Bitcoin is the first digital currency based on blockchain technology, and it breaks the conventional custodian transactions.
Now, people can invest in cryptocurrencies and store their digital assets in their wallets, and they can use their cryptocurrency for purchasing services and goods.
Check out apps such as Bitcoin Circuit app if you’re serious about bitcoin trading.
There are some large investors who have shown their interest in Bitcoin and other cryptocurrencies.
After reaching its highest value, bitcoin is still under some controversy, and it is considered hype in some states and countries.
In 1998, Wei Dai wrote an article on digital currencies, and he has written that any government and people who cannot control digital currencies can use them anonymously.
To counter this argument, Nick Szabo wrote a Bit Gold, where he explained that digital currency is a decentralized currency that can replace the traditional fiat currency in the future.
Check the credentials of the founder:
Nowadays, there are thousands of tokens and digital assets available worldwide, and you can find them in the form of coins, contracts, and tokens.
Hunter Horsley, founder, and CEO of Crypto has stated that assets having a dollar sign can ensure the customers and investors to a certain level because it is approved and regulated by the government.
Companies offering high returns on digital assets can put you in a high-risk zone, and you can lose your money.
Now if you are planning to invest in digital currency, you should ensure to check the founders’ credentials of such digital assets before you invest.
Because their experiences in finance, computer technology, and computer science can assure you the stability of their products or currency.
Founders of Stripe, Apple, and Ethereum, have not completed their college degrees, and people are using their products and services.
So, it is not a wise decision to make your investment based on the founder’s experience.
Indeed, venture capital investors always keep their eyes on social media platforms, and they choose a technology developer who has ranked well on Facebook, Twitter, and Telegram.
Horsley said that the crypto ecosystem has changed the financial market, and people associated with the crypto world would be easy to dismiss.
Know the technology working behind the bitcoin:
You need to check the code working behind the crypto world to understand the ecosystem of this market.
If you are a computer engineer, you can check out such codes, and capital investors can complete this process with their own software team.
By knowing the code working behind the curtain, you can measure the volatility of that particular digital asset.
Moreover, it can be hacked by cybercriminals if there are coding vulnerabilities, and you must know the technology working behind bitcoin and other digital assets before you invest.
If you do not have sound knowledge about technology and computer programming, you must search for a reliable platform to invest in bitcoin.
Crypto does not have any authorization:
Tokens like stocks, bonds, and other investment options are indeed regulated by an exchange commission.
For example, tokens in the U.S are registered under the Securities and Exchange Commission, and all trading platforms associated with these tokens have valid licenses.
So, you can get a level of assurance and security from these platforms as they are registered.
But, crypto-like bitcoin is not a regulated currency, and exchanges dealing with bitcoin do not have such licenses. So, there is a hype that crypto can snatch your money overnight.
To be very clear, if you are planning to invest in cryptocurrencies, it is advised to invest your funds in stocks through a registered exchange, and you can lose your funds overnight, which can guarantee you a safer investment and assured return.
Exchanges and stocks are indeed regulated under the government’s radar, but the government cannot provide a high return if you lose your money in a stock.
So, if you invest your funds by knowing the platforms and ecosystem of the bitcoin-like you do in the case of stocks and bonds, you can reduce your risk of loss.
Moreover, following up with the strategies can help you make the most out of your investment in crypto trading.