One thing that makes Bitcoin different from other investment opportunities is that you either have to retain the cryptocurrencies yourself or trust someone else to do it. To get started with trading cryptos, visit the official website bitLQ.
If you keep them yourself, there is a chance that you could end up losing them forever if you don’t store them in a safe wallet.
If you give them to a third party, then your crypto account could be hacked. And unlike keeping money or stocks in banks or brokerage accounts, it may not be easy to get the coins back once they have been hacked because there is no insurance available for your crypto account. Some exchanges now offer protection if it turns out that the exchange caused the hack. But it might be hard to show that a person’s account was hacked because of a problem with system security.
Additionally, there is always the possibility of losing money on an investment, but putting money into bitcoin presents a unique set of challenges and obligations in comparison to more conventional investments like equities, bonds, and funds.
How would you keep your BTC safe?
You need to consider the following factor to keep your BTC safe:
Bitcoin frauds are increasing
Scams that target those who invest in bitcoin are increasing in number as the value of bitcoin rises. In May, the Federal Trade Commission released a study stating that almost 7,000 consumers lost a total of $80 million to bitcoin scams that promised rapid profits.
Be wary of phishing schemes as well, which involve the delivery of emails purporting to come from a crypto exchange but which, in reality, are efforts to trick you into disclosing your account credentials. The emails may be made to look authentic by using the appropriate logos and branding. Industry professionals strongly advise that you should not click on any links available within these emails. Instead, you should get in touch with the exchange immediately if you get unusual messages that demand your login information.
Bitcoin and other Cryptos are high-risk investments
Additionally, every investment comes with some level of risk. However, the potential for loss is exceptionally high with bitcoin and many other new cryptocurrencies.
Maintaining a long-term perspective when it comes to your investments is essential to ensure that your overall portfolio is well-balanced. Additionally, refrain from investing more money than you can afford to lose in any single bitcoin transaction. However, if you want a safe and secure trade, you should consider a secured trading app or platform.
Keep your Bitcoin access private key secure
When you acquire bitcoin, in contrast to when you purchase stocks, bonds, or mutual funds, you take on a larger duty to safeguard your investment. Also, ensure that it does not fall into the hands of dishonest individuals.
To begin, you have the responsibility of ensuring that the private key to your digital wallet is kept in a safe place.
There were numerous cautionary tales in the media involving freshly minted multimillionaires who were blocked because they had forgotten their passwords. One such story was about a German-born San Francisco developer who was unable to access his gadget, which was carrying an estimated $220 million in bitcoins.
Bitcoin may be volatile
Many investors bought bitcoin after it crossed $20,000 in December 2020 and remained rising until April, when it topped $64,000. By early June, the spot price had fallen below $32,000.
Bitcoin investors had seen it before. Bitcoin’s previous record high was above $20,000 in December 2017, dropping below $3,400 a year later.
When dealing with bitcoin, know that its value might decrease suddenly and take years to restore.
Buying bitcoin is a little more complicated than buying regular stocks or shares of equity. This is mostly because the ecosystem and infrastructure of cryptocurrency trading are not as developed as those of traditional trading. Further, you can also make money by trading oil in addition to bitcoin.
Disclaimer: The presented material by no means represents any financial advice or promotion. Be sure to do your own research and acknowledge the possible risks before using the service of any cryptocurrency platform.