4 bitcoin risks you should know when investing in bitcoin

owengtam09

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

Explore more What is Bitcoin? Basic knowledge for effective Bitcoin investment: https://vakaxa.com/vi/bitcoin-la-gi/

Legal risks
Bitcoin can be used for black market transactions, money laundering, illegal activity or tax evasion. Therefore, governments can seek to regulate and regulate the use or trading of bitcoin.

For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies to process purchases, sales, transfers, or store bitcoins to record customer identities. Transactions of $ 10,000 or more will have to be recorded and reported.
In addition, the lack of uniform regulations on Bitcoin and other cryptocurrencies raises questions about their lifetime, liquidity and popularity.

Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars were stolen.

Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.

Tax risks
In March 2014, the IRS announced that all cryptocurrencies, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin earnings from taxes

Bitcoin risks? Yes, but fiat can also have risks like this, putting your money in the bank can also have risks, and money in your pocket can also be stolen, there is no 100% guarantee security all over especially when it comes in money or does have value. We are the one who will secure our own money and we should take responsibility with it especially if we are already holding huge amount.

aysg76

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The risk in every feild increases with you rewards getting higher so you need to evaluate the point of your investmemt and profit.These types of risk are also associated with market like real estate,stock market where prices fluctuates but you can say these risky factors are more prone in cryptocurrencies like bitcoin so you need to be more aware.These risk are same to fiat as you need to take care of tax provisions,safety of money in banks or cash in hand or you can get scammed by hacker to deposit money in fake account.So risk are always there you need to avoid them with your presence of mind.

joinfree

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars was stolen.

I do understand some of your mentioned risks but i think you are going to far just to make known some risks that are inevitable even with fiat currency. Are so called banks not robbed or even their safe broken into by thieves to steal the money of its users? Come on mate, a hacker having physical access to someone's hardware is just as robbing a bank.

Quote from: jane maradona on October 01, 2019, 10:38:37 PM

Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.

Can you give a reference to this because i don't really know about this and how fake bitcoin was minted when i know perfectly the bitcoin network will not approve of any suspicious transaction.

agentx44

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

Explore more What is Bitcoin? Basic knowledge for effective Bitcoin investment: https://vakaxa.com/vi/bitcoin-la-gi/

Legal risks
Bitcoin can be used for black market transactions, money laundering, illegal activity or tax evasion. Therefore, governments can seek to regulate and regulate the use or trading of bitcoin.

For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies to process purchases, sales, transfers, or store bitcoins to record customer identities. Transactions of $ 10,000 or more will have to be recorded and reported.
In addition, the lack of uniform regulations on Bitcoin and other cryptocurrencies raises questions about their lifetime, liquidity and popularity.

Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars was stolen.

Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.

Tax risks
In March 2014, the IRS announced that all cryptocurrencies, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin earnings from taxes

This will be a great guide for many and can even save a life if ever someone's about to commit any mistakes that would trigger the harm from those mistakes. The legality of bitcoin has always been a risk for many considering the use of it in the black market for the ease of their transactions. Frauds and Taxes are inevitable, as soon as you enter investment in bitcoin, there will always be a possibility of getting harmed from these things. We just need to make sure we avoid or atleast reduce the risks we are encountering to make our investment safe and beneficial.

deviant99

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When investing in bitcoin you should know that there are many risk included for example when buying bitcoin on a website make sure it is trusted and safe and you should know how to properly store your coins,just read some articles that can help you to avoid risk

suzanne5223

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Quote from: Duzter on October 31, 2019, 06:30:28 PM

Four risks that can make your wallet empty are

Lack of knowledge about the market, misunderstanding as quick rich scheme
Not taking care of private keys, and not enabling the security features provided
Traps with hyip/multiplier schemes that's easily end up with empty wallet
Trade support through some Telegram channels that assure profit for mere premium
and guides you to loss

You're right with what you said about the things which would lead to empty of wallet or losses but they numerous and those you mentioned well know. However, we can't talk about risk in crypto without the mention of copy clip board which have lead to the lost of many lately. My advise is people should stop the use of web wallet.

Duzter

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Four risks that can make your wallet empty are

Lack of knowledge about the market, misunderstanding as quick rich scheme
Not taking care of private keys, and not enabling the security features provided
Traps with hyip/multiplier schemes that's easily end up with empty wallet
Trade support through some Telegram channels that assure profit for mere premium
and guides you to loss

RichardSmitthy

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

Explore more What is Bitcoin? Basic knowledge for effective Bitcoin investment: https://3commas.io/

Really, there are too many risks if you want to work on your own. But if you start to use special software, it is necessary to mention the level of security. You will get your profit much easier.

