Not only being greedy but also being knowledgeable enough will save you from scams.
But reiterating if investing in bitcoin is safe, yes it is if the comparison is with those scam projects that have passed us like the ICOs. Bitcoin is definitely a safe investment and talking about its risk is a different and next to the discussion.
Topic: Is Bitcoin Safe? (Read 286 times)
Lots of newbies to Cryptocurrency have been falling a victim of scam countless times, the highest crypto scam is in btc, I've brought in an article that talks more about btc scam and how to avoid been a victim, is Bitcoin investment safe, factors to consider before buying btc, risks associated with btc, ICO's scam, crypto pump and dump schemes, keeping your crypto safe in wallets, Bitcoin security and privacy and lots more come along with this package.
The bitcoin blockchain has been perfectly running not like other crypto blockchain nowadays that are popping up as their blockchain has a lot of bugs they should work on. The Bitcoin itself is not scam it is another type of currency in cryptography which is purely decentralized and anonymous. People just use it to scam people that are newe to it. Keep in mind that these fraudsters can also use other cryptocurrencies, not just bitcoin.
None of the tradings is going to be safe, you will lose money, but you need to learn about how to make more profits than the lossess.
I've brought in an article that talks more about btc scam and how to avoid been a victim, is Bitcoin investment safe, factors to consider before buying btc, risks associated with btc, ICO's scam, crypto pump and dump schemes, keeping your crypto safe in wallets, Bitcoin security and privacy and lots more come along with this package.
ICOs are ICOs, they are not bitcoin. In most cases, you shouldn't invest in ICOs/IEOs or whatever new trends they came up with anyways. Pump & dump schemes also have nothing to do with bitcoin. With those schemes, the organizers get you to buy a worthless coin where they are the bag holders and you are buying from them filling their pockets. Use well-known, proven, open-source, and non-custodial wallets and you should be fine if you know how to secure them.Bitcoin is safe. It's the people who make something good or bad. If someone scams you and steals your bitcoin, it's not the network's fault. It's you who didn't know better and fell victim to whatever tricks someone played on you. Anything can be good or bad. A gun can save your family's life in case someone tries to hurt them. But a gun can also be used to take someone else's family from them. You can use a car to drive your kids to school or use that same car to drive over kids on their way to school.
Imo, I will be fine if the OP read such long articles online, summarize or discuss it here in your own understanding then add the link for additional reading if anyone would be interested. Copying the article verbatim may piss sum people.
Come to the question if Bitcoin investment is safe?
Please I want to ask if there is any known investment without an element of risk. If yes, link me up, when I have fund I will invest 100% of my fund in it.
Come to the question if Bitcoin investment is safe?
Please I want to ask if there is any known investment without an element of risk. If yes, link me up, when I have fund I will invest 100% of my fund in it.
This topic has a very broad title, because Bitcoin has a relationship with various aspects that surround it. I think the author should limit it a bit in a title. But if I see the content of your writing (not the quote) then it seems that you tend to talk about investment security. Since I first got to know crypto and various projects from ico to NFT, I have never invested in a new project. The reason is because I really don't believe in an offer, in tokens or coins that are not clear the future.
Until now I only invest in coin tokens that have a clear use case. This means that I invest by multiplying the profits of either BTC or USDT by trading. While it's true that some new projects have had a crazy uptick, I have no regrets.
Until now I only invest in coin tokens that have a clear use case. This means that I invest by multiplying the profits of either BTC or USDT by trading. While it's true that some new projects have had a crazy uptick, I have no regrets.
If you invest and trade crypto especially Bitcoin on your local exchange that is trusted and registered with the government, I am sure you will avoid problems such as scams etc.
On the other hand, if you trust crypto investment and trading to trading sites, ICO projects, investments, telegrams, social media, etc., what you just know is a disaster for you, all your money could be lost forever by the scam site or project you want to invest in.
Actually you are safe and can still carry out investment and trading activities on local exchanges that you know and don't do anything strange taking sites outside that you don't know in detail about their reputation, I'm not talking about a loss in crypto price movement, I'm talking about a new exchange site and the status is not clear.
