What you should know
If you’re excited to get started with Bitcion2x - good! However, there are a handful of different things you should be familiar with before you get started. Since Bitcoin2x is a relatively new technology and form of payment, it’s important you take the time to inform yourself before starting to use Bitcoin2x as a payment method. Although it can be much more convenient than traditional payment methods, it’s important to take some special precautions.
Keeping your wallet secure
Similar to how you take measures to keep your real life wallet secure, you must try to make your Bitcoin2x wallet as safe from malicious players as possible. While Bitcoin2x does make sending payments very simple and convenient, it is not without its fair share of security concerns. However, without taking certain precautions, your Bitcoin2x could end up in prying hands. Thankfully many Bitcoin2x wallets come with high levels of security, you just have to make sure you are following them. It is always your responsibility to make sure your balances are protected. Here’s more information about how to make sure your wallet is secure.
Bitcoin2x’s price can be volatile
Similar to virtually any other cryptocurrency, Bitcoin2x prices can unpredictably rise or drop within short periods of time. This is largely due to the cryptocurrency market having higher transaction velocity, the novelty of the technology, and temporarily illiquid markets. This is why it’s not recommended to keep your entire savings in Bitcoin2x. The token should be viewed as a high-risk asset, and you should never keep any money that you can’t afford to lose in Bitcoin2x. If you are receiving payments in Bitcoin2x, you can use your service provider of choice to convert them into your local fiat currency.
Bitcoin2x payments are irreversible
Once a payment it sent on the Bitcoin2x network, it can’t be reversed. The only way to reverse it is to ask the receiving party to refund your payment. This is why it’s important to do business with businesses and people you know and trust. It’s also critical you make sure you are sending your Bitcoin2x to the correct address.
Bitcoin2x is not completely anonymous
A common misconception many people have about Bitcoin2x is that it is anonymous. While Bitcoin2x is a bit more private than using a credit card or bank account, you must still take extra precautions to protect your privacy. All Bitcoin2x transactions are permanently on the network and are stored publicly. This means anyone can see your transaction, but not the information behind the address until that information is revealed during a purchase or other reason. This is why it’s recommended you only use Bitcoin2x addresses once. Follow best practices to keep your privacy protected.
Unconfirmed transactions are not secure
While confirmed transactions are irreversible, those transactions that are yet to be confirmed are not. Unconfirmed transactions receive a confirmation score that shows how hard it is to reverse them. A confirmation score of 0 is only safe if you completely trust the person that is paying you, whereas a confirmation score of 6 is the minimum recommendation for high value transfers. Each confirmation can take anywhere between a few seconds to 90 minutes, with the average hovering around 10 minutes.
Bitcoin2x is still an experimental technology
While Bitcoin2x is functional and active, it is still an experiment in active development. Every improvement to Bitcoin2x is aimed at making the currency much more appealing to new users, but as Bitcoin2x adoption grows, new challenges arise. These growing pains mean slower confirmations, increased fees, and a handful of other issues. It’s important to prepare for any sort of problems before making any major investments, and keep in mind that no one is capable of predicted Bitcoin2x’s future with complete accuracy.
Understand government taxes and regulations
The responsibility of understanding any legal, tax, and regulatory mandates issued by your national, state, or municipal government is on you. Being a new technology, the laws around Bitcoin2x are still developing. Many jurisdictions require you to still pay a variety of taxes such as income, payroll, and capital gains on anything that has value, Bitcoin2x included.