There are many cryptocurrencies available in the market and Bitcoin holds the biggest market. In April Bitcoin touched the record height of $63,558. However, when the price of bitcoin went down it dragged the price of other digital currencies as well. With so much potential the traders started showing interest in Bitcoins.
Though you can earn a good profit with bitcoin, it also careers a lot of risks. And that is why the funds that cannot afford loss avoid getting involved in Bitcoin Trades. Most of the companies dealing with retirement money, pension funds and hedge funds, never try to put their money in cryptocurrency trades.
Is bitcoin a decent investment option? Can I trade in bitcoin? Are some of the common questions those who are interested in bitcoin trading ask.
So, in this article, we will try to find out if bitcoin is a good investment option or not. To know the answers we have to see what are the factors involved in Bitcoin investment.
- Diversified Portfolio:
If you are already investing in the stock exchange then Bitcoin can help you diversify your portfolio.
Bitcoin doesn’t get affected by the stock market and those who have already invested in the stock exchange and think that their investment completely depends upon its moment can now take a sigh of relief with Bitcoin investment.
They can purchase Bitcoin stocks just to be on a safer side. So that if the stock exchange crashes they would have their Bitcoin investment safe.
- Transparency:
If you want your investment-related information to be kept private then Bitcoin investment should be your first choice.
Bitcoin follows the key encryption policy and depending upon that none of the private details of the buyer and seller of the Bitcoin is revealed.
Due to this, while investing or buying, or selling anything from Bitcoin you have to use Bitcoin wallets. Your wallet will generate a unique ID and during the transaction, your partner will know you with this unique ID only.
- Potential:
We are talking about Bitcoins here and it is the most popular digital currency and hence it carries a lot of growth potential. Most of the companies investing in Bitcoins ultimately makes the stocks of less cryptocurrency go high and increases the chance of making a good profit for the traders.
On the other hand as compared to the time when this currency was, today one can purchase many services and goods with this digital money. That is again making the stocks go hire.
All these things all together show that the investors can assume a good profit while investing in Bitcoins.
- Storage:
You can certainly store your Bitcoin in your wallet. However, a wallet is somewhat safer than an exchange. You do not want your money to be kept at the exchange for long.
As it is very common for the Bitcoin exchange to start and shut down whenever they want.
Also, it is very easy to hack digital money platforms and hence this ultimately makes exchange the riskiest platform to save your cryptocurrency. On the contrary, if you are maintaining bitcoin in your wallet it will be way safer than it was in the exchange.
- New In The Market:
As compared to the conventional stock investment system, Bitcoin investment is very much new. This makes the investment in Bitcoin a little unsafe.
You may invest in a project related to Bitcoin and there is a possibility that the project may shut down and you will end up losing all your investment currency.
- Accessibility:
As you do not need any Central authority or an ATM to get this cryptocurrency, this makes Bitcoin easily available for the users. With its ease of accessibility, one can invest this digital money wherever they want.
- Risk:
Cryptocurrency exchanges are prone to hacking. It is very easy for hackers to get into the exchange software and hack all your cryptocurrency. The hackers can simply transfer it to their wallet and will not be able to find out who to get your Bitcoins back.
Because it is an electronic currency and it uses a wallet id for the transaction and not any personal information. Once you lose your digital currency, you will never get it again.
Fraud and scams are common in Bitcoin. For example, you have invested in a bitcoin stock and the agent has promised you a good return. But as we know nobody can protect the movement of the market. In this situation, you may have to take a good loss or a not-so-good profit which may seem like a fraud to you.
- Volatility:
If you are considering short term investment or trading and Bitcoin then you should not forget that this cryptocurrency can be highly volatile. There are always strong moments in the trends and one can easily take a loss or profit.
On the contrary, if you are looking for a long-term investment then you can show good trust in Bitcoin. However we should not forget the fact that Bitcoin is an electronic currency, it entirely depends upon the market and it is next to impossible to speculate its moment.
Here you can assume profit in your investment if you will keep a keen eye on your portfolio.
Conclusion:
With every good thing comes a bad thing, you just have to realize how to tackle the cons and rise like a pro. The same is the situation with Bitcoin investment. Here you can assume a sound profit but there will always be some risk.
All you have to do is keep your eyes wide open and be cautious. This will help you eliminate the cons of Bitcoin investment and leave you with only the advantages. Those who want to start investing or trading in Bitcoin can visit the website of Yuan Pay Group.
If you are interested in trading Bitcoin and willing to earn sound profit then you can download the trading application of this platform.