What to know before investing in bitcoin | Is bitcoin safe?
Okay, having read our bitcoin intro, you’re probably thinking of investing in Bitcoin, aren’t you? This article highlights a few important aspects to look at / know before purchasing or trading bitcoin.
Ever wondered why bitcoin is gaining traction?
The world is becoming ever more reliant on the internet.
So, honestly speaking:
It is no surprise that Bitcoin, a secure, global, and digital currency, has claimed the interest of investors.
Bitcoin is open to everyone and provides an exciting opportunity to delve into an entirely new asset class.
Investing in bitcoin may seem scary, but know that it takes time and effort to understand how Bitcoin works.
One bitcoin is worth thousands of dollars
It seems silly to some people that one bitcoin can be worth hundreds, if not thousands of dollars.
What make bitcoins valuable?
Bitcoins are scarce and useful, as outlined in our previous article.
Let’s look at gold as an example currency. There is a limited amount of gold on earth. As new gold is mined, there is always less and less gold left and it becomes harder and more expensive to find and mine.
The same is true with Bitcoin. There are only 21 million Bitcoin, and as time goes on, they become harder and harder to mine.
Bitcoins are useful
Bitcoin provides sound and predictable monetary policy that can be verified by anyone.
It’s possible to see when new bitcoins are created or how many bitcoins are in circulation. Bitcoins can be sent from anywhere in the world to anywhere else in the world. No bank can block payments or close your account.
Bitcoin makes cross border payments possible, and also provides an easy way for people to escape failed government monetary policy. If you understand the potential impact of Bitcoin, it won’t be hard to understand why investing in bitcoin is a good idea.
There is no official Bitcoin price. Bitcoin’s price is set by whatever people are willing to pay. CoinDesk’s price index is a good resource.
So, is Bitcoin safe?
As with anything valuable, hackers, thieves, and scammers will all be after your assets, so securing your bitcoins is necessary.
Bitcoin in itself, is safe. Who you decide to invest your money with in order to obtain bitcoins however, is everyone’s own responsibility. Hackers, thieves and scammers (as with anything valuable) will always be after your assets. So securing your bitcoins is important.
If you’re serious about investing in bitcoin and see yourself buying a significant amount, make sure the Exchange you register with have security measures in place.
ChainEX, a Digital Asset Exchange, provides Two-Factor Authentication (2FA), secure cloud access and a secure connection, amongst other security measures. You can rest assured knowing that all information and data passed between you and the ChainEX website, is transferred securely. Find out more about ChainEX security.
How to invest in bitcoins and where to buy
The difficulty of buying bitcoins depends on your country. Developed countries have more options and more liquidity. Using Exchanges to purchase bitcoin, is the way to go.
ChainEX is a South African digital asset exchange that provides a platform for South Africans to buy, sell or trade over 20 different digital assets using the South African rand as the default fiat-buying currency for some.
ChainEX provides you with a secure, online platform from which you can purchase and trade with different digital currencies and assets.