Useful tips for using cryptocurrencies safely
Bitcoins are not just a new currency, but a real experiment never tried before, but still in an experimental phase. It is good therefore to inform yourself properly and take the necessary precautions before starting to use them. The first precaution concerns your Bitcoin wallet. Just like a real wallet, it must be kept safe and away from prying eyes. For example, the purses offered by online services can be very comfortable, but have shown in the past to be more exposed to external attacks. Update your software often. It can also be considered a good idea to keep only the money you want to spend in an online wallet. For savings, on the other hand, it is advisable to use cold storage methods, ie to keep your wallet offline on USB or on paper by QR code. Always keep your wallet and its backup encrypted, but be careful. Unlike a normal bank account, it is virtually impossible to recover the password of a Bitcoin wallet. Therefore always keep a hard copy of the password, preferably locked in a safe. For this reason, make sure in the worst case with a will that someone you care about can go back to your wallet to keep your funds from getting lost forever. Finally, remember that these transactions are immediate and irreversible: so think carefully before authorizing a payment.
Some information on Bitcoin: history and perspectives
The history of the most famous cryptocurrency is now known to most people. In 2008 Satoshi Nakamoto published the Bitcoin protocol on The Cryptography Mailing list on the Internet, and then distributed the first version of the client software the next year and together with other developers to expand the project, only to withdraw from the Bitcoin community in 2010, leaving running the program in the hands of Gavin Andersen. Even today we are discussing the true identity that lies behind the Japanese pseudonym of the creator of cryptocurrency and none of the theories that have been elaborated up until now has been reflected in reality. The value of Bitcoin has continued to grow over the years, even if not constantly over time. At the beginning of 2012, a Bitcoin was trading at $ 13, at the end of 2016 it was worth 850. In December 2017 the Chicago Board of Trade (CBOT), the Illinois City Stock Exchange, began to allow the exchange of future cryptocurrency securities more known, a sort of contract that allows operators to bet on the future value of an asset, helping to boost the value of virtual currency. So the Bticoin arrives at the end of 2017 to reach 20,000, before a sudden collapse to 12,000, then closing the year at 14,600.
Volatility and fluctuations of cryptocurrency
Among the major risks associated with Bitcoins you will certainly have heard of volatility and currency fluctuations. But what exactly is meant by these two terms? Without wanting to go into too economic matters, let’s limit ourselves to some definition. Volatility is a measure of the change in the price of a currency over a given period of time. It is important because the higher the volatility, the more risky it is to keep a financial asset like the Bitcoins, since its price can suddenly increase or decrease. To contextualize, let’s say that Bitcoin has a volatility index of 4.60%, while that of the main traditional currencies, such as the euro or the dollar, varies between 0.5% and 1%. The main difference lies in the fact that in reality, as we have already explained, the Bticin is an algorithm and not a currency, and therefore it should not be considered as such. The amount of Bitcoin is set at 21 million and can not be changed, unlike traditional currencies. Therefore it is estimated that growing in popularity and acceptance among people, the value of the cryptomonet will only grow steadily in the future.