On the other hand, if you trust crypto investment and trading to trading sites, ICO projects, investments, telegrams, social media, etc., what you just know is a disaster for you, all your money could be lost forever by the scam site or project you want to invest in.
Actually you are safe and can still carry out investment and trading activities on local exchanges that you know and don't do anything strange taking sites outside that you don't know in detail about their reputation, I'm not talking about a loss in crypto price movement, I'm talking about a new exchange site and the status is not clear.
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Lots of newbies to Cryptocurrency have been falling a victim of scam countless times
Newbies are crypto scammer victim they are always after making earning through crypto currency without the knowledge they needed to fully understand the pro and con in the system.the highest crypto scam is in btc
Bitcoin is the most trusted and used crypto so scammer will always pursuit it since they can also make anonymous transaction with it through tumblers.I've brought in an article that talks more about btc scam and how to avoid been a victim, is Bitcoin investment safe, factors to consider before buying btc, risks associated with btc, ICO's scam, crypto pump and dump schemes, keeping your crypto safe in wallets, Bitcoin security and privacy and lots more come along with this package.
You will be surprised that, crypto scammer are stupid because they still use the same old strategy which they just redefine to scam people every year. But it sad that newbies won't take their time to read the article you provide so they can be educated about the things happening in the crypto realm.
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One thing I can guarantee you in crypto, if you're not greedy then your chances to being scam is less, come to think of it, if something appears to be too real to be true, then is may be fake, don't be a fan of get rich fast with flashy things within the shortest period, that might be the weak point of your entry to been scammed.
Greet is part of humans' creation and is embedded in us, so everyone has one or two percentage of greed in us. What matters is how we are able to control not allowing it to influence our decisions in life. It's very important for one to get the full skills rather than sticking to the market with no adequate ideas to carry on. Majority of newbies who had falling prey to scam projects and investment are not really because of greed but lack of sufficient important to differentiate between scam investment looking real to believe. I was once a victim of scam project which made me lost almost all my funds, but I was able to learn unlearn and relearn from my errors and mistakes which are now a thing of the past.
Life has a way of showing us the true reality of lives and we should be prepared to stand tall not to fall aside when the test of life approach us. Experience is what we should be longing for.
Bitcoin will guarantee you a fairly good security as long as you can implement good security for your assets and wallet. Nobody can hack bitcoin, that's a foregone conclusion. Only user error can cause bitcoin to be lost and no one can blame bitcoin. Your wallet, your privacy, your habits, and the way you secure your bitcoin will determine it all.
In the context of trading and investing, bitcoin is not created without risk. The price of bitcoin will never be stable due to the influence of supply and demand. Bitcoin is not a risk free asset, but if you know that there is great potential behind it then you will know that the risk of investing in bitcoin is well worth the rewards you will get in the long term.
In the context of trading and investing, bitcoin is not created without risk. The price of bitcoin will never be stable due to the influence of supply and demand. Bitcoin is not a risk free asset, but if you know that there is great potential behind it then you will know that the risk of investing in bitcoin is well worth the rewards you will get in the long term.
When you say is bitcoin safe? Two things comes to my mind. They include,
1. Safe as in "safe for investment " or
2. Safe as in "safe as a security".
Governments of nations has painted bitcoin an insecurity and as such, the minds of people especially prospective investors that don't take time to do there own research but instead, depend largely on the media houses for there information are likely not to come by any truth with bitcoin.
Bitcoin being safe as an investment when compared to other cryptos or as a commodity for investing on a whole, it largely depends. Every investment has got ups and downs but non of it means a failure or points to it been unsafe. Its a way of trashing off the insecured investors or the non risk takers and maximising profit for those who could go the length.
That bitcoin is used to scam someone or for some fraudulent transaction doesn't mean bitcoin isn't safe. Little wonder why the scammer or fraudster would have accepted it for a payment media. Arguably you might say its most convenient for staying off the hook but I can tell you, fiat is as much as well.