Zionatin

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"Therefore, there is no legal way to protect Bitcoin earnings from taxes"

How do you pay tax on something that doesn't belong to the government? It was not issued by the government and so it doesn't adhere to any law. It is not even real money or legal tender. It is something made for the people. The government do not have a btc address I don't think?

If you go to fiat from crypto then you definitely pay tax since you going from a free currency to a government-controlled one and since the government owns it they make the rules.

Katashi

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I cannot argue with OP's list but as an investor you should know that in every investment there is a different risk you must take in order to gain rewards and other people consider bitcoin investment to be very risky due to the price fluctuation and extremely volatile market. i think that most of the investors here on this industry already accepted that because they believe that the bigger risk they take, the higher chances of gaining great rewards.

peter0425

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We are 2019 now mate don’t treat market is still like 2015 there are many things that change specially in people’s treatment about cryptocurrency,yeah bitcoin is risky but also beneficial,if you can manage to handle and know the basics?for sure the profit will be yours and the mentality will change that’s one thing I am sure of.

Quote from: asus09 on October 21, 2019, 08:09:26 AM

Security risk is very important point when you invest your money with bitcoin or altcoin, you save your bitcoin assets on exchange account, if you not have security for your account maybe you can lost bitcoin, always protect your assets before gone with saving in offline wallet. You can buy ledger wallet for saving your bitcoin if you risk with hacker stole your bitcoin.

Lol it’s not about wallet security but the investments literally,but your point is right because our crypto asset will be at more risk if we are lack of security measures

CLS63

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

Explore more What is Bitcoin? Basic knowledge for effective Bitcoin investment: https://vakaxa.com/vi/bitcoin-la-gi/

Legal risks
Bitcoin can be used for black market transactions, money laundering, illegal activity or tax evasion. Therefore, governments can seek to regulate and regulate the use or trading of bitcoin.

For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies to process purchases, sales, transfers, or store bitcoins to record customer identities. Transactions of $ 10,000 or more will have to be recorded and reported.
In addition, the lack of uniform regulations on Bitcoin and other cryptocurrencies raises questions about their lifetime, liquidity and popularity.

Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars was stolen.

Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.

Tax risks
In March 2014, the IRS announced that all cryptocurrencies, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin earnings from taxes

Thank you for this useful information. I am trying to be careful against problems like these. But there is many people who don't know all the risks. They are just focused on earning money easily and doing it in a short time. All the people should be careful when making an investment.

Ayers

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the bigger risk is the one you didn't include in your list is the case where bitcoin fail, and go to zero in value, and you lose all your treasure, taxes is not also a risk because it's a good thing for bitcoin, will increase adoption
and hacker can't get your bitcoin if you keep them in a cold storage, you have the same risk as holding your money in a bank, if not less

asus09

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Security risk is very important point when you invest your money with bitcoin or altcoin, you save your bitcoin assets on exchange account, if you not have security for your account maybe you can lost bitcoin, always protect your assets before gone with saving in offline wallet. You can buy ledger wallet for saving your bitcoin if you risk with hacker stole your bitcoin.

Darooghe

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks.

Many of us are still living into the old paradigm and are trying to understand bitcoin into the lights of it. Bitcoin has risk (just like Fiat currencies), but it has a huge upside potential for long term and this potential will release sooner or later. Unlike fiat cash, no banker, no politician, nobody can create any amount of Bitcoin from "thin air". Everybody must follow the same rules. The supply of Bitcoin over time has been programmed/set in place since the beginning. Thus, nobody can inflate or hyper inflate Bitcoin's value. No banker nor government can seize or freeze my Bitcoin account.

Unlike gold, Bitcoin weighs nothing and takes up no space. It cannot be detected by metal detectors or dogs or visually. Gold is expensive to store securely. Gold is very expensive and slow to transport securely. Bitcoin costs nothing or very little to store securely (opposite to what you said) , and little to transport securely and quickly. There is a lot of "paper gold" depressing its price. There is tungsten-filled gold. Hence those risks against these benefits are negligible.

airdnasxela

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In my opinion, security and fraud risks are the biger factor as of now (Based on my country, I don't know about the others since our government ain't that strict). And more scammers will definitely emerged. Cryptocurrency may sound so risky (yes it is), but you don't have to be afraid if you know you can handle all those risks.

DoublerHunter

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Absolutely right, that four risks are the reasons why some investors back out because they are afraid to lose their money instead of reading. They think that investing in bitcoin is a crime since it's not paying taxes and they might put in jail if they caught having bitcoin. Also, there's a lot of fraud as well. Nevertheless, not just fraud, but there's a hacker as well so some people find it not safe to invest with.

