You may gave heard about the new craze of Bitcoin and may even wonder how you can get in on this new business. But before you do, there are a few things you should realize before looking to buy Bitcoin. Take out some time to research this new monetary currency.
What Is A Wallet
A Bitcoin wallet is actually very similar to a real-life wallet. Since each Bitcoin is unique, you need a place to store it on your computer or your mobile device. As such a wallet is a software, a mobile app or even an online app that stores it for you. Just as you would with a real-life wallet, you need to be responsible in order to protect your money.
About Bitcoin Prices
The current market is very unpredictable and can increase and decrease at any given time due to its very young economy and sometimes illiquid market. When you buy Bitcoin you need to see it as a high-risk asset and if you receive payments, convert them to your own currency as soon as possible. It is not recommended for you to store your savings in Bitcoins.
Bitcoins Are Not Anonymous
A popular misconception is that Bitcoin is an anonymous currency, not leaving behind any traces of transactions. However, that is inaccurate. All transactions are stored permanently and publicly, which means all transactions and balances of any Bitcoin address can be seen by anyone. While the identity of a user may remain unknown, eventually even this information may be revealed doing a purchase.
Still An Experiment
Remember that Bitcoin is still in active development and still very experimental. While it is very promising, do not be surprised when you observe increasing fees and other problems. So before you buy Bitcoin, remember that it is impossible to predict the future of Bitcoin.