So, bitcoin is as safe as you want it to be, the only thing unsafe and unclear is you!
1. Safe as in "safe for investment " or
2. Safe as in "safe as a security".
Governments of nations has painted bitcoin an insecurity and as such, the minds of people especially prospective investors that don't take time to do there own research but instead, depend largely on the media houses for there information are likely not to come by any truth with bitcoin.
Bitcoin being safe as an investment when compared to other cryptos or as a commodity for investing on a whole, it largely depends. Every investment has got ups and downs but non of it means a failure or points to it been unsafe. Its a way of trashing off the insecured investors or the non risk takers and maximising profit for those who could go the length.
That bitcoin is used to scam someone or for some fraudulent transaction doesn't mean bitcoin isn't safe. Little wonder why the scammer or fraudster would have accepted it for a payment media. Arguably you might say its most convenient for staying off the hook but I can tell you, fiat is as much as well.
So, bitcoin is as safe as you want it to be, the only thing unsafe and unclear is you!
No investment is safe. Keep this caveat" Sometimes you win. Sometimes you learn". Whatever amount you lose is the tuition you pay for learning. 
One thing I can guarantee you in crypto, if you're not greedy then your chances to being scam is less, come to think of it, if something appears to be too real to be true, then is may be fake, don't be a fan of get rich fast with flashy things within the shortest period, that might be the weak point of your entry to been scammed.
Someone doesn't necessarily have to be just greedy, the much bigger problem is that a lot of people who invest in cryptocurrencies don't even have some basic knowledge, and as such, they are ideal targets for an entire army of online scammers who have made business worth millions from crypto scams.
Quote
“In order to download the Bitcoin blockchain you would need massive, massive, computing capacity, like a supercomputer,” says Danial. “The day-to-day average Joe can’t go in and see what transactions are happening in the Bitcoin blockchain.”
Please, before you copy/paste an article, check that there is no such nonsense in it and try to single out only some important things - no one wants a wall of text in which there is also such nonsense.
To download the entire blockchain (current size 362.66 GB) we do not need any supercomputer, but only large enough storage (HDD/SSD) and a certain amount of time, which again depends on the speed of the Internet, processor, and some other things. Anyone who wants to track BTC transactions in real-time can visit any website like this one and enjoy transparency completely free of charge.
Bitcoin is the safest cryptocurrency. If someone is scammed due to their own mistake or greed, then what is the fault of Bitcoin? However, it is not always the newbie who is the victim of scam. Many experienced people can also be victims of scams because scammers always adopt new tactics.
It's normal that newbies are been scammed daily and most of this fraudulent act is a result of their greed don't get me wrong I am not trying to judge anyone but been a bit realistic Bitcoin isn't a get rich quick program it's a process that involves several factors to determine it's value at any point. If newbies would be very realistic to them selves avoid enticing adverts and avoid clicking irrelevant and over hyped links it would at some point save them from malware attacks
If you ask me is bitcoin safe? From my experience only, Bitcoin has been safe to me, approximately I have been using Bitcoin, close to two years and all this while I haven't gotten scammed in Bitcoin, even when my experience was -Newbie- rated, so from all my experience I can say Bitcoin is safe, and all stories I have read about crypto-currency scams is one or more of this
+ Exchange got hacked -the problem was from the exchange
+ An individual wallet got hacked -safety measures was to upheld by them-
+ Giveaway scam -why would you believe that you give crypto-currency to get a give away-
+ Social media scam - the individuals where gullible and insensitive-
These are few scams but all has default from those who where scammed, I think you can be safe in crypto-currency if you uphold your sensitivity to getting scammed.
+ Exchange got hacked -the problem was from the exchange
+ An individual wallet got hacked -safety measures was to upheld by them-
+ Giveaway scam -why would you believe that you give crypto-currency to get a give away-
+ Social media scam - the individuals where gullible and insensitive-
These are few scams but all has default from those who where scammed, I think you can be safe in crypto-currency if you uphold your sensitivity to getting scammed.
