Some things you need to know
If you are about to explore PotCoin, there are a few things you should know.PotCoin lets you exchange money in a different way than with usual banks. As such, you should take time to inform yourself before usingPotCoin for any serious transaction. PotCoin 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.PotCoin 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,PotCoin 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.
PotCoin price is volatile
The price of aPotCoin 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 withPotCoin is not recommended at this point.PotCoin should be seen like a high risk asset, and you should never store money that you cannot afford to lose withPotCoin. If you receive payments with PotCoin, many service providers can convert them to your local currency.
PotCoin payments are irreversible
Any transaction issued withPotCoin 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.PotCoin 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.
PotCoin is not anonymous
Some effort is required to protect your privacy with PotCoin. All PotCoin transactions are stored publicly and permanently on the network, which means anyone can see the balance and transactions of any PotCoin 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 PotCoin 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 aren’t secure
A PotCoin transaction is usually deployed within a few seconds and begins to be confirmed in the following 10 minutes. During that time, a transaction can be considered authentic but still reversible. Dishonest users could try to cheat, which means there is a risk when accepting unconfirmated transactions. For large amounts like 1000 US$, it makes sense to wait for 6 confirmations or more. Each confirmation exponentially decreases the risk of a reversed transaction.
PotCoin is still experimental
PotCoin is an experimental new currency that is in active development. Although it becomes less experimental as usage grows, you should keep in mind that PotCoin is a new invention that is exploring ideas that have never been attempted before. As such, its future cannot be predicted by anyone.
Government taxes and regulations
PotCoin 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 PotCoins. 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.