3 Pros And Cons Of Buying Bitcoin

There are many pros and cons of buying Bitcoin, but we will be unveiling three (3) of them today.

Bitcoin is gaining popularity and there are now over 63 million wallet users. As more people continue to buy bitcoin, they must understand what it entails. Bitcoin is a highly volatile asset and its growth is almost unpredictable. If you must invest or trade bitcoin, here are some pros and cons you must be aware of.

PROS

1. It is Accessible

It is now easier than ever to buy bitcoin due to the improved bitcoin exchanges available today such as the Bitcoin-billionaire.net app. These exchanges allow you to exchange bitcoin units for fiat currencies and you can simply install them on your phone or access them directly via the websites to start trading. It is not only easily accessible through these platforms but also faster and requires low transaction fees.

2. User Anonymity

The privacy protection in bitcoin makes it a trusted form of investment. While it doesn’t necessarily guarantee complete anonymity, it masks your private information and replaces it with pseudo information. This ensures your data is protected and no transaction can be traced directly to you. If you use a wallet, you have access to a private and a public key and without the private key, no one can have access to your details and transaction history. With improved security on your account, your anonymity can be protected even better.

CONS

1. It is Highly Volatile

The bitcoin market is more volatile compared to the stock market or real estate. This volatility can be both an advantage and a disadvantage. The price could either increase or decrease within a short period, which is why it is often advised to tread with caution when investing. The common rule is to never invest more than you are willing to lose.

2. It is Unregulated

Bitcoin being a decentralized currency might have aided in its quick and easy transactions but there’s also a downside to it.

Once you complete a transaction, it cannot be reversed. This means if you mistakenly transfer bitcoin to the wrong address, you won’t be able to recover it. The same goes for if your account is hacked and your funds are moved. To avoid this, take extra precautions and always check for errors. Also, ensure you have security measures in place to keep your funds safe.

3. Exposure to Risks and Frauds

Crypto scams are constantly on the rise as the industry gains more attention. In 2020, about $24M worth of crypto was reported to have been stolen so far. By investing in bitcoin, you are exposed to an increased risk of losing your assets through Ponzi schemes, vulnerable accounts, breeches, and more.

However, the way out of this is to use an exchange or wallet with tight security and be careful not to fall into Ponzi schemes. If it sounds too good to be true, you need to verify.

Conclusion

Bitcoin continues to increase in value and grow in numbers. Before you invest, ensure you understand the basics of what bitcoin investing and trading are about and know how to navigate the cons, so you won’t be at a disadvantage.