Have you seen the disclaimer that is shown on the television advertisement after an investment company’s ads? Any kind of investment can lead you to some risks and you can lose your funds by investing in stocks and bonds. Similarly, launch of Bitcoin is associated with some risks as it is a highly volatile market. So, before you invest your funds on a crypto like bitcoin, you need to do some market research, and you should not invest more than 5% of your total portfolio on bitcoin.
People are skeptical about the concept of bitcoin because it is not available in any physical form and it cannot be regulated or controlled by any central agency like bank or government. So, it is natural that bitcoin becomes a hot topic for debating and people always ask about the safety associated with crypto.
Is bitcoin safe and good for investors?
No, bitcoin is not safe for all because it has been hacked several times by cybercriminals. Apart from that, there is no assurance of return available in this crypto market. But you can find the same issues in your banking system as well. You can find news related to bank account hacking and money laundering activity every day in the newspapers, and you can lose your money if you keep it in your bank account. In the case of safety, your investments like bonds and stocks are not 100% safe. So, why would you consider bitcoin as an unsafe investment option? On the other part, bitcoin and other crypto currencies are safer than your bank account because the blockchain network working behind the crypto ecosystem is completely encrypted and you can enable two-step authentication in your crypto account and wallet to keep your funds safe.
Is it good to invest in bitcoin?
Crypto is a good investment option and you can invest your funds on bitcoin through the Bitcoin era. It is a trusted platform by many investors where you can invest in different types of coins and tokens. Make sure, you must know the recent trends and past records of such crypto currencies before you invest.
Choosing the right trading strategy is important while you invest in digital currencies. You can go for day trading or you can hold your coins for a longer period of time. You can get a good return if you consider such coins as a commodity and hold your crypto for a longer period of time. Apart from that, there is a controversy that bitcoin is legal or not because many people consider it as a money laundering activity. It is true that you can keep your identity anonymous while you make a transaction with bitcoin, but you cannot hide your identity from the exchange. You need to verify your crypto account by submitting your KYC documents and it is not a money laundering activity. It is legal and 100% safe.
There are some major companies like PayPal, Microsoft and Starbucks accepting crypto as a valid payment mode, and you can buy goods and services with bitcoin. So, it is 100% legal and you can pay your taxes on the profits that you earn from your crypto investment.
It is hard to understand the crypto market:
You need to speculate the value of bitcoin while you invest in it and you must prepare your exit plan also to keep your funds safe. You can easily speculate the value of bitcoin by doing some research on its past record. Almost all crypto currencies and tokens are based on blockchain technology, and you can find similar technology in various sectors including insurance, banking and government agencies.
You must store your currency in a secured wallet and you should choose a platform where different types of wallets are available. If you are a beginner, then you can choose a cold wallet, which is hardware based or paper based. Make sure, you should not share your private keys with anyone because people can steal your funds if they know your private keys. You can make transactions from your wallet by using your public keys and you can also accept payment by sharing the QR code available on your wallet.