People use bitcoin to send value anywhere without a bank, to save in small amounts over time, and increasingly to pay through faster layers such as Lightning.
The risks, plainly
- Volatility. The price has fallen by more than half several times in its history. Money you may need soon is a different matter from money you can leave alone.
- Irreversible mistakes. A transaction sent to a wrong address usually cannot be undone.
- Lost keys. If you lose your keys and your backup, no one can restore them.
- Scams. Fake giveaways, impersonators and "guaranteed return" schemes target newcomers.
- Regulation and tax. Rules differ by country and change over time.
Learning first
Nothing here tells you to buy or sell. Read, test with tiny amounts if you choose to act at all, and use the DCA calculator to see how history looked rather than to predict the future.
One thing to remember
Understanding comes before action. Keep going with how Bitcoin works or the self-custody course.
CHECK YOURSELF
pick an answer for each question