It’s important to educate yourself about Bitcoin before you start using it. Otherwise you may be in for some surprises. But once you have a clear understanding of the risk involved, you’ll feel a lot safer when you start using Bitcoin.
I’m sure by now you’ve heard the benefits to using Bitcoin to the point of nausea, benefits like it’s a simple global payment system for anyone to use rather than a financial asset for investors to trade.
Here’s a bit on the risks of Bitcoin
What You Need to Know
- Bitcoin wallets need to be secure just like your real wallet
- Bitcoin price is volatile
- Bitcoin payments are irreversible
- Bitcoin is not anonymous
- Instant transactions are not secure
- Bitcoin is still experimental
- Some governments impose taxes and have special regulations on Bitcoin
When it comes to Bitcoin and investment risks if you are considering investing in bitcoin, understand these unique investment risks.
Regulatory Risk: Bitcoins are a rival to government currency and may be used for black market transactions, money laundering, illegal activities or tax evasion.
Biggest Risk: Investing in BitCoin can bring about instability. You do not know, whether you are going to get a huge profit or a huge loss. Only invest in BitCoin what you can afford to lose.
The important takeaway is to carefully evaluate every company you deal with in the process to minimise the risk. But once you do that, using Bitcoin is stated to actually be fun.