Lots of newbies to Cryptocurrency have been falling a victim of scam countless times, the highest crypto scam is in btc
The highest scam is in BTC, where do you get this information? Did you simply write it based on your thoughts?- Bitcoin was not created to scam anyone.
- Only scammers try to use Bitcoin or compromise the name, the use case of Bitcoin, etc. to scam naive victims.
- To say it more correctly, let's say "Scammers abuse Bitcoin to scam"
- Important note, after 12 years (2009 - 2021), and with thousands of altcoin, I believe now you can state a different conclusion "Scammers use altcoins to scam more than use Bitcoin".
Bitcoin couldn't be judged safe or unsafe based on external factors. You cannot call Bitcoin unsafe simply because there's a proliferation of scams using Bitcoin's name. Bitcoin should be judged based on its own credit.
Furthermore, everybody should take note that Bitcoin shouldn't be equated with crypto and vice versa. ICOs may be full of scams; the cryptocurrency market may be dominated with shitcoins; wallets may be custodial and close-source and unsafe; exchanges centralized and so on. But all of this is not Bitcoin.
Furthermore, everybody should take note that Bitcoin shouldn't be equated with crypto and vice versa. ICOs may be full of scams; the cryptocurrency market may be dominated with shitcoins; wallets may be custodial and close-source and unsafe; exchanges centralized and so on. But all of this is not Bitcoin.
I cannot comprehend how some Bitcoin investors put their trust in the words of a stranger. For me, it works like this: I hear but I do not always listen. Altcoins scamming out investors are usually plain words, a team that is likely fake anyway and no real development or missions. How are investors getting into these scams is beyond my rational thinking.
What I believe is happening is simply that they do not give a damn at the time and want to earn the jackpot with zero work. Usually for me, zero work brings zero or negative rewards. When you have investors sending thousands of dollars hoping Musk would send double back and random people who believe in projects that deserve absolutely zero merits and trust, you find out what this is all about.
I always believed these holders are in fact just people who bought a large variety of shitcoins in a hope that the jackpot is hidden in the bag of dirt. Staying away from cryptocurrency scams is as easy as 1-2-3 if you pay enough attention, have a brain and care.. particularly in a world where all the necessary information is at the distance of a click. Just my 2c.
-
Regards,
PrivacyG
What I believe is happening is simply that they do not give a damn at the time and want to earn the jackpot with zero work. Usually for me, zero work brings zero or negative rewards. When you have investors sending thousands of dollars hoping Musk would send double back and random people who believe in projects that deserve absolutely zero merits and trust, you find out what this is all about.
I always believed these holders are in fact just people who bought a large variety of shitcoins in a hope that the jackpot is hidden in the bag of dirt. Staying away from cryptocurrency scams is as easy as 1-2-3 if you pay enough attention, have a brain and care.. particularly in a world where all the necessary information is at the distance of a click. Just my 2c.
-
Regards,
PrivacyG
Is fiat safe, or any other investment option, like Real Estate, stocks etc, they obviously have their risks concern and that doesn't mean they are safe or not, it just means you as the user has a responsibility to take, failure to take it seriously would only result to you losing money and that generally doesn't connote that the investment in question isn't safe, it implies that it was as a result of your own folly that your funds got lost.
That's the same situation with Bitcoin, the network is safe, but it's the users that have to harness that by protecting themselves, you're your own bank here, so security of your funds is on you, the great part of it all is that it's pretty easy to achieve that, if you choose knowledge first and eliminate avarice, you wouldn't lose your funds, you'll be in the know that your seed phrase should not be given out, you'll have the knowledge that Bitcoin giveaways are scams etc. Having said that, it's the users who do not stay safe, the network itself is safe and it just takes quite a little effort from Bitcoin users to stay safe and away from scammers.
That's the same situation with Bitcoin, the network is safe, but it's the users that have to harness that by protecting themselves, you're your own bank here, so security of your funds is on you, the great part of it all is that it's pretty easy to achieve that, if you choose knowledge first and eliminate avarice, you wouldn't lose your funds, you'll be in the know that your seed phrase should not be given out, you'll have the knowledge that Bitcoin giveaways are scams etc. Having said that, it's the users who do not stay safe, the network itself is safe and it just takes quite a little effort from Bitcoin users to stay safe and away from scammers.
