Recently, the hype in cryptocurrency prices has proved to be beneficial for a lot of people. However, the crypto market is full of ups and downs. If you are planning to enter the cryptocurrency market, you need to know the myths and facts related to cryptocurrencies and Bitcoin. When you are known to this, you will have the right approach towards moving ahead in the crypto world.
Also Read : How to select a crypto exchange
Also Read : Bitcoin FAQs
Some myths related to cryptocurrency and bitcoin have been debunked here:
Cryptocurrency is not legally operated
It is one of the biggest myths related to cryptocurrency. The fact is that, cryptocurrencies are a valid and legal way of making payments and investments.know about bitcoin circuit, a cryptocurrency trading platform is a legal portal to trade cryptocurrency.
Bitcoin or cryptocurrencies are utilized by criminals
Cryptocurrency or Bitcoin is used by criminal for wrong purposes are one of the myths. There are lots of balances and checks in cryptocurrencies for preventing the misuse of such currency. The fact is that there are several privacy matters built-in Blockchain technology, due to which such activities can be prevented.
Bitcoins are not safe
The Blockchain technology used for trading bitcoin is a highly safe method of training. The encryption procedure and decentralization nature of it make it very safe. However, there are chances of hacks, due to bitcoin transactions being online. The best efforts and measures are taken to make it tough for hackers to control digital wallets. Being an investor it is essential for you to take the right precautions while carrying out transactions with this digital finance.
Trading with cryptocurrency is complicated
A lot of people think trading with cryptocurrency is very complex. But, the fact is that it is as simple as purchasing a share over the share trading portal. You will just be required to open an account to get started with the transactions. Before putting your hands into the crypto market, make sure you are completely aware of what the crypto market is about and how the investments work in this market.
Bitcoins cannot be filched
It is a myth that bitcoin or cryptocurrency cannot be stolen. The truth is that just like gold can be snatched, bitcoins can be stolen. Due to Blockchain technology, the chances of bitcoin getting stolen are less. But, the technology is dependent on the passwords and if it is lost, bitcoin tends to be unusable. One thing you need to keep in mind is that when your password authentication is not strong, there are high chances of your bitcoin getting stolen.
Cryptos can be banned anytime by the government
The government cannot ban such digital finance downright. Such kind of digital finance offers easy access to perform transactions via the internet. If the government wants to ban such currency, it will have to shut the internet. Shutting the internet is completely impossible. The fact is that a majority of the governments are encouraging the use of Bitcoins, and are trying their best to have control over Bitcoins and enforce laws related to it.
Cryptocurrency transactions do not have track records
A common misconception is that cryptocurrency transactions have no track records. The fact is that blockchain technology recognizes and validates every transaction. It also automatically registers all the transactions in the central ledger. Bitcoin and cryptocurrency transactions are permanently stored at the network and are traceable.
Cryptocurrency is a scam
Everything has advantages and disadvantages. The same applies to cryptocurrency. A lot of people consider cryptocurrency as a scam because these are not controlled by any government. However, investing in Bitcoins or cryptocurrency is all about making a right or wrong investment. If you, as the investor are dedicated and can hold on for long, it can surely help to make good profits. On the other hand, if you want to make money fast out of it, there are chances that you might become a victim of a scam.
The increasing demand of Bitcoin and cryptocurrencies has led to upcoming of many myths related to it. These myths have overpowered the facts. However, it is always best to know the facts before investing and carrying out transactions in the crypto world. The key to invest in the crypto world is to act wisely, as it helps to keep your finances safe.