Investing in digital currencies is becoming increasingly popular not only among experienced investors but also among newcomers in trading. Cryptocurrencies are taking the worldwide trend by storm since its introduction decades ago. The interest of mass media and investors is because of cryptocurrencies’ promising blockchain technology. Cryptocurrency can be acquired through platform exchanges and bitcoin mining.
This advanced technology enticed enthusiasts into the cryptocurrency journey. However, there are still many misconceptions many traders still believe. Remember, when fake news becomes viral, people start to have problems with misconceptions. That is the reason why we would like to talk about the most common misconceptions about crypto among beginners. We are here to help you clarify some of these false statements you might have heard concerning crypto and come up with proven information.
Blockchain Is a Database in A Cloud
Blockchain is not a traditional database, as many might think of. In fact, it is a decentralized public network with data distributed over many computers that are in the network. Its main function is to keep the records of the transactions made. To put it short, it is a solution that ensures that all cryptocurrency operations are safe and transparent by storing the transaction history code in each “block” of the “chain”. It is not developed for storing files but only for keeping the transaction codes.
Buying, transacting and holding cryptocurrencies are illegal.
It is not illegal to buy or sell any cryptocurrencies. Provided that investors transact with legitimate and trustworthy crypto exchanges and trading platforms. Brokers develop these platforms, experts and software developers give beginners and experienced traders guidance and trading methods that may help them with their crypto journey. Often Cryptocurrency’s risk of market volatility and trading loss are discussed with investors.
In line with this, they are also provided with rigorous trading methods that may guide them to earn substantial revenues. Big companies like Square and MicroStrategy are also investing and buying Bitcoins. In addition, federal regulators like the New York State Department of Financial Services also expressed their interest in the possible formulation of guidelines and regulations for cryptocurrency trade.
Digital Currencies Are Unregulated
It would be unfair to say that cryptocurrencies are unregulated in all parts of the world. The number of countries that recognize crypto as a legit payment option is growing. Many of them like South Korea, Japan, the USA, Australia, and others established a set of laws that control the usage of digital currencies. Of course, they all have different types of demands that their citizens will have to respect.
On the other hand, some countries have completely banned digital currencies. Some of them are China, Pakistan, India, Algeria, etc. Because of these countries, many beginners believe that digital currencies are unregulated everywhere. However, as you see, that is far away from the truth, and there are many proves that the situation in the world will positively change. Many countries are preparing a set of laws that will allow people to use crypto without breaking the law.
Cryptocurrencies Will Soon Disappear from The Global Financial Arena
Despite the fact many people believe that cryptocurrencies are another temporal financial bubble, all in all, the world of cryptocurrencies keeps booming. Regardless of tons of criticism, it offers many brilliant perspectives to investors, making it possible to earn good money, come up with secure investments, and become a successful trader within the shortest terms.
According to most experts, crypto coins will remain on the rise in the nearest future. Furthermore, the cryptos are likely to improve the processes of digital payments, elevating the entire financial world to a completely new level. This is supported by the fact that many central banks of different countries are now experimenting with their official digital money. Using physical wallets and having cash might soon become an old-school solution that is no longer used by most people. Digital tokens representing various assets can significantly simplify online transactions in different fields.
Investing In Cryptocurrencies Is for Financial Experts Only
Crypto trading is open to all enthusiasts. Even if you don’t have a strong technical or financial background, you can still become a successful investor. The only thing you need to start making deals on the crypto market is to have a basic understanding of how it works in general. Since the niche is constantly growing, you will need to constantly learn and keep in touch with the latest tendencies even if you are an experienced trader. Fortunately, there is tons of information and learning materials freely available on the web. So, it is just a matter of your strong desire and available time to plunge in the sphere.
Cryptocurrency is just a myth and is not valuable.
Legitimate statistic websites are reporting the daily market value of cryptocurrencies. Various news articles like Forbes and Business Insider also reported the digital assets market price history that initially started at $0 and reached an all-time high of more than $63,000 last April 2021. It is gaining popularity in trade markets and investment sectors as a new asset class. Bitcoin has already classified hedges similar to digital gold and can be a store of value through inflation.
Cryptocurrencies are still a topic that divides lots of opinions in the investment world. Since the launch of Bitcoin, its popularity is increasing. However, misinformation, mythology and misleading data still surround the crypto world. It is of importance to know about the risks because of market. Hopefully, through this article, some popular myths have been discarded.