Why Storing Money in Bitcoins is Risky

There are many ways to store money, ranging from familiar fiat money like the dollar to cryptocurrencies that have appeared relatively recently.

Storing money in cryptocurrency: is it safe?

There are many investment options on the cryptocurrency market, but bitcoin remains the most popular coin. The coin itself has repeatedly shown that it is capable of both falling and rapidly gaining momentum and rising in price, reaching historical highs of its value.

With its price rises and falls, bitcoin has been able to attract investment for people as far removed from the topic as possible, who don't even know what blockchain is and how bitcoin works. But even without understanding the topic, you need to know one thing for sure — bitcoin is a currency that is significantly volatile.

Volatility is a financial indicator that marks the active volatility of the price of something.

We consider bitcoin as a long-term storage of fiat funds

As mentioned earlier, due to its volatile price, storing funds in cryptocurrencies like bitcoin is at risk. But this risk may well be justified if the money that is in storage will not be used in the near future.

Bitcoin has repeatedly shown that it is capable of jumping up and conquering new heights after a deep fall to the bottom. Cryptocurrency impresses with its anonymity, decentralization and is used by many global companies and investors.

Due to its popularity, the cryptocurrency can achieve unprecedented growth in the coming years. Many factors influence the development of cryptocurrencies in a negative or positive way. One example is the ban on mining in China. The ban on mining in the "Middle Kingdom" has significantly reduced the exchange rate of cryptocurrencies. However, after a while, most of the equipment from China was imported to Kazakhstan and the country became the world's second largest producer of cryptocurrencies, accounting for 18 % of the total global cryptocurrency output.

And yet, is it still possible to store money in bitcoins? The unequivocal answer is yes. But only free money, the loss of which will not cause a blow to the personal or family budget. Using long-term storage, after a few years there are great chances to multiply them, thanks to the actively developing coin.