BEGINNER PATH / 13
Understanding Bitcoin also means understanding what it cannot do for you. There is no central undo button, prices can fall sharply, self-custody can be lost through poor backup practices, and scammers actively target Bitcoin users.
Bitcoin's market price can move substantially in either direction. A fixed maximum supply does not create a guaranteed minimum price or guaranteed investment return.
If you send Bitcoin to the wrong valid destination, there is no bank or central Bitcoin operator that can simply cancel the transaction. A refund depends on the recipient cooperating.
A self-custody wallet depends on protecting its keys and recovery information. Losing necessary recovery material can remove access; exposing it can allow someone else to take control.
Leaving Bitcoin with a custodian means relying on that provider's security, solvency, systems, policies and ability to process withdrawals.
CUSTODY VS SELF-CUSTODY →Bitcoin is not automatically anonymous. Transactions are recorded publicly, and information revealed elsewhere can sometimes connect activity to a person or organization.
Wallets, devices and services can contain defects or be compromised. Security depends on both Bitcoin's protocol and the quality of the software and operational practices you use.
COMMON ATTACKS / 14
Anyone who obtains recovery information may be able to reconstruct the wallet. Treat requests for it as a critical warning.
Malware and address-poisoning attacks can try to make you copy an attacker's address. Verify destination information rather than relying only on the first or last characters.
Claims of guaranteed Bitcoin profit, guaranteed doubling or risk-free returns should be treated with extreme caution.
