The Bitcoin still remains a Pandora’s Box that contains scammers, money-launderers and criminals. But you need to see beyond this because there is much to achieve by trading the Bitcoin. There are millions of programmers working on developing the Bitcoin network each day and it stands as an open-source community that represents personal freedom. While the network may not be ideal yet, there is much scope for improvement, and it is perfectly safe to trade the Bitcoin in 2020. However, the trick to succeeding in trading safely is in managing the security risks.
Is it safe to trade the Bitcoin in 2020?
Over the last 10 years Bitcoin has proved to be a reliable instrument and it has provided for secure, borderless transactions through a decentralized peer-to-peer system. The blockchain is robust enough to stop even the most advanced attacks and the isolated security lapses that have happened have been because of third-party providers like private key mismanagement and errors of wallet developers. As a Bitcoin user you will obviously have to consider problems like volatility, use of third-party services, secure storage of crypto assets, and cyber security attacks. But such problems are common to traditional monetary transactions also. So, you can safely trade Bitcoins provided you are willing to take responsibility for looking after your funds. There are automated software applications the help the investors trade bitcoins quickly and effectively. This bitcoin revolution review has good information about how the trading bots operate.
- To begin with, you must make sure the password you use for storing or accessing your Bitcoins is secure. You need to find a reliable wallet for storage since this is the bank account for your funds.
- When you exchange or spend Bitcoins you must select reliable services. You have to understand that payments made with Bitcoins cannot be repudiated.
- Bitcoin transactions are only partly anonymous, because transactions on the blockchain can be traced even though identity of parties cannot be viewed. You can choose to use privacy-focused wallets for storing Bitcoins.
- The Bitcoin network is prone to hacking and cyber attacks. For instance, if miners control 51% or more of the total hash power they can undo transactions. But such a situation is highly unlikely as the costs would exceed benefits of this attack. Attacks like this cannot be used for changing prior transactions or stealing Bitcoins. Hacking is a risk when you use cryptocurrency exchanges that are not regulated.
- Another issue to watch out for is regulations; more countries are expected to come out with Bitcoin regulations and this is going to influence how the crypto asset can be bought or sold. Bitcoin users may also be given new rights and protection through new rules.
- When you decide to hold onto the Bitcoins instead of selling them soon, you must not follow just anyone’s advice. Always do your own research and come to conclusions yourself. You must remember never to invest more than you can afford to give up because Bitcoin investment is risky.
- You should never buy all Bitcoins through a single trade; rather set a fixed amount each week or month to average the prices over a year. You should also choose a reputed Bitcoin exchange for trading, even if it means paying a tad extra.
- Trading involves a lot of practice and knowledge. The market is flooded with players waiting to pounce on newbies. So, it is better to learn about the market first before getting your feet wet.