This is a question that every investor thinks about once in a while- be it an experienced one or an amateur. The word safety in terms of investing in bitcoin is quite subjective. What one may call safe may not match with the definition of safety for another.
However, if one asks these questions in terms of safety from losses, then the answer is a strict no. the bitcoin investors know very well that the value of bitcoin faces tremendous fluctuations at routine intervals. One could be making profits one day and gathering loss another. So no, investing in bitcoin is not safe from any kind of loss. However, no platform is. The term investment itself puts absolutely anything at risk. There are decent chances of a loss as much as there are chances of profits.
This nowhere implies that investing in bitcoin is risky in all aspects. There are many areas in which no one can question the safety while investing in bitcoin, such as:
Cryptography:
It is known to all that no single authority is responsible to regulate the transactions of bitcoin or any other cryptocurrency. This does not make an investor vulnerable though. The use of executive secure systems of cryptography ensures that blockchain technology detects any security threat out there.
Public system:
Even though the identity of traders and investors of bitcoin is kept anonymous, the transaction is not. This digital currency is completely transparent for anyone, making it a much safer option as compared to the traditional currency system. Since no form of identity is linked with the transactions, hackers cannot get access to anything through the mode of the transaction history.
No centralized authority:
Since there is no one body governing the transactions through bitcoin, it becomes impossible for hackers to break into someone’s account. The nodes that keep track of transactions are huge in number and distributed worldwide.
Although all points validate the fact that there are no immediate risks that investors put themselves in while investing in bitcoin, certain precautions need to be taken. Traders and investors dealing with bitcoin should at all times be aware of the scammers and frauds. If intelligent precautions are taken-then yes, bitcoin is pretty safe to invest in. Be sure to learn more about bitcoin hosting by conducting a thorough search online.
