Advantages

- Decentralization: Bitcoin is not controlled by any organization or government, allowing users full control over their assets without relying on financial intermediaries.

- High Security: Bitcoin uses robust encryption and blockchain technology, making transactions very difficult to counterfeit or attack. This protects users from fraud and hacking risks.

- Transparency: All Bitcoin transactions are recorded on blockchain and publicly accessible. This transparency facilitates verification and increases trust in the system.

- Low Transaction Fees: Compared to traditional payment methods, Bitcoin has low transaction fees, especially for international transactions, saving costs for users.

- Limited Supply: The number of Bitcoins is capped at 21 million, creating scarcity and preventing inflation like that seen with traditional currencies.

- Global Transfer Capability: Bitcoin can be sent and received from anywhere in the world with an internet connection, simplifying international money transfers.

Disadvantages

- High Volatility: Bitcoin’s value can fluctuate significantly over short periods, creating substantial risk for investors and users. This makes Bitcoin a high-risk investment tool.

- Limited Scalability: The current Bitcoin network has a limited capacity for processing transactions per second, leading to slower transaction confirmation times and occasional congestion.

- Legal Risks: Bitcoin is not fully accepted in many countries and may face changing legal regulations. This poses risks to users as governments might ban or regulate Bitcoin usage.

- Complexity in Use: For users unfamiliar with technology, using and securing Bitcoin can be quite complex, requiring knowledge of digital wallets, encryption and network security.

- Association with Illegal Activities: Bitcoin has been used in illegal activities due to its anonymity, increasing the risk of being regulated or banned in some countries.

How to profit from Bitcoin

Bitcoin Mining

Mining Bitcoin involves verifying transactions and adding them to the blockchain. Participants receive Bitcoin rewards for each transaction block added. However, mining Bitcoin is becoming increasingly challenging, requiring powerful hardware and substantial electricity, leading to high costs.

Buying and Holding Bitcoin

Buying and holding Bitcoin is a popular investment strategy based on the belief that Bitcoin’s value will increase over time. Investors can purchase Bitcoin from exchanges and store it in personal wallets. This strategy can yield significant profits if Bitcoin's value rises, but also carries risks if the value declines.

How to Store Bitcoin (BTC)?

Investors can store Bitcoin on exchanges or in digital wallets:

Storing Bitcoin on exchanges

Many centralized exchanges (CEX) offer Bitcoin trading services, so you can choose to store Bitcoin directly on these platforms. If you need to store Bitcoin on an exchange for trading convenience, opt for large and reputable exchanges like Binance, Bybit, Coinbase or OKX.

Bitcoin wallets

Bitcoin wallets are essential tools for protecting and managing your digital assets. Various types of wallets offer different levels of security and convenience. Popular wallets include Electrum, Trust Wallet, Ledger Nano S/X and Trezor One/Model T.

Risks associated with holding Bitcoin

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