Let us start by understanding what a secure investment is. In most cases, an investment is considered secure or safe if it presents you with massive potential for capital growth while exposing you to relatively low risks.
The answer to the question of whether Bitcoin is a safe investment is, therefore, relative. If you ask a conservative investor, they will quote price volatilities and increased cases of fraud and scam in justifying why Bitcoins is not a secure investment.
A more liberal investor, on the other hand, will tell you that Bitcoin is as secure as your preferred conventional. They will show you the Bitcoin price chart and use it to explain why the pioneer digital currency is as secure as your real estate investment. They will remind you that both Bitcoins and your preferred conventional investment are exposed to similar risks.
Fraud, price volatility, and government interference are touted as some of the biggest challenges facing Bitcoins today. But if you look carefully, all these are real challenges in virtually every other sector of the economy.
The only difference is that these risks are more pronounced and have a relatively high impact in the Bitcoin world than in real estate or other forms of investments. For instance, the price volatility menace is higher and more frequent in Bitcoin investments than in real estate or manufacturing or forex trades.
But we need to remind ourselves that Bitcoin is a relatively new investment; it attracts more media attention, it is wholly online and, therefore, draws in all types of users from all over the world, it is not regulated, and most importantly – it carries higher rewards. And as the old adage goes, the higher the possible returns, the higher the risk.
You will, therefore, be right if you said that Bitcoin is a relatively secure investment. The risks it carries are commensurate with the level of returns it promises its investors. And even in this case, the crypto industry has put in place adequate safeguards to keep your crypto investments safe.
How to Keep Your Bitcoin Investments Safe
Before looking at the different ways in which you could keep your Bitcoin investment safe. We need to categorize the types of risk facing such an investment.
The two broad categories are price-related threats and loss-related risks.
Price-related threats include untamed Bitcoin price volatilities, crypto market performance, and Bitcoin prices manipulation risks like Pump and dump schemes. Most of these are out of the average investor’s control and can only be solved by proper regulation and transparency in the crypto industry along with time – because Bitcoin has proved to us that it will always correct its prices with time.
Loss-related risks, on the other hand, primarily include being a victim of a Bitcoin scam or fraudulent scheme, loss of assets to hackers or computer viruses, loss of investment to fraudulent exchanges, and losses occasioned by forgetting your wallet password and recovery seed. Given that the Bitcoin network gives you near-absolute control over your assets by providing you with the private keys for your Bitcoins, there are multiple measures you can put in place to minimise or avoid these losses altogether.
Measures you can take to keep Bitcoin investment safe:
Invest in a secure wallet: Before buying Bitcoin (Bitcoin to INR), Dogecoin (Dogecoin to INR) or any such cryptocurrency in India – you will want to acquire a safe and reliable crypto wallet first. There is an unlimited number of digital wallets that support Bitcoins today, but you are better off investing in a premium hardware wallet that stores your Bitcoin private keys in an ultra-secure offline environment.
Only transact with reputable exchanges: Only buy Bitcoins from the most reputable crypto exchanges in India. Before registering with any crypto exchange and converting your Rupee savings to Bitcoin (Bitcoin to INR) on their trading platform, first check if they give you access to private keys and absolute control over your Bitcoin investment. Avoid exchanges of questionable repute that promise to keep your Bitcoin private keys on your behalf.
Invest in a good antivirus: You will also want to invest in a good antivirus for your phone, computer, and any other device that you use to access your Bitcoin wallet or crypto exchange. The antivirus comes in handy in protecting your internet-enabled device from spam, viruses, common hacks, and ransomware.
Use strong passwords: Investing in a hardware wallet, subscribing to a good antivirus, and registering with the most reputable crypto exchanges in India will all be futile if you use weak passwords. Use strong passwords for all your Bitcoin trading accounts and wallets. Where possible, enable two-factor authentication, activate password rotation, and have a unique and strong password for every account.
Conclusion: Is Bitcoin a Secure Investment?
It may not seem like it, but your Bitcoin investment is as secure as any other conventional investment because they all are exposed to almost similar risks and threats. However, the fact that Bitcoin is relatively new, online-based, and attracts more media attention amplifies the coverage of these risks while its above-average returns attract above-average risk impact.
Plus, like in any other investment, there are multiple avenues that you can use to minimize the incidence of these risks. It starts with your choice of a crypto exchange from where to buy Bitcoins (Bitcoin to INR) in India to your investment in an effective antivirus, a safe hardware wallet, and the use of strong and unique passwords.