What is bitcoin all about?
It’s pretty easy to get Bitcoin — for the first time, you can purchase bitcoin directly from Coinbase through this link, and then you’re ready to buy some bitcoin, mine bitcoin, or sell your bitcoin, depending on your plan. Bitcoin is the oldest and most established digital currency, and it was invented by Satoshi Nakamoto in 2008. (You can read more about him in this insightful analysis.) Bitcoin, or another type of cryptocurrency, was introduced to the world in 2009. It’s become a popular means of online payment, especially when purchasing things from overseas.
Why might I want to mine bitcoin?
Some people mine bitcoin for a profit, but most people mine for fun, as an alternative to purchasing bitcoin and paying a fee.
What are the risks of investing in bitcoin?
Whether you’re considering investing in bitcoin or another form of cryptocurrency, there are risks to consider. Any investor should be very clear about these risks and, if you’re still unsure about them, it’s best to let the pros handle the situation.
Some of the risks related to cryptocurrency investment include:
Ongoing volatility in the market. The cryptocurrency market remains volatile at times. Bitcoin fluctuates in value daily as the price ranges from hundreds of dollars to thousands. As long as you’re aware that fluctuations in value exist, you’ll be able to stay focused on your goal and be able to accept the ups and downs as part of the investment process.
Shifting regulations.
How to identify potential scams
Check their website: Look for errors, do a little research, and see if the company’s claims hold up.
Look for errors, do a little research, and see if the company’s claims hold up. Check the team: Experts recommend that you research who’s listed as the company’s CEO, CTO, CFO and CSO. Chances are good that you’ll find nothing there. If it’s listed as a non-public company, it’s likely an outright scam.
Experts recommend that you research who’s listed as the company’s CEO, CTO, CFO and CSO. Chances are good that you’ll find nothing there. If it’s listed as a non-public company, it’s likely an outright scam. Check their credentials: Before doing business with a company, do some research to see if the company is a real blockchain startup.
Conclusion
The end of the year is a popular time for fraud, but it’s important to take your due diligence seriously and avoid falling prey to scams. If you’re starting a business or are thinking about investing in the cryptocurrency market, do your research.
If you want to avoid scams, you can start by researching the white paper for your cryptocurrency’s chain. Once you know the tech, go and get in touch with the team. You’ll want to feel comfortable investing money in their cause, so do your due diligence. This may mean paying a small amount to get in touch with a spokesperson, and verifying the legitimacy of the company on their official website.
Take these guidelines, along with the steps above, and help prevent a bitcoin scam from taking you for a ride.