Bitcoin Dos and Don’ts

Strict Regulations every Bitcoin User should follow

Buzz of Cryptocurrencies and BTC are way louder in the world of investors than any other thing. The father of cryptocurrency, Bitcoin was introduced to the world in 2009.  Now Bitcoin is a decade-year-old. All the 9,500 cryptocurrencies have not been able to mark Bitcoin’s market cap. In the year 2021, Bitcoin hit the price value of $60,000 and after a successful year, Bitcoin faced a major decline in the year 2022. People look upon cryptocurrencies as an incredible profit-making market.

In the initial phase of the year 2022, bitcoin was trading at the mark below $20,000. Here the question arises of how Bitcoin can drop and climb the ladder to the sky within a mere period of months? The supply chain of Bitcoins is limited to 21 million, and around 19 million bitcoins are already in circulation. The high demand in the trade market is one of the major reasons behind the volatility factor among the cryptocurrencies. Along with that, the news and reports on the updates of cryptocurrencies, involvement of whales, country bans, etc affect the fluctuations in price to some great extent.

Another astonishing characteristic of bitcoin is its decentralized nature. It works on the technology of blockchain, which acts as the public ledger where all the transactions are available to access for everyone.

No wonder why bitcoin has always been the largest currency of all time.

Things you should Do while investing in  bitcoins

Do your homework. 

Bitcoin trading is not an easy venture, even the most tech-savvy and well-versed investors might take a while to wrap their heads around the understanding of Bitcoins. Before investing in any digital currency, it is in the best interest to understand the dynamics of the specific cryptocurrency.

The same stands for Bitcoin. Bitcoin can be immensely profitable but understanding the factors driving the values and steep declines can be time-consuming but utterly important.

• Use reputable and secure trading platforms.

Bitcoin exchanges and trading can be done in two manners. The first option of doing bitcoin exchanges is with the help of digital currency brokers and another is to use the trading platforms. In the era of globalization, creating apps for any purpose is not a big deal however even though thousands of bitcoin or crypto trading apps are available in the market, it is very important to choose a reliable and functional trading platform.

It is the best choice to look for a secure platform that enables you to have transparent exchange operations.

• Secure digital wallets

After purchasing bitcoin or any other digital currency, make sure to store it in your digital wallet. Hardware wallets mainly use separate devices like laptops, desktops and other systems to store the virtual assets in offline mode.

• Double-check transaction information

The transactions of cryptocurrency are immutable, which makes the transaction irreversible. Thus, if you are willing to invest your hard-earned money in BTC, then you have to be quite careful with the digital wallets and its private keys.

Don’ts of bitcoin 

• The volatility of bitcoin.

All cryptocurrencies including bitcoins are volatile investments. That means, the values of bitcoins can easily fluctuate within a matter of days and hours. Crypto experiences larger intraday price swings.

• Don’t invest much more than you are willing to lose.

This is the most important factor! You should never invest in any digital currency more than you are ready to lose. The reality of crypto assets is a volatile investment. You might face a bigger loss than profit.

• Predictions can be wrong!

Yes, you read it right. All the mass media hype and predictions coverage might look promising but can lack the truth and core substance.

Previously, people used to face a lot of troubles with the scammers years back; but eventually with rapid legal actions, the problem had subdued for the time being. As the world of cryptocurrency is growing, scammers are coming back into the picture. It is better to be extra careful, never to invest in the schemes if it looks too good to be true. Have you heard about pumps and dump groups? If yes, then this is the most common part of the crypto world. Never join these groups, as much as it seems enticing, the long-term results of such groups are ugly and pathetic.