And if you are like many people right about now, perhaps you are thinking, should I invest in Bitcoin or not? Is it a good idea? Here are some of the vital things you must know about this cryptocurrency prior to making an investment.
Bitcoin in Brief
Bitcoin is a renowned digital currency or cryptocurrency. Basically, it is online money, which you can exchange for other currencies. It also fluctuates in relation to other currencies. However, what makes this apart from other currencies is that it is decentralised. So, what is the meaning of this? It means no individual, country, government, or bank in charge of it. It is not susceptible to the central bank or government mismanagement.
Advertisement
The Advantages of Investing in Bitcoin
The fact that this digital currency is decentralised allows you to send this to anyone in any parts of the globe without going through a bank and paying fees. This is what makes Bitcoin very popular. Rather than waiting for a wire transfer that can take a couple of days, you are able to send your payments in just a minute. There are only 21M Bitcoins available. This restricts the amount that can be generated. This restriction in supply also has assisted in adding the rise in the value of Bitcoin.
Many people believe that this digital currency is anonymous. But, actually, it is not; it private. All transactions made can be viewed on the Bitcoin ledger. However, your name and other personal information are kept secret. Every transaction is linked to an address, a string of characters, and text. Therefore, while people may see your address, there’s no way to link that to you.
A lot of companies need to take credit cards today to keep competitive. But, these cards take rather considerable charges out of every transaction. However, business who accepts digital currency does not pay these huge fees; therefore it puts lots of money in the pockets.
So those are some of the benefits of Bitcoins now. Let’s go to the bad side:
Advertisement
Minuses
Bitcoin is well known for rising gradually over months and then dropping to 20 to 50 percent over a few days. The fact that it is traded 24/7, the value is always fluctuating. It takes some bad news to send the value down. It is not fixed, and there many unidentified things that can affect its price. So, avoid putting money into this currency that you cannot afford to lose.
Bitcoin is beginning to run into issues with slower transaction speeds and high fees. Other digital currencies have come along, which are cheaper and faster. Miners of Bitcoin are working on the issue. But, until these problems are addressed, you can look forward to the value being very volatile.
Advertisement
Here are the vital things to think of prior to investing in Bitcoin. Generally, while BTC has many amazing things going for it, and while it has the chance to change financial transactions as everybody knows it, there are still many risks.
If you choose to invest and trade, take time and research the choices. Avoid trading if you are not aware of the platform. There are trading platforms out there that you can rely on, but traders out there will not do well but just steal your money.
So keep safe and do a research. Look for a reliable trading platform with a solid reputation. There are many trading platforms available out there to choose from. We would suggest the well established crypto trading platforms such as Binance, eToro, Kraken or Prime XBT.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Photo by Dmitry Demidko on Unsplash
