Make Sure You Know This Before Buying Bitcoin!
If you plan to buy bitcoin, either for investment or currency to use, you have to understand the risks of it. You shouldn’t directly buy it because a lot of people buy it.
Before spending your money to invest in bitcoin, you have to understand what is bitcoin, how does it work and how to use it. Here we comply the risks of bitcoin you have to aware before buying it. Check it out!
The Risks of Bitcoin
Of course, each things will have its own risks. It also applies on bitcoin, a digital currency that has been used by many young generations nowadays. You have to consider its own risks before really spending your money on it. Buying it bluntly will cause a potential great loss for you, so make sure to check this out!
1. Volatility in investments.
Bitcoin does not have a long-term track record or history for its credibility. The thing with bitcoin is, its price fluctuates quickly. In 2014, its price even decreased by 80% in one day. The value of bitcoin even can be affected several stuffs. There is even a case where its value increase almost 10% because of a tweet from Elon Musk.
2. No Insurance
Bitcoin exchanges and wallets are not insured by federal or government systems. So when something happens, people are unlikely to get their bitcoin back. This means you might lose everything, if its value dropped in great scale.
3. Restrictions
A reason why bitcoin is still not legal in several countries because it has been used for some black market transactions. Its lack of credibility also cause a restriction from government.
4. Potential of Ransomware
Due to transactions that are done digitally and anonymously, bitcoin has potential to be attacked by hackers. Also there is a concern of a number of high-profile thefts, despite that the blockchain technology behind Bitcoin that was claimed secure than conventional electronic money transactions. One case of it is, more than $40 million in Bitcoin was stolen from several high-net-worth accounts on the cryptocurrency exchange Binance.
5. Bitcoin is not money
The fact that Bitcoin is not included in tradeable asset yet is another factor contributing to its high level of risk. The only reason Bitcoin is valuable is because those who trade it believe it to be valuable. The value of Bitcoin is not being maintained by any authorities or regulatory entities.
So, Will You Buy Bitcoin?
After knowing the risks of bitcoin, are you still interested to purchase it? This article just a consideration for you in bitcoin investment. Buying it or not is still your own decision. Remember to research it properly to minimize great and regretful lose in the future. It is great to have investment as soon as possible, but be mindful on what you invest!
