Are You Considering A Bitcoin Investment?
It seems like every day a new cryptocurrency is hitting the market, and by now you have probably wondered if you are losing out on some big bucks if you don’t start investing. A lot of people are asking themselves the same question, but there are some things you have to understand before making any type of Bitcoin investment. And this article is going to cover a few of those considerations.
Bitcoin Is Just As Vulnerable
At the moment it doesn’t look like anything can really touch Bitcoin. It has been a very popular way of spending money without giving away any personal details, and its value has grown significantly in a very short time. How can it not be a good investment?
You have to remember that Bitcoin is just as vulnerable as the rest of the stock market. All it takes is one day to see the value sink like a rock, leaving you and all the investors with Bitcoins that aren’t worth anything.
Of course, it’s not likely to happen, but with this type of investment, there is ALWAYS a level of risk involved.
There Are Many Scammers
If you are comfortable with the fact that you are actually just playing the stock market with what is currently popular, there is something else to consider, namely the scammers who are out to get investors like you.
When you do decide to make a Bitcoin investment, do everything you can to vet the process you use. It can’t be stressed enough how many people lose their money to companies who claim to handle Bitcoin investments. Perform your own due diligence when researching companies that will let you invest your 401k into a Crypto IRA.
There Are Complications
More recently it has come to light that Bitcoin isn’t completely untraceable. In fact, there are several projects (some government funded) to crack the Bitcoin code in order to get it regulated.
So, you are about to invest in a stock that is being targeted by government regulators, meaning you are taking on added risk. Nobody knows when they are going to succeed and what the consequences will be when they do.
There Is Always Competition
Even though the value of Bitcoin has risen dramatically, the boost is fading. In fact, the value dropped for the first time not very long ago, and the competition is gaining ground.
With the new cryptocurrencies boasting with stronger security and anonymity features, it’s hard to think that Bitcoin will be able to maintain its momentum.
A Final Thought
This is not to say that you shouldn’t make an investment in Bitcoin. And yes, a lot of people has made some good money from it. But the secret is out and you are among many individuals who want a piece of the same pie.
And the more people who go after, the more difficult it becomes to generate a profit of your own.
The point of this article is to think carefully about your decision, and definitely approach it like you would when investing in any other vulnerable stock.