The topic is all about how newbies got scammed and it's not that Bitcoin is safe, because it depends on how they manage to care their own crypto funds. Bitcoin itself is safe already and no one is controlling it, so if newbies come across with people telling them how to invest yet they don't technically own it is not safe because this is the most likely common mistakes of a newbies, trusting their money to a total stranger thinking that they won't run with it. They should think twice.
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Scams are convincing and are getting better with time it does not always rely on the victim being greedy but relies on the victim being careless with their money
I'm pretty sure the scammers aren't even trying to be convincing again because from what I see they're just hoping on greedy or ignorant individuals to become their victims. The scams technique are outdated yet people still talk victim because of greed. Why should you store/stake your funds on some random platforms because they promise returns that aren't realistic meanwhile you would had been better off just holding those coins in your personal wallet or why should you believe some random sites telling you send them your Bitcoin and they'll double it instantly. In this industry, when things are too good to be true, they usually are.
That been said, in regards to Bitcoin been safe or not, among all the exiting cryptocurency, there's none that could be said to be safer than Bitcoin. For a fact, it was the very first to be successful and till date it has never been hacked meanwhile the so called improved crypto coins are getting their ass Whopped daily by hackers.
The question 'is Bitcoin safe' has just one answer and that's Yes Bitcoin is safe. You just have understand that with Bitcoin you're in charge of your finances therefore you should take control of the securing of your finances and ones that's done correctly you won't be exposed to hackers wanting to steal your coins.
Why would you ask if bitcoin is safe as you can see in the thread title?. I wouldn't say that bitcoin is safe. I'd rather say that a platform that most likely to scam btc from bitcoin holders then it is not safe. It is not the bitcoin that will scam you but the person or group people who are behind it. Let's say I made a website and then it is about investment that you will earn profit for 24 hours using btc then it is the person behind it and btc is just used to scam people. So, your title is a bit misleading.
Scams using Bitcoin does not mean Bitcoin is unsafe it means those services are. Bitcoin and its network is safe and 1000s of people worldwide use it on a daily basis to send transactions. Scams exist in fiat and Bitcoin and cannot be controlled because as soon as you close one down another 10 have opened. People just need to learn about the risks and mitigate those risks as much as they can. Scams are convincing and are getting better with time it does not always rely on the victim being greedy but relies on the victim being careless with their money and not using a trusted middleman when using a new service. The rules are you should always use a escrow when it is possible and that escrow should have a history of handling bigger transactions than you are sending.
Lots of newbies to Cryptocurrency have been falling a victim of scam countless times, the highest crypto scam is in btc, I've brought in an article that talks more about btc scam and how to avoid been a victim, is Bitcoin investment safe, factors to consider before buying btc, risks associated with btc, ICO's scam, crypto pump and dump schemes, keeping your crypto safe in wallets, Bitcoin security and privacy and lots more come along with this package.
One thing I can guarantee you in crypto, if you're not greedy then your chances to being scam is less, come to think of it, if something appears to be too real to be true, then is may be fake, don't be a fan of get rich fast with flashy things within the shortest period, that might be the weak point of your entry to been scammed.
One thing I can guarantee you in crypto, if you're not greedy then your chances to being scam is less, come to think of it, if something appears to be too real to be true, then is may be fake, don't be a fan of get rich fast with flashy things within the shortest period, that might be the weak point of your entry to been scammed.
Quote
Investors are more interested than ever in cryptocurrency. Criminals are too.
Reports of cryptocurrency crimes have increased 312% per year on average since 2016, according to a report from Crypto Head, a cryptocurrency news outlet that used Federal Trade Commission data to analyze cryptocurrency crime trends in recent years. These crimes can include everything from hackers stealing investors’ coins to people falling for scams related to crypto investing.
