Bitcoin: Understand The Risks Before Taking The Plunge
Unless you’ve been living inside a cave for the past few months, you’ve probably heard about Bitcoin or some other cryptocurrency. Just last December, Bitcoin trading was halted twice for the sudden surge of its trading value.
There is so much hype about Bitcoin that some people have been taking out mortgages on their properties to boost up their initial investment. But what is Bitcoin exactly? And why is it value soaring above charts?
Bitcoin is a digital cash system without a governing central entity, which means that governments and central banks have no control over Bitcoin transactions because it operated on a peer to peer basis. Bitcoin investors see it as a new global currency overthrowing the US dollar. Since countries like Japan, China, and even Russia have slowly been integrating Bitcoin use in the economy, investors have anticipated the value of Bitcoin to skyrocket.
Financial analysts have warned the public about the extremely volatile nature of Bitcoin. However, investors who seek capital growth cannot turn a blind eye at the exponential surge in prices.
Since the launch of Bitcoin in 2009, its markets have also seen its fair share of cyber attack and scams. What’s worse is that Bitcoin theft isn’t covered by existing laws. Knowledge is power, therefore if you’d like to dive into the Bitcoin market or other up and coming cryptocurrencies, be wary of some of the notable scams:
- Cell phone identity theft. Cell phone identity theft, also known as phone-porting, is when criminals try to steal key data from your phone in order to access your digital wallet. Once accessed, they transfer the contents of the wallet to their account or they reset your password and take over your wallet.
- Fake digital wallets. Be wary of downloading digital wallets from the web, some are fake and developers may steal your savings.
3) Bitcoin thief malware. Some criminals have developed a malware that could infect your computer and steal your log-in information. It is advised to install a reputable anti-virus software to safeguard your computer.
Above all else, educate yourself first before entering into something as risky as cryptocurrency.