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Among all cryptocurrencies by market capitalization, Bitcoin has been the most inspiring and popular. However, over the years, it has been the subject of much discussion due to price volatility and cases of crypto frauds. It is therefore normal to ask questions about the security of this investment. What is it really?
Should you buy Bitcoin right now?
Bitcoin has undergone a remarkable transformation, going from a simple virtual currency to digital gold. In less than a year, its value went from $3,000 to $60,000. The last price surge occurred in 2021, and today they continue their rise.
If we look at the chart of Bitcoin price fluctuations since its inception, we can observe a slight cap. This raises the question of a possible free fall in the years to come. Although it is difficult to predict the future of Bitcoin and know when to buy bitcoin, we are inclined to consider that it is a good investment. Moreover, many renowned investors continue to bet on this cryptocurrency, while remaining hopeful about its evolution.
The noise that has spread about the rise of Bitcoin has largely contributed to its current situation. However, it should be remembered that this
all cryptocurrency remains extremely volatilee. In the past, it has experienced sudden fluctuations, leading to losses of up to 80% of its value. Despite this, Bitcoin has managed to recover.
The Potential Benefits of Investing in Bitcoin
Although doubt arises about the safety of theinvestment in Bitcoin, it is important not to lose sight of the benefits that come with it.
Bitcoin technology is secure
Bitcoin is based on an improved technology called blockchain. Compared to other financial solutions, this cryptographic technology makes transactions irreversible. These are also made public to ensure the transparency of the Ledger. This limits fraud, even if the identity of investors remains anonymous.
Bitcoin is decentralized
THE Bitcoin network is distributed throughout the world, with more than ten thousand servers or nodes. So, if there is a problem with one of them, others can take over. This structure is beneficial in the event of a hack, because other nodes remain available to counter attacks. Even if these were massive, you would have to control more than 50% of the servers to succeed in a cryptographic attack, which is highly unlikely.
Bitcoin is a real currency
Although it is digital, Bitcoin can be used as a real currency. You can use it to make purchases or reservations. As transactions are irreversible, there is no risk of chargebacks. Once Bitcoin is sent, it cannot be retrieved, but it can be sold.
Bitcoin is fair
Bitcoin is accessible to everyone, and is not not regulated by financial institutions or governments. This makes it fair for all investors. Thus, everyone can benefit from the yield of this cryptocurrency, throughout the world, without limits or geographical borders.
Bitcoin is easy to use
To trade Bitcoin, you only need IT support (computer, smartphone or tablet) and an internet connection. You can even use a credit card if you do not have an available connection.
Reduce the risks of investing in Bitcoin
For Bitcoin, the basic rule, as with any investment, is simple: only invest what you can afford to lose. Of course, it can be tempting to bet a large amount because of the attractive numbers, but the Bitcoin volatility increases the risk of loss. Plus, no one knows how long it will continue to rise before falling again.
To reduce the risks associated with the Bitcoin market, limit your investments to a reasonable amount, within your means. This way, you avoid sacrificing a colossal amount of money. It is also recommended to diversify your portfolio. By avoiding “putting all your eggs in one basket”, you increase your chances of success.
In terms of security, the cold wallets, which are not connected to the internet, offer protection against hacking. However, they are vulnerable to theft and loss. Hot wallets, on the other hand, are practical and accessible anywhere. To be on the safe side, we suggest combining these two types of wallets.
