Risks Of Investing In Bitcoin And Ways To Avoid Them

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It is without a doubt that cryptocurrencies are being viewed by many as the future of monetary exchange. This has been underscored by the fact that many big-name companies have started to accept payments made in Bitcoin, and many exchanges are now allowing their users to buy and sell Bitcoin as well as other cryptocurrencies using their platform.

Out of all of the cryptocurrencies that are available today, Bitcoin is by far the most successful of the lot and is the one with the most promising future. While it is advised to jump on the very lucrative Bitcoin bandwagon, one should also be aware of the risks of investing in cryptocurrencies, and how they can be avoided.

Volatile Market

When it comes to the risks involved with investing in cryptocurrencies, it is important to first address the elephant in the room. The truth is that crypto, despite being a relatively new investment option, is a highly volatile market. We do not have to look any further to find out about the constantly fluctuating market price of Bitcoin and other cryptocurrencies. Back in 2018, Bitcoin prices were hovering around the $6000 mark. Fast-forward to 2021, and Bitcoin’s price is through the roof. But, as many eager investors found out the hard way, that price is in constant flux. New investors need to keep that in mind when investing in Bitcoin (or any cryptocurrency for that matter).

When investing in cryptocurrencies using exchanges, it is important for investors to keep a vigilant eye on the constantly changing market price of Bitcoin and start off small before taking bigger risks.

Cyber Attacks

Cyber theft is very real not just in the banking and investment industry but also in digital investments as well. Hacking is a serious risk, especially since there is no way of getting back or retrieving the stolen cryptocurrencies. It has also been noted that many investors who aren’t careful end up losing their digital assets to cyber attacks. One of the most effective ways of saving your digital investments is by only using the services of a reputable exchange and using smart wallets that can keep your crypto data safe.

Reliance on technology

Another major risk of investing in crypto is that since it is relatively new, there is no proper regulation. This means that there are currently no laws or physical collateral to back it up. Since cryptocurrency is 100% technology-based, it makes it vulnerable to not only cyber threats but could also result in issues if governments start to charge a tax if cryptocurrencies pose a threat to traditional currencies issued by governments. But, that is still a long time away since Bitcoin, and other cryptocurrencies are still in their infancy. As the result, governments do not have a clear stance on crypto assets for now.


As we have already mentioned, Bitcoin is still in its infancy, and with only a handful of brands currently allowing their customers to make payments in Bitcoin, there are limitations. But, all that could change in the not-so-distant future as more and more people get comfortable with using cryptocurrencies to trade and make purchases online. On the bright side, at least you can buy a Tesla.

Ending Note

Bitcoin up is a platform that makes it easy for both beginners and experienced investors in cryptocurrencies to get the latest reports so that they can make the best investment decisions. This is possible with access to real-time in-depth analysis and access to AI-driven data, which makes buying or selling Bitcoin on the app a breeze.