Every day we hear more about the use, management, and investment in cryptocurrencies. Experts say this new wave of digitisation has allowed greater access to information about the crypto sector and the advances, adoption, regulations, and trust that have been made in digital currencies. Read here Myths Vs.Realities Of Cryptocurrency trading. We’ll go here most of the popular myths and realities about this innovative currency.
The adoption of digital currencies is spreading around the world, and they are not only consolidating as a form of payment, but also as a means of investment. E-commerce is growing all the time and we are currently experiencing a shift away from cash, which is giving rise to new forms of payment. For this reason, it will be increasingly common and necessary to include Bitcoins and other cryptocurrencies among the payment options of online shops. However, there are many myths about this type of monetary technology that generate doubts among sellers and buyers. Today we’ll go over some of the most popular myths and realities about this innovative product.
Read more: How MEX Digital Helps You Trade In Crypto
MYTHS
They are designed for the tech-savvy
Some potential investors are frightened by their digital nature because cryptocurrencies generally operate outside the traditional stock exchanges. This fact may lead them to think that programming skills are necessary. However, this is not exactly true. Investors will need advice and financial knowledge, just as with any other type of investment.
Cryptocurrencies expose personal information
The truth is that payment with this type of currency is completely anonymous. Transactions are recorded at the address of each party, neither the sender nor the receiver need to know each other. Moreover, no bank interferes, and no third party can see the data involved. Only a record is kept of the amount of money and date of transactions, no other information is disclosed to third parties.
They are illegal and used for money laundering
Cryptocurrencies can be unregulated in many countries, but they are legal. They are unlikely to be used to launder large amounts of money, as cash remains a favourite of criminals. Moreover, platforms for investing in cryptocurrencies and exchanges are regulated in many countries and operate under rules aimed at preventing this crime.
They have no real value
Cryptocurrencies have a real price, determined by the behaviour of the market; their appreciation or devaluation is due solely to the supply or demand for the currency in the world.Bitcoin for example, is more flexible than paper money and will only increase as the network grows. It does not have intrinsic value, as its value is intersubjective and depends on how much traders expect the market to behave.
They are useless because they are not tangible
The legend claims crypto is useless because they are not physical. However, this is false. If you think about it, what percentage of the money you use and receive is physical? Moreover, the purpose of this digital asset is not only to use in commerce. Cryptocurrencies can be understood as a store of value (like having physical gold), or to finance projects. Just because they don’t exist in physical form it doesn’t mean they can’t be very useful for your pocket.
They can be easily faked
These currencies work with their own codes and, due to the very nature of the blockchain technology they use, it is almost impossible to duplicate a transaction or produce fake cryptocurrencies. Blockchain technology deals more effectively with issues of reciprocity and trust than central banks. It increases the security of the currency and therefore better avoids manipulation or attacks.
Governments will eventually ban it
Another of the most widespread myths about cryptocurrencies is that it will be banned by many governments in the near future. Again, false. Perhaps the news that China has launched a media battle against crypto has helped to spread this idea, but the truth is that countries like the US, Argentina or Spain advocate and support their use. Therefore, we can say crypto has no expiry date.
Crypto is a Ponzi scheme
Definitely not. They are digital currencies and not a business model on their own. Cryptocurrencies were conceived as a technology that serves as a secure and uncensored transfer protocol that does not offer a return on investment. Cryptocurrencies are still in a stage of expansion and consolidation, but their technology serves as a superior store of value or as a secure and uncensored transfer protocol. In Satoshi Nakamoto’s original Bitcoin proposal, there is never any talk of a return on investment when trading the digital currency. They are only virtual currencies, not business models.
Platforms for investing in cryptocurrencies steal from their users
It is VERY important to trade or invest safely on reputable platforms that guarantees good support and assurance. What you can aim for is to invest in Bitcoinas a form of diversification or to generate both long- and short-term capital gains.Cryptocurrencies may one day replace cash and credit cards, but for now, all existing digital currencies are considered to be worth only a small percentage of the world’s physical money.
Remember to research your options well and consider various investment strategies, whether for times of uncertainty or economic stability. Before starting to trade, it is necessary to get financial advice beforehand, and consider diversifying your portfolio with safe investments.
Conclusion
The term ‘cryptocurrency’ is currently the most fashionable financial term and at the same time one of the most complicated to understand. At least for many people who have little (or no) knowledge of finance and investment. Thus, it is not surprising that it is sometimes incorrectly associated with other concepts such as ‘hacker’ or ‘scam’. But nothing could be further from the truth, Bitcoin – the most famous cryptocurrency on the planet – is one of the most profitable assets of the moment and is expected to remain so in the near future.
Cryptocurrencies are currently regulated in 15 countries, and 30 more are in the process of testing and moving forward towards regulation. However, cryptocurrencies have never been illegal in any country and have been in use for more than 12 years.
