Bitcoin has been rising in popularity among both investors and enthusiasts. With so many cryptocurrencies to choose from, people often wonder whether or not they should trade Bitcoin.
So, if you are aspiring to trade bitcoin, you may want to know the pros and cons of trading cryptocurrencies including bitcoin. It’s always beneficial to do research before pursuing anything that involves money.
Bitcoin allows people to transact with each other without worrying about limitations such as country borders. Since Bitcoin exists digitally, it can be sent anywhere in the world, even on bank holidays.
Unlike traditional banking, Bitcoin is decentralized, meaning there’s no central authority that controls its transactions. This puts the sender and recipient in control of the money. With its blockchain technology, one of Bitcoin’s distinct advantages is that all final transactions become visible to the public in one ledger. Your personal information remains hidden from public view, which preserves anonymity.
Another advantage of trading in Bitcoin is the low fees. Unlike wire transfers and other methods of transferring money, fees are very negligible when trading in Bitcoin. You can also always pay higher fees to prioritize transactions and speed them up.
Bitcoin’s value fluctuates wildly as a result of its limited supply. Many view this as one of its biggest issues. Without stability, it’s hard to use it as a stable currency. However, many view this as an advantage and treat it like an investment instead.
Another con is how underdeveloped Bitcoin is. Tools, features and services are still undergoing development right now. It has great potential to become stabilized to the point of mass adoption, but until that point, the value will continue to fluctuate wildly.
IMMERSE OR DABBLE?
Given these potential benefits and disadvantages, the choice is yours on whether you should buy a lot, or just dabble in trading. If you fear the volatility, then just buy a little bit. If you are an early adopter of new technologies and can afford trading losses, then this same volatility means the rewards are amplified, so buying a lot may be for you.