You’ve heard that investing in Bitcoin is the way to go. But, you might be hesitant because you don’t know much about this cryptocurrency. Just like anything new, you want to know the pros and cons of investing in Bitcoin. Unfortunately, most articles that you come across online tell you to invest in this cryptocurrency right away.
Well, the truth is that any speculative investment comes with some risks. Buying Bitcoin, for instance, has some risks. Bitcoin price can drop precipitously. A crashed hard drive, or a hacking incident can leave without a single Bitcoin.
Bitcoin has indeed become very popular. More people are trading and investing in this cryptocurrency. Click here for more info and featuring success stories of people and organizations that invested in Bitcoin and are now reaping millions. But, is Bitcoin investment that simple? If so, why isn’t everybody investing in this cryptocurrency?
If such questions are lingering in your mind, here are some drawbacks to watch out for when investing in Bitcoin.
Online Hacking Threat
Most Bitcoin investors are afraid of hacking. Most investors use Bitcoin exchanges to purchase and sell their crypto via a website or a mobile app. As such, most investors are susceptible to online hacking that can leave them with no Bitcoin. What’s more, FDIC does not insure Bitcoin in online exchanges. The best way to ensure your Bitcoin’s safety is to keep it in a reputable digital wallet. Keep Bitcoin in a crypto exchange during active trading.
Bitcoin price is always moving up and down. For instance, Bitcoin’s price was $20,000 on December 17, 2017. If you bought Bitcoin at that time, you could not sell it for more than $7,051 a few weeks later. And this could have been a significant change in your investment. Essentially, the Bitcoin market keeps changing.
And an unpredictable market makes it hard for an investor to reap a good return on investment. Nevertheless, you can avoid losing your investment by monitoring and analyzing the market continuously.
Currently, the Bitcoin market operates under no effective regulations. Most governments are yet to take a stance on Bitcoin. What’s more, most governments do not tax Bitcoin transactions. Consequently, an investor can face malpractice or fraud exposure.
Only a few online outlets or merchants accept Bitcoin. Bitcoin is an unfeasible investment vessel because most companies do not recognize it as a legit exchange. Additionally, Bitcoin gas a limited supply of 21 million coins only.
If a virus corrupts the wallet file or crashes your hard drive, you can lose your hard-earned Bitcoins. Thus, you can be wealthy one day and bankrupt within seconds. Unfortunately, you can’t recover your Bitcoins once you lose them.
So, Is Bitcoin Worth Investing In?
Yes. Bitcoin is a worthy investment. There is no asset worth investing in that does have its drawbacks. You only need to be careful and cautious when investing in Bitcoin. For instance, do your due diligence to identify the best crypto exchange. Also, choose an ideal wallet depending on how you plan to store and spend your Bitcoins.
What’s more, research the market and do your analysis. That way, you will know when to buy and when to sell Bitcoin for a profit. You will also know where to purchase and how to sell your Bitcoin safely. And most importantly, you will learn how and when to cash out your Bitcoins into fiat money. Thus, investing in Bitcoin can bring you real cash if you do it carefully and correctly.