Bitcoin reached an all-time high in 2021, yet the success of this digital currency is not a parameter for investing in it.
Bitcoin is the largest and most popular cryptocurrency since it was introduced as a new form of money in 2009. Despite this, it is still risky to sink your savings into it.
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Why You Need To Know More About Bitcoin Before Investing
Although cryptocurrencies promise potential big profits, they also promise uncertainty.
The fact that BTC crashed without a reason in 2018 after its huge success in 2017 still raises eyebrows about cryptocurrencies. It is therefore important and wise to know more about Bitcoin before investing in it.
The advice of veteran crypto traders & market experts as well as the study of its whitepaper is important before investing. This will save you a total mess if your investment should go down the drain.
Things To Know Before Investing in Bitcoin
It is important to know what you’re dealing with before investing in bitcoin. The fact that you might lose all your investment if care is not taken should make you think twice before investing in it.
Here are important things to know before putting your money into bitcoin;
Buying Bitcoin can be tricky- The fact that BTC and other cryptocurrencies aren’t produced or controlled by any government like fiat currency makes it tricky. To buy BTC, you have to go online and set up a digital wallet. You cannot just walk into a bank to make transactions with it like physical money. It’s when you get a digital wallet you can deal with BTC (or other cryptos). Then you can go to a crypto exchange or platform to buy, sell, hold & trade in the digital currency of your choice.
Cryptocurrencies are not regulated– You have to understand that cryptocurrencies are not associated with a government or central bank. This means investing in crypto with your hard-earned money is at your own risk. Although this shouldn’t stop you from investing, it is important to be cautious with your investments as returns are not guaranteed.
The value of cryptocurrency fluctuates– According to CoinDesk, Bitcoin has grown substantially since it was introduced in 2009. It reached an all-time high of over $25,000 in 2017 and then dropped down to just $4, 400 in 2018 (Bitcoin crash). This means that cryptocurrency is a high-risk investment. The fact that digital currency fluctuates in value is a warning not to put all your eggs in one figurative basket. If you really need to invest, you can set aside a sum of money you’d be willing to part with.
Bitcoin (and other cryptocurrencies) is an exciting technology with several advantages over traditional money systems. It’s not without its huge risk and uncertainty, you have to be cautious before jumping into it.
If you need to sell Bitcoin today, Prestmit is the best platform for you to do so. This gift card exchange platform trades for other cryptos such as USDT, Dogecoin, Litecoin, and so on.
Prestmit is present in both Nigeria and Ghana. If you ever find yourself in a position to buy and sell cryptos, Visit Prestmit, it’s the best platform for you.