Bitcoin is the first, the most popular and expensive cryptocurrency. It has the unofficial status of “cryptogold”. For the first few years, all new currencies were based on the Bitcoin blockchain.
The cryptocurrency is constantly falling and rising so that you can play and win, play and lose, but you need to understand that this is a speculative game with a non-guaranteed result.
As of April 13, 2021 Bitcoin rate is at a high level of $61,088.80 thousand, and the capitalization exceeds $1.13 trillion.
Billionaire Ray Dalio has warned of the risks in terms of investing in Bitcoin. Bloomberg reported, citing Dalio’s note to clients that due to the billionaire`s words when investing in cryptocurrency, it is worth considering the possibility of losing about 80% of funds. The founder of the investment fund Bridgewater Associates called the cryptocurrency “a long-term option with an extremely uncertain future.”
Dalio saw several risks in Bitcoin. First, it is difficult to assess the value of digital assets. Secondly, although the maximum possible number of Bitcoins that can be mined is limited, nothing prevents the launch of new cryptocurrencies that will be better and replace BTC. In addition, it would be naive to believe that digital assets cannot be hacked. Finally, if governments try to restrict the use of Bitcoin, the demand for it will collapse.
At the same time, Dalio called Bitcoin “a damn good invention.” He announced that he considers cryptocurrencies as an investment vehicle for new funds that offer investors the protection against money depreciation. The billionaire is fascinated that the creation of a new type of money through a system that is programmed into a computer and which has been working for about 10 years and is rapidly gaining popularity both as a type of money and as a store of capital, this is an amazing achievement.
A novice user can make many mistakes when buying Bitcoin which can lead to a loss of capital. There is a risk of transferring funds to an exchange created by fraudsters, overpaying for coins due to an overvalued rate or commissions, entrusting assets to an unreliable platform.
It can be avoided by following simple rules.
- The most dangerous option is to buy a cryptocurrency from the hands. Different scenarios are possible here:
- you will be ripped off without sending money;
- the exchange will be made at a rate higher than previously agreed;
- you will receive the wrong assets that you ordered etc.;
And due to the fact that the regulation of cryptocurrencies is practically not carried out at the legislative level, it will not be possible to get your money back even if you go to the police.
- When buying Bitcoins, do not use dubious services. It can be expensive, and not just figuratively. Fraudsters create exchanges and exchange services in order to buy and sell cryptocurrency with the sole purpose of stealing users` funds. If you transfer money to them, most likely you will have to say goodbye to your funds. Another problem is high commissions and incorrect rates. An unscrupulous service can sell you cryptocurrency at an inflated price or include hidden fees. In this case, there is a risk of losing 5-10% of the invested funds.
- Check the addresses of the site of exchanges and exchange services through which you are going to purchase cryptocurrency. Fraudsters create clones of sites of popular trading platforms and crypto wallets in order to obtain users` data such as login and password. If you go to such a site and enter your personal information there, criminals can gain access to your account on a real exchange. Scammers buy ads for their fake websites. Because of this, there is a risk that a user who searches for an exchange, for example, using Google, stumbles upon a fake exchange office.
The well-deserved position of one of the most popular crypto converters is occupied by the Godex exchange service. It is one of the fastest virtual coin exchange resources. The service offers its customers a simple and convenient interface, round-the-clock service, instant technical support answers and the ability to make an exchange in any desired direction, for example, Btshares to Bitcoin. BTS to BTC exchange online on Godex guarantees speed, reliability and a fixed rate from the beginning of the transaction to its full completion.
- Read reviews. There are many exchanges and exchange services, and an unscrupulous service can easily hide among them. Before buying cryptocurrency through an unfamiliar platform, it is better to check reviews about it on the Internet.
- Before purchasing cryptocurrency, select a storage location. This could be a custodian service such as an exchange or an online wallet. Therefore, it is important to choose a proven platform that can be trusted with financial transactions on your behalf.
And the final recommendation is to invest only the money you are not afraid of losing.