Available since 2009, many people remain misinformed about cryptocurrency.
With that, a lot of sectors are afraid of whether cryptocurrency is safe or not. If you also feel skeptical about the reliability of bitcoin and other types of cryptocurrency, it’s all right.
In this article, we have gathered some interesting facts that any aspiring crypto investors or traders should know.
It is Impossible to Lose Your Wallet
When starting to invest or trade bitcoin, you need to hold a crypto or digital wallet with private or public keys.
Depending on a program or application you use, you will be given a private key to access your account, for cryptocurrencies. But never lose your private key as you may not get your account back.
Aside from a digital wallet, the risk of getting hacked is lower than you have ever imagined. Thanks to the blockchain technology. This means you are accountable every time you lose your digital money.
In the traditional banking system, on the other hand, it would be easy to trace back both of your credit card or debit card loss. All you have to do is only to provide your identification. That’s it.
But with bitcoin and other types of cryptocurrency, you have to be cautious enough for your security and peace of mind.
Ba Careful of Cryptojacking
Generally, cryptocurrency is known for a convenient wallet safety. But don’t relax. It is still exposed to scammers. Usually, the risk is higher when someone uses your phone for cryptocurrency mining. Scammers typically put malicious code in a device.
How to know when you are cryptojacked? Your computer or phone might be slow. Also, its battery might discharge faster. So, contact a reliable and trusted specialist before it is too late.
The Inventor Remains Unknown
Did you know that the organization or person who created bitcoin remains unknown? While there are many claims, they were not credible sources.
For the past few years, many enthusiasts and economists refer to the creator of cryptocurrency as Satoshi Nakamoto.
Some say it is an acronym for popular tech companies, including Samsung, Toshiba, Nakamichi, and Motorola. Well, we really don’t know the real creator of bitcoin. Plus, people’s claims still need proof.
The Value is Significantly Volatile
Similar to a normal share market, there are external factors that affect the value of cryptocurrency.
In fact, bitcoin is extremely volatile. Also, it depends on the way you trade and invest.
The value swings even without your control. Sometimes, it can be in your favor. Its volatility can also be a nightmare. This is the reason why some steer away from crypto because of the risk.
China Has Been Named as the Biggest Crypto Miner
Probably, you have heard of crypto mining. But how does it work? Simply, it is a process of verifying transactions before adding to a Blockchain’s distributed ledger.
Yes, it is a lucrative business, and China is one of the biggest crypto miners of 2020. According to economists, the country currently holds around 75% control over cryptocurrency mining.
It’s Impossible to be Physically Banned
Being adopted by many companies and other popular sectors, banks start losing business. So, many countries have banned bitcoin and other cryptocurrencies. These include India, Cambodia, Algeria, Bangladesh, Bolivia, Nepal, and Ecuador.
Despite that, it is physically impossible to ban crypto as anyone has the leeway to get a digital wallet.
While regulations may be implemented, it would be hard to stop the crypto market.
Now, what are your thoughts? You have the freedom whether you’ll trade or invest in crypto. Also, you can do some research or ask your friends for pieces of advice.