Bitcoin has rocketed to fresh all-time highs this week – but should you invest ter the cryptocurrency everyone’s talking about?
- 15:47, 8 DEC 2018
It’s te the public zoeklicht thanks to its meteoric rise.
Te latest days, Bitcoin has rocketed to fresh all-time highs.
But should you invest ter the cryptocurrency everyone’s talking about?
Money Saving Accomplished Martin Lewis has suggested his advice – from the advantages and pitfalls of the currency to potential seller scams.
Spil Bitcoin resumes to rocket te value – topping a record-breaking $16,000 for a single unit this week – some original users have made millions.
The currency wasgoed the very first of what have become known spil ",cryptocurrencies",.
Thesis are forms of digital money that use encryption to secure transactions and control the creation of fresh units, the Derby Telegraph reports.
With companies keen to hop on the bandwagon and entice the public to spend their hard-earned metselspecie on investments te Bitcoins, Martin has taken to his blog to epistel consumers on the currency.
Here are his four tips to avoid being caught out by the craze:
Don’t invest te something you don’t understand
",If you don’t understand Bitcoin you should not be investing te it,", Martin writes.
His advice is that, while you might not need to be an accomplished ter the technical details, you need a thorough understanding of what you’re getting into.
He says: ",You need to understand how it works spil an investment, how liquid it is (ie, can you get out when you want to), the level of risk and what can drive the price up and down.",
His advice is not to invest ",just because a friend told you to",, but to do your own research and make the decision that’s right for you.
Where is the request for Bitcoin coming from?
",To be created, Bitcoins have to be mined and there are meant to be only a limited possible number to be found,", writes Martin.
It is a gamble
Martin explains that Bitcoin, like stocks and shares, is an investment – albeit, an unregulated one.
",Putting money te it is a form of gambling,", he writes. ",That means if it does well, you could make serious amounts – Ten, 20, 30 times or more what you waterput ter, or just spil possible, if it goes badly wrong, you can lose everything.",
His advice is that investors need to be ready and consider their attitude to risk before parting with their metselspecie.
Albeit the value of Bitcoins has rocketed, particularly since the embark of 2018, Martin warns that ",past show is no indication of future spectacle",.
Don’t fall for Bitcoin seller scams
",People often ask mij if Bitcoin is a scam. No, it’s not. Yet that doesn’t mean there aren’t a lotsbestemming of scams involved with Bitcoin,", warns Martin.
",I would certainly be worried about investing ter a company that I’d just spotted because it’s advertising on Facebook – which is rife with scam adverts te many areas – especially if it makes it look like a no-lose option.",
To read Martin Lewis’s total Bitcoin advice blog postbode, click here .