After the financial crisis of 2007 and 2008, the apprehension around the financial market kept on rising. More info, Nobody knew how to proceed with the rising prices, loss of jobs, and everything over the global economy.
Omits all this turmoil in the situation, there was a search for an alternate mode of transaction that would transform the digital financial world forever. Bitcoin is a decentralized cryptocurrency that Satoshi Nakamoto introduced with the intent to provide an alternate platform or medium of transaction.
Initially, when this concept was introduced, not many people embraced it. While its white paper made tall claims, on the ground, the value of bitcoins and their applications were always surrounded by apprehension. Over the years, bitcoin faced several setbacks, including the ban in China. Despite all the odds, bitcoin continued to flourish, and it soon became one of the highest-value cryptocurrencies globally.
Bitcoin: Friend or Foe?
For any new investor, bitcoin is a fascinating dream. Everybody wants to hold a maximum share of this cryptocurrency because of the greater returns that it promises. However, we cannot say that it’s only bitcoin that offers greater returns. Although its market value is high when we calculate cryptocurrencies based on their return on investment and usability for the future, other cryptocurrencies are highly competitive. These are also called alternative pro currency or altcoins. Ethereum is one of the many alternative cryptocurrency.
So what makes bitcoin so popular? Several other cryptocurrencies are ruling the market, offering different use cases. But the prime focus of most investors has always been bitcoin.
1. Pioneering cryptocurrency- One of the differentiating factors that makes bitcoin so popular is because it was the first cryptocurrency. Bitcoin paved the way for a newer model of transactions, thereby ensuring faster and safer monetary exchange. With bitcoin, the world got to know about decentralized monetary exchanges.
2. Bitcoin mining- Another reason that makes bitcoin a highly valued cryptocurrency is the mining process. Bitcoin mining shows that cryptocurrency is always in circulation. However, the process of mining is highly energy-consuming. It is believed that the energy consumed in bitcoin mining is equal to the energy consumed by an entire nation like Ukraine. Hence most people believe that bitcoin mining impacts the environment negatively.
3. Limited hold- While there are no restrictions in the crypto market when it comes to the people who hold the maximum share in cryptocurrencies, then in the case of bitcoin, it is held by only a handful of people. These have invested millions of dollars in owning the maximum share of bitcoin. Hence these people have the potential to impact the value of bitcoin dramatically. The latest example of this was when Elon Musk announced his disinterest in bitcoin. It led to a sudden dip in the price of bitcoin. Hence this also adds to the volatility of the cryptocurrency.
Investing in Bitcoins: The Smart Way to Make Money
Despite all the risks, bitcoin continues to draw the investor’s attention. If you also believe that investing in bitcoin is the right way to earn more money, you should also know certain tips that will make it safer. Reducing the risk and combating the volatility are the key challenges that any investor faces when entering the crypto market.
At the same time, there is no thumb rule that works here but understanding the crypto market and comprehensive knowledge of how trading works can help you strive through.
You can explore several crypto communities wherein you will get the information about the cryptocurrency and find a solution to choosing the right crypto exchange and investing in the right crypto as it. This community also continuously updates with the latest information and developments in the crypto domain, thereby helping the people frame their investment strategies.
Final Words
If you are convinced with the idea of investment in cryptocurrency and on looking for the best move ahead, then it should begin with registration on a trustworthy crypto platform. You also can explore other crypto exchanges like Gemini and Coinbase. Besides, you should also consider investing in national cryptocurrencies backed by the government. One of the examples is digital Yuan. You can register here to trade. However, make sure that your investment decisions are driven by other research and critical analysis of the crypto assets.
