Is Bitcoin Safe to Invest On?
Of late, cryptocurrencies have become the newest asset that many investors around the world are trying to invest on, in an attempt to have a more diversified portfolio. The trend has caught on and the situation today is a far cry from what it was in 2009, when Bitcoin was launched first by an anonymous person named Satoshi Nakamoto on the web, https://meta-profit.app/.
The question that many people have today is whether Bitcoin is safe to invest on. Bitcoin is completely safe, but you need to invest your funds through a trusted platform.
Why it is Safe to Invest in Bitcoins?
There are various reasons why Bitcoin has become the apple of the eye for many investors out there. The top advantages of this cryptocurrency for safety reasons include:
The Blockchain technology
It cannot be argued that Bitcoin is a very safe cryptocurrency at the moment because of the Blockchain technology. This is a unique period to peer sharing technology, which is not unlike the torrent technology that is used for file sharing from one computer to another. Due to the blockchain technology, Bitcoin is an extremely safe payment system and it might be surprising for you to know that many regular financial institutions such as banks planning to integrate the blockchain technology into their operations. Even, financial institutions and government or central agencies are using blockchain technology for the following reasons:
- Safety of funds
- Safety of details of identity
- Safety of transaction information etc of customers.
Shroud of anonymity
Due to the blockchain technology, transactions can happen in a very anonymous way and it is extremely fast. There is no need for you to wait to pay to somebody on the other side of the globe or even receive payments from him or her because there is no bank or authority in world that can control bitcoin transactions. There is no government regulation involved here and Bitcoin is basically a decentralized currency.
It is possible for you to keep your identity is secret while conducting transactions online. The kind of security and the level of safety that you can get with transactions using Bitcoins are unbeatable. This is one of the most important reasons why Bitcoin has become so popular across the globe.
Investment with privacy
You can invest in Bitcoin in full privacy and keep it safe in your wallet without anybody finding out. During transactions, you can have your own unique Bitcoin address for payment purposes and this will ensure that transactions will be conducted in a safe and proper manner. Nobody will be able to snoop on your activities online and find out that you have made investments in Bitcoin and are hoarding it in your wallet in large numbers. You can do that very safely and in an anonymous way.
Disadvantages of Bitcoin – Why it Might Be Unsafe to Invest in Bitcoins?
But there are a few disadvantages as well, which make Bitcoin slightly unsafe for investment purposes.
Lack of price stability
Keep in mind that Bitcoin is not quite safe when it comes to the stability in its price. In fact it is one of the most volatile digital assets and you should forget any type of stability because this digital asset witnesses wide fluctuations in its price every now and then.
Do not expect to make short term profits from this digital asset and if you are thinking of making such kinds of profits, you should forget that thought immediately. It is better that you invest in Bitcoins with a long term investment strategy, because it is only in the long term that you can get huge returns out of your investment.
It is also very important for you to note that storing Bitcoins can be quite difficult, unless you store it in a proper digital wallet. There is a lot of risk of hacking of this currency and so many Bitcoin ATMs have witnessed hacking activities in the past. Although strict security measures are being laid in place, not all of them are quite good enough to ensure the security of your asset. It is very important to store it in a proper digital wallet.