There are a lot of doubts regarding how to invest in bitcoin because many people say that bitcoin is not a safe investment; however, many people are investing in this gold coin and using it as fiat currency. Bitcoin is not a safe currency for everyone because not a single person controls or manages the price; instead, multiple nodes are working worldwide to control it. The cost of this coin depends upon many factors, and the primary factor is demand and supply. Demand and supply depend upon other factors that fluctuate this coin’s price at very high or low value. You can learn more about bitcoin trading through trading software like this Bitcoin trading app.
Things to ensure before buying bitcoin
Some people have lost their money by investing in bitcoin, but some people appreciate bitcoin because this currency has made their life financially free. So there is a gap in the knowledge of the users. People Who invested money under FOMO (fear of missing out) or without a proper understanding of bitcoin technology lost their money by investing. However, after completing adequate research and technology knowledge, people who support Bitcoin benefit from investing in it. So you have to understand the depth of study of bitcoin before investing if you want to benefit from investing in it.
Two types of significant fraud in Bitcoin
There are the following two significant frauds that many people lost their money by investing in bitcoin and claiming that bitcoin is not a safe cryptocurrency given below:-
- Security Issues:- The primary platform where all the Bitcoin transactions occur is the blockchain platform. The bitcoin blockchain is a compelling platform with very high security, but there are some privacy issues, such as everyone can see your transaction id and the amount by searching. For more privacy, people use bitcoin exchanges; since bitcoin exchange is a third-party exchange, there may be security issues. For example, the hacker can easily hack an exchange full of bugs, and the exchange users can lose the money or bitcoin that will never come back.
- Emotional Decisions:- There are a lot of bitcoin scammers on the internet or social media that do not know about hacking or coding, but they steal the money by making the investor emotional. Human beings have emotions, and emotional decisions are very effective buying decisions. So the bitcoin scammers get the email or phone number of targeted investors and start sending them predictions by the message that I will help you double your money through my 100% predictions.
Price Pumping and ICO Scams
Some people invest a lot of money in bitcoin, and people think that the price of bitcoin is going up and it is the right time to invest in bitcoin. But when the price goes up for some time, the scammers start withdrawing money and then the price of bitcoin starts falling, and many people face money loss. There is always a reason for raising the bitcoin cost, but if there is no pumping news, some people or scammers are increasing the value, and you must be aware.
ICO stands for (Initial coin offering), the same as the Initial public offering in the stock market. When new crypto coins come into the network, the ICO is the process, and many people buy the ICO of the new coin hoping that this coin’s price will increase. Sometimes there is no coin, but the investor starts investing by paying the third parties and loses their money. So you must read the white paper of the new crypto coin to know if a coin exists.
Learn About Risk-Free Ways to Obtain Bitcoin
If you are planning on investing in cryptocurrency but you are not entirely sure, or maybe you don’t have a substantial spare sum of money for the investment, there are ways on how you can explore the world of cryptocurrency without commitment. One of those ways is money-making apps, that allow cryptocurrency payouts. For example, the passive income app Honeygain offers a way to payout in two cryptocurrencies JMPT and Bitcoin. This is perfect since you don’t need any initial investment and effort, since you can earn it passively.
Takeaways to make the bitcoin safe investment
- Do not make emotional decisions by believing a random person in your email or social media inbox. Instead, always do your satisfying study to invest in bitcoin.
- Many people commit suicide after losing money in cryptocurrencies because they invested all their savings and borrowed cash from their family and friends.
- Always take deep satisfying research before choosing a bitcoin exchange because many exchanges are coming into existence with security issues.
- After buying bitcoin on the bitcoin exchange, transfer your bitcoin to an offline wallet such as a paper wallet or hardware wallet so no hacker can trace your bitcoins.
- Use two-factor authentication to secure your bitcoin wallet so one can log in to your wallet by guessing or stealing your wallet password if you are using an online wallet.