With more than 5 million users, Bitcoin remains the most popular and accepted cryptocurrency in the world, despite it’s historic drop. The digital currency touched the milestone of $50,000 in February 2021. Although the recent economic turmoil caused the downfall of cryptocurrencies, Bitcoin has full potential to create new records in the coming days. If you are interested in bitcoin trading check different websites such as BitIQ system.
However, since Bitcoin is the oldest and most valuable cryptocurrency out there, cryptocurrency crime reports linking Bitcoin often emerge to discourage investors and traders. Even though it is quite impossible for cybercriminals to hack Bitcoin blockchain network, but hackers often target amateur investors to gain advantages. They can hack your account if you open a crypto account on an unsecured platform.
Despite knowing the fact that Bitcoin is protected by secure blockchain technology, new investors feel insecure to invest in digital currency. However, like any other crypto investment, your Bitcoin investment can also be associated with both risks and rewards. Hence, you need to be a little bit judicious when buying, selling or trading Bitcoin.
Some Common Risks Associated with Bitcoin
Like any other digital transaction, Bitcoin investment is vulnerable to the risk of fraudulent activities. The immense popularity of Bitcoin led to the birth of many ill-reputed companies. Even though Bitcoin has emerged as the most valuable and popular cryptocurrency in the world, crimes related to Bitcoin investment are also on the rise.
In some cases, scammers ask people to make payments through Bitcoin. The initial coin offering (ICOs) is another scam one should be careful about. Scammers often fabricate these offers and make amateur investors pay for the coins that do not exist.
Also, if the private key of the Bitcoin wallet is lost or destroyed, the investor will never be able to access his/her digital wallet. On the other hand, if the key is found or acquired by any unauthorized person, he/she will be able to access the Bitcoins. So, do not share your private keys with anyone.
Why Does the Value of Bitcoin Often Drop?
Global economic slowdown, cost of living disorder, the ban on crypto transactions in several countries, threats of strict regulations for crypto investment and transactions by governments, etc are some of the reasons that have caused the recent downfall in Bitcoin price. Apart from these, the following factors can also affect the value of Bitcoin:
● Cost of production
● Supply and demand
● Availability on exchanges
● Governance
● Competition
Reasons to Invest in Bitcoin
It is an undeniable fact that Bitcoin has revolutionized the world of digital currency. Bitcoin is one of the few digital currencies in the world that put enormous efforts to protect its users from fraudulent activities.
Many people believe that there will be a time when a majority of the population will use Bitcoins for day-to-day transactions and early investors can be hugely benefited from this. Have a look at some reasons why you should invest in Bitcoins:
● High return potential
● Irreversible
● Accessibility and liquidity
● User inscrutability and transparency
● Independence from government authority
● Can be traded for cash and assets
● Protected by a blockchain network
Things to Consider While Investing in Bitcoin
Even though any cryptocurrency investment is associated with risks, volatility and uncertainty, you can make it safer and profitable by keeping a few things in mind. When choosing your crypto exchange platform, make sure it has earned some reputation in the field.
Never think about investing all your money on the crypto board. We will recommend considering Bitcoin as a long-term investment, as this can give you the best chance to multiply your investment. Remember, like any other cryptocurrencies, Bitcoins are volatile and subject to market fall and rises. So, never invest all your money in Bitcoin, as a sudden fall can make the pain unbearable for you.
Conclusion
Bitcoin is an undisputed player in the world of digital currencies. The open system of Bitcoin helps its blockchain network to retain accountability. Remember, Bitcoin is not anonymous and the value of Bitcoins is extremely volatile. Also, investors’ safety and privacy largely rely upon passwords or private keys of crypto wallets. Hence, educate yourself and be a little bit judicious before investing in the most valuable digital currency in the world.
