Bitcoin is the number one and most popular cryptocurrency to date and many people around the globe are now ready to invest and make a fortune through the means of Bitcoin.
Bitcoin has been around for the longest of any cryptocurrency. Many businesses already accept bitcoin as payment. As Bitcoin has a price and market cap that’s much higher than any other crypto investment options, it makes this cryptocurrency a smart investment.
Bitcoin is a decentralized digital currency and it is created as a part of a digital process called Bitcoin mining. This means that there is no central bank or administration that controls the funds but is controlled by peer to peer decentralized exchange funds.
Although it has low liquidity, transactions are fast, cheap and confidential. Using third party exchange brokers or Bitcoin ATMs you can exchange your bitcoins for cash at a given rate. It is simple and secure.
Since bitcoin and all other crypto currencies are handle online, there are various threats and consequences you may face, if not handled with caution and careHow to invest in Bitcoin can be summarized in 5 simple steps;
- Join a Bitcoin Exchange. …
- Get a Bitcoin Wallet. …
- Connect Your Wallet to a Bank Account. …
- Place Your Bitcoin Order. …
- Manage Your Bitcoin Investments.
Although the procedure is simple, people are still hesitant on where to invest, and how to not get caught in online scams or unknowingly be a part of some money laundering operation!
Pay your attention
One need to pay attention to the safety and confidentiality of their personal details and be aware of the risks associated with investing in cryptocurrency. A few of these risks namely are;
Since cryptocurrency is a digital currency the risk of Cyberattacks and hacks are high
And since Bitcoin and all cryptocurrency are decentralized there are risks associated with Peer-to-Peer Transactions.
Loss or destruction of Private Keys can lead to identity theft and loss of control of your own money.
There is also a risk of regional regulations and currency conversion risks since cryptocurrency isn’t accepted in all countries and some platforms are supported only in the US or selected regions only.
Here are some of the safest Platforms where you can invest your Bitcoins.
Coinbase, Kraken, and Gemini offer Bitcoin and many other types of crypto currencies. These three are probably the easiest and safest approaches to invest in Bitcoin and other crypto in the entire industry.
One of the safest and most popular site for bitcoin investment is Coinbase. It makes buying Bitcoin as easy as buying a stock through an online brokerage, though the fees and charges for investments is higher than other platforms
Over five hundred and forty-seven Billion dollars are traded in quarterly volume and coinbase is supported in over hundred plus countries. They also have over eighty-nine million verified users.
The platform also has beginner guides, practical tips, and market updates for first-timers, experienced investors, and everyone in between. It also contains and in depth explanation of what crypto currency is, what different crypto currencies are available and it also explains all the jargon used when dealing with crypto currency.
Coinbase has a safe and secure storage for the crypto currencies, which is an offline storage which stores the vast majority of digital assets. The safest way to store crypto currency is in a cold wallet- which is an offline device which is not connected to the internet.
Coinbase also insure your crypto currency and maintains crypto insurance. All USD cash balances up to a maximum of two hundred and fifty thousand dollars are covered by FDIC insurance.
Gemini is also a safe platform to invest your Bitcoins in. The platform is user friendly and secure. Theypride themselves in their security measure and also insure the crypto currency held by them. Digital assets are insured against losses that result from a security breach or hack, a fraudulent transfer or employee theft.
Gemini also offers options for organizations that invest on behalf of clients, allowing fund managers to track device use and access permissions. Also,customer service is much easily accessible on the Gemini platform.
Gemini also offers ten free crypto withdrawals per month, after which they charge for the rest of the transactions. Their transaction and trading fees are higher than Kraken.
Kraken is an excellent option for new and existing Bitcoin investors and traders looking for low trading fees. Kraken also has access to a wide selection of coins and other crypto currencies. Kraken provides a secure platform to buy, sell, and store cryptocurrency. Kraken also has solid security track records, and has not had any breaches in security. Kraken stores ninety-five percent of its assets in guarded air-gapped cold storage and has strict surveillance across the entire platform and multiple checkpoints throughout the signup process.kraken unlike Coinbase does not insure your crypto currency. Also kraken does not provide digital wallets like coinbase.
Below are some advantages and disadvantages one must consider before investing in Bitcoin or any other crypto currency
The high liquidity related with bitcoin makes it a great investment if you’re looking for short-term profit. You can make a small investment and once your profit is doubled or tripled, you can exchange your Bitcoins for cash. Digital currencies may also be a long-term investment due to their high market demand, but one needs to understand that the fluctuations are unavoidable and to keep calm and make sound decisions regarding your investments. Disadvantages
The value of bitcoin tends to fluctuate a lot. You may see the price go up or down thousands of dollars during any month. If wild fluctuations like these make you tense, you may want to avoid bitcoin. Otherwise, as long as you keep in mind that cryptocurrency could be a smart long-term investment, these fluctuations shouldn’t be too concerning.
In conclusion, Bitcoin is the leading cryptocurrency with immense potential for investment and profit. However, investing in Bitcoin requires caution and awareness of the associated risks. It is crucial to prioritize the safety and confidentiality of personal details, as cyberattacks and hacks are prevalent in the digital currency space. Loss or destruction of private keys can lead to identity theft and loss of control over funds. Additionally, regional regulations and currency conversion risks should be considered. To invest in Bitcoin safely, platforms like Coinbase, Gemini, and Kraken provide secure options with insurance coverage and user-friendly interfaces. While Bitcoin offers high liquidity and market demand, it is essential to remain calm and make sound decisions considering its fluctuating nature. Investing in cryptocurrency carries inherent risks, and individuals should approach it with caution and careful consideration.