Topic: The risk and reward of having Bitcoin - page 3. (Read 1098 times)

Just a normal set of things for Bitcoin investors. Actually those things mentioned by OP is also present with other assets and investments; it is just that volatility and risk are higher with Bitcoin and other cryptos.No matter how knowledgeable you are, as long as there's no assurance of profit then there would be risk. Knowledge can only lessen the risk present but will never make it vanish to any investment.Expectations toward Bitcoin investment on the other hand, is due to what we have witnessed over years.

Exchanges and wallets are different. Exchanges handle transactions, wallets store. This distinction is critical to security. Understanding this improves investment intelligence and reduces Bitcoin storage stress.

Insufficient information causes Bitcoin's volatility-related losses. Well-informed investors anticipate market volatility and plan accordingly. This goes beyond knowing when to purchase or sell to comprehending the bitcoin market's fundamentals.

Security concerns are real, but misinformation exaggerates them. Carefully selecting a secure wallet greatly decreases dangers. Continuous learning and careful decision-making should lead our Bitcoin journey, maximizing potential while limiting risks.

High volatility of price is not a risk to me as far as being a hodler or an investor is concerned you can only have a price drawdown which wouldn't exceed 50% of the total investment if there is a massive dump in the price of Bitcoin, while in the case of not generally acceptable globally that is not a disadvantage in as much as I can sell the Bitcoin to fiat via P2P that problem had been solved of course this wouldn't take much of the time in performing the transaction, Hackers getting access to one Bitcoin is or can be linked to hodler carelessness of course there is cold wallet as well as hardware wallet which are proven to be secure moreso it not advisable to store your Bitcoin in an exchange, the fact that Bitcoin is irretrievable is also the sender carelessness.

Which makes people wiser in investing because of their knowledge and including how someone can make the security of bitcoin storage much more guaranteed. When people have limited knowledge, they are worried about storing bitcoins on an exchange and the reason is because they think exchanges and wallets are the same. For this reason, when someone has the desire to invest, they need to learn how to invest correctly and also how to choose a safe wallet as a place to store bitcoin.

Everyone who experiences losses on bitcoin is due to lack of knowledge because bitcoin is a pretty perfect move if people do it right. Both losses due to the decline process that makes them sell bitcoins and the loss of bitcoins are caused by the level of security of the wallet used and all of this is caused by shallow knowledge.

Risk is when you invest without knowing anything. Knowing all the right strategies and using a secure wallet to hold bitcoins will reduce the risk and keep the money safe. Bitcoin investment is more profitable with less risk of halving. The rate at which bitcoin investment volumes are growing has guaranteed a huge upside rather than a halving. Everyone has high expectations for bitcoin investment.

This is not a problem if you are a long term holder


It is the same as other national currencies, they are not accepted by all and is need to convert to other currency in order to be accepted.  Bitcoin is no difference so this is also not a problem at all.


This can be solve by understanding how to safely stored Bitcoin.  If one is knowledgeable enough, he can keep his BTC for eterntiy and not get hacked.


So we better double check to triple-check things before sending any transction.  Careful checking can solve this problem and be aware of the malware that modifies clipboards.


At the current situation, unless you invested millions, you can earn millions too but if one invest only a penny, there is no way that person can be filthy rich.

Since nothing is 100% perfect, storing assets in the form of Bitcoin is not a bad choice. It's about one's compatibility with the type of asset they own. If someone feels that they don't align with the characteristics of Bitcoin, it means it's not the right market for them. Even if some people consider banks better, they also have many shortcomings that are accepted by some.

The advantages of Bitcoin compared to other currencies or assets are very fitting for me, which is why owning Bitcoin is more attractive than keeping too many assets in a bank account. Privacy and security are also considerations for me when it comes to owning Bitcoin; it's more satisfying than excessively exposing our data and financial history to banks. Being mysterious can be quite enjoyable.

As long as you don't actively trade you don't have to check the price every day. Volatility is irrelevant if your investment is long term.
Who cares if it's not accepted by all? Majority of people heard Bitcoin in this 14 years and that's a great achievement if you look at the bigger picture. I don't know any other monetary system that is successful in such short time.
Your money may be stolen in different ways, it's not just about hacks. We know even banks are not safe. Sending coins to wrong address is the only problem I see in your list. You have to be careful about sending and triple check the whole address.

Considering Bitcoin volatility as a disadvantage, of course, they do not understand how Bitcoin works.
Even with this volatility, we can take advantage of it by taking advantage of every price movement.

Those who trade both ways or futures can take advantage of every rise and fall by using the leverage set to make a profit,
or by doing DCA when the price falls and buying it for the long term.

Without volatility, there will be no benefit.
As the price of gold tends to be slow volatility, it takes a very long time to provide quick profits,
but with crypto or Bitcoin profits will be obtained quickly, but the risk is certainly also greater.

Honestly, people who think that bitcoin price volatility is detrimental to them, are people who have never felt a profit from investing in bitcoin, they think that profit can only be obtained from continuous increases, even though in fact profits can also be obtained from decreases of bitcoin price, well usually smart investors will use the DCA method to accumulate the bitcoin they have, bitcoin will always be volatile and that will always be the nature of bitcoin.

