Bitcoin Is Risky Only if You Don’t Know What You Do With It

You need to understand what Bitcoin is before you buy it.

Bitcoin has been the most successful investment over the past decade. Bitcoin has succeeded in transforming $1 invested in 2010 into $90,000 by the end of 2019. Such a success has whetted the appetite of traders in the traditional financial world still hungry for profits.

The entry of these traders into the Bitcoin market in the second half of 2017 accelerated the formation of a bubble around Bitcoin price.

The extensive media coverage that Bitcoin received as a result attracted a lot of newcomers to the cryptocurrency industry, which only amplified the phenomenon.

The outcome of this bubble was inevitable. Its explosion led to a prolonged bear market for Bitcoin during 2018 with Bitcoin price going from $20K at the end of 2017 to just $3.5K at the beginning of 2019.

This event led many people to proclaim loud and clear that Bitcoin was far too risky and should be steered away from it. In what follows, I will explain you when Bitcoin can be risky and why Bitcoin is not risky if you know what you do with it.