What is Bitcoin? – Bitcoin Explained
If you are asking yourself “is Bitcoin safe to buy?”, chances are you don’t know much about the cryptocurrency itself. That’s why we think it’s worth just giving you a little refresher course on what Bitcoin actually entails. Bitcoin is a digital currency that was created by a man named Satoshi Nakamoto in 2009.
To put it in simple terms, Bitcoin is a digital currency that is not tied to any physical coins that back up its value. It is a digital currency that is fully decentralised meaning it is not controlled by any major bank or governments. It was the first currency of its kind to use peer-to-peer technology for instant payments. It is the users of Bitcoin that verify transactions that keep the network safe and running at all times. Another reason why you can safely answer yes to the question “is Bitcoin safe to buy?”
Bitcoin itself is produced by a number of computers or “nodes” that all run Bitcoin’s code and store it in the blockchain. The blockchain is simply a series of transactions that make individual blocks. Much like gold, Bitcoin has a finite supply to be “mined”. The digital currency started out with a total of 21,000,000 coins to be mined. As it stands there are currently only around 3 million coins left to be mined. The process of mining these final 3,000,000 coins will still take a very long time so the opportunity for investment is still wholly available. The question is, is Bitcoin safe to buy?
Is Bitcoin Safe to Buy?
When Bitcoin first started, almost no one wanted to get involved with the cryptocurrency. This was not down to any major issues with the currency itself but rather that people just genuinely had no idea it was. As more people began to wise up to the potential of the digital currency, more and more coins began to be mined and bought. People clearly began to feel more at ease about putting their investments into the digital currency and were more confident in answering the question of is Bitcoin safe to buy. The value of the currency no doubt had a big part to play in this.
Anonymity & cold wallets – is Bitcoin safe to use and store?
Before we answer the question is Bitcoin safe to buy, let’s talk about some of the things that make the actual digital currency safe to use. Because Bitcoin is not controlled by any government or central bank, i.e. decentralised, it provides far more anonymity than other fiat currencies. It provides more anonymity by essentially masking the identities of users who have logged a transaction. While these transactions are public record in the blockchain they do not contain your real information, at least, if you don’t want them to.
There are a number of different wallet types for you to store your Bitcoin in a safe place. The safest place for you to store your newly acquired Bitcoin is in what is known as a cold wallet. The cold wallet is a hardware device that you can store your Bitcoin on much like you would store files on a USB. The cold wallet is in no way connected to the internet which makes it safe from any hacking threats. Furthermore, the hardware device itself is pass-key protected making it even more difficult for anyone other than yourself to access the Bitcoin. Bitcoin wallets make sure that you can answer “is Bitcoin safe to store?” easily.
But is Bitcoin safe to invest in? The history of Bitcoins volatility is no secret. If you even half-heartedly followed its course until now you would have heard or seen that the value of the crypto has experienced significant spikes and drop offs in value until as recently as 2018. However, the value of the crypto has skyrocketed for the most part and most experts will tell you that this is unlikely to change. There have still been drops in value but this is largely down to the value of the currency as people look to cash in sooner than others. But as people sell, more people see the value of the currency as it drops and decide they want to get in on the act while it is more affordable than it was, say a week ago.
So, yes Bitcoin certainly has a record of instability especially in its earlier days but in terms of it being a sound investment it’s difficult to see why you wouldn’t want to invest. With that being said, we need to be clear here that we are not giving you outright financial advice here but merely pointing out that the crypto has experienced a significant rise in value of the past few years and in particular in the last 2 years. We cannot account for what may happen down the line and if the history of Bitcoin has told us anything it’s that anything can happen.
How to Buy Bitcoin – Is Bitcoin Safe to Buy?
Now that you can safely answer the question “is Bitcoin safe to buy?”, you may think you are A for away to now buy some of the digital currency. You’re not quite there yet. People at this point will still ask “should I buy Bitcoin?” and that is a perfectly reasonable question to still be asking. This is because you still need to find a crypto brokerage firm that allows you to trade cryptocurrencies safely or a Bitcoin exchange that lets you trade safely with your fellow peers.
Safety first – is Bitcoin safe to trade?
So, is Bitcoin safe to buy on these platforms? They absolutely can be but the trick is to find the right brokers and exchanges to use. There are a couple of things you can do to make sure that you are trading safely on these platforms. Firstly, check out the licensing of these brokers to make sure they are regulated by a genuine financial authority. Next, make sure that the security on the website is sufficient. Look out for whether the broker is using the latest SSL-encryption technology to protect user data on the site. This is vital to make sure that your payment details and your login details don’t fall into the wrong hands.
Lastly, we highly recommend checking out some user reviews to see what other traders are saying about these sites and their general experiences using the platforms. User reviews can often answer the question “is Bitcoin safe to buy on trading platforms?” for you.
Brokers & exchanges for you to safely buy Bitcoin
Is Bitcoin safe to use for UK residents? Yes! If you find the right broker for you to conduct your trades with then there is no reason why the whole experience shouldn’t be a safe one. Some of our favourite brokers include the likes of eToro, Plus500 and XTB. All three of these platforms are exceptional brokers that offer you an excellent range of payment methods and even better trading tools. You can also check out Coinbase which is comfortably the best crypto exchange platform in the world at the moment.
