Is Bitcoin Worth Your Time and Wallet?

Introduction

For those of you who’re not too familiar with Bitcoin, it’s important to understand what it really is. In simple terms, Bitcoin is a digital or virtual cryptocurrency that was designed by Satoshi Nakamoto. The cryptocurrency was launched in 2009 and unlike paper currency it has no physical form. Besides, these currencies aren’t regulated either. They are based on a decentralized system and are thus not monitored or controlled by any single entity such as the government or financial companies like Venmo, Wells Fargo or Visa. As the owner of Bitcoin, you cannot utilize it for purchasing products everywhere. However, some large scale retailers such as Expedia and Overstock accept Bitcoins.

How it Works?

Similar to every other cryptocurrency, Bitcoin is based on the blockchain technology. Thus, in order to send Bitcoins to another individual, your transaction must first be verified by a network of computers located around the globe. Any data center or computer, which verifies your transaction before another one gets rewarded in terms of Bitcoins. Another important thing that a trader needs to understand is that with Bitcoins, they don’t have to deal with any intermediaries like banks or other financial companies. Basically, the platform or exchange that is managing your transaction becomes the intermediary.

Is Bitcoin Worth Your Time?

Finally, we come to the main question. Is Bitcoin worth your time and wallet or not? Well, the answer to this depends on the individual. In fact, even before you deep dive into the world of cryptocurrencies, you must first make an attempt to gather enough information about them and calculate your risks carefully. While, volatility is a common feature of the trading industry and in the world of crypto trading, it is important to understand that most of the cryptocurrencies will cease to exist or become worthless in another couple of years. In fact, according to crypto experts and analysts around the globe, almost ninety percent of the digital currencies will become worthless in another 5 years time.

Thus, if you’re truly interested in investing in Bitcoins then invest only that amount that you won’t mind losing. Typically, an individual must invest only 1-2 % of their portfolio funds in Bitcoins. Besides, it’s crucial that you rely on the dollar cost averaging method when it comes to putting your funds in Bitcoins. Try to put maximum amount of funds in Bitcoins and keep the rest for other cryptocurrencies like Ethereum. Also, make sure you choose a reputed and reliable exchange for buying and selling Bitcoins in accordance with your trading strategy.