Cryptocurrency has taken the world by storm. From financial institutions to everyday consumers, everyone is looking for ways to get involved. Once you understand the basics, it’s easy to see why. Cryptocurrencies are fast, easy, and anonymous. They can be used as a form of digital cash that can be spent anywhere Visa or MasterCard are accepted or exchanged for other assets such as real-world money (fiat).
However, not everyone understands these concepts. As such, there are many misconceptions about cryptocurrency out there that could keep people from investing if they’re not careful. Here are 5 most common myths about cryptocurrency and how they’re wrong
Cryptocurrency is illegal
While it’s true that some Cryptocurrencies are banned in certain countries, most aren’t. The reason for this is that Cryptocurrencies are decentralized and decentralized systems are impossible to control. Even if the government wanted to stop it, they would have a difficult time doing so.
Centralized banking systems, on the other hand, are centralized. They require a central authority who can decide what happens with your money. However, Cryptocurrencies are decentralized, making them virtually impossible to ban.
Today, the internet offers multiple crypto exchanges to enable traders buy and sell their digital coins with optimal convenience. Bitcoin Era New is the most trusted of such platforms that you can use for trading.
Cryptocurrency can be tracked
Tracking is the key word here. Yes, Bitcoin is anonymous, but not all Cryptocurrencies are. There are ways of ‘tagging’ or tracing transactions, depending on the specific cryptocurrency. However, this is highly dependent on the cryptocurrency wallet, and there are other ways of ‘tagging’ your transactions that aren’t reliant on the wallet.
Whether cryptocurrency is 100% untraceable or not is debatable, especially when you look at the real-world implications that come with it. Cryptocurrencies may be anonymous, but they aren’t completely untraceable.
It’s only for criminals
Again, this is a misconception that stems from the fact that Cryptocurrencies are decentralized. Some Cryptocurrencies are more suited to money laundering and illegal activities, but this doesn’t mean that all of them are used for criminal purposes. Cryptocurrencies are mostly used by regular people.
Criminals and hackers also prefer to use centralized banking systems, which means that cryptocurrency is a safer option. Moreover, if you’re looking to invest in cryptocurrency, there are many options out there. You don’t have to invest in the most used Cryptocurrencies that are used for illegal activities. You can easily invest in the less popular Cryptocurrencies that are much safer for you.
You need to know coding to invest
This is probably the biggest misconception about cryptocurrency out there. There is no coding involved when investing in cryptocurrency. All you need to do is choose your investment option, which can either be a fund, an index fund, or a hedge fund. You then choose the assets that you want to invest in, which could either be Cryptocurrencies or real-world assets like stocks and commodities. Then, you choose when you want your investment to be completed, which can either be daily, weekly, or monthly depending on your requirements. Now, that’s it. There’s no coding involved.
It’s unstable and risky to use
This one is also very common. People are so used to centralized banking systems that they think that Cryptocurrencies are completely unstable and risky to use. However, this is completely false. As we mentioned before, Cryptocurrencies are decentralized, making them virtually impossible to control.
While some Cryptocurrencies are more susceptible to hacking, most are not. As such, some are calling for deregulation. However, most experts agree that Cryptocurrencies are far safer than centralized banking systems.
Despite the media attention it’s received and the myths that have developed around it, cryptocurrency is still in its infancy. Technology has a long way to go before it becomes mainstream, and there are many risks involved in the industry. However, there are also great financial opportunities, especially for those who are willing to learn more about the technology. These are just some of the common myths about cryptocurrency, and they’re worth busting if you want to make sure that you’re on the right side of history.