Now it is hovering somewhere around $40,000, and people are thinking of buying in. They want to know how safe it is, though. After that crash, it is natural to wonder if the factors that caused it last time around could happen again.

In this article, I will go over several of the things to keep in mind before you buy Bitcoin or other cryptocurrencies to keep your investment safe.

1. Pick a good wallet

A digital wallet for cryptocurrency is not a wallet at all. And they take on different forms, as well. In reality, these wallets are just digital signatures that show where on the blockchain your currency resides. As such, they can be very safe or easy for people to intercept your data and take your coins.

If you don’t know how to buy Bitcoin, the process goes like this: You use your fiat currency to buy bitcoin on an exchange. Then you need to put the address of the coins in your digital wallet. To keep them safe, the best thing is to use a cold wallet, which is more like a flash drive that is incredibly secure and stored offline. Once you unplug it, nobody can access your wallet at all. Unless they are able to steal your actual drive from your home or wherever you store it. So, make sure it is in a secure location.

2. Don’t invest what you can’t afford to lose

This advice goes for any type of investment that goes way beyond cryptocurrency. Bitcoin has a reputation as being volatile because of those crashes, but in reality, any investment presents the same risks.

Make sure that when you buy, you understand that there could be a crash, and it could lose value. In which case, you need to be able to focus and have the patience to wait out a dip or crash. Usually, over time the value will slowly increase, and you will at least recoup your investment. It takes courage to not panic and sell it as it is losing value.

3. You don’t get your money back

Since the blockchain is so secure, if you send your Bitcoin to somebody else, there is no way to reverse the transaction. This is a good and bad thing. If you make a mistake and send it to the wrong address, then there is no way to get your money back. You can’t get in touch with the owner of that wallet and ask for your coins back.

This does help you when you are the one getting the money as the sender can’t scam you out of your coins by doing a chargeback afterward.

*This article has been contributed on behalf of Paxful. However, the information provided herein is not and is not intended to be investment, financial, or other advice.

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The advocates will say that the widespread adoption of DLT will be bringing the enormous cost savings in three areas:

For maintaining than traditional accounting systems, the Electronic ledgers are much cheaper.

In banking offices, the employee headcount can be greatly reduced.

Approximately a 100% automated DLT systems will be resulting in far fewer errors and the eradication of repetitive confirmation steps.

Reducing the processing delay even means the less capital that is being held against the risks of pending transactions.

Apart from that, some tiny number of millions will be protected by shrinking the amount of capital that broker or dealers are needed for putting up to back unsettled, outstanding trades.

The convenience of auditing and greater transparency must lead to savings in anti-money laundering regulatory compliance costs also.

Almost the entire human involvement in processing will be eliminated by the Blockchain and this would be specifically beneficial in cross-border trades, that generally takes much lengthier period because of time zone issues and the truth is that the entire parties should confirm the payment processing.

The moment when certain conditions are met. Then the Blockchain systems can be able to set up smart contracts or payments will be triggered.

In blockchain technology, even Microsoft Corporation and established firms have expressed interest.

For the purpose of utilizing blockchains proof of existence, which is one of the first non-financial companies is a platform for executing the contracts. This is using DLT for storing encrypted information. Which is resulting in allowing a transaction, that cannot be replicated for being linked to an inimitable document?

What Is Bitcoin and Blockchain Technology? How Does It Work?

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