With the rise of the internet, it’s no surprise to see that online currency is quickly becoming pervasive in our society. But with all the hype surrounding bitcoin, is it a smart idea to invest in this new type of cryptocurrency? First, let’s discuss everything you should know before deciding whether to invest.
What You Need to Know
So let’s start by addressing the big question: what exactly is Bitcoin? Well, as I mentioned before, it is considered a cryptocurrency which is a form of electronic cash. Unlike regular currency, however, it’s potentially worth much more. Just one unit of Bitcoin can be worth $6,702. So, naturally, it seems like investing is a no-brainer, right? Well, not exactly. The value of Bitcoin is constantly fluctuating meaning, at any moment, you could become much wealthier. However, it also means that, at any moment, you could potentially stand to lose a lot of money. Nevertheless, if you’re still determined to invest in this new cryptocurrency, you’ll need to decide what type of wallet is best for you to store your electronic currency.
The Six Types of Wallets
First up, there are online wallets which are convenient and easy to use but, alas, that convenience comes at the expense of security. If the website deactivates, you could lose all your money and, if it’s hacked, someone can just swoop in and steal all your funds. Then, there are electronic wallets which are also pretty easy to use but that same hacker issue is still very much at the forefront of these wallets. Next up is the mobile wallet which can be pretty easy to implement but is still subjected to all the security issues that arise with the use of cryptocurrency. Then there are hardware wallets which are much more secure.
Since these wallets are mostly offline, it can be quite difficult to hack. However, the best option is probably the paper wallet. These are the only types of wallets that are completely offline and therefore impossible to hack. They’re also very easy to use and stored on a ream of paper as the name suggests.
Making That Big Decision
So the question remains: is it worth it to invest in Bitcoin? Well, the evidence seems to suggest it is not. Considering the perpetually fluctuating state of online cryptocurrency, investing in Bitcoin is a highly risky business. Even the real value of Bitcoin is still up for debate. You see, this type of technology is derived from something known as blockchain. As such, the units themselves aren’t actually worth all that much. Not to mention there are other types of cryptocurrency which would easily provide you with units of electronic currency that are much more valuable. And, again, cryptocurrency is constantly subjected to the evils of hacking which could essentially render your investment in said cryptocurrency null and void. So, if you’re looking to invest in some sort of online currency somewhere down the line, I recommend any kind of cryptocurrency except Bitcoin.