Suppose
$$f(x) = \frac{1}{1+x^2}$$
We know this function is defined everywhere and is continuous everywhere and so on...
Using the geometric series, we can write
$$ \frac{1}{1+x^2} = \sum (-x^2)^n = \sum (-1)^n x^{2n} $$
But, this only converges iff $|-x^2|<1$ iff $|x|<1$. Why does this converge only in $(-1,1)$ when we know it is defined everywhere, though?

The series $\sum_{n=0}^\infty (-1)^nx^{2n}$ is the power series representation on $(-1,1)$ of the function $f(x)=\frac{1}{1+x^2}$.
The series does not represent the function $f$ for $|x|\ge 1$.
We can find a series representation of $f(x)$ that is valid for $|x|>1$. To do so, we write
$$\begin{align} \frac{1}{1+x^2}&=\frac1{x^2}\frac{1}{1+1/x^2}\\\\ &=\frac1{x^2}\sum_{n=0}^\infty (-1)^nx^{-2n}\\\\ &=\sum_{n=0}^\infty (-1)^n x^{-2(n+1)} \end{align}$$
which converges for all $|x|>1$ and diverges elsewhere.
Note that the latter series is given in terms of reciprocal powers of $x^2$. If $x$ is extended to be complex, this is the Laurent series for $|x|>1$.