With so much attention on Bitcoin’s unprecedented gains in the early part of this year, more and more investors are jumping on the Bitcoin bandwagon hoping to enjoy a profitable run. While Bitcoin is inherently volatile by nature, there are many incredible advantages that investors should know about before committing to an investment.
Bitcoin makes use of a vast network of computers that record and validate every single transaction in a public ledger, made possible through blockchain technology. Every Bitcoin transaction can be tracked on a blockchain network. Moreover, every computer on the blockchain network maintains a copy of all transactions that were facilitated. In a nutshell, all information about the money supply of Bitcoin is available for anybody to view on the blockchain at any time.
While all Bitcoin transactions and wallet addresses are visible on the network, the person or entity of that crypto wallet will remain anonymous. There is no way to link the address of a wallet to a specific person and this makes Bitcoin’s blockchain technology the most anonymous type across the globe.
All Bitcoin traders can be assured that their personal and financial details are kept confidential and secure on the blockchain network. Users have total control and freedom over their activity on the blockchain network. No personal information is required to trade as all transactions are peer-to-peer.
Low trading fees
No investor wants to incur high trading fees, and this is one major attraction for those who choose Bitcoin. Bitcoin transactions are remarkably cheaper to facilitate when compared to traditional bank payments. Although Bitcoin is the most valuable of all cryptocurrencies, it offers extremely low trading fees and this enhances the profitability factor for investors. Investors who transact across different countries benefit from this greatly as cross-border transactions through traditional financial institutions can prove to be a costly affair.
Faster transaction times
Bitcoin traders are attracted to the incredibly fast transaction times on the blockchain network when compared to transaction times at traditional financial institutions. Transactions are completed almost instantly and appeal to those who want the convenience of immediate payments and clearance. This is especially important as transferring funds across borders can take a matter of minutes as opposed to days or weeks with traditional financial institutions.
One of the biggest concerns that any investor has is the control and security of their funds. The good news is that all Bitcoin transactions are stored on a blockchain network that is incredibly difficult to hack. Bitcoin makes use of cryptography that regulates the creation and transfer of any cryptocurrency. These elements make it very difficult for any hacker to breach as there is no single point of failure.
Bitcoin makes use of peer-to-peer technology and its software is open source. This means that the software is public and not owned by a specific entity or person. With open-source software, anybody is free to contribute towards the development of Bitcoin. Developers freely share information about their research and the source code is shared amongst the community of developers for them to modify as they wish.
With open-source software, any member of the public can freely access the application’s source code and they are free to distribute it without the need for any authorisation or approval. Using open-source software is considered a very pragmatic approach in the crypto world as it attracts talent from across the globe that contribute to software development with all types of creativity, innovation, and diversity that commercial platforms lack.
Bitcoin is not regulated by any centralised authority such as a government or central bank. Moreover, it cannot be created or distributed by such authorities, unlike fiat currencies. Since no third-party authority has control over Bitcoin, there is no outside interference that could freeze, charge or request your money.
Additionally, there is no need to disclose your personal information to trade with Bitcoin and users only require their private and public keys. This decentralised network is free of restrictions and regulations that financial authorities around the globe usually attach to fiat currencies.
Bitcoin trading can be extremely rewarding for those investors who are willing to stick it out for the long term. While it is possible to make quick profits in the short term, these investments are not recommended considering the volatile nature of Bitcoin and other cryptocurrencies. That being said, it is vital to learn Bitcoin trading skills and acquire an understanding of the market to make proper technical analysis that helps with your decision-making.
You must note that trading in Bitcoin and other cryptocurrencies is a risky and highly speculative proposition. This article does not provide recommendations, advice, or guidance regarding Bitcoin trading but is rather our opinion on such investments. Investors must conduct their own research and engage in the services of qualified professionals before making any financial and/or cryptocurrency investment decisions. We do, however, recommend established platforms like Wisly to monitor and analyse your crypto investments.