Today, investors are more highly interested in cryptocurrency than earlier. Criminals are also. Cryptocurrency crime reports are increasing every year. These crimes include hackers stealing investors’ coins to people falling for scams regarding crypto investing.
Bitcoin is the popular crime report of cryptocurrency, and that makes sense that it widely holds the crypto. Beyond the crimes, bitcoin safety is the investment;thanks to the scale and frequency of the value fluctuations.
As we know, theft and fraud increase and many experts will tout the bitcoin investment safety, thanks to the secure blockchain technology. Feel free to check biticodes software to learn everything about bitcoin.
In this article, you will understand whether investing in bitcoin is safe.
Bitcoin Buying Considerations: How To Make The Right Choice
The money you spend in bitcoin is not kept safe from value fluctuations. Bitcoin is a volatile investment.
- If you want to choose a safe investment with guaranteed returns, never invest in bitcoin. Recently, the price of a bitcoin ranged from $30000 to $60000.
- You have to understand that bitcoin is a volatile investment, and big fluctuations affect its great loss.
- For exactly that reason, experts suggest keeping the cryptocurrency investment less than 5% of the portfolio.
- It is also suggested to ensure a solid conventional retirement plan. You should also have an emergency fund and pay down the high-interest debts before putting the money in bitcoin.
The Risks Associated With Bitcoin – What You Need To Know
The biggest security concern for people is the risk of fraud and hacking regarding bitcoin investments. Today, cryptocurrency crimes are increasing every day. According to the report, crypto crimes involve scammers who will send the request payment in cryptocurrency or send fake offers to make money and increase their holdings. Keep in mind that this type of activity is a sign of a scam.
It is suggested that people avoid fake offers related to crypto. You have to do deep research and purchase the bitcoins by only using a reputable crypto exchange.
Don’t Be The Next Bitcoin Scam Victim: Know The Types Of Scams To Look Out For
Following are some types forms of scams related to bitcoin or other cryptocurrencies.
- ICO ( initial coin offerings) for fake cryptocurrencies
When the cryptocurrency is offered to investors before launching in the market, it is known as the ICO. But in some cases, the new coin offering is fabricated, leading the investors to put the money into a cryptocurrency that does not exist.
It is suggested to do research before investing in any cryptocurrency. If it looks good, you can smartly stick to the established and popular cryptocurrencies.
- Crypto pump and dump scheme
Small investor groups may pump huge amounts of money into certain crypto, inflating the price while attracting private investors to invest in bitcoin. Then the shares are sold by the original investors to make profits before the prices drop. This scheme is also used for traditional investments.
Bitcoin Safety – Keeping Your Currency Secure
Hackers can access individuals’ crypto wallets or the entire crypto exchange to steal their holdings. This is the reason why it is important to store the crypto in a safe place and practice good digital security habits.
Third parties and cryptocurrency exchanges provide safe wallets. Crypto holds the sale or in the wallet. Ensure that you will trade and hold the crypto on a platform that provides safety measures. It involves two-factor authentication for users to keep their safety.
To ensure protection against fraud, many experts suggest using cold storage through offline devices that are not connected to the internet. However, you should be aware that cold storage is not completely risk-free. There are specific potential hazards involved which every financial trader should know about.
Whether the bitcoin is safe is based on the volatility the trader can stomach. The technology behind the coin sounds despite risks that are present at several stages in the trading process. Undoubtedly, bitcoin is challenging to hack, but it does not mean it is safe. Traders search the bitcoin and determine whether they are willing to invest in a crypto asset or not.