Bitcoin has the most crime reports of any cryptocurrency, which makes sense since it’s also the oldest and most-widely held crypto. Beyond digital crimes, Bitcoin’s safety as an investment is often questioned thanks to the frequency and scale of its value fluctuations.
Despite an increase in fraud and theft, many experts tout the safety of Bitcoin investments — at least in terms of cybersecurity if not investment stability — thanks to secure blockchain technology. So, is investing in Bitcoin safe? Here’s what you need to know about Bitcoin’s safety as an asset and keeping your cryptocurrency secure if you invest.
What to Consider Before Buying Bitcoin
First things first: The money you put into Bitcoin is not safe from value fluctuations.
Bitcoin is a volatile investment. If you’re looking for a “safe” investment with guaranteed returns, then don’t invest in Bitcoin — or any cryptocurrencies for that matter. Just over the past few months, the price of one Bitcoin has fluctuated between $30,000 and $60,000. Bitcoin isn’t the only volatile cryptocurrency, and other, smaller coins may be even riskier.
“Understand that these are very volatile investments, so if big fluctuations cause you to lose sleep, this isn’t the space for you,” says Dan Herron, a CFP with Elemental Wealth Advisors in San Luis Obispo, California.
Experts recommend keeping any cryptocurrency investments to less than 5% of your portfolio for exactly that reason — and to make sure you’ve got a solid conventional retirement investment plan in the first place. It’s also recommended you have an emergency fund and pay down any high-interest debts before you put any money into Bitcoin or any other cryptocurrency.
(Read More: Here’s How Much of Your Investing Portfolio Should Be in Crypto, According to 5 Experts)
What Are the Risks Associated With Bitcoin?
The biggest security concern for many people when it comes to Bitcoin investing — like any other digital activity — is the risk of hacking and fraud. Cryptocurrency crimes are on the rise, according to data from the Federal Trade Commission, and resulted in a median loss of $1,900 per report between October 2020 and March 2021.
Often, reported crypto crimes involve scammers requesting payment in cryptocurrency, or sending unsolicited offers to help you make money or increase your holdings, according to the FTC. “One sure sign of a scam is anyone who says you have to pay by cryptocurrency,” the agency says. You should also avoid any unsolicited offers related to crypto; do your own research and buy your coins yourself using a reputable crypto exchange.
Other types of scams to look out for
Initial coin offerings (ICOs) for fake cryptocurrencies
When a cryptocurrency is offered to investors before it’s launched to the market, it’s called an ICO (similar to a new stock’s IPO). But sometimes these new coin offerings can be fabricated, leading investors to put their money in a cryptocurrency that doesn’t actually exist.
Always research any cryptocurrency before you invest. If it looks too good to be true, it probably is. Read the project’s white paper and check out the founders as part of your research. For most investors — and especially beginners — it’s smart to stick to established, popular coins like Bitcoin.
Crypto pump and dump schemes
A small group of investors may pump a lot of money into a specific crypto, falsely inflating the price while convincing private investors to also invest. Then the original investors sell their shares for a profit before the price falls again. This type of scheme exists for more traditional investments, too.
Again, if an investment seems too good to be true, it probably is. Watch out for coins that have risen a lot in value without any clear reason why, the Crypto Head report recommends. This may be a sign of a pump and dump scheme.
How to Keep Your Bitcoin Safe
Hackers can gain access to individuals’ crypto wallets or breach entire cryptocurrency exchanges to steal their holdings. That’s why it’s essential to store your crypto in a safe place, and practice good digital security habits.
Cryptocurrency exchanges and third parties offer storage for your coins through hot wallets, which are secure, but still online (and therefore still susceptible to hacking). Crypto held on an exchange or in a wallet is not FDIC-insured like money in the bank. Make sure you trade and hold your crypto on a platform that offers robust security measures — including keeping a significant amount of holdings in its own cold storage and two-factor authentication for users. Some exchanges may even have private insurance policies in case of theft or hacking.
For the best protection against online fraud, many experts recommend cold storage through an offline device not connected to the internet, similar to a USB drive. But even cold storage comes with risks, like the possibility of losing access to your investment completely if you forget your password.
