The number of crypto wallets in the world has exceeded 110 million. Of course, the most popular virtual currency was Bitcoin.
The fact that there are so many articles and articles about Bitcoin on the Internet causes some people to be confused.
In fact, the fact that there is too much content about crypto money on the Internet also poses a great danger. Because people have not yet decided what to invest in and what to trust.
Is Bitcoin Safe and How Should It Be Protected?
While Bitcoin, the rapidly rising value of the last period, is also a favorite of cyber attackers, TokensBoss explains what to watch out for and how to protect digital money.
The digital currency Bitcoin has been praised by many venture capitalists, traders and cybersecurity experts. Known as one of the biggest innovations in internet technologies, the biggest difference of Bitcoin from traditional currencies is;
- Not to be printed by a central bank,
- Not issued or billed by a government,
- Transactions take place only online and are protected with digital signatures,
- Accounts could not be frozen, it appeared to users.
These distinctions have caused Bitcoin to be targeted by cyber attackers as well. Because Bitcoin, which is not regulated, decentralized, and emerged only with computer skills, has opened a new door for cyber attackers.
If you’re about to explore Bitcoin, there are a few things you should know. Bitcoin allows you to transfer money in a different way than regular banks. So before using Bitcoin for any serious transaction, you should get some knowledge. Bitcoin should be used as seriously as your regular wallet, and in some cases even more seriously!
A Few Things You Should Know About Bitcoin
Keeping your wallet safe
As in real life, you should keep your wallet safe. Bitcoin makes shopping all over the world very easy and gives you control of your money. Of course, such important features also bring important security concerns. Bitcoin can be very secure if used correctly. Remember that the security measures you take to protect your money are your responsibility.
Bitcoin value variable
Due to its young economy, unconventional nature, and sometimes illiquid market, the value of a bitcoin can rise or fall in an unpredictable way in a short time. That’s why we don’t recommend keeping your savings in bitcoin. Bitcoin should be considered a high risk property and you should never keep money that you can’t lose in Bitcoin. If you’re paying in Bitcoin, most providers will instantly convert it to your local currency.
Bitcoin payments are irreversible
Any transaction you make with Bitcoin cannot be reversed, it can only be refunded by the person receiving the payment. That’s why you should take care to do business with companies and people you know and trust, or with famous companies. For their part, companies must retain control of the payment requests they show their customers. Bitcoin detects typos, often preventing you from accidentally sending money to an invalid address. Additional services may be available in the future to provide customers with more choice and security.
Bitcoin is not anonymous
Protecting your Bitcoin privacy takes some effort. Bitcoin transactions are publicly and permanently stored on the network. Thus, all Bitcoin transactions and balances can be viewed by anyone. The user’s identity information remains confidential, as only the transaction addresses will be seen, apart from the names disclosed in a purchase or other circumstances. This is one of the reasons why Bitcoin addresses are only used once. Never forget that it is your responsibility to protect your privacy by taking solid steps.
Instant transactions are less secure
A Bitcoin transaction occurs within a few seconds and starts receiving confirmations within the next 10 minutes. While it may seem like a completed transaction during this time, it can still be undone. Malicious users may try to cheat. If you can’t wait for confirmation, you can ensure security by charging a low transaction fee or using an insecure transaction detection system. For fees as high as $1000, it is recommended to get 6 or more separate confirmations. Each confirmation exponentially reduces the risk of the transaction being returned.
Bitcoin is still experimental
Bitcoin is an experimental currency that is still under active development. Keep in mind that while its experimentation dwindles as its use increases, Bitcoin dives into previously untested ideas. Therefore, no one can predict its future.
State taxes and audits
Bitcoin is not an official currency. However, most governments require you to pay taxes on anything of value, including income payments, sales, payroll and bitcoin. It is your responsibility to make sure you understand the tax and other regulatory guidelines issued by your government and/or local municipalities.
Is Bitcoin a good investment?
Although the financial ecosystem for cryptocurrencies is gradually expanding, some traditional investment accounts still do not have the option to buy Bitcoin. Investors who want to invest in Bitcoin but do not prefer to do so directly can invest in Bitcoin through affiliated companies.
The value of Bitcoin, which is one of the leading cryptocurrencies, is determined according to the last Bitcoin transaction made on the exchanges. The ever-changing demand has a great impact on this issue. In other words, the displacement of the opportunity and pressure balances in the buying and selling channels has a direct effect on the value of Bitcoin.
The main problem with cryptocurrencies is that they have a highly unstable market. As you know, there is no center that controls these currencies. However, it seems that BITCOIN will be at the top of the safest currencies in the developing world.
“The aim of investment is not to make money quickly from money. To keep your money and to ensure that you earn the current interest and return in the market in the most efficient way”
Hello there! My name is Oktay from Tokensboss editors. I introduce myself as a business graduate and writer. I have been doing research on cryptocurrencies and new business lines for over 2 years.