As when we invest in any business or financial asset, we must bear in mind that every investment has some risks gold ira companies.
Within the digital currencies that currently circulate on the internet and in the cryptocurrency market, Bitcoin is the best known because it is the first cryptocurrency that was created in the world and which gave rise to all this new technology called Blockchain or blockchain. Investing in Bitcoin can have important advantages, so below we will talk about its advantages, risks and give you some tips to keep in mind when buying Bitcoins.
- This currency is a finite and scarce good, which means that the number of coins in circulation is finite, that is, only 21 million Bitcoins were created, which means that as it becomes scarce, its price begins to increase.
- The price of the currency is determined by market forces, that is, by supply and demand. The currency is not intervened by any institution.
- You can send “value” with Bitcoin through the Blockchain without the need for a third party.
- It is globally accepted which implies that you can spend your Bitcoins anywhere in the world without having to change to another currency.
- It is a risky investment, since Bitcoin is characterized so far by its great volatility, which means that if you do not know what you are doing, when you invest you can buy at very high prices and Bitcoin fall in price, which would the value of your investment is reduced.
- You must know well how it operates and how you can send and receive Bitcoins, because if you make a mistake by entering the address to which you want to send or receive your Bitcoins, the transaction cannot be reversed and perhaps you can lose your funds by sending them to a different wallet than the one what did you want.
Some tips to invest in Bitcoin that we would like to share are the following:
- Do not invest more money than you are willing to lose, do not sell your belongings or mortgage them, do not lend money to invest in cryptocurrencies, if you are going to invest in them, only invest the money you are willing to lose, do not invest your life savings Well, you could lose them.
- Never share the private keys of your wallets with anyone, treat it as a great secret and protect it in a safe place, because if it is lost, whoever finds it could have access to the funds of your wallets.
- When storing your Bitcoins, do it in a safe place, in a Ledger Nano (hardware wallet) to store them cold, or in reputation exchange houses that have good security and good backup, such as Binance.
- Never give your money to a third party so that they invest it for you, nor give access to your Bitcoins to people who offer to operate them and pay you high interest in exchange for doing so, remember that in this space there are a large number of scammers who seek to take advantage of the innocence and naivety of all those people who come new to the market.
- Only use trusted providers, if you are going to buy through a website, check your reputation beforehand and if this is a trusted website.