Some things you need to know
If you're getting started with NewBitcoin, there are a few things you should know. NewBitcoin lets you exchange money and transact in a different way than you normally do. As such, you should take time to inform yourself before using NewBitcoin for any serious transaction. NewBitcoin should be treated with the same care as your regular wallet, or even more in some cases!
Securing your wallet
Like in real life, your wallet must be secured. NewBitcoin makes it possible to transfer value anywhere in a very easy way and it allows you to be in control of your money. Such great features also come with great security concerns. At the same time, NewBitcoin can provide very high levels of security if used correctly. Always remember that it is your responsibility to adopt good practices in order to protect your money. Read more about securing your wallet.
NewBitcoin price is volatile
The price of a NewBitcoin can unpredictably increase or decrease over a short period of time due to its young economy, novel nature, and sometimes illiquid markets. Consequently, keeping your savings with NewBitcoin is not recommended at this point. NewBitcoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose with NewBitcoin. If you receive payments with NewBitcoin, many service providers can convert them to your local currency.
NewBitcoin payments are irreversible
A NewBitcoin transaction cannot be reversed, it can only be refunded by the person receiving the funds. This means you should take care to do business with people and organizations you know and trust, or who have an established reputation. For their part, businesses need to keep track of the payment requests they are displaying to their customers. NewBitcoin can detect typos and usually won't let you send money to an invalid address by mistake, but it's best to have controls in place for additional safety and redundancy. Additional services might exist in the future to provide more choice and protection for both businesses and consumers.
NewBitcoin is not anonymous
Some effort is required to protect your privacy with NewBitcoin. All NewBitcoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any NewBitcoin address. However, the identity of the user behind an address remains unknown until information is revealed during a purchase or in other circumstances. This is one reason why NewBitcoin addresses should only be used once. Always remember that it is your responsibility to adopt good practices in order to protect your privacy. Read more about protecting your privacy.
| Confirmations | Lightweight wallets | NewBitcoin Core |
|---|---|---|
| 0 | Only safe if you trust the person paying you | |
| 1 | Somewhat reliable | Mostly reliable |
| 3 | Mostly reliable | Highly reliable |
| 6 | Minimum recommendation for high-value NewBitcoin transfers | |
| 30 | Recommendation during emergencies to allow human intervention | |
Unconfirmed transactions aren't secure
Transactions don't start out as irreversible. Instead, they get a confirmation score that indicates how hard it is to reverse them (see table). Each confirmation takes between a few seconds and 90 minutes, with 10 minutes being the average. If the transaction pays too low a fee or is otherwise atypical, getting the first confirmation can take much longer.
NewBitcoin is still experimental
NewBitcoin is an experimental new currency that is in active development. Each improvement makes NewBitcoin more appealing but also reveals new challenges as NewBitcoin adoption grows. During these growing pains you might encounter increased fees, slower confirmations, or even more severe issues. Be prepared for problems and consult a technical expert before making any major investments, but keep in mind that nobody can predict NewBitcoin's future.
Government taxes and regulations
NewBitcoin is not an official currency. That said, most jurisdictions still require you to pay income, sales, payroll, and capital gains taxes on anything that has value, including NewBitcoins. It is your responsibility to ensure that you adhere to tax and other legal or regulatory mandates issued by your government and/or local municipalities.
