Investing in Bitcoin comes with a huge element of risk. Infact, investing in anything is risky as generally speaking, you can never guarantee a positive return on that investment, no matter what you’re buying.
Many people like to compare cryptocurrency with commodities such as gold, in fact Bitcoin itself is often referred to as Digital Gold! What about property though? Is Bitcoin any riskier than buying houses? Like cryptocurrency, property investment is met with many other extraneous factors. These are factors that are out of the control of the investors. So, whilst you might be able to control what you invest in and how much money you put into it, extraneous factors dictate other changes or movements that you can’t predict and most importantly, can’t stop. Examples include the fluctuating price of the property market (and indeed, the fluctuating price of cryptocurrencies), consumer demand and other costs associated with investment.
Cryptocurrency, unlike property however is far more exposed to fraud through hacks. Crime is unfortunately rife within cryptocurrency investment. Let’s face it, it’s far easier for someone to steal Bitcoin off you than it is to steal an entire property from you. With this in mind then, you could argue that Bitcoin is far riskier than property, though this might not always be the case.
Safe Bitcoin investment can be ‘as safe as houses’ and is a great way to make a bit of money, assuming you prepare for those down periods when price fluctuations are heavy. Much like property, you don’t invest in Bitcoin when the price is high. Mark your buying and selling points correctly and actually, you can have a very safe experience as a Bitcoin investor and as a property investor (or both, if you’re really into it).
The thing to remember is that your safety and the safety of your assets and investments is your responsibility. When investing, your security should be your priority and therefore you should only invest what you can afford to lose, whether you’re investing in Bitcoin, or property or even something else. By doing your own research and knowing truly when to invest, you can protect yourself from these extraneous factors and become an affluent investor. Bitcoin and property are as risky as each other – it’s simply just down to the investor, their behaviour will ultimately reflect their performance and those who behave in a safe manner, should reap great rewards.