Similar to other investments, you need to make your decision of trying Bitcoin. Is Bitcoin safe? As mentioned above, there are many reasons for it being mostly secure. However, there are many reasons to act skeptical too. You can only decide if you consider it to be a safe investment. If you make up your mind to invest in Bitcoin, be prepared for every type of ups and downs.
One of the major buzzwords these days is Bitcoin. All curiosity around this cryptocurrency in the form of an option for investment has seen a huge surge. People have been cautioned by the government against transactions of Bitcoins. People mostly ask if Bitcoin is a safe asset not due to the huge volatility of the market, but because they have concerns about their digital asset’s security. It is one of the most renowned cryptocurrencies worldwide. It has been here since 2009. Since then, the network has proved to be very powerful and resilient while protecting important data. There has been a lot of confusion surrounding it. Read along to have a clear idea about cryptocurrency.
Crisis in the past: For instance, in early 2013, the price of cryptocurrency had increased by over 80% at a time when people were bothered regarding the Mediterranean nation Cyprus’s financial state. After a few years, the price of Bitcoin again rose higher as traders started to react to the concern about the possible exit of Greece from the Eurozone.
High volatility of Bitcoin: Bitcoin is highly volatile. This characteristic will minimize the appeal of Bitcoin as a safe asset. It is definitely not a trustworthy asset as Bitcoin remains volatile tremendously not only in random daily swings but also in its own internal crises and dramas. In 2017, Bitcoin experienced great price gains. This strong upside created a pullback, a great possibility. Due to this high volatility, this cryptocurrency is still considered to be a risk asset. It may be functioning as a safe one at a few points, but Bitcoin still carries considerable risks. So you should check the frequently asked questions regarding bitcoin mining.
Is there any con of Bitcoin?
Even after the growth of some digital currencies like Bitcoin, it is found that these virtual currencies come with some cons.
• As the digital footprints of Bitcoins are encrypted, you cannot trace them online.
• You may enjoy the pleasure of security and privacy while trading in Bitcoins, it will provide a gateway for hiding and conducting illicit transactions.
• If it happens, terrorists, drug dealers, and different suspected culprits will be conducting their illegal trading continuously without any detection while using Bitcoins.
• Reports of crimes related to cryptocurrency have increased a lot each year since 2016.
• These crimes include all hackers who stole coins from investors to individuals getting trapped by crypto investing scams.
What are the advantages of using Bitcoin?
• Bitcoin will offer an individual huge opportunity for investment along with growth prospects.
• No one will control this virtual currency because people in cyberspace can access it.
• Also, its value will continue to appreciate when society trips over the inflation debris.
• An ordinary individual will be able to buy, trade, save, invest and thus increase the chances to become financially successful without any interference of government controls, fiduciary regulations, and controls.
• So spiral inflations actually become a thing.
How can you keep Bitcoins safe?
• Hackers can access the crypto wallets of individuals or breach the cryptocurrency exchanges completely for stealing their holdings.
• So it is necessary to store the Bitcoin in a safe and secure place. You need to practice good habits of digital security.
• Cryptocurrency exchanges offer storage for coins through the secure hot wallet. But as they are online they are still highly susceptible to all sorts of hacking.
• Unlike money in the bank, cryptocurrency in a wallet or on exchange is never FDIC insured.
• Ensure you are trading and holding your cryptocurrency on a platform that is offering great security measures such as two-factor user authentication.
• Few exchanges also come with a private insurance policy if there is any hacking or theft.
• To protect your cryptocurrency against any online fraud, various experts suggest making use of cold storage via an offline device that has no internet connection like a USB drive.
• But cold storage too has risks such as chances of losing complete access to the investment if you do not remember your password.