Bitcoin is undoubtedly the first successful cryptocurrency. Since its introduction in 2009, Bitcoin has drawn interest from many people. Its value reached a fever pitch in 2020 and 2021. Anyone interested in cryptocurrencies already knows some people have made a lot of money through Bitcoin investments. However, some individuals have lost a lot of money, making others hesitate to invest in it.
Among the primary ways to make money with Bitcoin is by trading it on platforms like bitlq app. Such a crypto exchange enables individuals to purchase Bitcoin with fiat money and sell it later when the prices increase. Also, you can buy Bitcoin on such a platform and send it to your digital wallet, where you can use it to pay for items and services. Unfortunately, Bitcoin’s volatility can cause you significant losses when using this virtual currency. Here’s how you can lose money with Bitcoin.
Bitcoin Scams
According to the Federal Trade Commission, over 7,000 investors lost more than $80 million in digital currency scams from October 2020 to March 2021. Many people are interested in cryptocurrencies, attracting more scammers.
Some scammers use online platforms, claiming to provide Bitcoin’s insider investing advice and tips. Some even pretend to be celebrities like Elon Musk or government agents, offering money to people that send them their tokens. Ideally, criminals can use different tactics to steal money from unsuspecting cryptocurrency users. Thus, you can quickly lose your funds if not careful when choosing your Bitcoin investment platform.
Therefore, suspect and avoid anyone telling you they can help you make a fortune by giving them your Bitcoins to invest for you. Also, avoid companies that insist you pay them with Bitcoins.
Hackers
People store Bitcoins in digital wallets. Additionally, all Bitcoin transactions happen online. Therefore, hackers can steal your Bitcoin miles away if not careful. Even when you use a crypto exchange with strict security measures, some hackers could find a way to access them.
For instance, Mt. Gox, a Tokyo-based crypto exchange, filed for bankruptcy in 2014 when hackers infiltrated it, stealing cryptocurrencies worth $460 million. And criminals have also hacked other crypto exchanges.
Therefore, be proactive to keep your tokens safe. For instance, work with legit crypto exchanges and avoid anything that seems like a scam. Also, research the security measures of a crypto exchange before registering with it. Consider a cold or offline wallet when storing your tokens, and avoid leaving them lying around.
Trading
You can make good money by trading Bitcoin online. However, you can also lose your funds due to the risks of this activity. Bitcoin’s price movements can whipsaw a trader, leading to significant losses. Therefore, poor trading is one of the quickest ways to lose money with Bitcoin. Anybody that opts to trade Bitcoin should take the time to learn how this virtual currency works and practice with demo trading accounts. That way, they can simulate trading, and even after that, they should start with a small amount.
Losing Your Password
Losing your digital wallet password means you’ve lost your Bitcoins. What’s more, somebody can steal all your tokens if they get your passwords. If you die without sharing your digital wallet password with anybody, it means nobody can access your digital wallet. Therefore, Bitcoin users should list their passwords and store the information securely.
Final Thoughts
You can lose money with Bitcoin in several ways. However, you can exercise precautions when using, trading, or investing in this digital asset to avoid losing your funds. Essentially, take the time to research any Bitcoin investment to avoid losing any money you spend on it.
