Some things you need to know
If you are about to explore Bitcoin, there are a few things you should know. Bitcoin Cash lets you exchange money in a different way than with usual banks. As such, you should take time to inform yourself before using Bitcoin Cash for any serious transaction. Bitcoin Cash 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. Bitcoin Cash 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, Bitcoin Cash 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.
Bitcoin Cash price is volatile
The price of a Bitcoin Cash 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 Bitcoin Cash is not recommended at this point. Bitcoin Cash should be seen like a high risk asset, and you should never store money that you cannot afford to lose with Bitcoin. If you receive payments with Bitcoin, many service providers can convert them to your local currency.
Bitcoin Cash payments are irreversible
Any transaction issued with Bitcoin Cash cannot be reversed, they can only be refunded by the person receiving the funds. That 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 control of the payment requests they are displaying to their customers. Bitcoin Cash can detect typos and usually won't let you send money to an invalid address by mistake. Additional services might exist in the future to provide more choice and protection for the consumer.
Bitcoin Cash is not anonymous
Some effort is required to protect your privacy with Bitcoin. All Bitcoin Cash transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any Bitcoin Cash 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 Bitcoin Cash 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.
Unconfirmed transactions are secure
Unconfirmed transaction security is a spectrum. The smaller the amount, the safer it is to accept a zero-confirmation transaction. For larger amounts it is recommended to wait for at least one or two confirmations.
|Confirmations||Lightweight wallets||Bitcoin Cash Node|
|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 Bitcoin Cash transfers|
|30||Recommendation during emergencies to allow human intervention|
Bitcoin Cash is still experimental
Bitcoin Cash is an experimental new currency that is in active development. Each improvement makes Bitcoin Cash more appealing but also reveals new challenges as Bitcoin Cash 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 Bitcoin's future.
Government taxes and regulations
Bitcoin Cash 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 bitcoins. 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.