Bitcoin is a circulated digital currency. Bitcoin price follows the peer-to-peer bitcoin network for transferring the capital amount. The verification of bitcoin transactions is done with the help of network nodes through cryptography. The concluded data is been recorded in blockchains. Bitcoin is termed as a risky investment. It is available as one of the largest cryptocurrencies with high volatility. Individuals who can bear high-risk tolerance can try to invest money in bitcoin. If you are financially good or in a position to bear the capital loss then it recommends investing money in bitcoin.
Process of Utilizing Bitcoin Price Tracker
As we know that there is a popular cryptocurrency available in the market and it is named as “Bitcoin”. In recent years, it is been observed that the investor’s number is increasing rapidly. People used to invest in Bitcoin for some of the following valid reasons.
1. One important reason is that the supply of bitcoin is limited.
2. Another factor is decentralization.
3. And, the last one is, Bitcoin is a category King referred by Kiana Danial who is known as investing expert as well as the author of “Cryptocurrency Investing for Dummies.”
History of Bitcoin Price
Bitcoin was established in the year of 2009 under the pseudonym Satoshi Nakamoto. The main function of Bitcoin price works as a peer-to-peer cash system that processes electronically. Thus, many of investors got attracted to this blockchain technology which is a decentralized finance process. In today’s time, the cryptocurrency market is full of cryptocurrencies approximately to several $2 trillion.
FTX was one of the developing crypto exchanges across the globe. But after the collapse of FTX, it is been seen that Bitcoin price was dropped in November. Also, there was a bankruptcy charge against FTX on 11 November. Then there was a sudden drop in the market. It was observed that after FTX’s bankruptcy, the bitcoin price lost more than 70% of its capital. If we see in numbers, then bitcoin price was $18,859.50, $21,282.99, and $16,222.21 in the month of September, November till 6th, and November till 29th respectively.
Check out the tips to protect bitcoin price investments
Some of the important steps that an individual should incorporate for protecting their bitcoin investments are discussed below.
1. Update yourself regarding crypto red flags
It is been observed that there are few red flags available in crypto for example you must have heard of wiring scams, fraud related to credit cards, and much more. Thus, it is advisable to keep an eye on all such stuff. Some of the frauds can be like the theft person will promise you to enhance your capital amount, spelling mistakes in emails, fake posts on social media or typographical errors. There can be any misleading forms thus it is mandatory to keep yourself updated and be aware of such threats and scams.
2. Enhance your security
Another solution to protect your bitcoin is by enhancing its security. For example, an individual can use the FDIC insured savings account which is a safe and secure service. If you have a good bitcoin price then you should add more security to your crypto wallet.
How many types of crypto wallets are there and what are they?
- Hot wallets – Such wallets are helpful in storing the crypto over online platforms. Thus, there are chances to get hacked or someone can steal information. Therefore, one should try for two-factor authentication to work on the safer side. Another way to be safe is to save the data in cold storage. Thirdly, do have contact with private insurance policies apart from FDIC insurance at the time of any mishap like data hack or steal.
- Cold wallets – Such wallets are more secure than hot wallets. Here, an individual can save the crypto information on a piece of hardware for example on a USB drive. But you need to keep the device safe and remember the password. Otherwise, there can be a case that you will lose access and money to the respective device.
- Do not forget your wallet keys. It is important to take note that you will be getting one unique key for accessing the wallet. Thus, it is advisable to save it carefully otherwise you will lose access to your wallet. Try to not share the private key with strangers or another person for example its social security number or debit card PIN.
- In case of any mishap report it immediately. In case of any suspicious activity is observed in your account, it is advisable to report the fraud to the respective bureaus. Some of the links are provided below:
For FTC – ReportFraud.ftc.gov
For CFTC – CFTC.gov/complaint
For SEC – sec.gov/tcr
Blackmail – Then take help from the FBI.
The above points explain the bitcoin price in an easy way. Some individuals ask whether bitcoin is taxable or not. The answer is, yes, it is taxable. As per the IRS, bitcoin cryptocurrency is like the virtual currency you own your other assets and hence bitcoin is taxable.