What do you need to know about investing in Bitcoins?

Are you in two-fold minds about investing in Bitcoins? If you have come across any late financial information, you must have heard about the up rise of the world’s most well-known cryptocurrency.

Yes, you heard it right! Bitcoins are on the rise, and like most of the other people, you must be wondering if you should invest in the same or not. However, whatever decision you take, you must have a thorough understanding of the same.

What is Bitcoin?

Bitcoin is the most popular form of cryptocurrency or digital currency. It is nothing less than online money. You can also exchange rate with all other forms of currencies, including US dollars. Similar to other forms of currencies, the rates of Bitcoin also fluctuates.

The only difference to Bitcoin with other currencies is that it is decentralized and does not have a particular Central Bank or government in charge. This is the reason why it is less susceptible to the central bank or government norms.

Let us now discuss a few pros and cons of Bitcoin.

Pros of dealing with Bitcoins

• Sending money becomes easier

The biggest role of using Bitcoins is that it is centralized. You can send money to the other side of the world without having to go through the different processes of a bank intermediary or pay any fees.

• Supply is limited

Currently, there are only 21 million Bitcoins mined. This is why the amount of Bitcoins to be produced is limited. So with a set supply, you can easily preserve your purchasing power and make the currency immune to runaway inflation.

• Private purchase

While people think that Bitcoin is anonymous, the fact is it is more private. The transactions can only be seen at the public Bitcoin ledger, also known as the blockchain. However, the best aspect of the transaction is that none of your identification will ever be disclosed. This is a pro for many people who don’t want banks to spy on them or keep a tab on their monetary belongings.

• More affordable transaction

While most businesses, the card providers charge a substantial fee for each transaction, dealing in Bitcoins will help you avoid these ft fees.

These were some of the main pros of Bitcoins. Let us now move on to a few columns of the same.

Cons of using Bitcoin

• Risk of price fluctuation

Bitcoin is rising slowly over the months and then takes a steep fall of around 20 to 50% within a few days. The price fluctuates every minute, and so no one can predict when the price will tumble down the next moment. So it is quite unstable to deal with the same.

• Slow transaction speed

Bitcoin transactions are showing slower speeds and higher transaction fees. This has given rise to different other crypto-assets with the fastest speed and affordable prices.

• Transactions are irreversible

This is a huge con of dealing in Bitcoins. Unlike other charge cards, you cannot reverse the transactions made with Bitcoins. So you make a slight mistake in sending the transaction to a particular address. You will never be able to revoke it.

The final words

These are some of the things that you need to consider before investing in Bitcoin. However, if you decide to deal with them, you should always take your time and conduct due diligence and research. This way, you will always be assured of a trustworthy seller and have a peace of mind with your transactions.