Pros and Cons of Bitcoin

Bitcoin occupies an important role in the modern world and is increasingly being heard. Before making a transaction of buying/selling bitcoin, you need to familiarize yourself with the positive and negative factors of this cryptocurrency. Awareness of the various aspects of bitcoin will contribute to making a deliberate decision. Crypto fans may have completely different attitudes towards this currency, but there are a number of undeniable characteristics that you should pay attention to.

Pros of Bitcoin:

• No restrictions. The exchange of bitcoins takes place at any time, without a limit in the amount. Also, the time of day and your geolocation do not matter. You can sell or buy bitcoin 24/7 all over the world, even where there is no banking system. All you need is the Internet!
• The absence of intermediaries. Admirers of cryptocurrency, first of all, consider bitcoin as a way to fight corrupt elements. You do not need third party services. As a result, transactions without intermediaries will be profitable, fast and with a minimum commission.
• Transparency. One of the principles of the Blockchain is transparency, that is, the user can return to the chain of exchanges made by him in free access.
• No inflation. Bitcoin, by its very nature, is a deflationary currency. The bitcoin exchange rate will directly depend on the influence of market processes. Economics and politics have no influence on changes in rates.
• Protection. One of the advantages of bitcoin is that it cannot be hacked or faked, as bitcoin wallets are securely protected thanks to the smart contract technology that is on the blockchain.
• Cheap international transfers. With the help of bitcoins, money transfers around the world are more profitable and faster than using traditional banking services.
• Recognition. Bitcoin has the highest brand awareness among other cryptocurrencies. It has liquidity and recognition among various well-known and reliable companies and organizations.
• Great option for investors! The cryptocurrency market is developing and you can start investing with small amounts. It is real to earn good money, due to a sharp change in rates.

The main disadvantages of bitcoin:

• Volatility. This concept means a change, a fluctuation in the price of an asset over a certain period of time. Various factors can influence this: changes in information about cryptocurrency in the media, whales, forks, liquidity, trading volume on exchanges, as well as supply and demand.
• Anonymity. Someone is sure that anonymity is a big plus, but, in fact, this factor makes bitcoin or another cryptocurrency very attractive to attackers. They may purchase illegal substances or carry out criminal operations.
• Regulation. Bitcoin falls under excessive state control and is completely banned in other countries.
• If you forget your e-wallet login details, then it will be impossible to restore it, because only you know your login and password.
• Storing bitcoins on mobile wallets. Mobile apps can be linked together by sharing your keys. Since not all mobile apps are secure and trustworthy, this cross-origin sharing can have a negative impact on your privacy.
• The popularity of bitcoin is not eternal, a new cryptocurrency may appear tomorrow, lowering the cost and significance of the previous one.

Risks of investing in Bitcoin

The most common scam problem is phishing. Attackers will use any means to find out your login or password from you, up to the fact that mailing to your e-mail from brands known to you, disguised by attackers, will be activated. If some scammer gains access to the investor’s private key, they can easily steal all the assets of his digital wallet.

No third party! On the one hand, this is a very attractive moment. But if you look from the other side, it threatens a lack of consumer protection. The transaction you made will be impossible to cancel, and in case of an unsuccessful transaction, you will need to convince the recipient to return the money to you.

High volatility of bitcoin. The result of the fluctuations of this cryptocurrency is difficult to predict in the short term. This adds to the doubt about the status of bitcoin.

Before you start investing in bitcoin, you should not forget about the risks. The main rule for all investors is not to buy bitcoin with the last money. In the event that a collapse occurred on the market and BTC fell in price, do not sell all the currency for next to nothing. Try to hold bitcoin until the rate rises. This tactic is recommended by all crypto addicts and traders.

It is very important to act within the acceptable risk and carefully study the cryptocurrency in which you are going to invest. There are many scammers in the world of cryptocurrencies. Be sure to research all the information about the exchange or exchanger where you are going to buy and sell cryptocurrencies. The main factor to pay attention to is the period of stable operation of the project.