In today's digital age, the cryptocurrency market has been attracting much attention. Among them, Bitcoin, as one of the most famous cryptocurrencies, has been attracting investors' attention with its volatility and potential high returns. However, the problems that follow cannot be ignored: Is it illegal to buy Bitcoin? Can you make money by buying Bitcoin? This article will explore these issues in depth from multiple perspectives such as law, investment and risk.

 Legal perspective: Is it illegal to buy Bitcoin?

From a legal perspective, buying Bitcoin is not illegal. In most countries, Bitcoin is regarded as a digital asset, similar to gold or stocks, so it has legal channels for purchase and trading. However, some countries have unclear regulatory policies on cryptocurrencies, and there may be some legal risks. For example, China has repeatedly issued policies to ban Bitcoin transactions, causing some investors to fall into legal difficulties.

 Investment perspective: Can you make money by buying Bitcoin?

The answer to the question of whether you can make money by buying Bitcoin is not simple. The volatility of the Bitcoin market is extremely high, and the rise and fall of prices often catch people off guard. Some people have made huge fortunes through Bitcoin, while others have suffered huge losses due to investment mistakes. As the saying goes, "high risk and high return", there are indeed opportunities to make money by buying Bitcoin, but it also comes with huge risks.

 Risk perspective: Be cautious when buying Bitcoin

Although buying Bitcoin has the potential to make money, it is also accompanied by many risks. First, the price fluctuations in the Bitcoin market are large, and investors need to have strong psychological qualities to cope with it. Secondly, due to the anonymity of Bitcoin transactions, there are risks such as being hacked and the collapse of trading platforms. Furthermore, changes in regulatory policies may also have an impact on Bitcoin prices, and investors need to pay attention to policy trends at all times.

 Example analysis: Bitcoin investment case

Take the Bitcoin surge from the end of 2017 to the beginning of 2018 as an example. At that time, the price of Bitcoin once soared to an all-time high, and many investors made huge profits. However, the price of Bitcoin subsequently fell sharply, causing a large number of investors to suffer heavy losses. This case fully illustrates the high risk and uncertainty of buying Bitcoin.

 Conclusion

In summarizing this issue, we have to admit that buying Bitcoin has both opportunities to make money and huge risks. For ordinary investors, they should treat Bitcoin rationally and not blindly follow the trend. It is recommended to conduct sufficient research and risk assessment before investing. After all, investment is risky and needs to be treated with caution. I hope this article can help readers better understand the challenges and opportunities of buying Bitcoin and make wise investment decisions.

The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

Now Bitcoin has become an investment project that cannot be ignored. Although it contains high risks, it also has huge benefits. In the past few years, it is not uncommon to invest tens of thousands of yuan and turn them into millions or tens of millions in a year. This has led to an increasing number of investors buying Bitcoin. However, these investors who want to invest in Bitcoin have many concerns. The two most worrying issues for investors are: Is it illegal to buy Bitcoin? A comprehensive analysis of whether buying Bitcoin can make money? In response to these two questions, the editor of the currency circle will give you a detailed explanation of whether buying Bitcoin is illegal or not?

 Is it illegal to buy Bitcoin?

First of all, the editor of the currency circle answers everyone's question. It is not illegal to buy Bitcoin, but it is illegal to launder money and engage in pyramid schemes through currency speculation! The editor of the currency circle will interpret the Bitcoin policy for everyone.

1. The legality of Bitcoin transactions in various countries

In view of the problems of Bitcoin, countries have gradually strengthened the supervision of Bitcoin and other digital currencies in recent years. For example, in the United States, the Treasury Department, the Internal Revenue Service, the Securities and Exchange Commission and the Financial Crimes Enforcement Network intervene in supervision, focusing on trading platforms and requiring a series of regulatory measures to be implemented on trading platforms. Some scholars believe that this is a more ideal regulatory principle. The distribution of regulatory attitudes of various countries towards Bitcoin is shown in the following figure:

As can be seen from the above figure, among the 130 countries and regions, 87 have declared Bitcoin legal, and Bitcoin transactions are completely legal in these countries. From the statistical data, it can be seen that most of the countries and regions that insist on legalizing Bitcoin are developed countries and regions, while developing countries mainly prohibit or restrict it. The reason may be related to the fact that developing countries often implement capital control policies and fixed exchange rate systems. Determining that Bitcoin is illegal is convenient for maintaining capital control policies and fixed exchange rate systems. After long-term observation and multiple rectifications, my country has also issued a series of regulatory policies on Bitcoin.

