Potential investors are highly attracted to cryptocurrencies more than any other investment asset. Criminals are too attracted to cryptocurrencies. As per the reports of 2019, cryptocurrency crimes have increased by 312% every year on average. The crypto crimes include everything from scammers and hackers stealing crypto-coins of investors to people falling for cheating or scamming related to crypto investments. Bitcoin is the foremost cryptocurrency, and it has the most reports of crimes of any other cryptocurrency. Beyond the crimes, Bitcoin safety for investors is always questioned, and that is because of its wild fluctuations in its value.

Despite an increase in the number of thefts and frauds, crypto experts advertise the safety offered by the bitcoin network as it uses blockchain technology that makes the entire network secure. Experts have faith in cybersecurity, but there’s no stability in bitcoin investments. So, the only thing that must be going in your mind is, is bitcoin safe to invest in? Well, if you plan to trade bitcoin to know benefits of bitcoin .

Here we will discuss few things about the safety of bitcoin as an asset and what measures you can take to secure your crypto investments.

What things need to be considered before buying Bitcoin?

The most important thing to understand is that Bitcoin is a volatile currency. The savings you put into Bitcoin are not safe from fluctuations. Its price can skyrocket, but it is not stable. If you want a safe investment with guaranteed results, Bitcoin and other cryptocurrencies may not be the best choice. At the end of 2021, Bitcoin’s value was around $30,000. By March 2021, it had reached $60,000. However, after that, Bitcoin’s price started to decrease, showing the high risk involved.

Crypto experts suggest investing less than 5% of your portfolio in Bitcoin. This should be for the long term, as part of a solid retirement plan. This approach is essential when considering Bitcoin safety for investors, given the volatility and risks in the cryptocurrency market.

Are there any risks associated with investing in Bitcoin?

There are several risks associated with investing in Bitcoin. The primary risk is fraud and hacking. Crypto crimes are increasing daily. Investors must be cautious when investing in cryptocurrencies. Most cybercrimes involve scammers and hackers. They often ask for payments in cryptocurrency or send unsolicited offers. These offers can lead to malicious links and theft of investments. The Federal Trade Commission warns that a common scam sign is being asked to pay only with cryptocurrency. Always avoid unsolicited offers related to Bitcoin or other cryptocurrencies. Conduct thorough research and ensure you buy Bitcoin from a trustworthy exchange.

How to secure your Bitcoins?

Hackers have sharp and creative minds, and they tend to use different creative methods to gain access to investors’ crypto wallets while trying to steal their crypto coins. Therefore it is important to store your crypto investments safely and practice digital security traditions. While crypto exchanges allow users to store their coins in exchanges through hot wallets but these wallets are susceptible to hacking. Make sure to choose cold wallets which are highly secure and provide you ownership of your funds. You can transfer your funds anytime with cold storage without the interference of any third party.

Ensure to trade and hold cryptocurrencies on a platform that provides robust security measures and allows you to keep most of your savings in cold storage instead of hot wallets, and offer two-factor authentication to all users. Some crypto exchanges even offer private insurance policies to their users in case of hacking or stealing. Bitcoin safety for investors is enhanced by using cold storage wallets, which provide the best protection against online fraud and hacks. Still, there are some risks related to cold storage, including the possibility of losing access to your Bitcoin investment if you lose your keys or forget your password.