Bitcoin is a cryptocurrency created in 2009 by an unknown person using the alias Satoshi Nakamoto. Transactions are made between users directly, without an intermediary such as a bank or payment processor. Because it’s peer-to-peer (P2P), users can send Bitcoins to each other using mobile apps or their computers. In this article, we will discuss the advantages of investing in bitcoin.
Let’s take a look at these advantages.
1. Lower Transactions fees
It’s no secret that Bitcoin is a deflationary currency, and this means that as demand for Bitcoin increases, so does its value. While this is a great thing for those who invested in Bitcoin early on, it can be challenging to become a profitable trader dealing with the high fees charged by banks and services such as Paypal.
Fortunately, these issues are eliminated when you invest in Bitcoin because lower transaction fees are generally involved. As a beginner, you must start trading on Bitcoin Code for a better experience.
2. No Tax
Imagine earning 10% or even 100% every day on your money without worrying about paying taxes! With cryptocurrencies like Bitcoin, investors who make money from their investments don’t have to worry about giving away a huge chunk of their earnings to Uncle Sam at the end of every year.
Also, because transactions made with Bitcoins are anonymous, it’s easy to avoid paying taxes on cryptocurrency transactions. This is probably one of the biggest reasons cryptocurrencies are becoming so popular among investors.
It is no secret that Bitcoin has become the currency of choice for online drug dealers and hackers behind ransomware attacks. However, this doesn’t mean that it can’t be used by ordinary people as well. With several exchanges offering more secure protocols like Two-factor authentication, you don’t have to worry about hackers’ stolen or confiscated cryptocurrencies.
Transactions made using cryptocurrencies are encrypted, meaning they cannot easily be traced back to their owners, unlike credit card payments. This only adds to the anonymity factor, which makes investing in Bitcoin quite popular.
4. Fast Transactions
Bitcoin transactions are fast, and this is because they are transferred directly into your bitcoin wallet the moment you purchase bitcoins. You can send bitcoins anywhere in the world within minutes with very low fees.
5. Accessible to Everyone
Bitcoin lets you send and receive money from anywhere in the world. Users can buy bitcoins by simply opening an account with a bitcoin broker. Also, many people are investing in bitcoins even without owning them because of how accessible it is to purchase fractions of a coin, unlike traditional exchanges where the minimum units are quite high.
Investing in Bitcoin is like investing directly into the internet. The internet provides us with freedom of information, communication, and conduct business. Investing in Bitcoin provides you with financial freedom and gives you the same kind of decentralization that the internet does. A word of caution here; if you decide to invest in a crypocurrency like Bitcoin, you’ll need a method of storing your private keys. Since crypto is decentralized, secure Bitcoin storage is imperative to retaining your investment. As the saying goes, “not your keys, not your crypto”.
The Bottom Line
When it comes to investing in bitcoin, there is no way around the fact that you will have to buy bitcoins. This will be the only real option they have when deciding to start investing in bitcoin for most people. However, there are ways for individuals who can’t afford to invest with an indirect approach.
Read also: 5 Reasons to Start Investing in Cryptocurrency