You must have heard people say that don’t invest in bitcoin as it is not safe. If you have never invested in bitcoin, it is pretty normal to get skeptical about your investment. So, let’s try to know whether bitcoin offers a good investment or not.
Before we look at the safety of bitcoin investment, you should know that no investment is without risk. Since bitcoin is a new type of digital currency, people are more skeptical about bitcoin investment. As a result, bitcoin investment comes up with a higher level of risk than investment in other cryptocurrencies.
Bitcoin is volatile
Many investors started investment in bitcoin after it touched the height of $20,000. The digital currency was on a high till April 2021. The value of bitcoin was almost $64,000 at that time. But, after April 2021, the price and value of bitcoin saw a decreasing trend. After June 2021, the price was $32,000.
Thus, looking at the constant rise and fall in the value of bitcoin, it is clear that bitcoin is a volatile currency. So, when you are investing in bitcoin, you need to know that value can rise and fall quite drastically.
Keep private keys safe.
Another essential feature that comes in the way of safety in bitcoin investment is the private key. Unlike the regular currencies and investment tools, you are responsible for keeping it safe once you buy bitcoin. So, if you are a new investor, you need to be aware that the private keys to your bitcoin wallet are always safe and secure.
As the price and value of bitcoin rose in 2021, there were many incidents of theft and fraud. Many people could not get access to their bitcoin wallets because they lost their passwords. Thus, it is vital to keep the private keys safe if you want access to your bitcoins. This safety tip is highly essential for investors who want to invest in bitcoin for a longer time.
The safety of bitcoin cold storage device
Many experts believe that long-term investors should transfer bitcoin into a cold wallet. The cold wallets are the offline ones, and they have no connection to the internet. They work like a USB stick. Thus, instead of keeping your bitcoin in a hot or online wallet, try to keep it in a cold wallet. The cold wallet will also eliminate the risk of theft. Many investors suggest people move towards a cold wallet as soon as they purchase bitcoins.
Even when you choose a cold wallet, you need to remember the private keys and password. Thus, it becomes highly essential to keep the physical device safe.
Bitcoin scam
Most people feel that bitcoin investment is not safe because of the scams surrounding bitcoin. Every other day, we hear news about one or the other bitcoin scams. Unfortunately, as the value of bitcoin gains value, scams are on the rise. As per a report, people have lost almost $80 million worth of bitcoins in the last six months.
Most websites use fake testimonials to lure investors. The promises made by these websites are enormous, but they are not true to their promise. Sometimes, these websites may tell you that your investment is growing each day. But, when you ask them about the withdrawal, they will run away.
Thus, investors need to be aware of these scams. Phishing scams are on the rise when it comes to bitcoin investment. Phishing scams are related to receiving emails that ask you to reveal your wallet password.
In most cases, the emails look legitimate. They come up with the correct logo and password. However, most experts recommend people not to click on the links that they receive in emails. These emails may have an objective to dupe investors.
No doubt investing in bitcoin, as well as other cryptocurrencies, is risky. But, risk comes up with all types of investments. If you follow the security protocols, there are chances that you will be able to get good returns on your investment. When investing in a new digital currency like bitcoin, you need to have a long-term vision. You can follow the website click here to get details about the bitcoin investment. We are hopeful that this article will help you in getting enough information about the safety of bitcoins.
Also Read: Bitcoin VS Other Investments
