Virtual currency is considered the future of monetary exchange. Trading goods online with a global currency certainly sounds like a method that could expedite commerce without the complications of a national currency.
Bitcoin is by far the most successful currency today, but with any new frontier, there are bound to be some obstacles. Despite bitcoin’s recent popularity, there are some serious risks when it comes to investing in cryptocurrency.
With so many people rushing to invest, it’s important to be aware of the concerns surrounding this new market. Here are the top 10 risks of bitcoin investing and how to avoid getting caught up in them.
The Volatile And Fluctuating Market
The price of bitcoin is constantly changing. As of November 6, 2018, one bitcoin was worth $6,461.01. If you happened to purchase a bitcoin on December 17, 2017, the price topped $20,000. Days later, on the 24th, buyers could not sell their investment for more than $14,626. The bitcoin market is constantly rippling back and forth. With such an unpredictable market, there’s no telling if you will get a return on your investment. To avoid a massive loss, keep a vigilant eye on the market. Make small investments; they’ll be more beneficial long-term.
Cybertheft
Cryptocurrency is technology-based, which leaves this investment open to cyberattacks. Hacking is a serious risk, since there is no way to retrieve your lost or stolen bitcoins. Many reports suggest that many buyers lose their investments on exchanges and mining losses. Exchanges are more likely to hacked -- even if you have the protection of a smart wallet. Additionally, if you do have a wallet and you forget or misplace your key, there is rarely a way to retrieve your coins. Carefully research your cryptocurrency wallets to be sure you have the most reliable option.