YuginKadoya

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Quote from: teosanru on October 18, 2019, 12:19:40 PM

Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

Explore more What is Bitcoin? Basic knowledge for effective Bitcoin investment: https://vakaxa.com/vi/bitcoin-la-gi/

Legal risks
Bitcoin can be used for black market transactions, money laundering, illegal activity or tax evasion. Therefore, governments can seek to regulate and regulate the use or trading of bitcoin.

For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies to process purchases, sales, transfers, or store bitcoins to record customer identities. Transactions of $ 10,000 or more will have to be recorded and reported.
In addition, the lack of uniform regulations on Bitcoin and other cryptocurrencies raises questions about their lifetime, liquidity and popularity.

Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars was stolen.

Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.

Tax risks
In March 2014, the IRS announced that all cryptocurrencies, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin earnings from taxes

Security risks and fraud risk are related with almost everything online you can't just say that Cryptocurrencies are more prone to these risks. I think if compared to net banking and debit cards this is a much safer way because brute force hacking are almost impossible on bitcoin wallet because of their strong private keys. Also frauds overall can be protected by mere vigilance of the users otherwise this world is full of frauds at every point.

I totally agree and these can also be applied to fiat money and other commodities as well they can not blame Bitcoin for getting popular because of its volatility and that is another risk OP doesn't apply the risk for trading, I guess there are also gonna be a risk not only to bitcoin but other stuff when making business, making decisions as well not all system are perfect,

There are simply much risk in this world by just taking it down to Bitcoin yes investing can be risky and the time you will invest in bitcoin may become a risk as well but that is normal in my opinion like I said investing in something may always come with a risk.

teosanru

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Quote from: jane maradona on October 01, 2019, 10:38:37 PM

The value is not guaranteed, so buying and using Bitcoin carries a number of inherent risks. Many investor warnings have been issued by the US Securities and Exchange Commission (SEC), the Financial Sector Regulatory Authority (FINRA), the Department of Consumer Financial Protection (CFPB), and institutions. other officials

Explore more What is Bitcoin? Basic knowledge for effective Bitcoin investment: https://vakaxa.com/vi/bitcoin-la-gi/

Legal risks
Bitcoin can be used for black market transactions, money laundering, illegal activity or tax evasion. Therefore, governments can seek to regulate and regulate the use or trading of bitcoin.

For example, in 2015, the New York State Department of Financial Services finalized regulations that would require companies to process purchases, sales, transfers, or store bitcoins to record customer identities. Transactions of $ 10,000 or more will have to be recorded and reported.
In addition, the lack of uniform regulations on Bitcoin and other cryptocurrencies raises questions about their lifetime, liquidity and popularity.

Security risks
As with any system, Bicoin transactions are at risk of being hacked, malware and malfunctioning during operation. If a hacker gains access to the Bitcoin owner's computer hard drive and steals the private key, he can transfer the stolen Bitcoin to another account.
A particularly notorious theft took place in 2014, when Mt. Gox, a Bitcoin exchange in Japan, was forced to shut down after Bitcoin worth millions of dollars was stolen.

Fraud risks
Because the issuance of cryptocurrencies, ICOs etc. has not been regulated by the government yet, scammers can sell fake bitcoin. For example, in July 2013, the SEC took legal action against a Ponzi program operator related to Bitcoin.

Tax risks
In March 2014, the IRS announced that all cryptocurrencies, including Bitcoin, would be taxed as an asset. Therefore, there is no legal way to protect Bitcoin earnings from taxes

Security risks and fraud risk are related with almost everything online you can't just say that Cryptocurrencies are more prone to these risks. I think if compared to net banking and debit cards this is a much safer way because brute force hacking are almost impossible on bitcoin wallet because of their strong private keys. Also frauds overall can be protected by mere vigilance of the users otherwise this world is full of frauds at every point.

jostorres

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Quote from: Meowth05 on October 17, 2019, 12:44:53 PM

Risk is part of the system especially in cryptocurrency but if you do have some knowledge and experience you can somehow minimize the risk. Bitcoin is a promising coin indeed but it still risky to place an investment without having knowledge regards to this coin. Besides, crypto is full of risk hence you should be aware of it. Risk is inevitable,its either we face it or run from it we choose but remember if you stay on your comfort zone then you wouldn't get the reward of the risk-takers.

That is the word my friend, risk is not what should be our main concern because risk will always be in every part of any technology or business, but most successful business men are actually after how they can manage the risk. People should learn more on how they can manage risk than having fear for the risk itself.

All the risk that the op listed is what I know can really be controlled, so it is not really supposed to be a big problem that we have the existence of risk, no matter how high the risk may be, there will always be a way to manage it. One of the best ways to control risk is actually to learn the terrain of the cryptocurrency market very well, and all learn about the strategies that are available for most people to be able to overcome the risk.

Topic: 4 bitcoin risks you should know when investing in bitcoin (Read 502 times)