Let me concentrate on the risk since alot of users will be looking for feedback on this side of the discussion. You might see those things to be disadvantages but they're aren't so bad. Example, the volatility of the price of Bitcoin isn't entirely bad when you understand it and know how to take advantage of it. While you get scared when Bitcoin prices drops others that are smart and wise sees it as an opportunity to increase their stash or make more profits by selling (buy low, sell higher). Mind you, you don't lose if you don't sell. The volatility only affect you when you're after the short gains but those hodling for long term don't get distracted by the volatility of the market.


It's just a matter of time before that narrative changes, the population that could use Bitcoin frequently in the past can't be compared to the present because more vendors and merchants are accepting Bitcoin and this number will keep increasing. Fiats of other countries aren't generally acceptable by all too and other digital currencies so this isn't only a Bitcoin problem.


With great power (decentralization) comes great responsibility (been in control of your finances). If you're careful you won't suffer any of this problem. Keep you coins stored off exchange, in open source non constodial wallets and keep your sensitive wallets information off the net and in places that evil doers can get hold off and you're good.

How can this be a disadvantage for bitcoin when you first invest on it, this has been so visible? Most people need to stop telling others that volatility is a disadvantage.
Let us remove the volatility of Bitcoin and see if most people will agree that it is the greatest investment of all. It won't even be called and investment if there's no volatility on it.

The volatility of bitcoin is also the exact reason why people are investing in it, because the understanding that the volatility can be more profiting especially as more people learn about bitcoins.

Opinions will soon change, majority of the people who do not like bitcoins right now have that opinion about it because of poor understanding of what it is.

Almost everything can be stolen.

More reasons to be very careful whenever you are about to make any transactions.

Bitcoin ownership is no longer considered a disadvantage, and we can take measures to enhance its security. One effective way is to purchase a hardware wallet to ensure the safety of our digital assets. It's important to exercise caution when sending Bitcoin transactions, as they are irreversible. We should recognize the potential of Bitcoin as a global currency, and with its increasing awareness and adoption, its supposed disadvantage is slowly fading away. Bitcoin is undoubtedly the future, and it's only a matter of time before it becomes widely accepted worldwide.

Really I know about Bitcoin volatility which I am used to already,  and want to hear another risk in bitcoin because,  bitcoin volatility is not a risk but a tool to be used to control our understanding and attachment with Bitcoin as an investment because,  for now Bitcoin is best accepted as an investment much more than it is a currency,  so for sure if you have the basic understanding pf this fact and build a good background understanding about Bitcoin,  it will be hard before know what risk is with bitcoin and how you best apply it to suit your own immediate needs.

Before you choose bitcoin for anything be it as investment,  you must have to first of all have this balance agreement Bitcoin the risk and time waiting,  and that is why we always advise for long-term holding of Bitcoin,  instead of taking Bitcoin as some get rich quick scheme or even gambling,  a lot has to be settled with this to build that understanding.

There is low risk in bitcoin halving. Because we know the block of bitcoin half and the price of bitcoin increase. 2024 bitcoin halving is target halving for all bitcoin investor. Because every one expecting to go for high and get huge profit. That halving is the game changer for old and new investors. So go on cleverly with your experience and knowledge.

Yes, exactly. When we fail to invest in bitcoin completely it is only our own fault, there is no fault with bitcoin. Because bitcoin technology is so perfect, even bitcoin is freedom because no one can control it, who can control each of us, so be wise in using bitcoin, especially regarding wallet security.

So it is true that before investing in Bitcoin we have to study in more detail first so that there are no mistakes that result in losses to ourselves. It could be said that the risk of Bitcoin depends entirely on us in maintaining and using it. Moreover, there are many benefits that we can get from investing in Bitcoin.

The boundary between risk and reward is no longer so important to me, because everyone has their own way of thinking, whether it is personal benefit, collective benefit, or even evil behavior. Bitcoin is always what it is, and it's natural for people to find different things and label it. The truth is that the bigger it gets, the more different labels it will receive.

IMO, peace in life means that we are no longer either competitive, but can operate through bitcoin or maintain the inherent nature that we support. But honestly, this life we ​​have has many views that we are forced to accept or rise up to change.

You've highlighted key points well! Indeed, Bitcoin, like any investment, has its pros and cons. The high volatility can be a double-edged sword, offering both risks and rewards. Its limited acceptance and susceptibility to theft are valid concerns. On the flip side, the potential for substantial gains during bull markets is exciting. The decentralization, privacy, and accessibility aspects make it a unique asset class. Keep in mind, the crypto landscape is evolving, and understanding both sides is crucial for informed decision-making. 🌐💰

The only think I can think of Bitcoin's risk is the price will not go into your way, so investing all in is not really a good idea.
Other than that, I can't think of anything more that will put your investment at risk. Unless you don't know what you're doing, like panic selling most of the time when a lot of FUD(s) happen, always FOMO, and when you stored your holdings in a random Bitcoin wallet you found in playstore or appstore.