Bitcoin Security vs. Privacy
While you can take measures to secure your crypto holdings from hacking and theft, Bitcoin may not be any more effective at keeping your personal information private than any other traditional investment.
“Security and privacy are two separate topics,” says Kiana Danial, author of “Cryptocurrency Investing for Dummies” and the personality behind @Investdiva on Instagram.
While trades you make in Bitcoin may be harder to trace than credit card purchases or direct bank withdrawals, Bitcoin transactions are not private. Bitcoin trades are tied to a hash code — a string of letters and numbers — that are unique to you, says Ollie Leech, learn editor at CoinDesk, a leading cryptocurrency news outlet.
“You’re really not anonymous, more like pseudonymous,” says Galen Moore, director of data and indexes at CoinDesk. While your activity isn’t directly tied to personal details like your social security number, the blockchain is public and there are ways that people can identify you.
But even though Bitcoin transactions aren’t private, that doesn’t mean every user can see exactly how much everyone else has bought or sold.
“In order to download the Bitcoin blockchain you would need massive, massive, computing capacity, like a supercomputer,” says Danial. “The day-to-day average Joe can’t go in and see what transactions are happening in the Bitcoin blockchain.”
If you want total privacy when you transact, then neither Bitcoin nor Ethereum — the second largest cryptocurrency by market capitalization — are for you. Other smaller cryptocurrencies are designed for this total privacy, though experts recommend avoiding these lesser known cryptos as an investment.
https://time.com/nextadvisor/investing/cryptocurrency/is-bitcoin-safe/?_amp_linker=1*1v1nsdc*id*WllrMnQ2bDlFUkNuTk5XWnZJTGh2aGMwVjlPaEViT0RUcTNYLXRZWTJvdzZmdHQ2VFQzV2t1UTljdXItLXNIMA..
Reports of cryptocurrency crimes have increased 312% per year on average since 2016, according to a report from Crypto Head, a cryptocurrency news outlet that used Federal Trade Commission data to analyze cryptocurrency crime trends in recent years. These crimes can include everything from hackers stealing investors’ coins to people falling for scams related to crypto investing.
Bitcoin has the most crime reports of any cryptocurrency, which makes sense since it’s also the oldest and most-widely held crypto. Beyond digital crimes, Bitcoin’s safety as an investment is often questioned thanks to the frequency and scale of its value fluctuations.
Despite an increase in fraud and theft, many experts tout the safety of Bitcoin investments — at least in terms of cybersecurity if not investment stability — thanks to secure blockchain technology. So, is investing in Bitcoin safe? Here’s what you need to know about Bitcoin’s safety as an asset and keeping your cryptocurrency secure if you invest.
What to Consider Before Buying Bitcoin
First things first: The money you put into Bitcoin is not safe from value fluctuations.
Bitcoin is a volatile investment. If you’re looking for a “safe” investment with guaranteed returns, then don’t invest in Bitcoin — or any cryptocurrencies for that matter. Just over the past few months, the price of one Bitcoin has fluctuated between $30,000 and $60,000. Bitcoin isn’t the only volatile cryptocurrency, and other, smaller coins may be even riskier.
“Understand that these are very volatile investments, so if big fluctuations cause you to lose sleep, this isn’t the space for you,” says Dan Herron, a CFP with Elemental Wealth Advisors in San Luis Obispo, California.
Experts recommend keeping any cryptocurrency investments to less than 5% of your portfolio for exactly that reason — and to make sure you’ve got a solid conventional retirement investment plan in the first place. It’s also recommended you have an emergency fund and pay down any high-interest debts before you put any money into Bitcoin or any other cryptocurrency.
(Read More: Here’s How Much of Your Investing Portfolio Should Be in Crypto, According to 5 Experts)
What Are the Risks Associated With Bitcoin?
The biggest security concern for many people when it comes to Bitcoin investing — like any other digital activity — is the risk of hacking and fraud. Cryptocurrency crimes are on the rise, according to data from the Federal Trade Commission, and resulted in a median loss of $1,900 per report between October 2020 and March 2021.