There are a number of crypto brokers and crypto exchanges which all answer the question “is Bitcoin safe?” with an emphatic yes. You can always check out our TradersBest.com UK website where we post our detailed reviews of all the crypto brokers and crypto exchanges that are available to UK residents. Here you can find out all you need to know about those brokers like whether they offer Bitcoin as an option to buy and trade and what some of the fees are on the platforms. We even have our very own ranking system where we take our reviews into account and make a general standing of who we feel are the best exchanges and crypto brokers around.
Advice for Buying Bitcoin – A Few Handy Tips
Bitcoin can be made safer by picking the right broker to conduct your trades and purchases with. The right broker will help you to confidently answer “is Bitcoin safe to trade?” Of course, there is no guaranteeing what the value of Bitcoin will look like further down the line but the prospects are promising. We wanted to send you on your way with a few useful tips to keep in the old back pocket before you start your Bitcoin trading endeavours:
Keep an eye on the market cap
Of course, the first thing you will be drawn to with Bitcoin and with any cryptocurrency for that matter is the value of the currency itself. This is not the wrong thing to do per se but what you should do in tandem with this is checkout the current market cap. Take a look at how many coins are in circulation and how close the cap is to being reached.
If you are only now buying Bitcoin for the first time it is worth buying a little closer to the end of the market cap. Of course, if you have already bought Bitcoin that is perfectly fine as well. The point being, that the closer the percentage of the market cap is to 100% the more demand there will be to sell Bitcoin at a later date. “Is Bitcoin safe to buy?” Will always be a difficult question to answer in full when it comes to the future value of the crypto though. For a reliable Bitcoin provider, take a look at our latest Zeply review.
Consider joining a Bitcoin mining pool
Something we didn’t touch on in too much detail in this guide is Bitcoin mining. We have a detailed piece on how crypto mining works on our TradersBest.com UK website which will help you brush up on the concept. Essentially, it is another avenue for you to get your hands on some Bitcoin. There are groups of people who mine together to share costs, these are called mining pools. It is worth considering as it can be an effective way to steadily receive Bitcoin every month and build up your supply.
Invest in a quality cold wallet provider
Once you have finally gotten your hands on some of those priced Bitcoins you will need a safe place to store them. Check out some of our reviews on TradersBest.com UK to see where we rank the best hot wallets and cold wallets around. A cold wallet is the best way for you to store your Bitcoin safely without any threat of hackers getting their hands on it. Hot wallets are also important if you need to move your Bitcoin around swiftly. There are many crypto wallet providers who give you the option to have both of these wallet types which will make your life a lot easier. So, be sure to invest some time into finding the best Bitcoin wallet that suits your preferences.
Conclusion – Ensuring a Safe Investment in Bitcoin
That brings us to our conclusion. We know you’re sad that you’ve reached the end of the guide but what you should be, is excited for your future Bitcoin prospects. Remember, there is no complete way to answer the question “is Bitcoin safe?”. The crypto itself has a rock-steady network that can keep you anonymous for the most part. You can also utilise cold wallets to keep your BItcoin safe from the hands of any hacking threats. However, there is no accounting for the actual value of Bitcoin years down the line. Such is life, unfortunately. With that being said, we can say that the prospects for the value of Bitcoin certainly look promising.
And remember, at TradersBest.com UK we have all the information you’ll ever need on the best broker platforms, exchanges, cryptocurrency guides and more. Should you ever feel overwhelmed by all the options our expert pieces will help you to see the light. We are always updating our pieces and our reviews of the latest crypto brokers so check back with us on a regular basis!
Is Bitcoin Safe? FAQ
❓What is Bitcoin?
For those of you who are unaccustomed with the concept of Bitcoin trading, it can seem like a lot of new information to take in all at once. At TradersBest.com UK we want to make all of this information a little more manageable for you. Our guide on Bitcoin will have you understanding the topic in no time. From there, your Bitcoin endeavours will be a lot easier to take on. You won’t be asking “is Bitcoin real?” anymore after reading our guide.
🔐Is Bitcoin safe to buy?
The most important that potential new buyers of crypto ask is “is Bitcoin safe to buy?” This is a fair question especially for those who know little to nothing about the cryptocurrency. At TradersBest.com UK we give you the breakdown on all the aspects of Bitcoin, informing you of its overall safety and what you should look out for when you are trying to buy and trade the crypto. You’ll know where you stand in terms of safety by the end of our guide.
💲Is buying Bitcoin profitable?
We have had people ask us if “is Bitcoin real?” and the next question is almost always is “is buying Bitcoin profitable?” Our guide on the safety of Bitcoin will give you detailed information on the current state of the crypto and what the potential for profit is further down the line. We strive to give our readers the most comprehensive information possible when it comes to our crypto broker guides and reviews so that you can move forward with the best possible knowledge at your disposal.
💷How can I buy Bitcoin?
Once you have decided that you can safely answer the question “is Bitcoin safe?” the next step will be for you to try and get your hands on some Bitcoin. There are a number of different platforms where you could do this but it can be a daunting task to know which of these platforms is the right one for you to use. Our Bitcoin guide will point you in the direction of some of our favourite crypto brokers and crypto exchanges that we know will provide you with a solid range of trading tools and features. These platforms will help to ease any fears you have in terms of “is Bitcoin safe to trade?”.