You have heard that investing in Bitcoin is the only way to go. However, you may hesitate because you don’t know much about this cryptocurrency. Like any new thing, you want to understand the pros and cons of investing in Bitcoin. Unfortunately, most articles you see online tell you to invest in this cryptocurrency immediately.
Well, the truth is that any speculative investment carries a certain amount of risk. For example, there are some risks in buying Bitcoin. Bitcoin prices may drop sharply. A crashed hard drive or hacking incident may result in not having a Bitcoin.
Bitcoin is indeed very popular. More and more people are trading and investing in this cryptocurrency. Click here for more information It also introduced the success stories of individuals and organizations that invested in Bitcoin. These individuals and organizations have now harvested millions of dollars. But is Bitcoin investment so simple? If so, why doesn’t everyone invest in this cryptocurrency?
If you have been thinking about these issues, beware of these drawbacks when investing in Bitcoin.
Online hacker threats
Most Bitcoin investors worry about being hacked. Most investors use Bitcoin exchanges to buy and sell their cryptocurrencies through websites or mobile apps. As a result, most investors are vulnerable to online hacker attacks, leaving them without Bitcoin. Moreover, the FDIC cannot guarantee Bitcoin in online transactions. The best way to keep Bitcoin safe is to keep it in a reputable digital wallet. Keep Bitcoin in the cryptocurrency exchange during active trading.
Bitcoin prices have been fluctuating up and down. For example, on December 17, 2017, the price of Bitcoin was $20,000. If you bought Bitcoin at that time, you cannot sell Bitcoin for more than $7,051 in a few weeks. This may be a major change in your investment. In essence, the Bitcoin market is always changing.
The unpredictable market makes it difficult for investors to obtain a good return on investment. However, you can avoid loss of investment by continuously monitoring and analyzing the market.
According to the provisions of
Currently, there are no effective regulations in the Bitcoin market. Most governments have yet to take a stand on Bitcoin. Moreover, most governments do not impose taxes on Bitcoin transactions. Therefore, investors may face the risk of malfeasance or fraud.
Only a few online stores or merchants accept Bitcoin. Bitcoin is not a viable investment tool because most companies do not consider it a legitimate exchange. In addition, Bitcoin only supplies 21 million coins.
If the virus damages the wallet files or crashes your hard drive, you may lose your hard-won Bitcoin. Therefore, you can have money one day and go bankrupt in a few seconds. Unfortunately, once you lose your Bitcoin, you cannot recover it.
So, is it worth investing in Bitcoin?
Yes it is. Bitcoin is a worthwhile investment. No asset worth investing in does have its drawbacks. You only need to be cautious when investing in Bitcoin. For example, conduct due diligence to determine the best cryptocurrency exchange. In addition, choose the ideal wallet based on how you plan to store and use Bitcoin.
In addition, research the market and analyze it. In this way, you will know when to buy and when to sell Bitcoin for profit. You will also know where to buy and how to sell Bitcoin safely. Most importantly, you will learn how and when to cash bitcoin into legal tender. Therefore, if you invest in Bitcoin carefully and correctly, you can bring you real cash.