7 Things You Need to Know Before Investing in Bitcoin

7 Things You Need to Know Before Investing in Bitcoin

Bitcoin continues to increase in value and has succeeded in becoming one of the most profitable investment assets in the midst of Covid-19. The value of Bitcoin jumped sharply past US $ 52,000 in trading in New York, Wednesday (17/2/2021).

7 Things You Need to Know Before Investing in Bitcoin
7 Things You Need to Know Before Investing in Bitcoin

D Business quoted on Thursday (18/2/2021), the value of this digital asset jumped sharply after Elon Musk bought Bitcoin worth the US $ 1.5 billion through Tesla Inc.

Many people choose to work while working to prepare themselves to balance and save after retiring from work. In addition, investment activities do not take up a lot of time so they can still be carried out without leaving their main job. Investing also makes the value of the money that you have will continue to increase over time. With careful financial planning, investment activities are able to produce maximum results.

Before you try Bitcoin, there are 7 things you need to know, considering that this digital asset is still quite foreign in Indonesia. As with other types of investment, knowing the assets to be invested will also allow you to reduce unwanted risks.

citing the official Bitcoin site, here are some things you need to know in order to get to know Bitcoin more completely.

Also Read: Interested in investing in bitcoin et al See how

1. Fluctuating Prices
The price of bitcoin can go up or down unexpectedly in a short period of time. This happened because of his young age. Therefore, it is not allowed to save savings with Bitcoin in times of crisis. Wisely, look at Bitcoin as a high-risk asset.

2. Bitcoin is not a commodity

If we are interested in the digital currency Bitcoin or other currencies, we must pay attention to this number one thing. because it is very different from other stocks, such as the stock or commodity market, Bitcoin does not have a clear sales base.This means that you are betting the money with the type of bitcoin we have for something that can be worth zero.

If we take a simple analogy, the deal in the world of this digital era is that no one else in the world accepts transactions via Bitcoin, so the Bitcoin you have has no price at all.. In other words, this fluctuation in the value of Bitcoin is highly dependent on the supply and demand of users.

It is very different from the stock or commodity market, demand is down, you still have real goods in the form of commodities or company ownership rights from the shares we have bought. So that we can conclude indirectly, we still have something of value. Unlike Bitcoin, which could be worthless.

3. Using a Peer-to-Peer System
Like conventional bank transactions that broker money transactions, Bitcoin does not have. Bitcoin type of digital currency is a direct transaction tool. So it is called using the Peer-to-Peer system. Many make transactions using Bitcoin safely. The reason is, every transaction using Bitcoin will be recorded and verified via the network.

The founder of Bitcoin, Nakamoto, lured people to create another blockchain to keep the data from Bitcoin intact. Those who make this storage technology will get Bitcoin. Growing from there, the amount of Bitcoin continues to grow. The process of making blockchain is better known as Bitcoin mining, which means Bitcoin mining.

Then through several cryptographic techniques, it will be stored in a public data vault. This storage technology is called the blockchain.

4. Limited amount of Bitcoin
There is news that there is 21 million Bitcoin which are famous in the world and to date 12 million Bitcoin have been discovered.

The Bitcoin equivalent system keeps decreasing every 4 years in an economic system based on deflation. Assuming the demand is constant or higher than the new supply, the market will not be able to keep up with the demand and is expected to increase the price of Bitcoin.

5. Transactions cannot be cancelled
Another thing you need to know about Bitcoin is that transactions using Bitcoin cannot be undone. Unless a fellow user who received Bitcoin wants to return Bitcoin. Therefore, you must be careful when making Bitcoin transactions.

The transaction that you have made cannot be cancelled. The Bitcoin that you have sent will automatically belong to the Bitcoin recipient. You should also use Bitcoin for transactions with people or organizations you can trust or who already have a very good reputation.

Besides that, you also need to be careful when entering your wallet address. Wrongly you will send money to the wrong address and your Bitcoin will disappear because it cannot be damaged.

6. Transparent Bitcoin Transactions
Bitcoin is often accused of being a criminal aid when it comes to money laundering. In fact, Bitcoin is money that has the highest level of transparency in history, you know. All Bitcoin transactions from the start can be downloaded and viewed by everyone.

You can find all the information regarding the Bitcoin currency supply stored in the blockchain. You can see it publicly when you want to verify or access it in real-time. No individual or entity controls or manipulates the Bitcoin protocol because it is cryptographically secured. This is what makes Bitcoin eligible, transparent, and predictable.

7. Must Have Crypto Wallets
One of the requirements or ways to start getting Bitcoin is to create a Bitcoin wallet (Bitcoin wallet) or commonly called an electronic wallet (electronic wallet). Creating a Bitcoin wallet is very easy. In fact, you are not charged at all, aka FREE. Sometimes there are fees (deductions) between different wallet providers.

This wallet or wallet you need to receive and send BTC or a wallet that you can use to store BTC before use. In this wallet, there is an address or address so you can make transactions, receive and send crypto-assets according to your purpose.

7 Things You Need to Know Before Investing in Bitcoin

7 Things You Need to Know Before Investing in Bitcoin
7 Things You Need to Know Before Investing in Bitcoin

Also Read: Interested in investing in bitcoin et al See how

BEFORE BUYING BITCOIN, THINK CAREFULLY BECAUSE AT YOUR OWN RISK

Those are some things you need to know before buying Bitcoin. If you are still interested in making virtual currency transactions, including Bitcoin, you must be able to accept the risks that are offered when things go wrong. It’s important to think carefully before you decide to mine Bitcoin. Don’t you regret it later.

Also, don’t forget to always learn and don’t get enough of temporary gains. The more you learn, you will understand the Bitcoin market and the activities in it. Even though Bitcoin is an investment in the form of cryptocurrency or virtual money, you still need to learn good and correct fundamentals so you don’t have a hurried mentality and give up easily when participating.

 

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