Bitcoin is one of the most discussed currencies today due to its volatility and transaction ease compared to traditional banks. The number of bitcoin users has also improved drastically, which has increased the value and demand of BTC and, in turn, increased the price. As of July 2020, bitcoin was estimated to be worth 11,225 US dollars and the market capitalization also reached 117.8 billion US dollars in the first quarter of 2020. As this virtual currency continues to grow, more people are beginning to embrace it. There are
however certain things you should know before getting started with it.
1. It is a Decentralized Currency
Bitcoin does not require any third party institution or body, which makes you fully responsible for your funds. The decentralization also makes your money secure; there’s no risk of your money getting devalued after some time since no institution or governing body can claim it. However, you must secure your funds carefully, as a wrong transaction cannot be reversed.
2. Use a Secure Bitcoin Wallet
A bitcoin wallet is the first thing required to get started with bitcoin, as you’ll need somewhere to store your funds and make transactions. There are several wallets available today such as the Bitcoin System app but you have to carefully choose. When choosing a wallet, consider how reliable and transparent it is and you can also look for reviews from previous users. Also, check how secure it is, as you’ll be entrusting your money in the app. Ensure it has two-factor authentication and other security measures to assure you that your money is safe.
3. It is Volatile
Bitcoin price is unstable, it can unpredictably increase or decrease over some time. This is due to several factors including the demand, economy, and illiquid markets. The volatility in bitcoin price is one of the major reasons some people shy away from it but it has also been a huge advantage for most people, as it has favored them in the long run. Bitcoin is considered a high-risk asset since no one can predict the extent to which it will rise or fall in price. This is why it is often advised not to invest any amount you can’t afford to lose. There are chances you might lose a significant amount due to how volatile it is.
4. It is Accepted as a Form of Payment
Many businesses today have gone digital and will do whatever it takes to make payment easier for their customers. Bitcoin is now a form of payment for many of them to make transactions easier than ever. By investing in bitcoin, you will also be able to easily purchase items with it.
Investing in bitcoin is a simple process and not as complicated as some other forms of
investment. Just ensure you’re storing your funds and making your transactions on a secure app or wallet. Most of these apps will provide you data and resources to help you make the right decision as you trade your bitcoins.