All the overhyped and ridiculous Bitcoin media hype might be well worth it because you can gain success in buying and selling this cryptocurrency.
Like every other prospective buyer, any newbie will need to learn about the top obstacles that could get in their way of reaching success with Bitcoin. After familiarizing yourself with these, you will have the power to avoid and overcome them.
1. Understanding Volatility
The first obstacle one may encounter while trading Bitcoin is the volatile price of this cryptocurrency.
Because of this, people who plan to make a living with Bitcoin trading might need to take this into account when they are trading it and only invest what they can afford to lose in case the price goes the opposite way.
2. Bitcoin Exchange Security
The number of security breaches at Bitcoin exchanges is alarming, especially if you are a trader who plans to build his career with Bitcoin. These incidents could significantly affect your investment so that you lose even more money.
3. Using a Third-Party Application to Store Bitcoins
Privacy and security enthusiasts recognize that the option of storing their bitcoins with a third party is not a good one because this leads to the possibility of theft or loss of investments.
4. Hacking and Security Threats
Another obstacle that you might face when trading Bitcoin is the threat of hacking and security breaches. There are many reports indicating that Bitcoins are getting stolen through hacking, and these are evolving more regularly in the last few years.
The good thing is that this problem could be solved by using a multi-sig or cold storage wallet.
5. A Huge Learning Curve
Bitcoin is a highly complex trading instrument, and you should be prepared to put in much time to learn about it. Luckily, there are many forums where you can ask your questions, but in the end, it is up to you to do the analysis.
If this feels like too much work for you, then Bitcoin trading might not be the best option for you after all.
6. Censorship and Restricted Access
Only a few countries have a comprehensive legal framework to protect Bitcoin users. As a result, the ability to use Bitcoin in those countries may be restricted, so you need to find a way around it even if you want to do so.
You can expect government agencies and other regulatory bodies involved in the financial industry to monitor this cryptocurrency closely.
7. Bitcoin and Money Laundering
Some reports indicate that Bitcoin continues to be used for money laundering, which has not been tackled yet. This means that people who are trading it may end up leaking valuable information about themselves and their financial well-being.
If you can successfully overcome the obstacles outlined above, you will find more people interested in your expertise, and they will be willing to trade with you.
You might face these kinds of obstacles while trading Bitcoin because there is not enough regulation on the cryptocurrency markets compared to other financial assets such as stocks or bonds.
Avoiding Bitcoin Investment Obstacles – Points To Note
You should be cognizant of the possible obstacles that you might face when trading Bitcoin so that you can avoid them. You need to consult your tax advisor and ensure that you are in line with all the legal requirements.
The most important thing is to do some research first, instead of rushing headfirst into the cryptocurrency space and doing something that could hurt you in the long run.
Before you start trading in Bitcoin or other forms of cryptocurrencies, it is advised that, at first, you understand the overall basics and then prepare yourself for the investment part.
The most important thing is to never invest any money in this cryptocurrency that you cannot afford to lose.
The best part about all these obstacles is overcoming them if you understand how they work and what you need to do.
Learn the Basics
If you decide to trade Bitcoin via www.thecryptopunks.com/, it would probably be helpful for you to learn the basics of dealing with obstacles. This will be specifically useful for avoiding negative situations like scams or theft. Happy crypto investing!
Please note that this website does not provide financial advice and this article is for information purposes only.