September 8, 2021

Cryptocurrency has been one of the best forms of investment in the last few years. Many have made millions from the market, and they are still making innumerable amount of profits. However, as many are making profits, most are still running into losses because they are not very familiar with the risk of investing in cryptocurrency.

Bitcoin is the biggest currency in the crypto market. If Bitcoin dips, most of all, the other coins will follow suit – that is how strong Bitcoin is. Bitcoin has also made a lot of money for many people who have held or traded in it. Also, there is a new way in which traders don't have to stay up all night to make money off of the market again. This is by using Trading bots. These automated programs carry out automatic trades on behalf of the traders. For instance, Bitcoin Profit login, atrading bot,can be the difference between spending time with your family and panicking in front of your chart all day. Thegoodnewsisthatmanycountriesaresupportingthesetradingprograms.

Even though Bitcoin has made a lot of money for many people, certain risks come with the coin that many people are not aware of. The following are some of the risks you might encounter as you decide to invest in Bitcoin.

• VolatilityandFluctuation: This is one of the most significant risks of Bitcoin – the price keeps changing. It would have been better if the change had been announced. However, the change in the price can occur at any time. About three years ago, on November 6, 2018, the cost of bitcoin was $6,461. However, as of August 13, 2021, the price of Bitcoin has shifted to $46,000. However, earlier in March 2021, the cost of Bitcoin was $64,000. The price and value of Bitcoin move every time without giving any warning. Most times, the investors don't know whether their investments would pay off eventually because of the volatility and fluctuations of the market.

• InfinitesimalRegulation: The Bitcoin market is decentralized. This means that there is no government backing it up, neither is a give supporting it. As good as this is, it also constitutes a huge risk. Since no one controls the flow, no one can tell the next thing that might happen. This could result in a loss or profit.

• Usability: Even though Bitcoin is one of the best Cryptocurrencies and has made people millionaires, it isn't entirely accepted by everyone. Only a few companies are using Bitcoin as a means of exchange. They would have you convert your BTC to Fiat money before allowing you to transact with them. Tesla Inc started collecting BTC as a form of payment at the end of March 2021, but the company has stopped using it. This is because of the high volatility of the coin and the crypto market at large.

• Fraud: Many people have complained of being defrauded on the market. And when the fraudulent activity has been carried out, it becomes challenging for the culprit to be caught because of the anonymous nature of the market.

• Loss of Money: Bitcoin has been shown to all as a form of easy money-making market. However, this is not the truth. Most of these people say this to get people to enter the market. The more people that enter the market, the more the bubble bursts, which surges the price of Bitcoin. However, when there's no one buying again, the market will crash, and many would have a lot of Bitcoin to offload that they wouldn't be able to.

Conclusion 

Bitcoin is one of the most yielding cryptocurrencies currently. However, this shouldn't be invested in with one's life savings. Investing in something as volatile as Bitcoin can make a person a millionaire and at the same time, it can make a person lose all their money. Hence, when investing in Bitcoin, it would be best to know all the risks involved, and some of the very important ones have been listed and explained above.