Discover the Benefits of Bitcoin & the Caution around Using It

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If you’ve ever felt frustrated by delays in making international purchases, vulnerable handing over of your credit card or bank account details for a sensitive transaction, or interested in expanding your investment portfolio, you may want to consider the bitcoin and its benefits. This decentralized cryptocurrency operates on a peer to peer basis. While it’s not new, debuted in 2009, it’s recently really taken off to a point where usage has become more common among average consumers and businesses and current bitcoin news is more accessible. The cash equivalency of a single bitcoin fluctuates; it reached a high of nearly $20,000 in 2017. Bitcoin transactions are obtained via an exchange, peer to peer, or even bitcoin mining, although that usually requires advanced knowledge and technical skill.

Why Bitcoin?

There are several reasons why you should consider adding bitcoin to your financial tools. It’s fast, secure, and has the potential to increase in value over the long term in a way that other liquid funds can’t.

Make Private Payments

Bitcoin transactions are maintained on a specialized public ledger called a blockchain, which is transparent to keep everyone honest. No one can see your name tied to your bitcoin transactions; everything is recorded using your unique identifier known as a wallet ID.

Transactions are Transparent

Using blockchain to document transactions gives businesses and organizations a clear and complete accounting of their bitcoin at all times. It’s extremely difficult for the blockchain to be compromised because it’s such a decentralized network. For someone to control enough of it to manipulate transactions, they’d need to seize tens of thousands of computers simultaneously.

Expedited International Payments

Because bitcoin payments are exchanged directly between the payer and the payee, there’s virtually no delay as there’s no bank or other financial network for currency to be routed through. Fees are minimal and often lower than traditional bank fees. Bitcoin can also be exchanged without international banking or government restrictions or regulations.

Minimal Fees

In order to exchange bitcoin, all that’s needed is someone’s bitcoin address. There are no banks or middlemen involved in the transaction, padding it with fees, which saves you money as a consumer and as a business.

Potential Return

Some people who buy bitcoin from a cryptocurrency exchange intend to hold onto it as an investment. Because the value fluctuates, what you buy today can be worth more tomorrow. This is one of the reasons it’s so important to follow current bitcoin news. By following cryptocurrency trends, you’ll have better insight into when to trade it. 

It’s Fast and Easy

Sending and receiving currency with bitcoin is efficient and effortless. Bitcoin transactions are immediate so there’s no delay in waiting for checks to clear or banks to process funds, even when sending or receiving funds internationally, so business and personal transactions can move fast. Bitcoin is mobile payment friendly using a bitcoin wallet app.

It’s Secure

As long as you take some common sense precautions, blockchain and cryptography keep your bitcoin safe. Use care with your wallet ID. Choose a wallet ID app with strong security protocols. Employ two-factor authentication. Make regular backups. Store some of your bitcoin in offline wallets.

Cautions

While there are significant advantages to using bitcoin for purchases and investment purposes, there are some cautions. The value of bitcoin can change without warning so there is some risk if you’re planning on adding bitcoin to your asset portfolio. And although blockchain technology makes hacking difficult and unlikely, it’s not impossible. Likewise, wallet ID apps without sufficient security protocols are vulnerable to hacking and failing to keep your wallet ID safe also makes you vulnerable.

Bitcoin still isn’t widely accepted in places like grocery stores, and it’s not protected or insured against loss, such as the funds that you deposit in your bank that are FDIC-insured. Staying in tune with best practices for using cryptocurrency with current bitcoin news can help you successfully manage your risk.

Making the choice to adopt bitcoin can be strategic for early adopters as well as those who are interested in minimizing the time and extra money that making some purchases takes, especially when buying or selling goods and services across borders. Benefits of bitcoin include transparency, efficiency, and security. Learning more about bitcoin and following current bitcoin news can help you navigate getting your own cryptocurrency and using it to your advantage.

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