and the nature of the illiquidity of assets, can change the price in an unpredictable way, both upward and downward. Therefore, the creators of the currency themselves do not recommend storing large amounts of money in bitcoins, or even, on the contrary, considering bitcoin as an asset market with an extremely high degree of risk.

You shouldn't store funds or corporate assets in bitcoins that you cannot lose. When receiving payments in cryptocurrency, it is worth using services that convert it into local currency.

We recommend using the yobit.net or exmo.me exchanges

Failure to cancel payment

Bitcoin transactions cannot be canceled. Cancellation is possible only if the recipient returns the funds, this can happen when both parties involved in the transaction are knowingly competent and honest. This approach to payment processing leads to the fact that you need to do business with people or organizations that have been verified by your personal experience and the experience of other entrepreneurs.

The error detection system does not allow sending money to non-existent addresses, and Bitcoin promises to create and provide additional services to improve the comfort and protection of users.

We recommend either paying using the QR code of the wallet, or being extremely careful about where you are sending money

For all its popularity, bitcoin is still an experimental currency

Cryptocurrencies and bitcoin in particular, for all their popularity, are new and mostly experimental currencies that are in a constant process of development and improvement. Although cryptocurrency is becoming more popular every day and involves new monetary assets, blockchain is a fundamentally new invention that uses principles that were not previously applied.

It follows from this that no one can predict the future of this segment of the economy, so you should not rely on bitcoin in the long term, anything can happen in the near future.

Tax and government regulation

Bitcoin is not recognized as an official currency, but at the same time, a large number of jurisdictions require payment of income tax, which also applies to cryptocurrency. Therefore, before using Bitcoin, check the regulatory or legal requirements of the jurisdiction you fall under.

The Topic of Article: Key aspects of using bitcoin.
Author: Jake Pinkman