Often, reported crypto crimes involve scammers requesting payment in cryptocurrency, or sending unsolicited offers to help you make money or increase your holdings, according to the FTC. “One sure sign of a scam is anyone who says you have to pay by cryptocurrency,” the agency says. You should also avoid any unsolicited offers related to crypto; do your own research and buy your coins yourself using a reputable crypto exchange.
Other types of scams to look out for
Initial coin offerings (ICOs) for fake cryptocurrencies
When a cryptocurrency is offered to investors before it’s launched to the market, it’s called an ICO (similar to a new stock’s IPO). But sometimes these new coin offerings can be fabricated, leading investors to put their money in a cryptocurrency that doesn’t actually exist.
Always research any cryptocurrency before you invest. If it looks too good to be true, it probably is. Read the project’s white paper and check out the founders as part of your research. For most investors — and especially beginners — it’s smart to stick to established, popular coins like Bitcoin.
Crypto pump and dump schemes
A small group of investors may pump a lot of money into a specific crypto, falsely inflating the price while convincing private investors to also invest. Then the original investors sell their shares for a profit before the price falls again. This type of scheme exists for more traditional investments, too.
Again, if an investment seems too good to be true, it probably is. Watch out for coins that have risen a lot in value without any clear reason why, the Crypto Head report recommends. This may be a sign of a pump and dump scheme.
How to Keep Your Bitcoin Safe
Hackers can gain access to individuals’ crypto wallets or breach entire cryptocurrency exchanges to steal their holdings. That’s why it’s essential to store your crypto in a safe place, and practice good digital security habits.
Cryptocurrency exchanges and third parties offer storage for your coins through hot wallets, which are secure, but still online (and therefore still susceptible to hacking). Crypto held on an exchange or in a wallet is not FDIC-insured like money in the bank. Make sure you trade and hold your crypto on a platform that offers robust security measures — including keeping a significant amount of holdings in its own cold storage and two-factor authentication for users. Some exchanges may even have private insurance policies in case of theft or hacking.
For the best protection against online fraud, many experts recommend cold storage through an offline device not connected to the internet, similar to a USB drive. But even cold storage comes with risks, like the possibility of losing access to your investment completely if you forget your password.
Bitcoin Security vs. Privacy
While you can take measures to secure your crypto holdings from hacking and theft, Bitcoin may not be any more effective at keeping your personal information private than any other traditional investment.
“Security and privacy are two separate topics,” says Kiana Danial, author of “Cryptocurrency Investing for Dummies” and the personality behind @Investdiva on Instagram.
While trades you make in Bitcoin may be harder to trace than credit card purchases or direct bank withdrawals, Bitcoin transactions are not private. Bitcoin trades are tied to a hash code — a string of letters and numbers — that are unique to you, says Ollie Leech, learn editor at CoinDesk, a leading cryptocurrency news outlet.
“You’re really not anonymous, more like pseudonymous,” says Galen Moore, director of data and indexes at CoinDesk. While your activity isn’t directly tied to personal details like your social security number, the blockchain is public and there are ways that people can identify you.
But even though Bitcoin transactions aren’t private, that doesn’t mean every user can see exactly how much everyone else has bought or sold.
“In order to download the Bitcoin blockchain you would need massive, massive, computing capacity, like a supercomputer,” says Danial. “The day-to-day average Joe can’t go in and see what transactions are happening in the Bitcoin blockchain.”
If you want total privacy when you transact, then neither Bitcoin nor Ethereum — the second largest cryptocurrency by market capitalization — are for you. Other smaller cryptocurrencies are designed for this total privacy, though experts recommend avoiding these lesser known cryptos as an investment.
https://time.com/nextadvisor/investing/cryptocurrency/is-bitcoin-safe/?_amp_linker=1*1v1nsdc*id*WllrMnQ2bDlFUkNuTk5XWnZJTGh2aGMwVjlPaEViT0RUcTNYLXRZWTJvdzZmdHQ2VFQzV2t1UTljdXItLXNIMA..
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