Bitcoin is one of the riskiest investments because no controllers, owners, or managers work behind bitcoin. No government, banks, financial institutions, president of the country, or even the founder of bitcoin Satoshi Nakamoto can control it. It is a separate currency, and the price of bitcoin depends upon the demand and supply of bitcoin. When all the people will sell bitcoin, and there will be no use, bitcoin will stop, but I think it is impossible. We can’t control Bitcoin because many people accept bitcoin, and many people in the world are using it for daily transactions. There are millions of bitcoin users, and millions of transactions daily occur on the blockchain. So, in this article, we will explore the question of can I lose money in bitcoin? So, without wasting time, let’s explore the facts about losing or not losing money with bitcoin.
Bitcoin is fluctuating currency:
Unlike other currencies USD, INR, POUND, EURO, etc., there are high fluctuations in the value of bitcoin, and the reason behind fluctuating the price is demand and supply. If there is more demand, the price will increase, and the price will fall if there is low demand. Fiat currency is under the control of the government, and there are minor fluctuations. If there are high fluctuations in the price of bitcoin, then it is a risky currency because the price may suddenly increase and decrease.
If you are a bitcoin investor or trader, there is no surety that the price of bitcoin will increase or decrease because demand and supply are not the only influencing factors. Other factors include trending and viral news about bitcoin and other cryptocurrencies, social media, trending tweets of celebrities about bitcoin, and limited supply.
Trading is the same as putting your money into the fire. Trading means putting your money into bitcoin for a brief period that may be one day. Many people are earning massive money from trading because they gained practical knowledge by losing money, and now they know which is the right time to buy and sell bitcoin. In simple words, trading means buying bitcoin at the market price and selling it when the price increases. It involves higher risk because the price of bitcoin may decrease and decrease.
If the other trader’s income influences you and you do not know about cryptocurrency technology, think before investing or trading money into bitcoin. Bitcoin is uncertain, which means no one can predict the future of bitcoin. First of all, you have to do proper research about bitcoin technology, and after that, you can start trading with minimum investment that you can afford to lose. Do not borrow money for your friends or family to invest or trade in bitcoin because you can lose it.
Exchanges are third parties that provide extra services to bitcoin users by providing them a platform with a graphical user interface that means you can buy and sell bitcoins in a few steps. It is easy to buy and sell bitcoin through an exchange, but exchanges charge some commission for these services. Bitcoin is a decentralized system, but exchanges are centralized systems that mean there is a chance of losing bitcoins if that exchange gets hacked. There may be bugs or security issues in the bitcoin exchange, and if the exchange gets hacked, you will lose all your bitcoins and not get back. Some exchanges got hacked, and their users had lost all their bitcoins. I am not saying that exchanges are not good; many bitcoin users use bitcoin exchanges to store, send, and receive bitcoin. Start proper research before choosing an exchange. Go with blockchain if you are serious about your bitcoin investing, and for more information about the best cryptocurrencies to invest in.
Frauds and scams:
Bitcoin has become a popular currency, and there are a lot of scammers and frauds happening on social media. Yes, social media is the first platform for scammers and fraudsters. They send professional messages like we are from XYZ company, and we will work for you to invest money for you in bitcoin and take 1 or 2 percent commission, and when you transfer money to them, they will never appear. Many people lost their money to earn money. There are a lot of email scammers, who will pick your email address from your social media profile and send you a professional email, and many people get into the trap of these email scammers and lose their money. So do not send money to them for investing or trading purposes if you do not want to lose your money.