Bitcoin can be polarizing. Bitcoin will soon replace gold. Bitcoin is dangerous and unsafe. Have you ever heard the mentioned statements? The biggest roadblock for further widespread adoption of crypto around the world is a large number of crypto myths. Today, we will inform you about ten of the most persistent myths to help separate facts from fiction.
Ten illusions in crypto trading
First of all, let’s discuss anonymity. Many people consider that it is completely anonymous; however, is it really true? We know that Bitcoin operates on an open, public ledger, and any person can find and look at the information about any other user. Moreover, every Bitcoin owner has its own address associated with a public key and a private key, where the public key is connected with your data. So, there is no anonymity. Also, most of the crypto exchange trading platforms require that the user provides real identity proofs.
2. Cryptocurrency is virtual, and it’s not real
We are here to ruin the second myth. Despite the fact that cryptocurrencies are not in your purse or wallet, many people consider that they are not real, but it is not the same as thinking of them as imaginary money. We can use cryptocurrency to pay for real products and services. The total amount of companies accepting Bitcoin as an authentic way of payment is increasing rapidly. Coca-Cola is a pioneering company, and it has come up with vending machines where you can operate with crypto. In addition, there are about 9000 crypto ATMs (Automated Teller Machine) in Europe, and the number is growing.
The co-founder of PayPal, Peter Thiel, informs that he does not think that Bitcoin has the potential to change the world so fast.
Every crypto holder has to decide whether it is to be treated as an asset, currency, payment mechanism, or even as a further development of global technology.
3. Safety operations
Many people use bitcoins because of their security options for transactions. However, you need to know that it is also may be an illusion. Let’s imagine that the system is a chain, so changing one block involves changing the surrounding ones. However, being decentralized, crypto can become a hotspot for most cyber hackers and thefts. You need to choose only reliable platforms and exchanges in order to decrease the risks.
4. Cryptocurrencies are the same
There is a myth that all cryptocurrencies are the same, but it is not valid. During the present day, there are about 1500 cryptocurrencies for different issues and purposes. Bitcoin is the most popular one and is widely used to make and receive payments. BAT is used mainly for online advertising, and it is easy to navigate and monitor, so even a newbie in the industry can use it. Monero is known for its secure and private nature. Investors in different countries prefer to use Tezos. If you want to speed up money and conduct an international transaction fast, it is better to choose Ripple. So, as you can see, people can use various cryptos for multiple purposes.
5. It is difficult to invest in crypto
Millions of people around the world use crypto trading every day. For example, there are more than a million people in Australia who are using crypto. Just imagine the ratio of its population to crypto investors! That means you only need to find a complete guide on how to use crypto, and the majority of your doubts will be gone.
6. Cryptocurrency is for criminals
People found a way to steal money or to carry out illegal activities long ago before crypto existed. Crypto has strict regulations, the activity of trading is controlled by anti-money laundering legislation. So, it is not easy to steal or launder money, as it was thought. However, despite all the mentioned facts, the number of criminals using crypto has shrunk for the previous few years.
Also, we know that cryptos are pseudo-anonymous because your crypto wallet has to be connected to a person’s identity.
7. You have to buy crypto to be in the loop
You do not have to buy crypto to be an expert in this field. You can monitor the price of cryptocurrency and search for information about crypto with the help of different exchanges such as INX crypto trading and, if necessary, complete all the required exchange operations. Crypto exchanges are perfect for day traders to capitalize on the volatile market and take advantage of small price movements throughout the day.
8. Crypto trading is an easy way to make money
This is not a fact, even though many people have seen huge gains. Many people lost money because of price volatility. As you know, the trading price can rise and fall suddenly, and you can not predict the process precisely. So, investing in crypto cannot guarantee you will receive a large amount of money.
9. The central bank will crush crypto
After the government and a central bank realized that crypto has become more popular, they were trying to develop and integrate an alternative. They issued a central bank digital currency; it is an electronic form of cash that can be exchanged much as you traditionally can. However, the government of China is striving to launch its own digital money to gain greater oversight into spending in the country.
10. Crypto is a pyramid scheme
Cryptocurrency has nothing to do with the pyramids. As you know, the main aim of a pyramid scheme is to recruit users as many as they can and to promise them to receive special rewards. A Ponzi scheme can be compared to a pyramid with a slight difference because you are not rewarded for enrolling other individuals. However, you can receive some part of the money from whatever recruit pays. There are no special rewards for buying crypto. In addition, crypto is transparent so that any person at any time can inspect the public ledger.
Crypto appeared in the market more than 12 years ago, but there are various myths floating around this. And no wonder it’s getting more and more popular worldwide. We are sure that it is the best time for those negative myths to get busted because the development of digitalization will increase the usage of crypto, and we want you to be ready for that.