The most common question that we hear on an everyday basis is whether cryptocurrency is a good investment or not. Well, there are lots and lots of debates over the topic. Both in favour and opposite opinions are present.
To be honest, what kind of investment is not risky, especially when you want to make some profit out of it? We are bound to take some risks when we want the extra money from trading or investing. The same is the case in bitcoin. The only thing that bothers most of the population is its volatility.
Bitcoins are volatile, and everyone knows that. However, we also need to know that the volatility of bitcoins can be handled as well. As this is the first digital currency, it will surely go through some risk factors for many years to come. After all, it takes time for a currency to get seasoned in the economic world.
What are the advantages of bitcoin investments?
Well, the bitcoin investments are very much beneficial if handled right. Here are the advantages of bitcoin. Learning it will only prove beneficial. So, read them out:
There is no central authority
No central authority means no government party or bank is connected. So, bitcoin is not regulated by these. It means that they have no control over your bitcoins, and to be precise, no one does. So, they cannot demand your bitcoins or seize them for any reason, which can happen in the case of fiat currency.
You have complete control of your bitcoins. There is no link between government policies and the price movement of bitcoin. So, the risk gets reduced because of the decentralisation factor.
Highly potential for profit-making
Yes! Bitcoin is volatile. And this is the same reason you can get a great amount of money in return as well. Volatility works in both ways, right? So, using it effectively is all we need to do. In 2021, the price of bitcoin was USD 65,000 after Tesla Inc’s acceptance. In fact, last year,it also crossed USD 66,000twice.
Now in June 2022, the price of bitcoin is around USD 30,000. It fell a lot. Well, looking at the potential, we can easily say that the price is not going to stay here. In fact, it is high time to invest in bitcoin because the price is not going to stay here for long.
Transparency and anonymity
Bitcoin is anonymous but not completely. There are multiple public keys tracking which the identification can be known. However, it cannot be known entirely. You have blockchain technology to provide anonymity and safety. So, transparency and anonymity both provide some safety.
Sometimes it happens that our private keys become public. It makes us exposed to various kinds of risks. Well, in such a situation, you can easily apply for a new wallet to your bitcoin exchange. Bitcoin exchanges are really helpful in handling the problems. For example, when you open an account, you will have all the facilities needed for bitcoin investment. You don’t need to limit your investment to just cryptocurrency, with this platform, you can now expand your portfolio to stocks, bonds and commodities.
The best part about bitcoin is that there are no geographical borders. It is not bound by any limit. You can buy or sell your bitcoins from anyone in any country. Therefore, bitcoin is highly accessible, to be precise. So, you can easily spend bitcoin whenever you go, no matter what country it is. Moreover, you will not have to pay any extra money on the transaction, which we usually do when we convert our money. So, the high accessibility will come in handy while investing in bitcoin.
Can Bitcoin be transferred into cash?
Yes, bitcoin can be cashed out in various ways. You can sell them in the exchange and get your money. You can sell it to someone you know and get the money. Meeting and selling to a new buyer from any platform also a common phenomenon. And moreover, Bitcoin ATMs are now highly accessible when you need to cash it out.
Wrapping it up !!!
So, we can easily understand how convenient and hassle-free investing in bitcoin, and it has some added perks as well if you start investing in it wisely.