Should you invest in BITCOIN?

Previously, investing in Bitcoin was seen as another form of lottery, but now, at the present time, Bitcoin and other cryptocurrencies are becoming legitimate assets for trading in an investment portfolio. So, what is Bitcoin investment?

Investing in Bitcoin is like investing in other assets such as gold, securities, or real estate. You buy and own it as a new asset in the hope that it will increase in value in the coming years.

Is Bitcoin investment a scam?

The first thing I want to affirm with you is that Bitcoin investment is not a form of SCAM. However, many individuals and organizations have exploited the reputation of Bitcoin for fraudulent purposes. This has caused many people to misunderstand and categorize Bitcoin as a scam when they truly do not understand what Bitcoin is or the Blockchain technology behind it.

In recent times, Bitcoin has been recognized by many major companies around the world such as Microsoft, Overstock, and most recently, Tesla invested 1.5 billion USD in Bitcoin. Even the world's oldest financial institution, JP Morgan, has advised including Bitcoin in investment portfolios.

Additionally, Google Finance, a financial information website run by Google, has also added a category dedicated to cryptocurrencies.

Similarly, CNBC.com, a website that regularly updates financial information in the US, now has a dedicated section for cryptocurrencies.

Based on the above information, we see that Bitcoin has become a type of asset in the financial market; it's not just a bubble or an asset without value.

Is investing in Bitcoin safe?

Investing in any asset always entails some risk, more or less. Bitcoin investments usually have very high profits, thus, their risk is higher than other asset classes, which is normal.

1. Legal Issues

Bitcoin's decentralized nature means it is not managed by any organizations or countries. This is also Bitcoin's advantage, but it's also the reason why many countries have yet to allow Bitcoin to become a recognized payment method, primarily because they cannot control it.

In Vietnam, Bitcoin investment is not illegal; it's just that Vietnamese law will not protect you if you lose money from Bitcoin investment. Your money is your responsibility, so when investing in Bitcoin, you must thoroughly research the technology and master basic knowledge such as how to withdraw coins to a cold wallet, how to trade on exchanges, etc.

2. User Error

Bitcoin security is very high, so if you store Bitcoin in a cold wallet and lose the device or your Private Key, it's considered lost forever, and nobody, not even the creators of the wallet, can retrieve it. Therefore, you must learn how to protect your assets.

Many people do not withdraw Bitcoin to a cold wallet but keep it on the exchange, and when the exchange collapses, they lose their money.

3. Personal Information Leakage on Exchanges

When participating in exchanges, most require you to complete KYC - identity verification before trading. As investing in Bitcoin is not legally protected, if your information is leaked on the exchanges and used for any purpose, you bear the responsibility.

4. Scams Exploiting Bitcoin's Reputation

You must avoid multi-level marketing scams, especially those projects calling for investments with exorbitantly high-interest rates of up to 50% a month, for instance. Absolutely do not participate.

Should you invest in Bitcoin at this current time in 2024?

With the current macroeconomic instability: governments continuously rolling out economic stimulus packages, the excessive amount of money being printed, low-interest rates close to zero, inflation is very likely to occur, so Bitcoin is also seen as a form of investment to protect investors' assets. Because Bitcoin is not managed by any organization, central bank. However, investing in Bitcoin is extremely risky because the technology that created Bitcoin is also very new. And Bitcoin itself is developing day by day to become more complete. Nobody knows what will happen to Bitcoin tomorrow. Or will any currency replace Bitcoin?

Buy Bitcoins here!

Although investing in Bitcoin can result in losing everything, very risky, the profits from Bitcoin investment are also very significant, so you should participate but only invest a maximum of 15% of your current asset value. Do not put all your money into Bitcoin.

Which Bitcoin exchange should you join?

In Vietnam, you should join Binance, which is currently the largest exchange in the world with the highest trading volume. So if you are planning to invest in Bitcoin, consider joining Binance.