The price hike that bitcoin showed in just a decade is not very normal for any new investment asset or currency. Being a digital currency that was just created in 2009, bitcoin gained lots of success. In case of bitcoin superstar, you always have a constant idea of solving very complex mathematical problems and going through the Blockchain methods. It is not always easy and hence, you need to be careful about the whole process of dealing in Bitcoin or visit Official platform:
Advantages:
- High return: The main advantage of bitcoin investment is it gives a high return. Bitcoin’s value is volatile but, for short-term trading, the volatile market is an idol for many investors to earn quick returns. Also, records are there for gaining high profit in long-term investment in the year 2021. Although during the pandemic, the slowing down process could be seen, the overall performance of Bitcoin has been increasing steadily over the years.
- High liquidity: Among all the cryptocurrencies bitcoin has the highest liquidity as it is the most traded crypto by numerous exchanges in the whole world. So it is a much more accessible asset for investment.
- Store of value: Bitcoin is highly valuable and its value is expected to grow soon. Experts say that bitcoin has the potential to be a backing asset like gold for a stock market crash and economic breakdown.
- Anonymity: Bitcoin trading and investing don’t require the users’ identification reveal. And, the transactions are also done directly from user to user. So, you remain anonymous during trading.
- No central authority: Bitcoin network is not regulated by any central authority or bank. So, there are no central rules and regulations on bitcoin investment and the government can’t control it.You have no outside company or any kind of financial organization interfering in the whole process.
- Fast trading: Trading is so fast and smooth on the bitcoin network. Bitcoin’s Blockchain technology and end-to-end fund transfer result in fast transactions. Even international trading is almost executed in the same duration.
- Less chargeable: As there is no central authority involved, the transactional charges are almost negligible. Centralized trading platforms charge an amount for transactions and regulations but this is not much. Direct trading platforms don’t charge anything for trading.
Risks:
- Volatility: The volatility factor is the main risk factor for bitcoin trading. Though there are chances to gain in the price changes any wrong calculation and unwanted price fluctuation can cause a danger. For example, in 2021 bitcoin gained its highest value and was expected to grow more. So, many people invested at that point in time. But, as its value has dropped to an extreme extent the investors are in great tension. So, irrespective of how good you are in investment, you can’t be 100% sure about bitcoin.
- Unregulated: Bitcoin network is not regulated by a single authority. So, there are no specific rules and regulations that all the investment platforms follow. One of the reliable platforms is the BitIQ.With the smart software that powers this platform, trading becomes easier and simplified. You can add your email ID , and name along with mobile number to register and trade here.
- Cyber fraud: Bitcoin network and the whole investment process is internet-based. You can’t have any physical existence of anything about bitcoin. Though the technology provides encryption methods of security and data distribution security, and you need to check for the hackers and phishing professionals who can create problem in almost all of your trading activities.
- Limited supply: In the lite of its release bitcoin protocol has fixed the maximum number of bitcoin. A maximum of 21 million bitcoin can ever be mined among them nearly 19 million have been mined already. So, there are a less number of bitcoin yet to come into existence. But, on the other hand, the number of investors is increasing at a rapid pace.
- Irreversible: Bitcoin transactions are anonymous and also the network is not backed by the government. So, if you unwantedly make a wrong transaction, the amount can’t be refunded.
- Can be lost: Moreover, there is also a chance of losing bitcoins. People store their private keys safely in hot and cold wallets. The hot wallet can be hacked, and the cold wallet can be lost so you need to be careful about the same.
Conclusion:
You need to check the pros and cons of Bitcoin investment and then go for it.
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