Is Bitcoin Safe? 5 Reasons to Overcome Fear of Buying

Bitcoin is one of the hottest topics in the financial world. However, many people are still hesitant and afraid to invest in this asset; after all, many ask themselves, is Bitcoin safe?

However, this feeling might prevent you from seeing one of the biggest technological disruptions and missing out on a significant opportunity to build generational wealth in the long run.

But don’t worry! We will help you overcome your fear of buying Bitcoin!

Below is a list of the main features that will convince you of Bitcoin’s safety and help you set your fears aside.

1. Encrypted technology

The technology used in Bitcoin is extremely secure. Bitcoin has been and is attacked by the best hackers in the world, 24 hours a day, 7 days a week, 365 days a year, for over 12 years. Therefore, if its code were flawed, someone probably would have already managed to bring down the network.

Bitcoin’s encryption, the rules of the protocol, the high degree of decentralization, and the amount of energy needed to bring down the network make Bitcoin almost a force of nature. It is unstoppable and evolves quickly.

A hacker attack would need to invade all computers that have copies of the Bitcoin network and destroy them, which is almost an impossible mission.

2. Decentralized

This means that you are in control of your money.

We are accustomed to always having an intermediary, such as banks and institutions, looking after things for us, providing “security,” and setting the rules. However, as a result, we end up losing our autonomy and freedom to transact values freely and independently.

With Bitcoin, you become the manager of your own bank, a bank that is always available in the palm of your hand, equipped with technology and security stronger than that of a Swiss bank.

3. Transparent

Bitcoin is an open-source technology, which means the codes are open, and the transactions are transparent.

Therefore, you can verify and track every transaction that occurs on the blockchain.

Remember, you are the bank, the regulator, and the auditor, giving you unrestricted access to all the information at all times.

What is open source?

In the context of Bitcoin, open source technology refers to the availability of the Bitcoin protocol’s source code to the public. This means that anyone can examine, modify, or utilize the code to develop Bitcoin-related projects.

This open approach fosters collaboration among developers worldwide, enabling them to enhance Bitcoin, address bugs, introduce new features, and create innovative technologies based on the protocol.

Furthermore, Bitcoin’s open-source nature plays a crucial role in ensuring its security and reliability, as it allows anyone to audit the code and identify potential vulnerabilities.

4. Uncensorable

Bitcoin is independent of governments or institutions, which means they cannot completely stop or control it. Therefore, their influence lies in affecting the on and off-ramps, specifically the companies that facilitate the trading of the currency.

However, any negative impact, such as a ban, if it were to occur, would likely be short-term, as Bitcoin is resistant to censorship and cannot be easily halted even by governments.

Furthermore, the act of banning Bitcoin would actually contribute to its scarcity, leading to an increase in both its price and demand. It is worth noting that whenever a government in certain countries has banned Bitcoin, its price has experienced a significant surge within that particular jurisdiction. We have witnessed such instances in countries like China, Venezuela, Saudi Arabia, and India.

Therefore, banning Bitcoin stimulates its adoption even more, which is why, among other things, it is considered the most anti-fragile asset that exists.

5. Investment

Bitcoin is increasingly being recognized as a hedge, serving as a safe asset against the vulnerabilities of the traditional financial system.

This is because Bitcoin remains unaffected by political decisions, interest rates, and conventional market indicators. Consequently, the primary economic law that Bitcoin adheres to is the law of supply and demand, leading to significant price fluctuations.

Furthermore, prominent global corporations are increasingly embracing Bitcoin. Over the past years, companies, funds, insurers, and payment providers such as PayPal, Visa, and Square have started offering access to Bitcoin to their vast customer bases. Additionally, billionaire investors like Cathie Wood, Paul Tudor Jones, and Ray Dalio have openly expressed their investments in Bitcoin.

Considering the involvement of these influential figures in Bitcoin, it indicates that there are significant opportunities and potential associated with it.

What about the risks? Is it dangerous to invest in something so new and volatile?

Bitcoin is indeed considered risky within the traditional market, but it’s important to question that risk in comparison to other assets. When we look at the facts, Bitcoin has been operating non-stop for nearly 14 years, establishing itself as the most secure network and the only one that is truly decentralized. Moreover, it serves as a safeguard against inflation and the devaluation of government currencies.

