Bitcoin investment or Bitcoin is the largest cryptocurrency by market cap. Investing in Bitcoin seems complicated but it is not.
It only requires an exchange platform or a cryptocurrency exchange and a way to store your asset
using your wallet.
Since Bitcoin’s inception in 2009, its popularity has been increasing geometrically thereby captivating
the general populace’s attention to investing in it.
Bitcoin is a decentralized digital currency that you can buy, sell, and exchange for other coins (alt-
coin) without an intermediary like banks.
Bitcoin Investment is basically a system of placing your capital in the form of digital currency for the
purpose of deriving income or profits from its usage or after the coin has appreciated.
There are many factors to consider before you decide to invest in Bitcoin. Therefore it is expedient
you know some in and out of Bitcoin investment before you invest in it.
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Benefits of Bitcoin
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Transaction fees are extremely low.
The centralized banking system ranging from using banks, ATMs, debit cards, and credit cards, has
high charges whereas the decentralized transaction charge less. This will enable you to save costs and
transact at will.
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Potential to yield more profits.
Over time, the world has seen how bitcoin pumps thus bringing more profit to the investment.
The centralized banking system has no potential for such. Also, you have to note that the market can
change at any given time.
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Decentralization
This is not controlled by the financial institution of your country or the government of your country. Bitcoin is
build on blockchain and to some extent you are in charge of your bitcoin.
Bitcoin investment uses peer to peer (P2P)network. This gives you the liberty to transact directly with your business partner without any third party. it also helps to alleviate extra charges
Also, it gives you the freedom from different laws and policies of the central banks of your country.
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Transaction in Bitcoin Investment is traceable
Since Bitcoin is built on blockchain, anytime you transact with your clients, all the blocks
received the transaction details which you can trace and know if your client receive the transaction or
not.
Also, all records of your transactions can be retrieved at your doorstep using your device.
- Bitcoin adopt convenience
The contemporary world will need to walk to banks, malls, etc before making a transaction but in the bitcoin
investment, it will only require your gadget and internet access.
This will make you to be more productive because the time can be channeled to another more productive program.
- Bitcoin investment provides a pseudonymous identity
The real identity of the owner is not revealed to a third party. This helps to protect the personal bio-data of the owner.
A cold wallet like Binance might require you to do KYC (Know Your Customer) but they are not revealed to the general public.
Demerits of Bitcoin investment.
- Security risk
Despite measures to secure the blockchain, there are bad guys that still attempt to hack the exchange wallets storing the Bitcoin. This factor poses a threat to you if you can’t trust your exchange provider.
Also, the inability to retrieve your Bitcoin after it has been sent is a factor to consider since, if you mistakenly sent it to the wrong address it can not be reverted back.
- Loss of account
When the 12 seed phrase given to you upon opening an account is lost or not properly kept and someone else got assess to it, the bearer can manipulate your account thereby you can lose all your Bitcoin investment.
- Bitcoin is not a legal tender globally.
The merchants accepting Bitcoin as a legal tender are more in the United States and part of Europe thereby the other part of the world are not accepting it.
For instance, if you travel from Europe to Africa and all your money will be in Bitcoin, and if you want to transact, It will pose stress on you before finding the solution.
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- Bitcoin price is unstable.
The price of Bitcoin is always swindling because it’s dependent on many factors. The price can enter either bear or bullish which can make the investor either gain or lose the monetary value.
It is advisable that if you are not a risk-tolerant person you don’t have to go into bitcoin investment.
Another thing to look out for is that you will have to engage in (DYOR) meaning Do Your Own Research this will enable you to know when, how, or whether to engage in bitcoin investment.
Final Note
It is expedient for you to consider many factors as highlighted above and many others before you engage in bitcoin investment. It is wisdom for you to weigh both the positive and negative factors together
then make your decision based on fact, not on emotions, or what others say.