Know Some Possible Risks Involved In Bitcoin Investment
By: Cryptomatic Atm
Tags: Bitcoincash, Cryptocurrency, Bitcoin, Crypto

Bitcoin is the latest trend of financial markets and is considered as the future of the global monetary market. Where everything these days are virtual, the use of virtual currency is also blooming. Intellectual economist out there is taking it as a quite positive change for trading and exchange of goods and services across the boundaries of the world. Among all the currencies, Bitcoin so far has proven the most successful virtual currency. But with every new thing there comes certain risks. In Bitcoin Cryptocurrency also, there are a few risks that have to be taken into account before rushing to invest your hard-earned money into it.

# 1- The Market is Ever Fluctuating

While we were researching into this, a Bitcoin Company, Japan, has revealed that the price of Bitcoins is never stable. Looking into the statistics, the price of one Bitcoin as of November 2018, is around 6461$ while the same was high at 20000$ in December 2017. In fact, the price changes every day. So in such an unpredictable market scenario, even God can’t take guarantee of return on your investment. The best thing to do is make small investments and keep updated with the market. Remain attentive to the market fluctuations and make smart investments accordingly.

# 2- Cyber Security Criminals

Since all the cryptocurrency is digital, the threat of cyber theft often put investors in huge trouble. Those who invest in any kind of cryptocurrency are open to cyber hackers who can take advantage of vulnerabilities in the online security system. No matter how robust security firewalls are encrypted in your system, the risk of hackers is always on. A list of Bitcoin Company in Japan and other countries are working on developing a reliable investment structure for their clients. These threats often discourage investors to put their hard earned income in crypto market and hence many agencies are efficiently working to overcome these issues.

# 3- More Regulations Are Needed

Every financial institution is regulated by certain authority but Bitcoin currency is still awaiting proper regulation for its trading and exchange because it is new. In lack of proper regulations and central authority, investors are often cheated, trapped by fake agencies, and involved in unnecessary disputes. As of now, there is no tax levied on buying or selling of Bitcoins which make it tempting for investors but this lead to other problems say competition with government currency.

# 4- Completely Depends on Technology

As we all know that technology is a double-edged sword, there are many disadvantages of technology along with numerous benefits. These coins are mined, exchanged, and stored only in digital format. Unlike gold and Shares investment, there is no physical existence of these Bitcoins. These can only be traded on digital platform. So, one can’t keep up the pace with these Bitcoins and virtual currency without digital and internet access.

Bottom Line: Investing in bitcoin often seems tempting and no doubt it is fruitful too but only then when smartly played. There are certain risks involved which should not be ignored while investing in this risky market. Hence, it is wise to know all about this new technology before being a part of it.