It is evident that the world is going digital. More people from around the world now have access to the internet and all kinds of businesses are going online to make money.
As the world becomes more reliant on the internet, need for a global, secure and digital currency becomes a no brainer. That is exactly what bitcoin and other cryptocurrencies offer. Bitcoin is open to anyone willing to invest in it.
However, unlike traditional investment opportunities that are straightforward and well understood, investing in bitcoin takes time and effort to understand how it works and get it right. Due to the lack of knowledge and lots of conflicting information on the internet, investing in bitcoin is scary for many people.
This article is going to put your mind to rest on whether it is really safe to invest in bitcoin in 2021 or not but before that”
Why invest in bitcoin? There are only 21 million bitcoins available globally; and as people continue to mine, the coins become rarer. In essence, therefore, it means bitcoin is valuable. Take gold for example. There is limited amount of gold available; and as more of it is mined, it becomes scarce and hence more valuable.
The same is true for bitcoin. The value of bitcoin can be verified by anyone. You can tell when new bitcoins are created and how many they are in circulation. You can send your bitcoins globally and no bank, government or financial institution can freeze them.
Bitcoin has an effect on the global economy; and as more people get online, its usefulness continues to increase.
How to Secure Your Bitcoin
Investing in bitcoin is a serious venture that should be taken as such. Hackers and scammers are prevalent on the internet looking to get valuable information and cryptocurrencies from unsuspecting people.
Being that this kind of investment is online and the most valuable investment to have on the internet, it is therefore exposed to a lot of risks. It is only prudent that you take measures to secure your investment.
In the past, there have been instances when bitcoin wallets have been breached by hackers. There are several best practices that you can follow to ensure that your bitcoin is secure. Here are some of the things you should do:
- Store only a small amount of bitcoin in each wallet
- Encrypt your bitcoin wallet for an extra layer of security
- Use a password that is extremely hard for even people who know you to figure out
- Always keep your software up to date
- Take a backup of your wallet and store it in different secure locations
- Use an offline wallet for savings of your bitcoin
Before investing in bitcoin, take your time to understand how it works, how you can secure your bitcoin, how it is different from conventional currency and how bitcoin impacts the world. With all this in mind, you will be able to make the right decision on whether investing in bitcoin is for you or not.