2. Regulatory policies for Bitcoin transactions in mainland China

On December 5, 2013, the People's Bank of China and five other ministries and commissions issued the "Notice on Preventing Bitcoin Risks", which clearly stated that Bitcoin is a virtual commodity and denied the monetary attributes of Bitcoin. In addition, the notice also requires financial institutions not to participate in and carry out Bitcoin-related businesses. With the continuous popularity of Bitcoin, several financial institutions in my country have gradually appeared in many chaos such as lax implementation of anti-money laundering systems, fictitious trading volumes for unfair competition, malicious price manipulation, and illegal Bitcoin derivative business. In order to regulate the market and standardize the behavior of exchanges, my country's regulatory authorities took action again in early 2017, setting off a regulatory storm for Bitcoin and other digital currencies. The specific regulatory policies are shown in the figure below:

However, it is worth noting that the central bank's regulatory policy only denies the currency attributes of Bitcoin, but clearly recognizes the virtual commodity attributes of Bitcoin, which is also the main reason why Bitcoin transactions are not illegal in mainland China.

3. The virtual commodity attributes of Bitcoin determine that Bitcoin transactions are not illegal!

Different countries have different definitions of Bitcoin attributes. The figure below shows the definitions of Bitcoin attributes by various countries. Among the 89 countries and regions involved in the statistics, a total of 23 countries and regions define Bitcoin as a commodity, while 58 countries and regions define it as a general equivalent, currency and money, and another 8 countries and regions define Bitcoin as an asset:

In my country's current legal system and civil law research, Bitcoin is positioned as a concept of virtual property, advocating the definition of Bitcoin as a new type of virtual property of rights. In particular, there have been many lawsuits about Bitcoin in the cases of my country's Internet Court. For example, the theft of Bitcoin was identified as theft in the cases of Chen Jia's theft [(2014) General Criminal First Instance No. 1162] and Wu Hongen's theft [(2016) Zhejiang 10 Criminal Final No. 1043]. my country has identified the property attributes of Bitcoin from the perspective of justice. Therefore, personal Bitcoin transactions are protected by law, and everyone can trade with confidence.

4. Bitcoin transactions are legal, but you need to choose a reliable platform

As a decentralized product, Bitcoin transactions have high market risks. Exchanges and service providers frequently run away. It is particularly important to choose a reliable exchange.

 Comprehensive analysis of whether buying Bitcoin can make money?

Not necessarily. After all, investment is risky, and there are a lot of people who lose money. Since investing is in this area, many people put the cart before the horse and think about how to make money. Few people put risk control first. Investing in Bitcoin is making money, but you must know how to layout, how to build a position, how to stop loss, how to stop profit, how to increase positions, how to lock positions, etc.

After all, the news in the currency circle has limited impact, and the technical aspect is proficient and critical.

In addition, a person's mentality and the amount of funds in the account also play a very critical role.

Finally, when investing in Bitcoin, there are hoarding coins and contracts. For example, contracts are divided into forced transactions and matching transactions. Matching transactions have too many defects, which can easily lead to the phenomenon that the market is difficult to trade. Therefore, when doing contracts, you must choose forced transactions, that is, any point and any market, you can trade at any time if you want to trade. If the above choices are made to play to your strengths and avoid your weaknesses, in general, investing in Bitcoin can make money.

Through the above introduction, I believe that everyone has some understanding of whether buying Bitcoin is illegal. Investors in the currency circle should be able to clearly feel that countries are actively embracing the Bitcoin market and trying to improve the corresponding laws and regulations. Some countries have even formulated laws and regulations on Bitcoin. From this, it can be seen that the purchase of Bitcoin is gradually being formalized, and the rights and interests of investors are also constantly being updated and improved. If you want to know more about related knowledge, you can pay attention to the currency circle. The editor of the currency circle will continue to update related reports later!