Bitcoin has been in the spotlight ever since it was introduced and decentralized in 2009. Created by an anonymous person or a group of people under the pseudonym Satoshi Nakamoto, this was the first cryptocurrency to be released and to give rise to what we know today as the cryptocurrency market.
Did You Know?
The term CRYPTOcurrency was born due to the fact that the Bitcoin is generated under the regulation of encryption protocols. Transactions of funds and transfers of all sorts are also encrypted. The blockchain – the network on which the cryptocurrency operations are carried out, is virtually unhackable. This is a publicly distributed ledger. Once a record has been made on the network, it cannot be modified or otherwise misused.
Of course, at first, no one paid serious attention to this new virtual good, many thought it is a temporary phenomenon. But reality turned out to be different. Bitcoin started both a financial and technological revolution that shakes the foundations of the digital world even today.
This is all because of the massive returns small investments in Bitcoin a couple of years ago brought to people in 2017 and at the start of 2018. Given the increase in attention the cryptocurrency got and the release of hundreds of other similar networks and assets, it is normal for people to wonder if this is going to keep up or something is about to go wrong.
And that is why many have asked the question is Bitcoin legal and safe? This is the main concern for those who want to join the industry out of curiosity and in hope of making the same wealth others generated before them. They incessantly read through tons of cryptocurrency news in hope of finding the next big thing in the industry.
Even after this new type of digital assets have proven themselves to be useful and advantageous over and over again the past few years, there are still some skeptics who try to expose Bitcoin as a huge scam. The truth is, Bitcoin in itself is not a scam but there are those who try to scam people using the allure the cryptocurrency has.
Is Bitcoin Something You Can Rely On?
When taking this matter into consideration, we need to make out a clear difference between legal and safe. These are two very delicate moments and concern the cryptocurrency industry as a whole.
- Is Bitcoin Legal?Being decentralized means that the Bitcoin is not subjected to governmental regulation and the decisions of financial authorities. Many countries have allowed operations with Bitcoin and its usage as a payment method. But there are also those that do not accept it. Some countries have even banned all kind of cryptocurrency operations for their residents. But that does not make it illegal. This is an ongoing dispute and you need to monitor it closely so that you can always be up to date and whether or not you are well within country regulations and restrictions, if there are any.
- Is Bitcoin Safe?This aspect concerns the Bitcoin as an asset. Its network is 100% secure thanks to the encryption protocols at its foundation. But using it for trading carries some risks with it. Because the Bitcoin is a decentralized agent on the market, governments and financial authorities cannot apply rules and regulations that balance and moderate its price. In times of active trading, when the trading volume is huge and people buy, its price will soar without limits. The trend will turn dramatically when people start selling them and converting them into fiat money. This means that they will sell units for dollars or Euro, which will automatically decrease its price. That is how many people lost money at the start of 2018 when the value of Bitcoin suddenly started dropping. But that does not mean Bitcoin is unsafe. You just have to approach the industry keeping its peculiarities, risks, and volatility in mind.
If you consider these two very important aspects, there is just one thing left to do to ensure your safe and satisfying cryptocurrency experience. Learn to recognize and avoid the scam trying to exploit the huge interest in the cryptocurrency market.
Bitcoin Scam Warnings & Safety Tips
When it comes to the digital world, complete safety cannot be guaranteed. People are subjected to emotions and mistakes can be made. But here are some common things you should look for in order to avoid and stay as safe as possible:
- ➙ Fake ICOs & Crowdfunding – ICOs and crowdfunding have become extremely popular. These are methods applied by start-up companies when they want to release a network with a native currency but lack the funding to do it. To avoid hollow initiatives and bogus ICOs, always research the start-up or the company that establishes them and want to attract your funds. Otherwise, you accept the risk that these people might disappear with your funds and that you will never gain anything in return.
- ➙ Scam Cryptocurrency Exchanges – the well-known popular exchanges might have had some problems in the past but they have never let down their clients. Better stick to the traditional popular exchanges instead of rushing to join a new one. New exchanges usually operate as financial frauds and you will not receive what they have promised you. If you want to try new platforms, make sure you investigate them carefully before using them to invest in cryptocurrencies.
- ➙ Hollow Cryptocurrencies – it is often speculated with the name of Bitcoin. Many new Altcoins get released with the promotional claim they are the next big thing and you should acquire them because they are much cheaper and accessible than Bitcoin. Don’t blindly believe such claims and calls to actions, make sure the currency has a solid network and technological background so that it can generate value. Yes, most Altcoins are cheap but not many are useful as a way to store value.
- ➙ Malicious Software – there are two ways in which you can be affected by that. The first one is if your computer gets high-jacked and the guilty party starts using its processing power to mine Bitcoin or other cryptocurrencies. The other way is if your computer gets hacked and you have made the mistake to store your personal key for your cryptocurrency wallet on it. If someone gets a hold of your personal key, they can transfer the cryptocurrencies in your hot wallet. That is why it is advisable to possess a cold wallet as well, which is entirely online and cannot be accessed from the outside.
Of course, you should not forget about all the other systems that offer you assistance to trade in the cryptocurrency industry. Research them carefully before you sign up. You can easily find the authentic ones, the key here is not to fall for the promises of a scam.
The Bitcoin Scam Can Have Nothing On You!
But only if you are careful. The cryptocurrency market is an industry with significant volatility you should be careful with. When you first start out with it, you can’t allow making quick decisions. Always think things through and at least twice.
It is not worth making your experience in such a lucrative industry bad just to do things quickly. Patience, in this case, is a virtue and will prevent you from making mistakes based on emotions.
Hello, I am Collin Tyusm. I am a Forex blogger. I have created my blog, because I want to help people learn more about Forex & CFD Trading Software and Bots.