FAQ
Hongbao Questions
What is a Bitcoin Hongbao?
A Bitcoin Hongbao is a digital red envelope containing Bitcoin. It combines the traditional Chinese practice of giving monetary gifts in red envelopes with modern cryptocurrency technology.
How do I claim my Hongbao?
Set up a Bitcoin wallet (see our guide)
Scan or enter your hongbao code
Follow the claiming instructions
The Bitcoin transfers to your wallet
Is my Hongbao expiring?
It depends on the type:
On-chain hongbao: Never expire
Lightning hongbao: May have expiration date
Custodial hongbao: Check terms
When in doubt, claim it soon!
What if I lose my Hongbao code?
Unfortunately, like cash in a physical red envelope, if you lose the code/keys, the Bitcoin cannot be recovered. This is why we recommend claiming it quickly!
Bitcoin Basics
How much is Bitcoin worth?
Bitcoin's price changes constantly based on supply and demand. Check current prices:
In your wallet app
Google "Bitcoin price"
CoinGecko or CoinMarketCap
What can I do with Bitcoin?
Save it - Hold as digital gold
Spend it - Growing merchant acceptance
Send it - Transfer globally
Learn with it - Understand new technology
Is Bitcoin legal?
Bitcoin's legal status varies by country:
Most developed nations: Legal
Some restrictions: China, India (changing)
Completely banned: Very few
Check your local regulations
How is Bitcoin different from regular money?
Decentralized: No central control
Limited supply: Only 21 million
Global: Works everywhere
24/7: Always available
Permissionless: No approval needed
Wallet & Security
What happens if I lose my phone?
If you have your seed phrase backup:
Get new phone
Download wallet app
Choose "Restore wallet"
Enter seed phrase
Access your Bitcoin again!
Can someone steal my Bitcoin?
Only if they have:
Your private keys/seed phrase
Your device AND PIN/password
This is why security matters! See our security guide.
Should I tell people I have Bitcoin?
Best practice:
Close friends/family: Maybe
Social media: No
Strangers: Never
Online forums: Use pseudonyms
What's a seed phrase?
A seed phrase (12-24 words) is your master backup. It can restore your entire wallet. Guard it like your life savings - because it is!
Technical Questions
What's the difference between Bitcoin and bitcoin?
Bitcoin (capital B): The network/protocol
bitcoin (lowercase): The currency unit
Similar to Internet vs internet
What are satoshis?
Satoshis (sats) are the smallest Bitcoin unit:
1 Bitcoin = 100,000,000 satoshis
Like cents to dollars
Named after Bitcoin's creator
How long do transactions take?
On-chain: ~10 minutes for first confirmation
Lightning: Instant
Exchange withdrawals: Varies (minutes to days)
Why are there transaction fees?
Fees incentivize miners to:
Include your transaction
Secure the network
Process transfers
Fees vary based on network congestion.
Financial Questions
Do I pay taxes on Bitcoin?
Tax treatment varies by country:
Receiving gifts: Often not taxable
Selling/spending: May trigger capital gains
Mining/earning: Usually income
Consult a tax professional!
Is Bitcoin a good investment?
Bitcoin is:
Volatile in short term
Historically appreciating
High risk, high reward
Only invest what you can afford to lose
Not financial advice!
Will Bitcoin reach $1 million?
Nobody knows! Predictions vary wildly:
Bulls: "Digital gold" thesis
Bears: "Bubble" warnings
Reality: Do your own research
Should I buy more Bitcoin?
Consider:
Your financial situation
Risk tolerance
Investment timeline
Diversification
Never invest borrowed money
Common Concerns
Is Bitcoin a scam/Ponzi scheme?
No. Bitcoin is:
Open source technology
No central beneficiary
Transparent blockchain
15+ years of operation
Used by millions globally
Is Bitcoin bad for the environment?
Debated topic:
Uses energy for security
Increasingly renewable sources
More efficient than banking system
Incentivizes renewable development
Can Bitcoin be hacked?
Bitcoin protocol: Never hacked in 15 years
Exchanges: Sometimes hacked
Individual wallets: User error
Your security matters most!
What if I send to wrong address?
Bitcoin transactions are irreversible:
Always double-check addresses
Send small test amounts first
Use QR codes when possible
Some wallets have address validation
Getting Help
Where can I learn more?
This Hongbao Academy!
Bitcoin.org
YouTube channels (be cautious)
Local Bitcoin meetups
Books and podcasts
Who can I trust for Bitcoin advice?
Be careful:
✅ Open source projects
✅ Established educators
✅ Community consensus
❌ "Guarantee" promises
❌ "Get rich quick" schemes
What if I make a mistake?
Common mistakes are:
Sending to wrong address: Irreversible
Losing seed phrase: Unrecoverable
Falling for scams: Learn and warn others
Wrong fee amount: Wait or accelerate
How do I stay updated?
Follow Bitcoin news sites
Join community forums
Subscribe to newsletters
Attend local meetups
Keep learning!
Lightning Network
What is Lightning Network?
Layer 2 Bitcoin solution
Instant transactions
Tiny fees
Perfect for small payments
Built on Bitcoin
Should I use Lightning?
Great for:
Small transactions
Frequent payments
Trying Bitcoin
Low fees
Not ideal for:
Large amounts
Long-term storage
Maximum security
Philosophy & Future
Who created Bitcoin?
Satoshi Nakamoto - pseudonymous person/group:
Published whitepaper in 2008
Released software in 2009
Disappeared in 2011
Identity remains unknown
Why does Bitcoin matter?
Bitcoin represents:
Financial sovereignty
Technological innovation
Economic freedom
Global accessibility
Peaceful revolution
What's Bitcoin's future?
Possibilities include:
Global reserve currency
Digital gold standard
Payment network
Technology platform
Who knows? We're still early!
How can I contribute?
Run a node
Educate others
Build applications
Translate resources
Share your hongbao!
🤔 Still have questions? Join our community or explore more resources. Remember: the only bad question is the one you don't ask!
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