The Good and Bad Sides of Bitcoin


The virtual phenomenon that is Bitcoin has redefined the way people look at currencies. That’s why many are catching up on this trend as fast as they can. Bitcoin is popular because it has many upsides. But there are some downsides to consider before you start using it.

The Upsides

When it comes to the benefits, there are many of them. One of the upsides of Bitcoin is the fact that there’s no third party controlling it. In other words, no bank or regulatory body is in charge of it. The users and the miners keep things in control, and so far it works pretty well.

In addition to this, you get the protection of anonymity. Thanks to a simple username and password you have easy access to your assets and you disclose no personal or financial information. You can come up with a username and you get the password in the shape of a few digits. The password is actually your private key which serves as a verification for making a transaction.

To make this transaction happen you need another user and a public key to share with them. When it comes to transactions, you can buy goods and services from individuals and companies that accept Bitcoin as a payment method. Also, you can exchange Bitcoin for other cryptocurrencies or traditional currencies.

However, the one benefit that seems to get a lot of attention is the possibility for profit. This is the one that inspires most and it’s because of it there are lots of people looking to become Bitcoin traders. But trading is far from easy which is why they have a second option. This comes in the form of more than one trading platform online.

Among them, you’ll come across the which can do the trading for you. It can do so thanks to a sophisticated algorithm which is why you’ll need an account and some training before you start trading with the platform. You’ll also need a budget to start trading with which is why you need to make a small deposit. The training will come in the form of tutorials and a demo lesson. Once you get the hang of the platform, then you can give it a test with a live session. Afterward, you can increase the budget and adjust the settings however you want to.

The Downsides

All currencies have their downsides and Bitcoin is no exception. Yes, you can profit from investing in Bitcoin, but you can lose the value of your assets almost overnight. That’s because it’s a highly volatile currency and there’s no telling how high or low the value can go. That’s why trading with it is a risky business.

Security is another issue that needs to be resolved. Hackers won’t hesitate to steal from people or exchanges. They have exploited the weaknesses of weak wallets and have rid users of their assets. They’ve found victims on the Dark Web and they have even hacked legal exchanges.

But don’t worry as there are many things you can do to keep your assets safe. Since you don’t need the Dark Web, then you can stay away from it. Next, is securing your private key. Avoid online repositories and go for physical storage instead.

Also, make sure to find an appropriate wallet. There are many companies that offer wallets, and you should go for one that offers multiple layers of security. Naturally, you should pick one that suits your needs as well but make sure to do ample research before you do so.

Before you start trading at an exchange check to see if it has been hacked in the past. If it has, then you should find another one since that one is far from safe.

Related To This Story

Latest NEWS