Anne Cruz
Investing in bitcoin is not only a potential for making money but also a risk. Therefore, investors must be careful before placing their money. The most popular crypto currency, Bitcoin is in the spotlight of market participants. When a number of investment instruments were “destroyed” by the Covid-19 pandemic last year, Bitcoin managed to provide lucrative profits.
For those who are not familiar, Bitcoin is a digital currency that is traded through an online peer to peer scheme. Quoting coinmarketcap.com, all Bitcoin trading transactions occur directly between actors in the Bitcoin transaction network, without intermediaries.
Bitcoin was first launched by a person or group of people, who used the alias Satoshi Nakamoto. However, until now, it is not known who the figure behind the birth of Bitcoin is. In recent years, the benefits that Bitcoin promises are quite lucrative. However, before deciding to engage in Bitcoin buying and selling transactions, you should first consider the opportunities and risks that you may get from Bitcoin investments.
Here are some profit opportunities from Bitcoin investment:
1. Low transaction fees
One of the advantages of Bitcoin transactions is that the transaction fees are cheaper compared to other money market instruments. The reason is, Bitcoin is based on digital currency so that the transaction process tends to be more practical and faster.
2. Clear advantage
In the last few years, many investors have started to pour their money into Bitcoin or other digital currencies because it promises clear profits. The reason is, digital money is not related to any institution, institution, or country. On the other hand, there is an increasing distrust of investors in fiat money. To note, fiat money is strongly influenced by the debt and economy of a country. As a result, investors see that Bitcoin and other digital currencies can act as strategic reserves. You can get more info by using Bitcoin Profit Pro.
3. Wide access to the community
One of the interesting aspects of crypto is that this technology has the potential to attract unbanked people from all over the world, into the modern financial system.
People who do not have access to banks can benefit from Bitcoin through technological sophistication. But they must be willing to learn to buy and sell digital currencies, including Bitcoin.
In addition to these profit opportunities, Bitcoin also has a number of risks to be aware of, as follows:
1. High fluctuation
The biggest risk of Bitcoin transactions is high fluctuations. So, the price could rise sharply, but there is also a threat of a deep fall. Bitcoin carries a higher risk of fluctuation than other money market instruments. Not to mention, there is no suspension or temporary suspension of trading, like in the stock market, in the event of a sharp increase or decrease.
2. Absence of legality and central bank
The main difference between Bitcoin and other fiat currencies is legality. A number of countries have not legalized Bitcoin as a legal tender.
As is well known, most countries insist that digital currencies, including Bitcoin are not recognized as legal tender. As a result, any government or authority cannot interfere with the rise and fall of Bitcoin’s value.
There is no one in charge if the value of Bitcoin is very volatile. Therefore, its price fluctuation is highly dependent on supply and demand. Bitcoin is not under the supervision of a central bank like other fiat currencies. Because it does not have a central bank, there are no fixed rules for Bitcoin trading.
3. Vulnerable to hacker attacks
The technology that Bitcoin offers has 2 sides of the coin. In addition to offering convenience for users in transacting, this technology is also feared to be vulnerable to hackers or hackers. In the event of a hack, users cannot make reports to the relevant authorities because Bitcoin is not under the supervision of a central bank.
Editor’s choice:
Lucas Noah