Bitcoin possesses unique economic characteristics that set it apart from traditional assets, and this distinctiveness contributes to its strength. Being different from everything else, it also proves to be more resilient. Consequently, the long-term outlook for Bitcoin is expected to be appreciative, despite its notable short-term volatility.

To benefit from Bitcoin’s potential, it is crucial to maintain discipline in consistently buying Bitcoin and to exercise patience to endure the market cycles and witness the parabolic rises. For perspective, over the last ten years, Bitcoin has averaged a 150% annual appreciation rate. This average appreciation far exceeds that of any other traditional market asset.

How is Bitcoin secure?

Bitcoin is considered secure for several reasons. First, as previously mentioned, Bitcoin is based on blockchain, which is a public and immutable record. This means that any Bitcoin transaction is verified and confirmed by the decentralized network of computers, making it resistant to fraud and cyber-attacks.

In addition, Bitcoin is secure because it is based on cryptography. All Bitcoin transactions are encrypted and protected by private keys to which only the owner of the Bitcoin wallet has access. This makes it very difficult for hackers and criminals to access and steal Bitcoins.

You may want to read: How is Bitcoin different from other cryptocurrencies?

How can I invest safely?

Now that you understand the security of Bitcoin, it’s essential to grasp how you can take your initial steps into this remarkable world. Bitcoin investors have various ways to protect their investments.

One common approach is to store their Bitcoins in a cold wallet, an offline storage wallet that is less vulnerable to cyber-attacks. Additionally, investors can enhance security by implementing two-factor authentication on their cryptocurrency exchange accounts and Bitcoin wallets.

However, an important recommendation is to avoid purchasing something you don’t understand. It is crucial to study Bitcoin before diving into investing. This entails comprehending the functioning of the market, understanding the fundamentals of Bitcoin, identifying reliable platforms for purchasing, exploring safe storage options, and learning how to store Bitcoin correctly, among other aspects.

If you seek structured content on the topic and require assistance, I recommend checking out Bitcoin Starter. It is a highly-rated and comprehensive training program on Bitcoin that can transform you into a knowledgeable Bitcoin expert.

Emphasizing the significance of having an investment strategy and organizing your finances, starting to buy Bitcoin without a plan can be a significant mistake, leaving you vulnerable to the whims of the market. For instance, without a strategy, you may end up buying everything at a high price when positive news emerges and selling at a low price when negative news surfaces, missing potential buying opportunities.

Don’t believe in promises of returns!

Moreover, another detail you need to be cautious of is promises of returns.

So, there’s a high chance it’s a financial pyramid scheme if they come up with the talk of:

1. make money without leaving home;
2. double your investments;
3. guaranteed return in very little time;
4. so many percent per month guaranteed;
5. make money while sleeping;
6. fixed contract profit;
7. lease contract of assets with monthly return payments;

Therefore, when we talk about Bitcoin, we’re talking about a market that’s extremely volatile, and there’s no guarantee of fixed monthly returns.

However, unfortunately, there are many scammers who take advantage of a lack of knowledge about Bitcoin and greed to swindle the unsuspecting.

Unfortunately, scammers can create a false perception that Bitcoin itself is a scam when in reality, Bitcoin is simply a tool. Similar to scams involving other technologies or commodities like cattle or cell phones, scams can occur within any industry.

To summarize, there are various avenues available today for starting to invest in Bitcoin, such as through cryptocurrency exchanges. However, it is crucial to emphasize that investing without adequate knowledge can be risky. That’s why studying and educating oneself about Bitcoin is of utmost importance.

By gaining a clearer understanding of the subject matter, you can make informed decisions and maintain strong convictions throughout the process. This approach will help you avoid getting lost on your journey toward achieving your financial sovereignty goals.

Conclusion

In summary, Bitcoin’s blockchain technology and cryptography ensure security and transparency, making it an attractive option for investors looking to diversify their portfolios.

While all investments carry risks, investors can mitigate these risks with security measures such as the use of cold wallets and two-factor authentication.

In addition, with the increasing global adoption of Bitcoin, the cryptocurrency could offer excellent long-term investment opportunities.

However, it is essential to conduct your own research and study before investing in Bitcoin.