Bitcoin is the first cryptocurrency that ever hit the market. Bitcoin was introduced in 2009. After its launch, it became quite famous among the traders in a short period of time. Traders have found a way to trade with the other traders without the influence of government authority.
But with the popularity, remorse started related to Bitcoin. Some people started bitcoin as “underworld money” and “illicit money”. These rumours were the result of the illicit use of Bitcoin in the black market. Even after all fuss rumour caused, Bitcoin remains in the market.
Now, it has been over 10 years. Today, Bitcoin stands at the top of the cryptocurrency trade. There are a total of 1600 Cryptocurrency all over the world. And among them, Bitcoin is an undisputed champion who has held the throne of the top Cryptocurrency.
If you think that you know everything about the bitcoin, then you can use this article to see whether you truly understand what Bitcoin is all about.
Things To Know About Bitcoin Before You Start Investing
There are still some unexplored lands that traders are trying their best to fully understand the Bitcoin. No matter what you know about the Bitcoin, the sheer volatility of the Bitcoin can make them backfire. With collective speculation, we have come to the conclusion that the following things need to be considered before you start with the Bitcoin investment.
1. Secure Wallet
Before you start with Bitcoin investment, you need to secure a wallet that is able to store the bitcoin. It is very important to have a Crypto wallet that is safe and secure and help you with any kind of crypto exchanges.
Crypto wallets work in the same manner as your leather wallet works. The only difference between a leather wallet or a crypto wallet is that the Crypto wallet stores digital and nontangible currency. You must prioritize Crypto wallets that provide you with high level of security.
2. Price Volatility
Bitcoin is known for its volatility. It is the volatility that makes bitcoin a prime asset to invest in. Bitcoin asset is a high-risk high-profit asset, where you can gain a fortune overnight and can eventually lose everything with a wrong decision.
With that being said, you should never invest your saving in the bitcoin. There is always a possibility that you might lose everything. So always invest enough capital which you can afford to lose.
3. Bitcoin Payments Are Irreversible
Bitcoin transactions are based on blockchain technology. Blockchain technology is all about the public ledger network. That means the information shared in the blockchain network can be seen by all the members of the network, but nobody will be able to make any kind of changes.
As the Bitcoin uses blockchain technology, the transaction can only be done one way. That means that the transaction are irreversible. So be very cautious when you are doing any kind of bitcoin transactions. It is advisable that you transact to the trusted people only.
4. Bitcoin Is Not Anonymous
If you think that the Bitcoin transactions are anonymous, then you are yet to understand Bitcoin. All the transaction occurs on a public ledger network with the help of the blockchain technology. That means every information shared in the network can be seen by every member of the blockchain network.
All the transactional detail is transparent to all the members. The only thing thing that remains anonymous is the identity of the users.
Crypto Conclusion
Bitcoin is still in the experimental phase; people are trying their best to uncover all the mysteries that surrounds Bitcoin. You can also be a part of the team and help them to understand all the possibilities that Bitcoin has in store.
